Knowing how goods go into customs clearance in Canada assists you to troubleshoot problems and also avoid the lengthy border delays which are bad for business. When goods are imported, the carrier of the goods reports to the Canadian customs. The goods have to be accounted for and a B3 or entry form must be submitted to the CBSA (Canada Border Services Agency) so as to make any taxes or applicable duties.
Imports like biological samples, gifts, and commercial goods must be cleared by the customs through the CBSA. In case this isn’t done, fines and penalties are imposed on the concerned parties. Here is a guide that will prove helpful:
Preparing to import
An individual or business needs to get a Business Number that is provided by the Canada Revenue Agency for an export or import account. The account is free and can be obtained in a few minutes. Most people get the account by visiting the Canada Revenue Agency business registration online.
Identifying the goods to import
Its imports to gather adequate information on the products you wish to import. Obtain product composition information, descriptive literature, and product samples, if possible. This information is very vital because it assists in determining the tariff classification of the goods to be imported. The tariff classification number determines your duty rates to be applied to the goods.
Finding out if you’ll require the services of a Customs Broker
You may not be conversant with preparing your accounting and release documentation or transaction with the CBSA directly. If you aren’t, then you will require the services of a licensed Customs Broker, who will act as an agent when transacting business. But, you are responsible for payment of taxes and duties, accounting documentation and subsequent corrections like re-determination of origin, classification, and valuation despite hiring a customs broker.
Determining where you’ll import your goods from and if they are permitted into Canada
Where will the goods you intend to import originate from? This doesn’t mean the country where the products are shipped from but where the final product was made from. There are certain goods that can’t be imported into Canada. They may include high propaganda or child pornography and used items like automobiles and mattresses.
Determining duties and taxes
Different goods are subjected to different duties and taxes. You have to find out the amount you will likely pay. The invoice value should be converted into Canadian dollars. Usually, goods are subjected to a four percent customs duty and a five percent goods and services tax (GST).
Placing your order
Once you have all these details, you are now ready to place an order with your preferred exporter, vendor or shipper. This is also the time you’ll identify the mode of shipping that suits your needs. A pars checker can be helpful because you’ll get to know when the goods will arrive.