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Customs Reporter.



Continued from page 1
CUSTOMS CLEARANCE - Do Your Own - or - use a Customers Broker?
Vancouver, B.C. We have entered into a business agreement with Davidson & Sons, a long-term brokerage associate and have been assembling a warehouse facility due to open very soon. This will be structured similar to our current Windsor facility and we anticipate continued growth and many new business opportunities as a result of this expanded service. Please take the time to review our site at www.canadaplus.com. We welcome your comments. Finally, we hope to be able to announce shortly our first foreign operation of canadaplus.com with our anticipated entry into the United Kingdom. In closing, I feel that this new direction will further enhance our service offering and allow our clients to better serve their clients. Our clients have grown accustomed to our professional, quality-focused service and it is important to us that we continue to enhance this offering. My congratulations to our management team at canadaplus.com for their wisdom and hard work in implementing this transformation and to our entire Farrow team for their ongoing dedicated support. We hope you will join with us in celebrating this promising and exciting evolution for Parcel Logistics.

by John Brooks
This question has been asked over and over for many years and will continue to be an important question for Canadian importers. The subject was last discussed in the Customs Reporter, September 1990 and it is appropriate to re-visit the subject ten years later. Self-clearance remains an option and for some companies, the decision to take that route is correct. However, for the majority of importers, outsourcing this function to a Customs Broker is the preferred option. There is no absolute answer, no right or wrong decision. Sometimes the decision is made for the wrong reasons and sometimes for the correct reasons. What are some of the factors that determine the decision? The size of a company and volume of imports has some impact on the decision. I believe the primary reason is the availability of the required expertise. Some companies have highly qualified and experienced Customs professionals and support staff on their payroll. These individuals often control any discussion on the self- clearance decision and the Customs department has, over time, become as much a fixture

in the corporate structure as Purchasing, Accounting, Human Resources and other traditional departments. Other companies continue to delegate this responsibility to clerical staff who, if trained at all, are “trained” by their predecessors. There is no expertise and the delegate simply attempts to follow what was done before. Many software vendors continue to market software aimed at the do-it-yourself Customs option. Some of these you have such resources on your payroll? Do you want to have such resources on your payroll? Is that the most effective way to manage this process? As I said earlier, for some the answer is a resounding “YES!” But, for the majority of importers, the answer is an equally resounding “NO!” The majority of importers continue to do what they do and do it well. They are manufacturers; distributors; processors; service providers
software solutions are very good. The common limitation of such software however is that the systems are only as good as the information entered. They do not teach you how to classify goods or give you the skills necessary to assure appropriate tariff classification. They don’t equip you to assess the valuation of your imports or understand and comprehend the intricacies of NAFTA. Self-clearance software options are most effective when you have someone on staff with the required qualifications and expertise. In recent years we have experienced a certain rationalization of the Customs procedures and witnessed the introduction of new technologies. These initiatives have their place in facilitating trade but do not replace the requirement to have trained and highly skilled people to utilize them to their fullest potential. Do – THEY ARE NOT CUSTOMS PROFESSIONALS and choose not to be. Bob Dylan used to sing a song that said “The times they are a changin’ ”. That is as true today as it was in the sixties. Change has been the only constant in a personal career that has so far spanned over thirty years. The changes appearing on the horizon today are no different than many of the changes that have gone before. The implementation of new enhanced Customs procedures is not too different from the original introduction of computers. They are tools that are most effective in the hands of trained professionals. As an importer you have a choice to make, hire a trained professional and put that resource on your payroll or retain the services of Russell A. Farrow Limited, a team of committed and highly trained professionals. Choose wisely!

Drawbacks

Reminder: Effective January 1, 2001, exports of manufactured goods to Mexico will be subject to the same restrictions that currently apply to those same goods exported to the United States. In other words, the lesser-of-two-duties concept, where the amount recoverable must be equal to whichever is less: (1) the duties paid in Canada on the goods imported into Canada, (2) the duties paid on imports to Mexico (or the USA). Proof of duty payment is required. If you have any questions, with regards to this, please contact your nearest Russell A. Farrow Technical Services or Trade Compliance department.

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