October 2024 — As part of our ongoing commitment to compliance and seamless international shipping, Priority Worldwide would like to inform our valued clients of important guidelines regarding the accuracy and completeness of merchandise descriptions when dealing with U.S. and Canadian customs. Following these regulations helps avoid delays, penalties, and potential confiscation of goods.
Both U.S. Customs and Border Protection (CBP) and the Canada Border Services Agency (CBSA) require merchandise to be clearly and accurately described on all shipping documents, including commercial invoices and packing lists. Below are key points for compliance:
U.S. Customs Requirements
Detailed Descriptions:
U.S. Customs mandates that all merchandise must be described in sufficient detail to allow proper classification under the Harmonized Tariff Schedule (HTS). Vague or generic descriptions like “parts,” “samples,” or “gifts” will result in delays or rejections. Always include:
- Type of product (e.g., “Men’s cotton T-shirt”)
- Purpose of the product
- Material composition
- Model numbers, if applicable
Quantity and Unit of Measure:
Ensure that quantities are listed accurately, using the appropriate unit of measure (e.g., pieces, kilograms, meters).
Valuation:
Provide the correct transaction value for the merchandise, excluding costs such as freight and insurance unless otherwise specified.
Country of Origin:
Clearly specify the country of manufacture, as this plays a significant role in determining applicable duties and trade restrictions.
Examples of Unacceptable vs Acceptable Cargo Descriptions | U.S. Customs and Border Protection (cbp.gov)
Canada Customs Requirements
Precise Product Descriptions:
Canada requires specific product descriptions to classify goods under the Harmonized System (HS) code. Incomplete or vague descriptions, such as “accessories” or “tools,” may lead to customs delays. Ensure all descriptions include:
- Exact name of the product
- Material details (e.g., “Leather wallet”)
- Intended use and specific features
Value in CAD:
Always provide the value of the goods in Canadian dollars (CAD), which includes the actual selling price of the goods, whether sold, leased, or otherwise.
Declaration of Tariff Treatment:
Identify whether the goods qualify for any preferential tariff treatment, such as under the USMCA/CUSMA agreement.
Accurate Weight and Quantity:
Similar to U.S. regulations, Canada requires that goods are properly declared with the correct weight and quantity.
Commercial reporting requirements – Detailed commodity descriptions (cbsa-asfc.gc.ca)
Consequences of Non-Compliance
Failure to comply with U.S. and Canada customs rules can result in:
- Significant delays in clearing shipments
- Fines and penalties
- Seizure of goods or refusal of entry
- Audits and increased scrutiny of future shipments
At Priority Worldwide, we are dedicated to supporting our clients in maintaining compliance with all customs regulations. Should you have any questions or need assistance with your documentation, please feel free to reach out to our expert customs compliance team. We can help ensure your shipping process remains smooth and compliant.
For more information, visit our website at www.priorityworldwide.com, or contact our customer service team at 800-727-1085.
Priority Worldwide is a leading logistics company specializing in comprehensive global freight forwarding and customs compliance services. With a focus on innovation, sustainability, and compliance, we strive to deliver exceptional service to our clients worldwide.
Lauren Priddy, CHB, CCS
Director of Compliance
Priority Worldwide
www.priorityworldwide.com
