Doing business in the United States

Clearing U.S. customs is straightforward if your goods comply with all applicable import regulations and all your paperwork is correct. Inaccurate or incomplete documentation is the most common reason for delays at the border, so some extra time spent on paperwork can be a very good investment.

5.1.1 Using customs brokers

If your shipment is valued at more than US$2,000, you’ll have to use a U.S. Customs broker to bring it through customs. Brokers, who must be licensed and bonded, are regulated by the CBP. Using them has many benefits, including the following:

• Your broker will help manage your compliance risks by ensuring that you meet current requirements on both sides of the border.
  
• Your broker will prepare all the documentation required by customs on both sides of the border.
  
• Your shipments will arrive at the border pre-cleared for entry, with all fees and duties paid.
  
• When your goods arrive at the border, your broker will clear your goods through customs quickly, sparing you storage costs.
  

To find a U.S. customs broker, you can use the web site of the National Customs Brokers & Forwarders Association of America (NCBFAA).

5.1.2 Using freight forwarders

Most Canadian exporters use freight forwarders to move their goods to the United States, since this is usually more cost-effective than doing it yourself. Forwarders can handle transportation, customs clearance, cargo insurance, document preparation and processing, warehousing, local U.S. delivery and many other necessary functions.

There are numerous freight-forwarding companies in Canada, many of which have international expertise. For listings, consult the Canadian International Freight Forwarders Association (CIFFA) web site.

5.1.3 Customs documentation

U.S. Customs will require the following basic documents for each shipment:

• Commercial invoice
  

The commercial invoice is used by U.S. Customs for import control, valuation, and duty determination. It must provide basic information about the transaction, including description of goods, address of shipper and seller as well as delivery and payment terms. All information on your other shipping documents, including the air waybill or shipping label, must correspond with the commercial invoice.

• NAFTA Certificate of Origin
  

This document certifies that your goods qualify for reduced or eliminated duties under the North American Free Trade Agreement. When the United States-Mexico-Canada Agreement (USMCA) is ratified, the requirement will likely remain under a new name. The goods’ eligibility for a Certificate of Origin are determined under the existing NAFTA Rules of Origin, which are complex and may be determined by country of manufacture, regional value content, and/or tariff.

• Bill of lading or airway bill
  

Your freight forwarder, carrier or broker will provide this document.

• Entry manifest
  

Your carrier will provide this document.

• Other documents
  

Depending on your product, you may also need to provide other documents, such as packing lists, permits or licences.

5.1.4 Tips for smooth customs clearance

The CBP suggests that you follow these guidelines to ensure that your goods enter the United States problem-free:

• Mark and number each package so that it can be identified with the corresponding marks and numbers appearing on your invoice.
  
• Your invoice should give a detailed description of each item contained in each package.
  
• Make sure your invoices correspond to your packing lists.
  
• Mark your goods legibly and conspicuously with Canada as the country of origin.
  
• Be sure you comply with any special U.S. laws that may apply to your goods, such as the laws relating to food, drugs, cosmetics, alcoholic beverages or radioactive materials.
  
• Work with your U.S. customer and with U.S. Customs to ensure that you meet all requirements for invoicing, packaging, marking and labelling

5.2.1 FAST

FAST is intended to make cross-border commercial shipping simpler and subject to fewer delays. Membership in FAST (which is voluntary) requires a risk assessment of your business and its drivers and carriers. Once this is carried out and everyone involved has received FAST clearance, eligible goods can be shipped across the border more quickly.

5.2.2 PIP

PIP enlists industry’s help in dealing with terrorism, increasing border security, reducing smuggling and combatting organized crime. In Canada, PIP is managed by the CBSA.

Companies that sign up for the program provide the CBSA with a self-assessment of their security methods. In return, the CBSA helps the business remedy any flaws in its security. The benefits for a business include improved security and the faster movement of low-risk personnel and goods through U.S. Customs.