In simple terms, cross-Border shipping refers to transferring products and goods between countries. This means that companies willing to engage in international trade can reach more customers, expand brand awareness and drive more revenue. Sounds advantageous right? Unfortunately, tackling cross-border logistics is no small feat. Even if you are not an established business, an individual attempting to send a shipment between the US and Canada involves a lot of complexities
In Cross-Border shipping, there are numerous rules and regulations we should abide by if we want our products shipped hassle-free. However, these rules and regulations are not so time-friendly for freight forwarding as each step in the process delays the shipment. Stream Logistics is here to help you understand how Cross-Border shipping work.
The customs process involved in Cross-border shipping
Whether you are Cross-Border shipping from Canada to the U.S. or vice versa, your shipment is going to have to clear customs. Governments impose customs or laws on goods brought into their countries as safety measures, but when shippers are unaware of the customs laws of the country of their customers, freight delays frequently happen. A country will not allow the entry of any shipment that does not adhere to the customs of that country.
When shipping to the US, your shipment has the potential to be examined by Customs and Border Protection (CBP). While there is no way to be certain whether your shipment will be flagged for customs exams, general determining factors include particular undisclosed algorithms, commodity type, and the value of your shipment. A customs exam could either be a visual examination (tailgate) or a much more time-consuming full unload at the customs warehouse. Similarly, your shipment can be examined by the CBSA (Canadian Customs) if you are importing an item to Canada.
The solution for the complex customs process
Cross-border shipping is complex; there is a lot of paperwork involved in the process. One of the first things advisable in Cross-Border shipping is hiring a reliable customs broker to help move the shipments through the customs process, work with shippers to classify freight, file the appropriate paperwork and understand associated tariffs.
The customs broker will make an entry to Customs, this would be a PARS (Pre-Arrival Preview System) coming into Canada and a PAPS (Pre-Arrival Processing System) going into the US. Then the broker’s entry would make a declaration of what the shipment consists of and would account for applicable taxes and duties to get the goods released by the relevant country’s customs. Even if inspections of the shipment may be unavoidable; if you are smart enough to hire an expert customs broker, they will efficiently work with Customs to gain a fast release of your freight.
Documentation required in Cross-Border shipping
In the topic of document requirements for Cross-Border shipping, all government-required paperwork must be properly filled out and given to the carrier in order for the package to pass through the border without a delay. The shipment will be stopped and there will be delays for everyone concerned if this paperwork is not available and prepared well. In brief, the importer or exporter needs a broker and the broker needs the necessary documentation in addition to the carrier PAPS or PARS depending on the entry. The main documents needed are;
- Commercial Invoice – this invoice is used in Cross-Border shipping to know whether the shipment contains dangerous goods, food-related products, or other information that will help to identify what will be crossing the border. The border crossing will use this to get ready for your shipment.
- Certificate of Origin- this is an important international Cross-Border shipping document that confirms that the whole supply of the goods of a particular export shipment was obtained, produced, manufactured, or processed within a particular country.
- The Bill of Lading (BOL)-this is a crucial document for Cross-Border shipping which specifies the carrier, the location where the shipment will be picked up, and the destination. The number of items and the freight’s weight are also included.
The Bottom Line
To expand their reach globally; businesses must ensure they have the proper cross-border logistics systems, processes, and technology in place. But facing all these challenges can be daunting. This is where we come to the rescue.
Stream Logistics possesses the expertise to offer scalable, cost-effective in-house transportation, warehousing, and distribution solutions. We offer all of our customers the same level of service and give you the best bang for your buck.
With our services, you will forget entirely about the hassles cross-border shipping is typically associated with.