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Business Beyond Borders Canada Start Shipping Guide ©2015 FedEx. All rights reserved.

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Page 1: Business Beyond Borders - FedEx Small Business Center · PDF fileGet to Canada easily with FedEx Whether you are shipping package, freight, or both, need your shipment to arrive tomorrow

Business Beyond Borders Canada Start Shipping Guide

©2015 FedEx. All rights reserved.

Page 2: Business Beyond Borders - FedEx Small Business Center · PDF fileGet to Canada easily with FedEx Whether you are shipping package, freight, or both, need your shipment to arrive tomorrow

Get to Canada easily with FedExWhether you are shipping package, freight, or both, need your shipment to arrive tomorrow or have more time, FedEx offers solutions to fit your budget and distribution needs, making crossing borders easy, so you can focus on growing your business.

The first step in shipping to Canada is to open a FedEx account if you do not already have one. To open an account, follow these easy steps:

• Go to fedex.com.• In the top left corner, click “Register Now.” • On the left side of the next page, click “Open a new business account.” • Enter your contact info, create a user ID and password, review and agree to the Terms and Conditions, and click “Continue.” • Check “This is a business account” and enter your credit card info. • If you know your shipping needs already, answer a few questions, or just click “Complete.”

That’s it! You’re good to go. You’ll get an email confirming registration.

Terms you’ll need to knowNow that you know how you’re shipping, it’s time to prepare the paperwork. This process will be easier if you are familiar with the following terms. For more information about these terms and documentation, please refer to the Shipping to Canada FAQs.

Importer of Record The Importer of Record is the party responsible for importing the goods through customs, including payment of brokerage fees, and duties & taxes. The Importer of Record is designated as part of the terms of sale and can be the shipper, the consignee, or a third party.

Non-Resident Importer (NRI) Program U.S. exporters do not have to have a physical presence in Canada in order to be a Non-Resident Importer to Canada. As an NRI, U.S. exporters can calculate landed costs before the sale and prevent delays by prepaying all duties and taxes.

There’s a lot more to Canada than maple leaves and hockey. Our neighbor to the north is the largest U.S. trade partner, importing $346 billion USD in 2014. That’s a lot of buying power.

You can add some of those Canadian dollars to your bottom line with minimal effort. Approximately 80% of Canadians live within 100 miles of the U.S. border, and they love to shop online — spending about 49% more on internet purchases than U.S. consumers.

Think north when you’re thinking bigger

Another reason to grow your business in Canada is the North American Free Trade Agreement (NAFTA). If your goods qualify under NAFTA, you can export products to Canada duty-free. NAFTA makes it easier for your business to compete, and we can show you how to qualify.

If you’re considering global expansion but are nervous about risk, Canada is a safe place to start. Get up to speed in Canada, and soon you’ll be ready for more challenging global markets.

Customs broker A customs broker is an individual or firm licensed to enter and clear goods through customs for another individual or business. Most international shipments require a broker. FedEx can perform this service for you with our brokerage-inclusive shipments, or you can select your own broker with the Broker Select option.

Harmonized System codeA Harmonized System (HS) code is a 6- or 10-digit number used to declare your goods. Customs uses it to determine duties, taxes, and clearance requirements for each commodity in your shipment. As an importer or exporter, you are responsible for having the correct HS code to declare your goods.

Prepare your documentsLog in and ship with FedEx Ship Manager® at fedex.com, which will take you through the required documentation step-by-step. For tools to assist with documentation, go to fedex.com/GTM. The required documents are listed below.

Commercial Invoice The Commercial Invoice is the basic statement of the seller to the buyer for goods shipped; it ideally represents a complete record of the business transaction between the exporter and the importer. It is the main document used by customs officials for control, valuation, and duty determination. All information contained on the commercial invoice must conform to the entry requirements for Canada. Please go to http://intldocs.fernohost.com/ commercial-invoice/ for an interactive guide.

• FedEx Express® shipments: Commercial Invoice paperwork is required for most nondocuments or commodities. You must submit one signed original and two copies.• FedEx International Ground® shipments: Two copies of the Commercial Invoice are required for all shipments to Canada. For multiple-piece shipments to a single recipient, only one complete set is needed.

Page 3: Business Beyond Borders - FedEx Small Business Center · PDF fileGet to Canada easily with FedEx Whether you are shipping package, freight, or both, need your shipment to arrive tomorrow

* Shipments with no customs broker listed on the Commercial Invoice may be delayed through the customs clearance process.

Pro forma invoice A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. Typically, it gives a description of the purchased items, notes the cost, as well as provides shipping weight and transport charges. Pro forma invoices are often used for customs purposes on imports.

Bill of Lading A Bill of Lading is required for FedEx Freight® shipments. The Bill of Lading is a binding contract that serves as a receipt for the goods delivered to the transportation provider, a description of the goods, and proof of title relative to the goods, if “negotiable.”

Certificate of Origin A Certificate of Origin is an international trade document attesting that goods in a particular export shipment are wholly obtained, produced, manufactured, or processed in a particular country.

NAFTA Certificate of OriginTo export your shipments to Canada duty-free, you must provide a NAFTA Certificate of Origin. As the exporter, you must complete the NAFTA Certificate of Origin as proof that goods are wholly obtained or produced entirely in Canada, Mexico, or the U.S., including Puerto Rico. For a step-by-step guide, go to http://ftn.fedex.com/us/assets/docs/Form_434_Instructions.pdf

Packing list The packing list details the contents of a package and is required for multiple-piece shipments. It lets transportation agencies, government authorities, and customers know what’s inside the package and helps each of these parties handle the package accordingly.

