By Lee Smith, P.log, B.M., CEO of LSL holding Company.
What is it?
Canada Customs Courier Low Value Shipment (CLVS) Program is intended to help simplify the process to import low value goods. The program streamlines the customs processing of shipments valued at Can$2,500 or less and provides the courier industry with expedited release.Who can use it?
This service was developed to be used by Courier companies to ensure that the couriers were not being subjected to increased scrutiny at the point of entries that would put them in a disadvantage to the Postal Clearance which requires less information for custom clearance. This ensures that your customers in Canada can get items as fast as some of your customer in the US, using the standard courier services.History
The program came into being as part of the Smart Border Declaration and Action Plan in 2001. Both the Canadian and US government realized that they were losing a lot of money because of inefficient border crossing. It was estimated this was costing the Canadian economy at least 1% of GDP or $16B per year. The dollar value to use this service was raised from $1,600 to $2,500 and harmonized by the US and Canada on January 8th, 2013. "The harmonization of the value thresholds for customs clearance for both Canada and the United States will facilitate and expedite trade between our countries, allowing customs to focus on maintaining a secure and efficient border, " said the Honourable Vic Toews, Minister of Public Safety.What are the restrictions?
All items over the $2,500 CDN threshold or on a prohibited, regulated or controlled list. Prohibited weapons, propaganda, etc. are not allowed under any circumstances. Any import that requires more due diligence, paper work or regulatory control cannot use this service. The vast majority of items can be mailed under this program, saving the shipper valuable time and money, not to mention the reduced paperwork.This service may not be the best for non-resident importers as it captures taxes and duties at the time of final delivery. However, for low value imports or new shippers trying out the Canadian market, this is a low risk way of getting to the Canadian consumers.
Changes to the program?
Cost reduction will continue to be the focus of the Canadian Border Services. They are projecting some major increases in the volumes going through this programs as cross border shopping shows no signs of slowing down in the near future. Experts have called for an increase of 4 times the volumes of ecommerce shopping in the next 10 years.
Disclaimer: There are many options that should be considered before deciding on the best method for clearing the border for your customers. It is best to review with a professional before making any major decision on your supply chain.
Part 2:
How to use the service and how can my customers benefit from this service?
lee@lslholdingco.com
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