Four Tips to Streamline Cross-Border Shipping

Shipments between Canada and the United States are international transactions that are subject to government regulations, security checks, and various fees and taxes. Although Canada and the United States are strong trading partners who are highly cooperative with one another, there are still plenty of issues that may arise when trying to ship to and from Canada. Follow these four tips to help streamline any cross-border shipping your company does.

Expand Your Carrier Options

Many businesses in the United States tend not to view Canada as a separate market. This is a costly mistake that fails to recognize the inefficiencies of using a carrier that does not have a strong presence in the Canadian provinces. In fact, many U.S companies do not realize how much they are paying by relying on the same regional carriers. Working with a qualified third-party logistics provider (3PL) can be helpful in identifying a carrier that will meet your cost and service needs on both sides of the border.

Plan Ahead

Make sure to give plenty of lead time for shipments going across the border. Only in rare cases will a company get same-day cross border service. A small number of companies that do large amounts of cross-border shipping can handle next-day shipping if it is part of a standard process. However, it normally takes time to find carriers and drivers who are knowledgeable of the different rules and regulations that are required for crossing the Canada-U.S. border. It takes even more to prepare the proper documentation, so the more lead time you can provide, the better.

Choose Appropriate Accounting Software

Out of the 50 United States, only forty-five of them collect state sales tax. However, all Canadian provinces collect Provincial Sales Tax (PST). Depending on where a company is shipping to, some PSR has been merged into the Harmonized Sales Tariff (HST). This means that tax rates can vary greatly between different states/provinces.

Get Advice

Shipping within Canada or across the Canada-U.S. border can be extremely complicated for inexperienced shippers. For example, the United States limits the countries that businesses can source from. If a product that is coming from Canada has originated in a country that is prohibited, it is not allowed to cross over into the U.S. Laws and customs rules can change between states and provinces, so obtaining professional advice about taxes and legalities should always be a part of your plan.

There is a lot to know about shipping goods across the Canada-U.S. border. Shippers and logistics providers need to constantly adapt to new challenges in order to move goods efficiently. These four tips can help streamline your cross-border shipping process.