Post, Freight and Carriers

How does customs brokerage work when shipping freight from the US to Canada?

If I were to ship LTL freight from the US to Canada, what paperwork is involved and who handles it? If I understand right, the freight company is in possession of two pieces of paperwork - the BOL and commercial invoice (or Canadian Customs Invoice). But a customs broker is required in Canada, because the freight company can't work with Canadian customs directly? Does the customs broker just fill out a form, or do they inspect the shipment? How is that whole process handled for all involved parties, including the shipper, receiver, freight company, and customs broker?

Public Comments

1. Hello, The paperwork involved is, as you stated, the commercial invoice or Canada Customs Invoice. A customs broker isn't actually required - you can clear the shipment yourself as a company or an individual. However, most importers tend to use a customs broker so they don't have to get involved with the paperwork / border issues. The customs broker does everything from receiving the BOL / commercial invoice from the carrier, reviewing the documentation for accuracy, confirming all elements are shown on the invoice (i.e. country of manufacture of the product, currency of settlement, full description, purchaser, seller, etc.), researches and applies tariff classification, applies tariff treatment, works out duties and taxes, transmits the information to customs, collects duties and taxes from the importer, remits those duties and taxes to customs on the importers behalf, and keeps records. (To name a few!) For shipments into Canada, the customs broker does not normally inspect the shipment. That is left to Canada Customs who is able to inspect any package or shipment they wish. A broker may get involved in inspecting the package when they bring it into a warehouse for distribution. Essentially, the shipper gives the carrier the documents. The carrier applies a PARS (Pre Arrival Review System) label and faxes / sends it to the customs broker, the customs broker does the above functions and the shipment is released for delivery, and the carrier delivers it. Let me know if you need any more information!
2. don't worry about the paperwork. i shipped something to Canada using www.shipalliance.com 800-684-6359 they took care of everything! they are very knowledgable!