The words customs delays are far from music to a business owner’s ear. It is true that importing goods has its risks, but knowing all the facts and having all the right documents in place will minimize your chances of dripping in cold sweat for days on end. Understanding the common reasons for customs delays is key to having your goods arrive on time and as seamless as possible.
#1: Incomplete or Missing Documents
The Canada Border Services Agency (CBSA) has clear and concise forms and documents that require thorough information. Incomplete or missing documents are often the first reason for custom delays.
Some forms include:
Additional documents when applicable:
- Permits and licenses required by other government and department agencies (Eg. Canadian Food and Inspection Agency (CFIA)
- Certificate of origin to claim preferential treatment under CUSMA
#2: Incorrect Tariff Classification Codes
Tariff classification codes help classify products under the World Customs Organization’s Harmonized System and list over 200,000 tariff codes. The international Harmonized System allows for uniformity. A product that originates from one country will have the same identifying code as a product manufactured in a different country.
Misclassification can lead to serious problems including:
- Unnecessary customs delays
- Missed opportunities to take advantage of free trade agreement benefits
- Overpayment of duties
- Flagged by customs can lead to further audits
#3: Errors in Product Valuation
Your cargo’s valuation is used for calculating duties and other taxes, statistical purposes, and determining whether additional legal requirements are applicable. CBSA provides in detail the information regarding valuation.
#4: Incorrect Shipping Terms
Failure to have the correct shipping terms, or Incoterms, can result in a shipment being delayed at the border. Businesses all over the world follow Incoterms that describe the responsibilities and obligations of buyers and sellers throughout the shipping process. This includes who is responsible for unloading in the trucking process and who is liable for certain payments.
#5: Not Compliant with Canada’s Packaging and Labeling Requirements
On a federal level, goods entering into Canada must have the following:
- Products labelled in English and French
- Weights listed in metrics
- Information of Canadian importer
- Country of origin
Provinces, such as Quebec, may have their own labelling requirements. In addition, certain products like clothing and food will also have other conditions. Failure to provide correct labelling may result in financial penalties.
You’ve invested hours into building your business and having your goods delayed at customs for incorrect or missing information is stressful and costly. Knowing your product, whether it can be imported from the get-go, and the requirements for customs clearance will help you avoid unnecessary detours and delays. A large part of solving the logistics puzzle means having a strong team of freight forwarders, customs brokers, and LTL or FTL container trucking company with a bonded sufferance warehouse working for you.
With over three decades of experience as a leader in the trucking and warehousing industry, you can count on Sandhar Trucking to manage your transportation needs. As one of the few trucking companies in Vancouver, BC that services all the ports/rails and operates a bonded warehouse, we are a one-stop-shop for all your shipping needs.
Whether you’re in need of container trucking, LTL/FTL services or a bonded sufferance warehouse, contact us today at (604)-276-9044 or info@sandhartrucking.com today to learn more.