Entering the Canadian e-commerce market was a logical step for a New York-based photography/electronics retailer. The popular merchandiser had already established a firm footing in U.S. e-commerce channels, targeting both B2B and B2C sales. And with online sales experiencing record growth north of the border, the time seemed ripe for the retailer to set its sights on Canada.
Not surprisingly, the Canadian market embraced the company, as its reputation for quality products, customer service and fair pricing preceded its arrival. The company enlisted the services of a nationally-recognized logistics firm to handle the border clearance and customs compliance process, along with distribution to Canadian customers.
Unfortunately, it wasn’t long before managers realized something was terribly wrong. Shipments seemed to be experiencing inordinate delays clearing the Canadian customs process, and shipping costs seemed excessive – certainly far more than what was expected.
The challenge
The manufacturer’s products were getting stuck at the border, because it wasn’t utilizing programs to expedite the process. Purolator used its extensive expertise in U.S/Canadian customs compliance to develop an alternative border clearance process.
Purolator also restructured the pricing system being used. Purolator determined that fees were being assessed based on an across the board percentage rate, that included duties and other border clearance fees. So the retailer was paying all duties, sales taxes and associated clearance fees, and was then also assessed an additional 2.5-4.5 percent on that amount, payable to its logistics carrier.
We identified that the retailer was eligible for "Duty Drawback," a program to refund duties on exported goods. We developed a system to manage the notoriously complex documentation and filing process, recovering significant, unexpected funds for the client.
We helped the retailer become an "importer of record" through the NRI program. This allowed them to collect Canadian taxes at the point of purchase and manage their own customs clearance, creating a seamless experience for their customers.
As a registered participant in the CBSA's CLVS program, we ensured all qualified shipments valued under $2,500 CAD took full advantage of the expedited clearance process, which is especially useful for e-commerce deliveries.
Our trade specialists reviewed every product to ensure proper tariff classifications were assigned. This high degree of scrutiny helped the retailer reduce its tariff obligations and apply for trade benefits to which it is legally entitled.
Since turning over its Canadian logistics to Purolator, this photography/electronics retailer has posted impressive results. The company reports dramatically reduced instances of products delayed at the border, and is so pleased with its improved efficiency, it recently renegotiated a new two-year contract.
“We knew pretty much right away that we could provide a better solution,” says Betty Jo Rodey, Purolator International’s Strategic Account Executive. “No one else has the access to the Canadian market that Purolator does, so we went to work to deliver the solution this company wanted in the first place.”
A top-U.S. retailer of computer hardware and software decided the time was right to expand online capability to the Canadian market. But rather than be perceived as “another U.S. company doing business in Canada,” this retailer had a vision in mind to become an integral part of the Canadian domestic retail scene.
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An Ohio-based lawn and garden equipment retailer found a receptive market for its products in the Canadian market and soon had a growing list of orders from several B2B customers. As far as the retailer was concerned, its Canada-bound logistics solution was functioning smoothly.
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Canada is home to over 36 million people and 80% of them shop online. That’s 28.8 million online shoppers and Purolator International has the expertise to help you reach every single one. Any eCommerce business knows that business lives or dies by shipping. Consumer expectations have changed, making speed and reliability more important than ever.
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Inordinate delays at customs can damage your reputation and bottom line. We have decades of experience in Canadian customs compliance and can create a streamlined, pre-cleared process to ensure your shipments move without delay.
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