Canadian importers and exporters represent a vital part of Canadian economic activity. As Canadian importers and distributors seek to grow their business beyond Canada, they most often look to export to the US first from their Canadian warehouse location. You can also look for the best 3PL in USA and Canada online.
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This can make sense, but costly import duties and in turn, export duties are often paid. Leveraging a bonded warehouse can make sense, dollars, and cents!
Avoid Paying Duties Twice
Most Canadian importers recognize that import duties are a part of life, and prescribed duty rates are set out by the CBSA based on the harmonized tariff codes assigned to different product types.
It is true, however, that if goods on which Canadian import duties were paid are in turn exported to the US, you can submit to CBSA a request to reclaim Canadian duties paid.
The Benefits of Using a Bonded Warehouse
Importing goods into Canada ultimately destined for another country provides the impetus for utilizing bonded warehouse services. What is a bonded warehouse?
It is an "approved" warehouse with specific space allocation, usually fenced-in or specifically marked, in which goods can be received without paying Canadian duties.
However, given the advantages of the bonded warehousing option, business owners and managers should be looking for a qualifying bonded warehouse partner.
The savings may translate into improved processes, cash flow, and business results.