The Basis of Brokerage

The Basis of Brokerage

About those brokerage fees…

Obtaining customs clearance for Canadian imports is a continually evolving process. It involves many components and requires a significant amount of information and data elements to be collected and transferred in a timely and compliant manner. Our role at J.B. Ellis is to relieve the importer of this burden, so focus can be placed on other, more important, business initiatives.

But what exactly is going on behind the scenes to ensure shipments are being imported as efficiently and accurately as possible?

Consider the following scenario:

  • An order for a shipment that is destined for Canada is placed.
  • The import documentation/data is provided to relevant parties involved.
  • The carrier is tasked with entering Canada and delivering the goods to the Canadian receiver.
  • Our client, the importer of record receives an invoice from J.B. Ellis for any applicable duties, taxes, and fees owing regarding the customs clearance.

Behind the scenes

Upon receiving the import documentation, J.B. Ellis first needs to verify all required information for customs clearance is included. In cases where it isn’t, we work with our contacts to retrieve anything that may be missing in order to properly complete the entry.

When all is in order, we can then prepare the entry, which entails

  • establishing the exchange rate
  • researching and verifying HS codes
  • identifying valuation methods for coding
  • establishing additions/deductions to the invoice price to arrive at the value for duty
  • entering shipment and invoice line detail
  • reviewing SIMA/SURTAX applicability
  • applying relevant free trade agreements
  • declaring security posted to obtain customs release (J.B. Ellis or importer bond)

Under CBSA’s new Single Window Initiative (SWI), Participating Government Departments and Agencies (PGAs) are now part of the import process as well. For J.B. Ellis, this means we also need to identify which goods are applicable for PGAs (see current list here), determine and collect the information they require in addition to CBSA’s requirements, and provide this information as part of the entry itself.

Once the entry is submitted to customs, it doesn’t end there

Before an entry is fully accepted by customs for release, there are a variety of reasons it can be held or rejected. Whether it’s a problem with the carrier’s ACI manifest, technical difficulties, or a new change in CBSA or PGA requirements, J.B. Ellis works tirelessly to determine and help resolve the issues that may prevent full acceptance. If there are any problems at the port of entry, we liaise with carriers and ensure they are able to cross in a timely manner.

And our work is still not done

After a shipment is released, J.B. Ellis has staff dedicated to performing additional reviews to ensure the transaction is acceptable for final accounting submission. Duties and taxes are calculated and paid if necessary. From there, our accounting team handles invoicing, statements, and reports diligently to ensure our clients have everything they need for their own accounting and record keeping purposes.

Furthermore, with our years of experience and expertise, we are always available to answer any questions, provide insight and advice, and work with our clients collaboratively to help streamline the import process.

Looking forward

As detailed above, there is already a considerable amount of work that goes into every shipment. Meanwhile, the customs landscape also continues to change and grow more complex, especially in the interim with the aforementioned SWI now underway and the upcoming implementation of CARM – The CBSA Assessment and Revenue Management project (a multi-year initiative that will transform the collection of tax and duty for goods imported into Canada).

While the prospect of a more integrated and modernized industry is promising, it also means more time and effort required on our end to facilitate the customs process. Investment in resources such as system upgrades, training, and staff is a necessity to maintain–and exceed–our highest standard of work. J.B. Ellis’ fundamental principle will always be to provide our clients with the best service possible.

If you have any questions, please feel free to contact us.

About those brokerage fees…

Obtaining customs clearance for Canadian imports is a continually evolving process. It involves many components and requires a significant amount of information and data elements to be collected and transferred in a timely and compliant manner. Our role at J.B. Ellis is to relieve the importer of this burden, so focus can be placed on other, more important, business initiatives.

But what exactly is going on behind the scenes to ensure shipments are being imported as efficiently and accurately as possible?

Consider the following scenario:

  • An order for a shipment that is destined for Canada is placed.
  • The import documentation/data is provided to relevant parties involved.
  • The carrier is tasked with entering Canada and delivering the goods to the Canadian receiver.
  • Our client, the importer of record receives an invoice from J.B. Ellis for any applicable duties, taxes, and fees owing regarding the customs clearance.

Behind the scenes

Upon receiving the import documentation, J.B. Ellis first needs to verify all required information for customs clearance is included. In cases where it isn’t, we work with our contacts to retrieve anything that may be missing in order to properly complete the entry.

When all is in order, we can then prepare the entry, which entails

  • establishing the exchange rate
  • researching and verifying HS codes
  • identifying valuation methods for coding
  • establishing additions/deductions to value for duty
  • entering shipment and invoice line detail
  • reviewing SIMA/SURTAX applicability
  • applying relevant free trade agreements
  • declaring security posted to obtain customs release (J.B. Ellis or importer bond)

Under CBSA’s new Single Window Initiative (SWI), Participating Government Departments and Agencies (PGAs) are now part of the import process as well. For J.B. Ellis, this means we also need to identify which goods are applicable for PGAs (see current list here), determine and collect the information they require in addition to CBSA’s requirements, and provide this information as part of the entry itself.

