In today’s global economy, the transportation of goods could have significant customs implications. Moreover, customs duties can have a direct impact on the bottom line. Unfortunately, importers often overlook or mismanage duties and customs compliance, which can result in significant and unnecessary duty costs.
Below, we’ve outlined the top 10 customs-related issues facing Canadian importers.
1. Origin preferences Although imported goods can be subject to customs duties, preferential origin treatments such as the North American Free Trade Agreement (NAFTA) can provide significant duty relief to importers.
Canada has numerous multilateral, bilateral and unilateral origin-based relief mechanisms in place. Importers should be aware of and take advantage of any applicable origin-based duty relief opportunities. Otherwise, they can face significant unnecessary duty outlays that have a clear impact on the bottom line.
Importers who do take advantage of origin-based duty relief opportunities need to ensure that they manage them appropriately. This includes having valid and complete documentation and the respective rules of origin need to be followed. Failure to properly apply and document preferential origin-based duty treatments could result in significant duty costs and, in some cases, duty relief could be revoked.
Importers can leave significant duties on the table and be subject to significant compliance-related costs if they do not manage matters appropriately.
Read the complete article here.
Source: Ernst & Young | Financial Post
