There are several ways to save money when you import products into Canada. When you begin to plan imports, you should study these different money-saving methods. Not all of them can be applied to every situation.
However, it is possible to take advantage of more than one to multiply your savings and increase profits.
It is essentially a universal rule that you can save money by purchasing more of a given item. The key to saving money is doing this the right way. If you only save a few dollars ordering 10,000 units rather than 1,000 units, then it might not make sense to burden yourself with such a large inventory. Over ordering can have its own negative effect on costs. Take note of savings incurred on shipment costs and not just the reduction in price per unit when you make bulk orders.
Order It Cheap
Modern transportation has made it only marginally more expensive to bring something from across the ocean rather than overland from a nearby source. Investigate all the possible deals that you can get by ordering form Asia or Europe rather than the United States. Acquire samples of the products first, to ensure that quality remains relatively similar.
Learn Canada’s Tax Rules
You will most likely pay a tax of 5% on anything that you import into Canada. This is known as the Goods and Services Tax. This is not as straightforward as it may sound. The amount is not calculated until customs duties have been included in the total.
Afterward, there are other taxes which vary in size according to the actual province into which the goods are being imported.
Learn about any restrictions on imports that may exist in the country as a whole or in the particular province. As an example, shipments of electronic cigarettes will be turned away and sent back to their shippers due to health laws in Canada. Having a shipment sent back would be very costly.
Organize all the possible expenses and savings that you can get into one coherent plan. Stick to this plan when you make your order. A good plan can save more than money. It can also save you time and energy which will help you save more money in the long run.
Ship from the US
While there are often deals available from manufacturers overseas, the fact is that it is often much cheaper to import from a location in the United States. The proximity of Canada’s closest neighbour accounts for much of these savings. Also, the reliability of the routes is another factor that makes importing from the US both convenient and
Understand the Items Being Shipped
The various rules, laws and taxes that apply to imports into Canada vary depending on the items that are shipped. For every kind of item that you intend to ship into Canada, you need to determine exactly how all of these regulations and restrictions apply. Make sure that you understand the North American Free Trade Agreement, since this accord
is the most powerful guide for economic interactions between the countries of this continent.
Track Imports Online
Reduce the amount of time lost when shipments sit around after arrival. The quicker you get these items into your inventory the sooner you will be able to generate the income that you need to pay for the importation. Thanks to the Internet, it is easy to track items by the minute.
If possible, make arrangements with your supplier to pay for items only after they have arrived. With some suppliers, it is even possible to negotiate for payments to be made as long as 120 days after arrival. This gives you a chance to actually earn the money to pay for the shipment with the shipment itself. That way you do not have to cut into
financial reserves or pay for imports with credit.
The most critical part of importing successfully is research. You do not want to lose time and money getting surprised by an unexpected restriction or slow down in shipments. Instead, learn about the ways to save money when importing products into Canada before you begin to arrange shipments.
This is a guest post by Ali Syed, marketing representative for Bay City Brokers – Canada’s value added custom broker.