Independent direct to consumer (DTC) sellers, led by Shopify and other platforms, is creating new opportunities.
Cross border e-commerce is challenging traditional logistics operations. Traditional logistics operations are built to handle thousands of containers versus millions of parcels.
- "Supply Chains" managesupply of goods
- "Demand Chains" serve the demand aggregated by e-commerce platforms that requireefficient processing and movement individual product orders and parcel movement between and across international borders.
Global online ordering is creating a new category of logistics. Not just cross border but direct order cross border e-commerce.
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In this blog we review:
- Shipping from Canada (and via Canada) to the USA for online orders
- Shipping International from Canada to France, the UK, European Union and Rest of World Destinations
- Import issues to consider when shipping international orders from Canada
Management of cross border parcel movements are gaining attention and demanding solutions. Countries with paperwork struggles and long border delays are constraining their economies. Consumers and Businesses benefit from access to the world's suppliers via efficient cross border e-commerce parcel processes.
The USA has the most progressive parcel import regulations. The overwhelming majority of parcels can be imported duty free through simplified entry processes.
There are many new multi-port solutions being developed that take advantage of the new simplified regulations for parcel importing to the USA
Cross border e-commerce is increasing the global interdependent economy. Traditional supply chains need to adjust to the explosive growth of smaller international transactions and resulting in the growth of smaller units of shipping.
Is a box a container? The only difference between a large ocean shipping container and an e-commerce parcel is size. Both have a single shipper, consignee and have to be cleared through customs.
Integrators, postal authorities…. and everyone else
Traditional supply chain providers are trying to find value by developing systems that integrate air / ocean transport, effective parcel clearance processes, domestic distribution, and returns management.
What is Section 321 to the USA:
US Customs allows most individual orders valued under $800 USD to be entered and cleared duty free into the USA. This entry type is known as a Section 321 Informal Entry. Using this entry type, importers can consolidate all their qualifying orders under one entry without H.S. Codes and benefit from duty free entry.
Most goods cleared via a section 321 informal entry are imported under Part 128 of the Code of Federal Regulations (CFR). As such, they are imported to facilities with port codes that define them as Express facilities or ECCF's. Many express operators are also able to clear via freight facilities (with section 321 processes) known as a Container Freight Station or CFS.
For importers who have H.S. codes, it may be best to use a Section 321 "type 86" entry. Using this entry type, goods can be imported via traditional methods using the Automated Broker Interface or ABI system.
International e-commerce companies are using Canada as a distribution point for their USA import via cross border solutions.
The "rest of the world" is no longer the "rest of the world"
For many Canadian companies, international means shipping cross border to the USA and then grouping all others as "rest of world." At Jet Worldwide, we believe it is best for Canadian retailers to target specific countries or regions. Doing so increases the likelihood of success. In other words, the best way to go global is to focus on local markets.
Jet Worldwide consults with Canadian retailers and merchants seeking secure parcel import solutions to the USA, UK, European Union, Japan, China and all the World's leading economies
The major growth opportunity for the retail online marketplace is cross border sales. Canadian retailers often serve niche markets - for example in winter wear - that are attractive to certain markets. Furthermore, Canadian retailers can embrace the value of being, well, Canadian.
The leading international markets for Canadian e-commerce sellers includes:
- United Kingdom
- European Union
- China
- Japan
Jet Worldwide has direct shipping, import and last mile delivery solutions to all the world's major economies.
Custom Processes for Online Orders Shipped from Canada
Jet helps Canadian companies build durable, efficient import processes that can then be incorporated into the product listing.
- Harmonized System Code (HS): It is not always necessary to include the HS Code but it is absolutely necessary that the codes are understood and implemented as needed. Visit our blog on HS codes: HS Codes for Cross Border Online Shipments.
- Valuing your Item(s): Although the correct declared value for import is most often the value of the sale or transaction, it is important to understand methods of valuation. Issues for valuation include whether or not to include transport costs, insurance, and/ or value added tax. Visit our blog on valuation: Declared Value, CIF and Valuation for international shipping.
- Restricted Items: It is necessary for online sellers to categorize shipments that may be restricted by virtue of the item itself or it may be permitted under certain circumstances.
- Country of Origin: Canada enjoys free trade agreements with most the countries Jet services. Processes can be developed to ensure that goods of Canadian origin (made in Canada) benefit from preferential duty free import. Visit our blog regarding Canada's Free Trade Agreements: Canada's Free Trade Agreements and Duty Free Import for Online Orders.
- Value Add Tax: Even goods that qualify for duty free import may be subjected to a value added tax. It is a requirement when shipping online orders to many countries - most notably the UK and European Union members - that this be prepaid. Jet helps companies understand and comply with these requirements. Read our blogs regarding:
