Canada-US Customs Clearance Guide

Navigate Canada-US customs clearance with confidence. This comprehensive guide covers documentation requirements, duty calculations, compliance procedures, and best practices for smooth border crossings.

Required Documentation

Commercial Invoice: Detailed description of goods, values, and country of origin. Bill of Lading: Transportation document and receipt. Packing List: Contents and packaging details. Certificate of Origin: For USMCA preferential treatment. Additional documents may include import permits, certificates, and regulatory approvals.

Duties and Taxes

Importing to Canada: Applicable customs duties based on tariff classification, GST (5%), and provincial sales taxes. Importing to USA: US customs duties, merchandise processing fees. USMCA-eligible goods may enter duty-free with proper certification.

Customs Brokers

Licensed customs brokers handle clearance paperwork, duty calculations, and communications with border services agencies. We work with trusted broker partners for both Canadian and US customs clearance.

Pre-Clearance Programs

FAST (Free and Secure Trade): Expedited clearance for pre-approved importers and carriers. CSA (Customs Self Assessment): Reduced examination for qualified importers. PIP (Partners in Protection): Security-focused program for importers.

Canada Border Services Agency (CBSA) Requirements

Importing goods into Canada requires compliance with CBSA regulations and procedures. All commercial shipments require advance electronic transmission of cargo information through the Advance Commercial Information (ACI) program, typically submitted by the carrier. The importer or their customs broker must submit import declarations electronically through the EDI system. Required documentation includes commercial invoices showing detailed product descriptions, quantities, values, and terms of sale, CBSA Form 1 (Canada Customs Invoice) for commercial shipments, certificates of origin when claiming preferential tariff treatment, import permits or licenses for regulated goods, and product-specific certificates (phytosanitary, sanitary, etc.) for agricultural products, food, plants, and animals. Duties and taxes must be paid or secured before goods are released. The GST (5%) applies to most imported goods, plus provincial sales taxes where applicable. Our customs clearance services coordinate all CBSA requirements ensuring accurate documentation, proper tariff classification, timely electronic filing, and payment arrangements.

US Customs and Border Protection (CBP) Requirements

Importing goods into the United States requires compliance with CBP regulations and multiple federal agencies. The Automated Commercial Environment (ACE) system processes electronic entry documentation. ISF (Importer Security Filing) must be filed at least 24 hours before loading for ocean shipments. Entry summary (CBP Form 7501) must be filed within 10 days of entry. Required documentation includes commercial invoices with detailed product information, packing lists detailing contents and packaging, bills of lading as evidence of shipment, entry/immediate delivery (CBP Form 3461), and product-specific documents for regulated goods. US customs duties vary by product classification using the Harmonized Tariff Schedule. Merchandise Processing Fee (0.3464% of value, minimum $27.75, maximum $528.33) applies to most shipments. Many products require permits, certifications, or agency approvals from FDA (food, drugs, cosmetics), USDA (meat, poultry, plants), EPA (pesticides, chemicals), and other agencies. Our customs brokerage partners ensure full compliance with all CBP and agency requirements for smooth US import clearance.

Tariff Classification and Duty Calculation

Proper tariff classification is critical for customs compliance and cost management. Both Canada and the US use the Harmonized System (HS) for product classification with 10-digit codes identifying specific products. Classification determines applicable duty rates, which vary from 0% to 20%+ depending on product and country of origin. Factors affecting classification include product material composition (what it's made of), intended use or function, level of processing or manufacturing, and product form or presentation. Misclassification can result in incorrect duty assessment, potential penalties for underpayment, delays at the border for reclassification, and missed opportunities for preferential duty treatment. Our customs expertise includes accurate tariff classification using HS code databases and trade publications, binding rulings from CBSA or CBP when needed, claiming preferential rates under USMCA or other trade agreements, and duty minimization strategies through proper classification and program utilization. We help calculate total landed costs including duties, taxes, brokerage fees, and transportation for accurate pricing and planning.

Special Import Programs and Procedures

Various programs expedite customs clearance and reduce costs for qualified importers. FAST (Free and Secure Trade) provides expedited processing at the border for pre-approved importers, carriers, and drivers through dedicated lanes and reduced inspections. CSA (Customs Self Assessment) allows qualified Canadian importers to self-assess duties and taxes with reduced CBSA examination. C-TPAT (Customs-Trade Partnership Against Terrorism) is the US equivalent providing benefits like reduced inspections. ACI (Advance Commercial Information) requires electronic cargo information transmission before arrival enabling risk assessment and faster clearance. PARS (Pre-Arrival Review System) and PAPS (Pre-Arrival Processing System) streamline cross-border trucking with advance clearance before arriving at the border. These programs require application, approval, and compliance with security and trade requirements. Benefits include faster border crossing times, reduced inspection rates, improved supply chain visibility, and lower logistics costs. Our freight services work with carriers enrolled in these programs to maximize efficiency for your cross-border shipments.

Key Features

Step-by-step clearance process
Documentation checklists
Duty calculation examples
USMCA qualification guidance
Common clearance issues and solutions
Contact information for border agencies

Frequently Asked Questions

How long does customs clearance take?

With proper documentation, clearance typically takes 1-4 hours. Pre-clearance programs can reduce this further. Delays occur when documentation is incomplete or goods require additional inspection.

Who pays duties and taxes?

The importer of record is responsible for duties and taxes. We can arrange payment through our customs broker partners on your behalf.

What is a commercial invoice?

A commercial invoice is a detailed document describing the goods being shipped including descriptions, values, country of origin, and terms of sale. It's required for all commercial cross-border shipments.