Deleivering and invoicing goods to Canada

Question

We are new to exporting to Canada and are delivering goods (via our sales agent) to the customer. Should goods be declared at customs and if so should we be organised in advance to pay any duties, tax etc. We have an export license and have created a commercial invoice. (The contract is DDP). Also, as it is DDP should we state what the amounts are for duty, GST and deferment on the invoice or is it ok to just show the sales value and quote DDP ?
In the future we are like to be shipping items so what would be the recommended transport .

Answer

Hi there,

I do not believe that you should be paying any duties/taxes in advance because a definitive value for any liable duties/taxes owed upon importation in to Canada will only be calculated once the goods are physically imported.

So long as you show a true sales value against each commodity code then this will enable Canadian customs to accurately calculate the exact amount owed (which is then often billed backwards through the supply chain and subsequently on to yourself). With this information you can calculate an decent approximation cost prior to shipping the goods but it will ultimately only be an approximation.

Because customs procedures can be very localised the advice is to ship goods DAP as opposed to DDP if at all possible.

The mode of transport depends on what you are shipping (sizes, weights, volumes, type of goods, timescales etc) – if you would like any further help on the logistics side of things you would be welcome to contact us directly and we would take a better look in to this for you (simon@unitylogistics.co.uk / 01709 700 548).

Kind regards,

Simon

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