Exporting Your Goods

Shipping Logistics

International shipping can be complex, and you may wish to use the services of a freight forwarder to help you. The following nine questions and answers can help you decide how to proceed:

What are the advantages and disadvantages of international air freight?
What are the advantages and disadvantages of shipping by sea?
What are Incoterms?
What is the HS Code that is applied to our products?
How do we find the HS Code applying to our products?
What services can a freight forwarder provide?
How could we locate a freight forwarder?
What services does a customs broker provide?
How could we locate a customs broker?

What are the advantages and disadvantages of international air freight?

The advantages are:

  • Faster delivery
  • Lower insurance and warehousing costs
  • Better inventory control

The disadvantages are:

  • The most costly of all transport methods
  • Length and weight restrictions

What are the advantages and disadvantages of shipping by sea?

The advantages are:

  • Accommodates large items and bulk commodities
  • Economical in terms of cost

The disadvantages are:

  • The slowest of the delivery methods
  • Goods are shipped in 20 foot and 40 foot containers or in crates (you may be able to “piggy back” onto another partial shipment if you don’t have a full container load)
  • Minimum weight requirements that may be three to four times greater than air freight requirements
  • Possibility of delays of up to four weeks in time of departure
  • Goods are subject to moisture and humidity
  • Goods may get tossed around if the weather is rough
  • If the foreign port does not have the facilities for storage, the goods can be left outdoors where they are subject to the environment or pilferage.

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What are Incoterms?

Incoterms are 13 standard trade definitions commonly used in international contracts accepted around the world. A description of these Incoterms is available at the International Chamber of Commerce website.

What is the HS Code that is applied to our products?

The Harmonized Commodity Coding System (HS) is a commodity classification system that serves as a universally accepted classification system for goods so that countries can administer customs programs and collect trade data on exports and imports. Developed under the auspices of the World Customs Organization (WCO) located in Brussels, it contains approximately 5,000 headings and subheadings organized in 96 chapters arranged in 21 sections.

The basic system uses a 6-digit number to identify basic commodities. The first two digits identify the chapter in which the goods are classified, the next two digits identify groupings within that chapter, and the next two digits are even more specific. Each country is allowed to add additional digits for statistical purposes. In Canada, an additional 2-digits are used for exports and an additional four digits for imports.

How do we find the HS Code applying to our products?

What services can a freight forwarder provide?
  • Arrange shipments, including cargo consolidation
  • Clarify the conditions of financing through a letter of credit
  • Negotiate rates with shipping lines, airlines, local transport companies
  • Negotiate rates with customs brokers
  • Negotiate rates with insurance firms
  • Prepare the necessary paperwork
  • Provide advice on packing, labelling, and marking of goods
  • Arrange warehouse storage and cargo insurance

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How could we locate a freight forwarder?       

You can talk with other Canadian exporters and also check the directory of the Canadian International Freight Forwarders Association.
You can also check the worldwide directory of freight forwarders at Freightnet.

What services does a customs broker provide?
  • Clear goods through customs
  • Prepare customs documentation
  • Remit duties owing on exported goods
  • Provide information on recent tariff changes and other customs-related matters

How could we locate a customs broker?

Typically this is handled by your freight forwarder. You can also search the database of the Canadian Society of Customs Brokers or the International Federation of Customs Brokers Associations.