Things the Public Sector Should Consider when Cross-Border Importing

When importing from the USA and using purchase orders, P Cards, Credit Cards please make sure that when you are buying domestically or directly from US suppliers you indicate the correct terms.

Domestic Purchase-Your Canadian supplier in many cases will order the goods from the USA and they will be drop shipped for direct delivery to you. Their supplier must indicate the Canadian suppliers name and address etc. on the Customs invoices as the importer/purchaser with the delivery location shown as consignee only. In some cases they indicate the drop shipment information (You) and you end up paying GST twice.

Imported Goods. Where you place the order directly with your supplier please insure they follow your Purchase Order. If paying in CAD this must be clearly shown on the commercial invoice they prepare on line with courier, as Canadian dollars is not generally the currency of choice. Insist that they indicate your PO on the commercial invoice which can then be indicated on our billing invoice for ease of processing by your Accounts Payable Department.  Be sure they declare the price paid or payable as we have seen many cases where the commercial invoice being prepared on line is not the correct value and this can cause an AMPS penalty for undervaluation. In cases where your A/P team notice a discrepancy between the payable invoice and the customs invoice we used at the time of customs clearance, please notify us for voluntary correction to the original file . As an Importer you are required by regulation to report this discrepancy to CBSA as a voluntary adjustment. CBSA are verifying Courier shipments more closely for valuation as they feel many shipments are under declared. Therefore not the correct amount of GST is being paid at the Border.

Capital Purchases-It is very important on large capital purchases that we receive a copy of your purchase in advance of the shipment arriving in Canada. This allows us to verify the Harmonized code, the GST status, the correct Importer of Record and update our data base for our customs specialists.

Pharmacy-In many cases we do not receive an advanced copy of the Health Canada LOA.This is very important to have on hand prior to the shipment arriving  in Canada which will allow us time verify the GST status. Emergency drugs in most cases are Zero rated for tax at the border. Clinical trial drugs are taxable. Without having the copy of the LOA we are unable to determine the correct status.

Education-Please attend our seminars or let us know if there are specific topics you would like to know more about. We offer a customs 101 walk through the customs process on cross border customs clearance.

Zoom Room-We are now equipped to bring you the latest video conferencing technology and make the customer experience much more meaningful for your organization. Go to https://taco.zoom.us/

Please help us help you. Please pass this information along to the correct departments for their Action.

For additional details on this document kindly contact Laurel Marshall or Lynn Fullerton @905-677-3471

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