Sales to Canada

Cross-Border Requirements:

Shipments under $20.00CAD do not require formal Customs entry provided other governments are not involved. However, documentation is still required to let Customs know the value and items of your goods being shipped.

 »  Documentation
 »  Specific Product Requirements
 »  Customs Charges
 »  Non Resident Importer (NRI) Program

Documentation

Avoiding delays at the border is easier then you think. By having the proper documentation available to Customs, you can move your items quickly across the border for immediate delivery to your buyer.

There are essentially two documents required for Canada Customs:

A. Commercial Invoice
B. North American Free Trade Agreement

A. Commercial Invoice
Cross-border shipments should include a commercial or proforma invoice identifying:

• Seller
• Buyer
• Generic description of goods
• Number of parcels
• Total number of product units
• Selling price
• Country of manufacture
• Currency of sale

Importers / Exporters generally make use of the Canada Customs Invoice [PDF] completing each field to ensure all necessary information is provided to Canada Customs.

B. North American Free Trade Agreement
The North American Free Trade Agreement (NAFTA) is the trade agreement between Canada, the US and Mexico that identifies qualifying products manufactured in each of these three countries; products that are duty free when imported across the border.

In order for duty free rates to be applicable, the product must be manufactured in Canada, the US or Mexico and be accompanied by the following necessary forms:

• A formal NAFTA Certificate [PDF]. This certificate is used for shipments valued at $1600.00 CAD or more and must list each product being imported. It can be valid for up to 365 days if indicated correctly in the blanket period field.
  
  
• A Low Value Statement or Appendix B [PDF]. This is used for shipments under $1600.00 CAD and must accompany each shipment where US, Canadian or Mexican origin goods are included.

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Specific Product Requirements

In some instances, Canada Customs and other government departments (OGD) need to monitor specific products entering Canada.

To see if you are sending monitored products to Canada, check out this commodity summary sheet.

If you ship items listed on this chart, you will want to check with the contacts on the summary sheet or a broker to determine what extra steps & documentation are necessary before bringing the item into Canada.

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Customs Charges

There are some charges that could be payable on shipments entering Canada. As a US seller you may want to incorporate these in your shipping costs. The percentages are charged on the selling price of the item before the shipping charges are added.

• 5% Canadian Goods & Services Tax
• Provincial Sales Tax if the item is being used for personal use rather then resale. The rate will vary depending on province.
• Duty free if manufactured in North America
• Dutiable depending on what the product is. Check out our Duty / Tax Calculator for an estimate
• Additional charges may apply if special licenses or import permits are required. Again, this would depend on the product being shipped. Check out our Summary Sheet for items monitored by Customs that may incur additional fees. You would want to check with a Customs Broker or contact on the noted sheet for verification of any additional charges
• Broker fees should you choose to use a broker

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NRI Program

A common reason sellers are hesitant to open their auctions to international bids is their fear of border delays and hidden costs which can upset an unsuspecting buyer. What sellers don't necessarily realize is that cross-border transactions can be easier and more profitable than they might think.

The Non-Resident Importer program is a US seller designed program that allows the seller to control all costs involved in the sale. This means that the buyer pays one delivered price to the seller only and does not need to be involved in the shipping or cross-border process.

No seller wants a shipment held at the border because of missing documentation or other government involvement. The NRI program ensures your goods move seamlessly across the border and creates a domestic purchase environment for the buyer.

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A & A Contract Customs Brokers are experts who are here to assist you with any cross-border needs you may have. We can customize a program that enhances your current system and provide you with information and cost saving possibilities to help you open your auctions to international buyers.