Consumers around the world likely have one or two products in their kitchen drawers from this international manufacturer of innovative devices. From corkscrews and wine sealers to strawberry hullers and garlic presses, the company is known for its highly creative, sleek-looking devices that make life simpler for today’s consumer. The company is based in the Netherlands, and that is where most products are manufactured.
For distribution throughout Canada, the manufacturer recently decided to source inventory from a Distribution Center (DC) located in North Carolina. This, of course, meant that every shipment would require an international border crossing and trigger a host of U.S. and Canadian import and export regulations, taxes, and security protocols. Throw in the fact that most of the products originate in the Netherlands and it’s easy to see why the manufacturer set out to find a logistics provider with strong border clearance experience.
The manufacturer had originally called on Purolator to help move inventory from its Canadian warehouse to its space in North Carolina. The kitchen device producer was impressed by Purolator’s performance and asked for a proposal for moving products back into Canada.
The challenge
Moving goods across an international border can be confusing under the best of circumstances, but when multiple countries are involved, the process can be downright harrowing.
Such was the case with this manufacturer. Finished products arrive in the United States from the Netherlands, at which time all applicable duties are paid. Products arrive at the border bearing tariff codes assigned in the Netherlands. Once in the U.S., these Dutch codes need to be changed to reflect tariff classification systems maintained by the U.S. and Canadian governments. The United States, the Netherlands, and Canada all subscribe to the Harmonized System of Tariffs (HST), which is an international attempt to provide uniformity for goods moving across borders.
Purolator is able to accomplish this through the services of an experienced Canadian customs broker. The importance of getting this reconfiguration done exactly right cannot be overstated. Overpayment of tariffs is a significant issue for many businesses. If a logistics provider or customs broker fails to spend the time to ensure that products are properly coded, a business could end up paying significantly more than is necessary.
As part of our routine customs processing, our team of experts ensures every product is properly coded. We managed the complex process of reconfiguring tariff codes from the Netherlands to the U.S. and Canadian systems to prevent overpayment.
We guided the company through the NRI registration process. This allows them to act as the importer of record, eliminating unexpected taxes for customers and creating a seamless delivery experience that competes with Canadian companies.
Shipments are picked up daily in North Carolina, consolidated, and loaded for a direct, no-stops line-haul delivery to Canada. This efficient ground solution exceeded the manufacturer's delivery expectations.Expert tariff re-classification
As a “trusted trader,” our shipments benefit from expedited, hassle-free clearance upon arrival at the border. This allows shipments to travel directly to our Toronto processing center without delay, speeding up the final delivery.
The results
The manufacturer has been very pleased by Purolator’s innovative solutions, strong customs brokerage services, and high level of customer service. The manufacturer credits Purolator with its high rate of satisfaction among its Canadian customers.
“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.”
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Moving goods between multiple countries introduces complex tariff and tax issues. Our team of customs brokerage experts can help you navigate the process, prevent overpayments, and ensure full compliance.
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