Between duties and taxes, customs documents and the unique shipping requirements imposed by each nation, cross-border shipping can quickly become a headache. The complex requirements of international shipping give rise to several common shipping mistakes that often cause delivery delays and compound costs for shippers.
By familiarizing yourself with the mistakes that typically lead to cross-border shipping issues, you can proactively avoid them and provide a better shipping experience for your clients.
What is Cross-Border Shipping?
Cross-border shipping is the process of shipping goods over international borders. Delivering freight to Mexico and Canada also constitutes cross-border, even though the delivery can be made via ground carriers.
Before you can ship freight across borders, you must meet the requirements imposed by the nation in which the recipient resides, including preparing relevant customs documents and paying duties and taxes.
Depending on where you’re shipping your freight, you may also have to register your company with that nation’s government. For instance, if you intend to sell and ship products to Canadians, you’ll have to register your business as a nonresident importer (NRI) to Canada.
As you can imagine, things can quickly become complicated. That’s why many companies elect to partner with a customs broker and a third-party logistics provider.
A customs broker will help your business navigate the specific laws and regulations of the nation you need to ship your goods to. A logistics provider offers even more comprehensive support, arranging package pickup, delivery and everything in between.
Top 6 Cross-Border Shipping Mistakes
When preparing to ship goods across international borders, be aware of these common mistakes:
1. Missing Documents
Customs agents will begin by reviewing your documents to ensure that you’ve completed all required forms properly. If even a single form is missing, they’ll place a hold on your shipment or may reject it altogether. This can cause significant delays and lead to client dissatisfaction.
When preparing cross-border shipping documents, consider creating a document checklist for yourself. You can create a separate checklist for each nation or class of freight, which will help you verify that you’ve completed all necessary documents before attempting to ship your goods.
2. Goods Declared Incorrectly
When shipping freight internationally, you must declare what items are included in your cargo. Custom agents will likely reject your shipment if any items are omitted or misclassified.
Before attempting to ship freight across borders, review the declaration requirements for the receiving nation. Find out what items you must declare and how they should be classified.
3. Unpaid Duties and Taxes
All applicable duties and taxes must be paid in advance, including tariffs and customs fees. The specific fees and duties you’ll pay will vary from one nation to the next. You must research the fee schedule for each nation you intend to ship items to.
Researching duties and taxes will also help you determine which nations you want to do business in and which aren’t a good fit for your company’s growth goals. If a particular country’s import fees and taxes are excessive, you’ll either need to adjust product pricing for clients in that country or avoid selling items there.
4. Mismatched Information
It’s imperative that the information listed on your invoice is identical to that on the bill of lading. Both documents must list product count, item dimensions, product weight and other key details. If there are discrepancies between them, your shipment won’t get through customs until you provide updated documents.
5. Unestablished Customs Broker
Working with a customs broker is a great way of streamlining the cross-border shipping process. It’s important to find an established broker who is familiar with the requirements of the nation you’re shipping goods to. They’ll have developed a network of contacts they can leverage to simplify shipping and minimize the risk of delay.
Conversely, an unestablished broker will have to be thoroughly vetted by the receiving nation’s customs agency. They may also have to obtain additional licensing or register with that nation before they can arrange your shipment. As you can imagine, this can slow things down and create friction during shipping.
6. Incorrect Shipping Labels
When preparing your freight, make sure all items are properly labeled. Incorrect shipping labels can cause your freight to be held up at customs. Even if it gets through, it might get routed to the wrong destination.
Finding a lost package domestically is hard enough. Imagine trying to locate a package that’s been shipped across international borders!
With that in mind, you’ll want to triple-check your labels before sending your shipment out for delivery. Verify everything from the recipient’s name to the address and the format. The shipping label must not only include accurate information but also comply with the receiving nation’s layout requirements.
How You Can Simplify Cross-Border Shipping
The cross-border shipping process can be simplified using many strategies. First, ensure that you’re partnering with reputable international freight companies. These companies will provide a seamless pickup and delivery process, even when shipping products thousands of miles.
Additionally, you’ll need to partner with an experienced customs broker and logistics provider. These entities will help you navigate the complexities of international shipping and drastically reduce your likelihood of encountering major delays. They’ll also account for international initiatives like International Road Check Week.
While cross-border shipping can be complicated, you can make it easier by leveraging strategic partnerships and being aware of common errors and oversights.
FAQ
Cross-border freight is any cargo delivered across national borders. Both inbound and outbound goods will be classified as cross-border freight if they pass over national borders.
Yes. Every parcel, package or piece of cargo shipped from Canada must still go through a customs process. By the same token, items shipped from the United States to Canada must go through the Canadian customs process.
Yes. All packages that originate from an international source must go through customs. This holds true whether the package enters the country via ground, air or ocean transport.
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