Shipping freight across international borders can be complex, with documentation errors and customs delays costing your business time and money. For U.S. companies looking to expand into Canadian markets, understanding the cross-border shipping process is essential to maintaining efficient supply chains.
While the United States and Canada share a strong trade partnership and more accessible borders than most international destinations, moving freight into Canada still requires careful attention to documentation and customs procedures. Even though the process is relatively straightforward compared to other international shipments, there are key considerations you should understand beforehand. Knowing the fundamental basics of shipping to Canada will help you reduce errors, delays, and improve delivery speeds.
In this blog post, we'll cover key facts about shipping freight to Canada, the required paperwork, and how to navigate the cross-border documentation process efficiently.
A Few Facts About Shipping Freight to Canada
On average, trade between the United States and Canada equates to almost $720 billion every year. Imports and exports between the two countries are about equal.
However, when it comes to shipping products across the border, northbound routes are three times busier than those coming southward. The truth is, U.S.-based companies ship a higher volume of freight into Canada. Essentially, this means that shipping freight to Canada will take longer than receiving it from Canada.
While both countries are leading in exports to each other, Canada sends larger raw materials such as steel and aluminum to the U.S. On the flipside, the U.S. sends smaller food commodities.
As a result, U.S. retailers and manufacturers will allocate more truck loads than their Canadian counterparts.
Paperwork Required for Moving Freight into Canada
Just like shipping into Mexico, moving freight from the United States into Canada involves careful trade management and plenty of paperwork!
Of course, all this paperwork serves a purpose. Its purpose is to ensure a smooth and safe cross-border experience.
Canadian shipments require the following documents:
- A Bill of Lading
- Shippers Export Declaration
- The Canadian Customs Invoice or a Commercial Invoice
- A Cargo Control or Manifest Document
One item that will likely change sooner or later is the need to fill out a NAFTA exemption form, as the United States – Canada – Mexico trade agreement will change NAFTA regulations. You can expect to see this new trade agreement ratified in the near future.
What is the Cross-Border Paperwork Process Between Canada and the US?
Having the right documents filled out prior to shipping improves shipping speed and expedites the customs process.
In many cases, your U.S.-based company will work with a logistics partner offering managed transportation services—like Redwood's Modern 4PL approach—to handle all paperwork and forwarding to the appropriate agencies.
Common freight delay causes include:
- When the freight invoices, customs manifest, and other documents are not filled out correctly by the broker, the delivery driver of the freight movement will be delayed at the border crossing.
- If freight documentation is not forwarded electronically to the appropriate agencies or individuals, delays in shipment can also occur.
- All freight movements into Canada must have duplicate copies assigned to the driver and notated on the freight.
Final Thoughts
Working with an experienced logistics partner like Redwood, which offers a Modern 4PL approach to cross-border shipments, can significantly reduce mistakes, freight delays, and possible customer complaints. Freight delays doubly impact the quality and safety of food shipments. It is for this reason that many U.S.-based manufacturers and retailers trust Redwood's Modern 4PL approach to handle their international shipments.
If you have any questions about cross-border shipping solutions or services, contact the professionals at Redwood Logistics today!