Prepare For Duties And Tax
If your market is international you will need to manage the collection of duties and taxes and the many regulations surrounding the import of products in and out of the US or Canada.
Want to import into Canada but you're not a resident? Learn more about the Non-Resident Importer Program.
Most imported goods into Canada are subject to a 5% federal tax known as the Goods and Services Tax (GST). If duty is applicable, it is added to the value of the goods and the GST will apply on the duty-paid value of the shipment (i.e. 5% GST x (value of goods + duty paid). It is your responsibility to comply with all Canadian customs and taxation laws and regulations, including applicable duty and tax requirements.
Consider A Customs Broker That Offers Courier Services Over a Courier That Offers Customs Brokerage Services.
Many small businesses rely on courier companies to get their goods from point A to point B as it provides the most cost effective shipping option for small shipments. If crossing international borders, the payment of Customs duties and taxes is typically wrapped into the bill for this shipping service or if under a certain value, not applicable.
Courier transport can be fast and efficient, but caution is advised when using their “all-inclusive” customs brokerage services. Couriers transport large volumes of shipments across the border. Any advantages you may gain in freight rates or speed of service can be very quickly wiped out by costly tariff errors that are usually not identified until there is a customs post-release verification audit. In addition, when you use a courier to ship small expedited parcels for your company whether they charge or offer free customs brokerage equates to using multiple brokers. The perils of using more than one customs broker was explained in our blog The Downside of Using Multiple Customs Brokers.
However, many countries including the US and Canada offer courier company specialized import processes that limit the need for formal declarations with Customs provided they are not on a list of regulated products and under a certain dollar value (de minimis).