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Factors That Affect US-Canada Cross-Border Trade

Shippers who are sending products from the US to Canada or from Canada to US customers have to be aware of various factors that may affect the shipment’s successful arrival to its destination. Customs requirements, security mandates, duties and taxes, infrastructure limitations, and a number of other issues may delay a shipment’s arrival.

In 2012, cross-border trucks and other vehicles that attempted to enter the US through the Ambassador Bridge that connects Detroit, Michigan, and Windsor, Ontario were unexpectedly delayed. There were electronic warnings to drivers to avoid the bridge altogether. The reason was agents of Canadian Border Services Agency (CBSA) on Ontario’s side of the bridge were staging a work slowdown because they were displeased with the new requirement of wearing name tags while on duty. While the action on North America’s busiest border lasted for less than a day, it affected cross-border trade.

There is no such thing as an ordinary supply chain in cross-border trade. Goods entering Canada have to follow a certain shipment process that depends on contents. There are different requirements for different shipments. For example, apparel shipments are controlled by International Trade Canada while pre-packaged consumer goods are under the control of Industry Canada.

Import requirements also differ based on which Canadian province is the shipment’s end destination. Canada has 10 provinces with their own tax requirements and marketing and labelling codes. For example, Quebec lists French as its primary language. It mandates the use of French on packaging, signage, instruction materials, and advertising.

The US and Canada have established a close trade relationship considering that they share the same borders, language, and values. Unfortunately, cross-border trade is not easy because the compliance process can be complicated at times. Regulations and protocols can change with very little notice. However, preferential treatment is provided to logistics and trucking providers to encourage trade.

Reliable transnational transport options are offered by Titan Transline to its clients. Dedicated and specialty services like hotshot trucking, dedicated loads for fragile and time-sensitive products, LTL, FTL, temperature-controlled services, oversized loads, and tradeshow transportation are offered. There is also a professional team who will ensure that the goods are handled properly.

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