Although there is no official form or format for a packing list, it should include:• Place and date of shipment• Purchase order number• Description of goods• Quantity and type of packaging• Weight• Marks and numbers (if any) on the packages

Electronic Export Information The Electronic Export Information (EEI), formerly known as the Shipper’s Export Declaration (SED), is used for compiling official U.S. export statistics and to enforce U.S. export laws. It is required for shipments to Canada valued at more than $2,500 USD. By law, an exporter must retain EEI filing records for five years after the date of export.

Get Ready to ShipTo complete the paperwork, prepare the following information.

Find your commodity’s HS code Search for or confirm the correct code. To use the HS code search tool online at FedEx Global Trade Manager, go to fedex.com/GTM.

Estimate your duties and taxes To estimate duties and taxes, use the estimating tool at FedEx® Global Trade Manager. Go to fedex.com/GTM.

Qualify your shipment for NAFTATo make sure your goods qualify for NAFTA, refer to this step-by-step guide: http://ftn.fedex.com/us/assets/docs/Form_434_Instructions.pdf.

Choose your customs brokerFedEx can be your broker and clear your shipments for you, but if you or the importer already has a broker, you can use the Broker Select Option (BSO)*.

With Broker Select option shipments, you will need to provide complete contact information for your broker. FedEx will store your broker information in a database, eliminating the need to re-enter broker information when you use that broker again.

FedEx can provide brokerage for FedEx International Priority®, FedEx International Economy®, or FedEx International Ground®, eliminating the need to find and establish an account with a customs broker.

Page 4: Business Beyond Borders - FedEx Small Business Center · PDF fileGet to Canada easily with FedEx Whether you are shipping package, freight, or both, need your shipment to arrive tomorrow

Tips for smooth customs clearanceKnow the ins and outsTo learn more about restricted items, as well as potential shipper liability for duties, taxes, clearance entry fees, and international fees, please refer to the Shipping to Canada FAQs.

Apply best practices Make sure your shipment is good to go with the following best practices:

• Double-check your documentation for completeness and accuracy• If you’re using your own broker, please include their complete contact information• List the country of manufacture• Declare the accurate value of the item, even if it is being provided at no charge (i.e., sample or not for resale)• Make sure multiple-piece shipments stay together and label each piece of the shipment individually• Include the Employer Identification Number/Federal Tax Identification Number for the importer of record

Let us helpTo make expansion into Canada as simple as possible, take advantage of our tools, resources, and expertise. For more detailed information, check out our Shipping to Canada FAQs, and get helpful tips and advice from our Small Business Center.

Are you ready to grow your business in Canada? We’re ready to help make it easy. Just call FedEx Customer Service at 1.800.GoFedEx 1.800.463.3339.

Brokerage fees are included with transportation rates for the above services, except for FedEx International Ground. Please see the FedEx Service Guide for the brokerage rates for International Ground.

With Broker Select option shipments, you will need to provide complete contact information for the broker. FedEx can store your broker information in a database, eliminating the need to re-enter broker information when you use that broker again. To learn more, go to smallbusiness.fedex.com/international/broker-select

Choose the Best Shipping OptionNow choose your shipping service to determine which documents you’ll need. Shipments weighing less than 150 lbs. are “packages” and shipments weighing 150 lbs. or more are considered “freight.” You’ll also need to know your schedule and your budget.

Package shipping options For your most urgent package shipments, use FedEx® International Next Flight or FedEx International First® . When you have more time and need to save money, consider FedEx International Ground® .

If you can allow 1 to 3 business days for an international shipment, use our international flat rate shipping boxes. Depending on your destination and package weight, you could save up to 50% on the standard per-pound list rate without sacrificing fast delivery. Choose the FedEx® 10kg Box for shipments weighing up to 22 lbs. or the FedEx® 25kg Box for shipments weighing up to 56 lbs. You can pick up these boxes at any FedEx Office.

Freight shipping options When you’re shipping freight, use FedEx Freight® Priority for fast less-than-truckload (LTL) transit times. If you have more time, choose FedEx Freight® Economy and save. Both offer the option of A.M. Delivery service to Canada.

Package Services Transit Time Details

FedEx® International Next Flight

Goes out on the next possible flight

Door-to-door, cus-toms-cleared service with proactive monitoring and notification

FedEx International First® Delivery commitment as early as 8 a.m. next business day

Monday — Friday, with Saturday pickup available for an additional charge

FedEx International Priority® 1 to 3 business days Ship any package up to 150 lbs., or of unlimited weight, for multiple-piece shipments

FedEx International Economy® 2 to 5 business days Get door-to-door, cus-toms-cleared service for shipments up to 150 lbs.

FedEx International Ground® 2 to 7 business days Transit time depends on distance to the destination from the U.S. Service covers 100% of Canada.

Freight Services Transit Time Details

FedEx Freight® Priority 1 to 3 business days Has the fastest published transit times of any nationwide LTL service.

FedEx Freight® Economy 5+ business days You get reliable, economical delivery to meet your basic LTL freight shipping needs and your budget.

FedEx International Priority® Freight

1 business day Use this service for time-definite delivery when you ship heavy-weight or bulky items on pallets, crates, or multiple boxes.

FedEx International Economy® Freight

2 business days Shipping options include door-to-door, door-to-air-port, airport-to-door, and airport-to-airport delivery.

Take advantage of FedEx® International DirectDistributionTo save brokerage fees, use FedEx International DirectDistribution. We’ll consolidate your exports to Canada and clear customs as a single entry. After clearance, your packages will travel to their final destinations. Please see your FedEx account executive for more information.