By Lee Smith, P.log, B.M., CEO of LSL holding Company.
How to use the CLVS and how can my customers benefit from this service?
The great news about using Courier Low Value Clearance for items being shipped from the US to Canada, is that all of the onus to meet the customs regulations falls to the Courier company and the Broker responsible for clearing the border.Under the regulation the Courier must use the ACI eManifest to alert Customs that they have CLVS items and the PARS paperwork must be filed by the broker (links included if you want to do some more research.)
What information do I as a shipper have to provide?
The more information you can provide on the documentation for customs the smoother the clearance will be?
Required;
- a commercial invoice
- current price list
- bill of sale
- Country of origin
- or other similar document that describes the goods and contains information sufficient to enable an officer to determine the tariff classification and appraise the value for duty of the goods.
Optional
- Tariff classification code
- Duties and Taxes (only if collected on behalf of the Canadian Government)
Every competent courier service will have the software that will prompt you to provide the information required to cross the border. They need to provide your information to customs one hour before arrival at the border.
How does CLVS affect my customers and my business.
Speed
There is an area of Customs called “Secondary”, otherwise known as a place where parcels go to die. This area is reserved for taking a closer look at an item crossing the border. This can lead to delays from 1 day to 7 days depending the location that your item is crossing the border, the time of the year, available personel or some other factor that you do not control. In the past this has led to late deliveries and customer dissatisfaction with the buying process on the part of the Canadian consumer. CLVS does not eliminate this all together, but it does provide a separate streaming of items outside of the Commercial Clearance which requires more screening. It makes the work of the Border agent easier and the end consumer gets to benefit from the speed.
Confidence
eCommerce is a world supported by ratings and trust. Every order that is placed, there has to be a level of trust that the item will be delivered, as advertised. By being part of the CLVS program you are showing the Canadian consumer that you are very aware of the steps required for crossing the border, and this increases the level of confidence that the Canadian consumer can have in placing an order. Using the rule of thumb that every happy eCommerce customs leads to 5 more orders, raising confidence of the consumer is a great way to increase your sales to Canadian consumers.Checklist
CLVS is an important process for Shipping to Canadians.It requires little input from the Mailer, as the Courier service is responsible for documentation
It is important for you as a Shipper to be aware of this program and how it will affect your customers in Canada.
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.
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.
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