5 Key Things to Know When Shipping from the US to Canada

Introduction

As close neighbors and long-standing trade partners, the United States and Canada have enjoyed a fruitful economic relationship for centuries. The well-negotiated trade agreements between these two nations have led to mutual prosperity, making commerce between them crucial for both economies. However, shipping goods from the US to Canada comes with its own set of challenges and considerations.

At FreightAmigo, we understand the complexities of international shipping, especially between these two North American giants. As a full-service, one-stop digital supply chain finance platform, we're here to help you navigate the intricacies of cross-border logistics. In this article, we'll explore five essential things you need to know when shipping from the US to Canada, and how our Digital Logistics Platform can support you through this process.

1. The Cost Factor: Understanding Expenses When Shipping to Canada

One of the first things to consider when shipping to Canada is the potential expense. Several factors contribute to the overall cost:

Complex Import Duty Tax System

Canada operates on a low de minimis system, which means that goods valued over $20 CAD are subject to import duty and tax. This threshold is significantly lower than many other countries, potentially increasing the overall cost of shipping.

Logistics Costs

The sheer size of Canada - the second-largest country in the world - can lead to increased logistics costs. Shipping companies often transfer handling and surcharge fees to the customer to cover these expenses.

How FreightAmigo Can Help

At FreightAmigo, we understand that managing costs is crucial for businesses of all sizes. Our Digital Logistics Platform allows you to compare door-to-door freight quotes for various shipping methods, including international courier, airfreight, sea freight, rail freight, and trucking solutions. This feature enables you to find the most cost-effective option for your specific needs, potentially saving you significant amounts on your shipping expenses.

2. NAFTA and USMCA: Understanding Trade Agreements

The North American Free Trade Agreement (NAFTA) has been a cornerstone of US-Canada trade relations since 1994. However, it's important to note that NAFTA is in the process of being replaced by the United States-Mexico-Canada Agreement (USMCA).

Key Points About NAFTA and USMCA

• These agreements aim to reduce trade barriers between the US, Canada, and Mexico.
• They particularly favor agricultural, automotive, and textile products.
• To benefit from tariff exemptions, exporters must provide proper certification.
• The Canadian importer must keep importation documents for six years to comply with customs regulations.

NAFTA Certification Process

When exporting from the US to Canada, it's crucial to provide NAFTA certification for tariff exemptions to apply. Remember:

• Only the US exporter can fill out the NAFTA certificate, not the Canadian importer.
• If the certificate isn't available when goods cross the border, there's a one-year grace period to provide it.
• Correct completion of the form is essential for duty exemption to apply.

How FreightAmigo Supports You

Navigating trade agreements can be complex, but FreightAmigo is here to help. Our Digital Logistics Solution includes features to automate shipment documents, ensuring that all necessary paperwork, including NAFTA or USMCA certifications, is correctly filled out and submitted. This can save you time and reduce the risk of errors that could lead to delays or additional costs.

3. Documentation: The Key to Smooth Shipping

Proper documentation is crucial when shipping to Canada. Ensuring you have all the necessary paperwork can help avoid delays and additional costs at the border.

Essential Documents for Shipping to Canada

• Canada customs invoice
• NAFTA certificate of origin (or USMCA certificate, once ratified)
• Bill of Lading
• Shipper's export declaration
• Cargo manifest

In some cases, Canadian customs may require additional documentation such as:

• Packing list
• Import permits
• Special licenses

FreightAmigo's Solution

At FreightAmigo, we understand that managing documentation can be overwhelming. That's why our Digital Logistics Platform includes features to automate shipment documents. This not only saves you time but also reduces the risk of errors that could lead to customs delays. Our system ensures that all necessary documents are properly prepared and readily available, streamlining your shipping process.

4. Restricted and Prohibited Goods: What You Can't Ship to Canada

Not all goods can be freely shipped into Canada. It's crucial to be aware of what items are restricted or prohibited to avoid issues at the border.

Examples of Prohibited Items

• Firewood
• Fresh fruit
• Weapons (including brass knuckles, pepper spray, tasers)
• Pornographic material
• Hate propaganda
• Certain types of knives, firearms, ammunition, and crossbows

Special Considerations

• Canadian customs officials have the right to search electronic devices for prohibited content.
• Products must be labeled in English or French for proper identification of ingredients.
• Even "Kosher" products are not exempt from labeling regulations.

FreightAmigo's Support

Navigating the complexities of restricted and prohibited goods can be challenging. At FreightAmigo, our Digital Logistics Platform is designed to help you stay compliant. Our system can flag potentially problematic items, helping you avoid shipping prohibited goods inadvertently. Additionally, our 24/7 logistics expert support is always available to answer your questions about specific items and regulations.

5. Unique Shipping Rules: Legal but Not Shippable

It's important to note that some items, while legal in Canada, are prohibited from being shipped into the country. This creates a unique set of challenges for exporters.

The Cannabis Conundrum

A prime example of this is cannabis. While legal in Canada, it is strictly prohibited to export cannabis from the US into Canadian territory in any form. The consequences of attempting to ship cannabis can be severe, including:

• Lifetime ban from entering Canada (personally or for goods from the exporting company)
• A permanent mark on the exporter's record
• Potential arrest and prosecution

It's worth noting that this prohibition applies even to medical marijuana.

Other Considerations

• Permits for bringing cannabis into Canada are only issued to entities meeting specific government criteria, not to individual exporters.
• Similar rules apply to firearms and certain plant and animal samples.

How FreightAmigo Can Assist

Understanding and adhering to these unique shipping rules is crucial for successful cross-border logistics. At FreightAmigo, our Digital Logistics Platform is designed to keep you informed about the latest regulations and restrictions. Our system can help flag potentially problematic shipments, and our expert support team is always available to provide guidance on complex shipping scenarios.

Conclusion: Navigating US to Canada Shipping with FreightAmigo

Shipping from the US to Canada presents unique challenges, from understanding costs and trade agreements to navigating documentation requirements and shipping restrictions. However, with the right knowledge and tools, these challenges can be effectively managed.

At FreightAmigo, we're committed to transforming and redefining the way organizations, enterprises, and individuals experience logistics. Our full-service, one-stop digital supply chain finance platform combines artificial intelligence, big data, FreighTech, FinTech, InsurTech, and GreenTech to accelerate logistics, information, and cash flow.

Whether you're shipping documents, parcels, or bulk goods, our Digital Logistics Platform offers powerful functions to support your cross-border shipping needs:

• Compare door-to-door freight quotes for various shipping methods
• Track shipment status anytime, anywhere
• Arrange customs clearance, cargo insurance, and trade finance in one stop
• Automate shipment documents
• Access 24/7 logistics expert support

With FreightAmigo, you can ensure a hassle-free and enjoyable logistics experience, even when navigating the complexities of shipping from the US to Canada. Let us help you create a new path for your business to grow and ship efficiently in the global marketplace.