Leveraging the Canada-Chile Free Trade Agreement and CPTPP for Efficient Cross-Border Logistics
Trade between Canada and Chile continue to grow and exceeds $2 billion per year. The Canada-Chile Free Trade agreement (effective since 1997) remains a key catalyst for growing trade. The new CPTPP agreement offers even greater opportunity for duty free import. Jet Worldwide helps companies with shipping from Chile to Canada.
Freight and Packages
A quick and efficient solution for freight delivery is a determination primarily on size or weight. This post covers the best modes for packages and heavier cargo.Time-definite, customs cleared, and port to port cargo are available from main gateways in Chile.
Useful How to Video: Shipping to Canada from Chile
Note: All Jet Worldwide online content - including this post- is for general information only.
The best option for individuals shipping personal packages is usually via the local post.Air freight offer the best price for up to around 100 kilograms chargeable weight.
The cost to send international consignments from Chile depends primarily on the size and weight of your package. In general, small personal packages are cheapest via the local post. Commercial packages can benefit from courier discounts. Large commercial orders usually best ship via ocean.
Importers must both have an import number and register in CARM.
This CBSA portal enables you to assign a customers broker and requires a surety bond (or deposit). How to Register for CARM.
The essential documents to include for shipping cargo from Chile to Canada includes a bill of lading or waybill and commercial invoice. Other necessary documents can include:
This is a standard requirement for all international cargo. Useful information regarding a commercial invoice.
Exports from Chile must be clear customs prior to shipping. An export declaration is necessary for consignments that exceed $1,000 USD. Exporter must submit a DUS (Documento Unico Salida) embarkation order.
Goods that qualify of Chilean origin can benefit from duty free import to Canada. The goods must include a certification of origin. The declaration can be via a stand alone document, part of the commercial invoice or other document.
Just the purchase and shipping from Chile do not qualify the goods as Chilean origin. Useful distinction to understand: Country from where goods ship versus their country of origin.
For imports not exceeding $3,300 to Canada, the requirement for proof of origin is not necessary at import. The importer must maintain records (for example, commercial invoice and B3) for all imports.
All goods exporting from Chile require an export clearance. See mention above.
All imports to Canada are subject to customs clearance via the Canada Border Services Agency (CBSA). The default rate of duty for cargo from Chile is the most favour nation (MFN) rate. Goods that originate from Chile may qualify for duty free import.
The three main factors in determining rate of duty are the country of origin, value for customs and HS classification.
The general import costs to Canada include:
Imports to Canada over CA$20 are subject to duty and taxes. Courier consignments from Chile under CA$3,300 can import via Canada's low value system (LVS).
Useful information: Full review of most common Canadian import fees.
The Canada-Chile Free Trade now co-exists with CPTPP. Businesses have a choice of eitherCCFAT or CPTPP. Choose which is more favourable to their goods.
Air freight and ocean freight are the two basic shipping methods for shipping international cargo. The best option depends primarily on the weight and size of your shipment. The necessary transit time and nature of your cargo are also important considerations.
The ocean shipping route and transit time for cargo from Chile to Canada depends on the specific ports. Generally, allow 1 to 3 months transit time. A common route is through the Panama Canal. Ports of Origin in Chile include Valparaiso and San Antonio on the central coast. Antofagasta or Iquique are major ports in the north. Ports of Arrival in Canada includeMontreal, Halifax, and Saint John on the east cost. Vancouver and Prince Rupert are the major western ports.
Less than container load (LCL) is best when shipping one to several pallets. Via this mode of shipping, there is sharing of container space and cost between different consignments. Allow extra transit time for the loading and de-consolidation of the container.
Full container load (FCL) is the fastest way to ship via ocean. This can be via either 40 foot or 20 foot container.
With the many minimum surcharges for ocean shipments, shipping smaller consignments via air is cheaper. This is especially true for door to door shipping. Generally, shipments of less than 100 kilograms are cheaper via air. Cargo over 500 kilograms are much less expensive via ocean.
The advantages and disadvantages of shipping by air from Chile to Canada, includes transit times, cargo capacity, and value of the cargo.
Sending international packages is best via global couriers and the local post
Correos Chile offers three basic international shipping options from Chile to Canada. The local post is the best option for individuals shipping personal goods.
FedEx and UPS are North America's largest carriers. Along with DHL, they offer reliable options for both packages and air freight. Discounts are available directly from the carriers or their partners. Select Contact Jet for shipping rates. A simple way to compare pricing.
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The default option for shipping internationally from Chile is delivery duty unpaid. Common carriers use the term EXW. All import costs assign to the receiver/ importer in Canada. Shippers can choose to pay the import fees on behalf of the receiver. A Duty Paid (DDP) option is available via most carriers. See our blog on IncoTerms and shipping terms for packages and online orders.
Import fees paid by the shipper are not recoverable. The importing business in Canada may otherwise be able to claim back provincial and federal sales tax.
The Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) system facilitates collection of duties and taxes for goods imported into Canada. This CBSA online portal modernizes and streamline the process of importing commercial goods.
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