Once the entry is submitted to customs, it doesn’t end there

Before an entry is fully accepted by customs for release, there are a variety of reasons it can be held or rejected. Whether it’s a problem with the carrier’s ACI manifest, technical difficulties, or a new change in CBSA or PGA requirements, J.B. Ellis works tirelessly to determine and help resolve the issues that may prevent full acceptance. If there are any problems at the port of entry, we liaise with carriers and ensure they are able to cross in a timely manner.

And our work is still not done

After a shipment is released, J.B. Ellis has staff dedicated to performing additional reviews to ensure the transaction is acceptable for final accounting submission. Duties and taxes are calculated and paid if necessary. From there, our accounting team handles invoicing, statements, and reports diligently to ensure our clients have everything they need for their own accounting and record keeping purposes.

Furthermore, with our years of experience and expertise, we are always available to answer any questions, provide insight and advice, and work with our clients collaboratively to help streamline the import process.

Looking forward

As detailed above, there is already a considerable amount of work that goes into every shipment. Meanwhile, the customs landscape also continues to change and grow more complex, especially in the interim with the aforementioned SWI now underway and the upcoming implementation of CARM – The CBSA Assessment and Revenue Management project (a multi-year initiative that will transform the collection of tax and duty for goods imported into Canada).

While the prospect of a more integrated and modernized industry is promising, it also means more time and effort required on our end to facilitate the customs process. Investment in resources such as system upgrades, training, and staff is a necessity to maintain–and exceed–our highest standard of work. J.B. Ellis’ fundamental principle will always be to provide our clients with the best service possible.

If you have any questions, please feel free to contact us.

About those brokerage fees…

Obtaining customs clearance for Canadian imports is a continually evolving process. It involves many components and requires a significant amount of information and data elements to be collected and transferred in a timely and compliant manner. Our role at J.B. Ellis is to relieve the importer of this burden, so focus can be placed on other, more important, business initiatives.

But what exactly is going on behind the scenes to ensure shipments are being imported as efficiently and accurately as possible?

Consider the following scenario:

  • An order for a shipment that is destined for Canada is placed.
  • The import documentation/data is provided to relevant parties involved.
  • The carrier is tasked with entering Canada and delivering the goods to the Canadian receiver.
  • Our client, the importer of record receives an invoice from J.B. Ellis for any applicable duties, taxes, and fees owing regarding the customs clearance.

Behind the scenes

Upon receiving the import documentation, J.B. Ellis first needs to verify all required information for customs clearance is included. In cases where it isn’t, we work with our contacts to retrieve anything that may be missing in order to properly complete the entry.

When all is in order, we can then prepare the entry, which entails

  • establishing the exchange rate
  • researching and verifying HS codes
  • identifying valuation methods for coding
  • establishing additions/deductions to the invoice price to arrive at the value for duty
  • entering shipment and invoice line detail
  • reviewing SIMA/SURTAX applicability
  • applying relevant free trade agreements
  • declaring security posted to obtain customs release (J.B. Ellis or importer bond)

Under CBSA’s new Single Window Initiative (SWI), Participating Government Departments and Agencies (PGAs) are now part of the import process as well. For J.B. Ellis, this means we also need to identify which goods are applicable for PGAs (see current list here), determine and collect the information they require in addition to CBSA’s requirements, and provide this information as part of the entry itself.

Once the entry is submitted to customs, it doesn’t end there

Before an entry is fully accepted by customs for release, there are a variety of reasons it can be held or rejected. Whether it’s a problem with the carrier’s ACI manifest, technical difficulties, or a new change in CBSA or PGA requirements, J.B. Ellis works tirelessly to determine and help resolve the issues that may prevent full acceptance. If there are any problems at the port of entry, we liaise with carriers and ensure they are able to cross in a timely manner.

And our work is still not done

After a shipment is released, J.B. Ellis has staff dedicated to performing additional reviews to ensure the transaction is acceptable for final accounting submission. Duties and taxes are calculated and paid if necessary. From there, our accounting team handles invoicing, statements, and reports diligently to ensure our clients have everything they need for their own accounting and record keeping purposes.

Furthermore, with our years of experience and expertise, we are always available to answer any questions, provide insight and advice, and work with our clients collaboratively to help streamline the import process.

Looking forward

As detailed above, there is already a considerable amount of work that goes into every shipment. Meanwhile, the customs landscape also continues to change and grow more complex, especially in the interim with the aforementioned SWI now underway and the upcoming implementation of CARM – The CBSA Assessment and Revenue Management project (a multi-year initiative that will transform the collection of tax and duty for goods imported into Canada).

While the prospect of a more integrated and modernized industry is promising, it also means more time and effort required on our end to facilitate the customs process. Investment in resources such as system upgrades, training, and staff is a necessity to maintain–and exceed–our highest standard of work. J.B. Ellis’ fundamental principle will always be to provide our clients with the best service possible.

If you have any questions, please feel free to contact us.

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