6 Ways To Reduce Cross-Border Shipping Costs

Cross-border shipping is good for business. US and Canada have one of the largest trade relationships in the world, and this would not be possible without the capability of shipping beyond borders.  Any business seeking to expand their market is likely to benefit from shipping cross-border, as the process allows one to send and receive packages from anywhere in the world. It's a great way to grow your business, expand into new markets and reduce costs.

Cross-border shipping is not a simple process, as there are many regulations and rules to adhere to. In order to successfully conduct business across the border, it is important to know how to simplify and make the process more efficient. Cross-border shipping can expand any business market or increase sales, provided it is done correctly. By applying the following 6 key cross-border solutions for avoiding delays and unexpected fees, you can can make a big difference in your cross-border costs and the overall shipping experience.

Understand Rules and Regulations

Shipping cross-border is good for sales, but there are many moving parts, so certain regulations and rules are set in place to ensure safety and visibility for both the nations involved and the shipment itself.  However, regulations and rules differ based on the country a shipment is heading into or coming from, and the type of shipment itself. Failure to comply with regulation will lead to delays, penalties, fines and even potentially a seizure of the shipment itself. 

• When shipping into the US, you will want to adhere to US regulations, as per the CBP.  
• Shipping into Canada requires compliance of regulations set by the Canadian government, as per the CBSA. 

It is essential to ensure that any shipment sent across the border is meeting the requirements of the country it is heading into, and that all documentation is filled out correctly. Some countries have restrictions on which goods can be imported, which is why knowing the regulations is key to ensuring a product can clear customs and enter. To prepare, you want to take note of the paperwork you will need for your shipment, any restrictions on your products, and look over the taxes, duties or fees your product may be subject to.

Insure Your Goods

An often overlooked, but essential, aspect of shipping cross-border is to make sure that the goods themselves are insured. There are numerous risks associated with transport, such damage due to movement, road or weather conditions, damage risks of having many hands handling freight potentially, and even risk of theft or loss of product.

While carriers do their best to ensure goods get to their destination safely, there are risks outside their control due to weather, accidents, and even theft. In order to prevent losses, it is important to consider purchasing insurance for the shipment, so that any issues or damages can lead to claims filed and money back. At delivery, before signing the receipt of goods, it is key to inspect and make sure no damage has been observed, as it is harder to file claims after the signing. 

Prioritize Visibility Over Lower Rates

While it can be tempting to opt for carriers who offer the lowest rate possible, it is imperative to practice discernment in the partners you work with in the shipping process. It is essential to vet carriers based on their reputability and services, and make sure that the company you choose to work with is responsive in communication and provides the proper documentation and abides by their client contracts.

You will want to find a carrier who offers tracking of your shipment, and provides regular updates on any changes which may come up. To research; read customer reviews, follow referrals and complete your due diligence in looking into any issues a company has before choosing to work with them. You can even send shipments as a test run, prior to peak season, to see how a partnership with a specific carrier may work for you. To stay safe, maintain a  pool of several carriers you can rely on to ship, in the case of unforeseen events or changes within one carrier company.

Carefully Prepare Your Documentation

The most essential aspect to cross-border shipping will be the paperwork required. In order to clear customs and avoid penalties or extra fees, you will need to have all the shipment documentation filled out and presented to customs. There are a few required documents for shipping between US and Canada and these include:

• Bill of Lading
• Customs Invoice
• Packing Slip
• Cover Sheet
• Certificate of Origin

The documents required ensure that the goods can be identified and  appropriate fees and taxes can be calculated on the shipment. The documents contain information on the type of goods, description and their value, which helps determine fees or taxes. Inaccurate paperwork or missing paperwork leads to delays in customs clearance and potential fines or penalties. Your documents need to be organized and you should not have discrepancies in the information between the various paperwork. As such, your Bill of Lading (BOL) information should match the Customs Invoice.

When you use Zipments to streamline your customs clearance, you can access the required documents and complete them with ease. Zipments CBP and CBSA approved Customs Invoice forms are easier to fill out, and require less time.

Zipments provides an easier solution for the US Customs Invoice and Canada Customs Invoice. The invoice forms apply AI technology to generate tariff codes for you, so that you can ensure an accurate and speedy paperwork process. We are proud to offer customs clearance solutions that help you keep your business running smoothly and on schedule.

Plan For Tariffs and Fees

In order for shipments to clear the border, the appropriate fees, taxes and duties need to be paid. The tariff classification of your goods is one key in determining which fees your shipment may incur at customs. Different types of goods will require added fees, and failure to look into tariff rates for your shipment could lead to unexpected expenses which may impact your bottom line and lead to costly revisions to your budget. 

If you are shipping into Canada, you can use the Zipments Duties and Fees Calculator, which will automatically provide an accurate estimate of the fee you may need to pay for your specific shipment.

Get The Correct Measurements

Your shipment is subject to fees from customs as well as the carrier, so it will be important to ensure your weight and dimensions are accurate. You should be measuring packages by measuring the boxes from the outside, and round up on dimension or weight, to ensure accuracy in pricing. To ensure correct measurements, you will want to follow a few guidelines:

• Weigh the full shipment, not just individual packages
• Include packaging and pallet in your listed weight
• Use a certified scale

Carriers compare dimensional and actual weight, and will choose the greater one to determine the shipping fee, This is done to ensure even distribution, because light but bulky items may occupy a lot of the trailer or space in shipping.

If a carrier has to re-weigh a package or revisit measurements, the process will lead to added fees for the shipper, thus it is important to provide them with accurate information, as the measurements help carriers determine how much cargo can fit on a truck and comply with regulation. Shipments which have a discrepancy between the weight or dimension on the shipping label and the chargeable weight, will incur a chargeback from the carrier.

In today's global economy, cross-border shipping is one of the fastest growing industries. Whether your business is looking to expand into new markets or simply wants to improve its current operations, it's good to know that shipping cross-border can help you focus on what matters most to your company and customers. Now that you know the ways to avoid unexpected fees or delays, you are ready to expand your market internationally!