Unlocking the mystery of Courier Low Value Shipment Clearance (CLVS) for companies shipping from the US to Canada. part 1 of 2

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 Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain to Canada they can help.

       lee@lslholdingco.com

www.lslholdingco.com
 http://ca.linkedin.com/in/leesmith3/en

Getting over the hurdle of shipping to eCommerce consumers in Canada from the US or other countries.

By Lee Smith, P.log, B.M., CEO of LSL holding Company.

The Canadian eCommerce consumer market is one of the most dynamic and untapped sources of potential income for International companies looking to extend their services and products to new markets. However, most companies are not getting the most out of this market. They have either turned it over to a large courier companies, or they use ad-hoc solutions, or worst they choose not to participate directly and have their brands represented by someone else in Canada. This leads to companies feeling like they are not getting enough for the resources that they are expending.

Important stats 

• 90% of Canadian surveyed have made an online purchase in the past year.
• The highest level amongst the industrialized nations.
• 75% of Canadian lives with 100 miles of the US Border.
• This market gets to view all of the advertising that is Generated in the US.

The invisible wall

Image by April Alayon.

Most company fear the invisible wall called customs and duties when it comes to dealing with Canadian. This wall is a mirage and can be tamed. There have been many tools and services created in the pass 5 years that will make it easier for a company to ship to Canada and to do so in an effective and efficient manner.

The Canadian government has set up a non-resident importer program that allows an International company to collect and remit taxes directly to the Federal Government. This makes it very easy for your customers in Canada to use your services.

Thanks to Nafta it is easier to trade in North America. With the advent of the the LVS (Low value shipment clearance), courier shipments are streamlined through the border. This gets your items to major centers in Canada faster than to many locations in your country.

Going into Canada is a great test for your company on how to expand to other countries. The proximity, the common language, and the option to test the French language side with the Quebec with very little risk. Canada is the first step of internationalization for many companies.

What do I need to do to get the most out of shipping to my Canadian customer?

1. First you have to be committed as a company to do this. There is work required up front to smooth the process which will require some commitment and support.
2. Work with the pros. There are many tools out there and you want to ensure that you are getting off on the best footing possible.
3. Have a full layout of the options that are available once you are in the Canadian market. There are many local options that you are currently unaware of.

4. Returns Management is a must.
5. Have a robust system in place to identify Canadians who shop with you and provide a Catered eCommerce experience.

Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain to Canada they can help.

       lee@lslholdingco.com

www.lslholdingco.com
 http://ca.linkedin.com/in/leesmith3/en

What is the best courier option for small to medium start-ups in Canada?

What is the best courier option for small to medium start-ups in Canada? By Lee Smith, P.log, B.M., CEO of LSL holding Company.

After many years of working with the some of the largest carriers in North America, I decided to start my own firm. One of the first things I realized is that I needed to have the ability to ship from my Home Office. I thought this was a great opportunity to see what was available in the marketplace and see how the carriers out there respond to the SOHO (Small Office/Home Office). Here is what I could locate:

The Carriers/special programs

·      Canada Post: Venture 1

·      Can-Par: None

·      FedEx:  None

·      Purolator: Business reward program

·      UPS: Small Business program

The Criteria for classification

Responsiveness: How eager was the company to get me signed up?

Ease of Signup: Was I able to sign up right away on the website?

Follow up: Was there any follow-up to see how I was making out using their services?

Extras: Was there anything extra provided to ensure that I would begin to ship with them?

Recommendation

While rates are extremely important to the bottom line of a business, the ability to arrange a pick up and or a convenient drop off location close to your business become paramount in deciding on a carrier.

 

It is also clear that the Carriers do not make it easy to do an apple to apples comparison, so it is imperative to understand all of your options to pick the right carrier for you. Heavier weighted items, multi-piece mailings, and need for speed will affect your choice of carrier.

With this in mind, I have decided to utilize Canada Post as my traditional carrier for non-urgent movement of my packages. 

Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain they can help.

lee@lslholdingco.com

www.lslholdingco.com