It is so important for a business to trust its transportation needs to a logistics provider with cross border expertise
Jericho, NY (PRWEB) May 22, 2008
Current economic conditions between the United States and Canada have created a "perfect storm" of sorts, with circumstances ripe for cross border trade between the two countries. The combination of a favorable regulatory environment, shaky U.S. economy and comparatively strong Canadian dollar has resulted in a surge in demand for U.S. goods and services north of the border. The U.S. Department of State reports that more than $1.5 billion in goods cross the border on a daily basis.
Understanding the cross border process is the subject of a new white paper from Purolator USA, the small-package and freight forwarding subsidiary of Canada's largest freight services provider. "Five Issues that Challenge Your Competitive Edge in the Lucrative Canadian Marketplace" discusses a range of subjects including regulatory requirements, clearance processes and distribution networks.
"As close as the United States and Canada are both geographically and culturally, we need to keep in mind that these are two different countries, governed by different laws and standards, and with unique consumer preferences," said Purolator USA President John Costanzo. "Potential exporters need to understand how things are done on either side of the border, and to make sure the necessary arrangements are in place to navigate the cross border process."
Purolator USA provides cross border expertise to both U.S. and Canadian businesses, and maintains operations in each country. In addition, Purolator USA's Trade Solutions service ensures that dedicated trade professionals are available to develop transportation solutions that meet the unique needs of each customer.
Purolator USA has highlighted five key issues that are of particular importance for U.S. businesses seeking to export to Canada, including:
*Know the rules. Cross border sales can be a highly profitable and relatively painless experience, or they can be confusing and highly expensive blunders. The 1994 NAFTA agreement eliminated many trade barriers and reduced tariffs between the U.S. and Canada, but several regulations, several regulations, security procedures and duty clearance processes remain.
*Avoid hidden fees. Recent media reports have highlighted the alarming number of instances in which Canadian consumers have received goods ordered from the U.S. - only to be presented with a separate invoice detailing all sorts of unexpected brokerage fees and duty charges. In some instances, these hidden charges have resulted in litigation.
*Consolidate, consolidate, consolidate. Businesses with sufficient volume may benefit by combining several smaller shipments into one larger delivery prior to reaching the border. Streamlining the supply chain by consolidation can save valuable time by turning several per-piece border clearances into one single clearance. Consolidation can also help reduce customs clearance charges.
*Use cross border logistics experts. When it comes to navigating another country's border clearance process, doesn't it make sense to use a trade expert who is physically located in that country? Local experts will likely have extensive knowledge about entry procedures, and should also have valuable contacts within the U.S. and Canadian border services.
*Know how to reach your Canadian customers. While just about half of all Canadians live in urban areas within easy reach of the U.S. border, approximately 16 million Canadians live elsewhere, many in rural areas with limited access to established distribution routes. Reaching these rural Canadians can be problematic without a logistics provider who can transport goods to the far reaches of Canada.
"It is so important for a business to trust its transportation needs to a logistics provider with cross border expertise," Costanzo said. "Proven providers, including Purolator USA, know how to get the job done, and can usually get it done quicker and more efficiently. I can't imagine why a business would want to risk its reputation on a logistics provider without cross border experience."
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