While customs clearance is a requirement of international shipping, it causes delays for shipments to Canada. Usually, shipments are held at the border due to missing paperwork, incorrect product classifications, or unpaid duties. The good news is that most delays at customs can be avoided with proper preparation and a little planning. Businesses can prevent hold ups by knowing the common causes, such as incomplete forms or missing permits. We’ll investigate the top customs delays and give you clear, actionable tips to make sure your shipments move quickly and save you money.

1. Incomplete or Inaccurate Documentation

Problem: Upon arrival at customs, specific paperwork must be prepared and submitted – commercial invoices, packing lists, certificates of origin. As of 2019, the Canada Border Services Agency’s (CBSA’s) Single Window Initiative (SWI) also accepts electronic data submissions. 

These changes have created additional issues related to data submission since even minor mistakes in submitting tariff codes or signature specifications can cause considerable delay and costs.

Solution: Prepare, complete, and submit all required documentation before your shipment reaches the border. Utilize the SWI system to transmit the necessary data electronically and make sure all required fields are entered according to CBSA expectations. 

Companies will gain advantage by working with seasoned brokers who are experienced with requirements and complexities in dealing with compliance. Their experience ensures that your shipment will have no unnecessary delay going through customs.

2. Misclassification of Goods

Problem: Incorrect Harmonized System (HS) codes can cause delays, incorrect duty charges, and even fines when applied to your goods. Nearly 20% of products crossing the border are misclassified, according to the Canada Border Services Agency (CBSA). 

With thousands of possible classifications for various goods, it’s possible to make a mistake. Misclassification can result in shipments being flagged for closer inspection, delaying delivery and increasing costs.

Solution: It requires expertise and attention to detail to assign the correct HS code to your products. A careful review of the CBSA’s classification guidelines is recommended. 

Get help from a customs expert who knows how complex the system is. You can avoid delays by having your goods classified correctly, which will minimize the risk of customs agents checking your goods and imposing additional inspections.

3. Underestimating Duties and Taxes


Problem: Customs delays and unexpected costs can happen if you don’t understand how duties and taxes are calculated. CBSA reviews every international shipment entering Canada to determine if duties, GST, PST, or HST are applicable. 

Charges vary depending on the item’s Canadian dollar value, its classification, and whether any exemptions apply. The Customs and Excise Department charges duty and taxes on goods valued over CAD $20 unless they qualify for exemption, but only if they are sent personally and are labeled as gifts. 

Solution: To avoid delays, calculate duties and taxes based on the correct value and classification of your goods. Use tools like duty calculators or consult CBSA resources, such as Memorandum D8-2-2, for guidance. 

Verify that the declared value matches supporting documents, such as sales receipts. For travelers mailing items home, remember that goods are subject to traveler personal exemption limits, and you must declare them using Form E24. 

4. Security and Compliance Inspections

Problem: These could be based on random factors such as the type of goods, the country of origin, or the declared value of the goods. Products such as electronics, medical equipment, and food often undergo greater scrutiny.

The recent intensification of border checks has resulted in delays of up to several weeks for shipments identified as having incorrect or unclear declarations. Also, CBSA may conduct targeted inspections on goods originating in regions with harsh trade policies or regions perceived to carry greater noncompliance risks.

Solution: Compliance with all Canadian import regulations and providing complete and accurate declarations are the first steps toward avoiding delays. You should make sure you obtain the required permits and include them with your cargo. 

Properly label and describe your goods. You should keep good, accurate documentation of your shipment, such as invoices, certificates, and receipts.

5. Prohibited or Restricted Items

Problem: The most common cause of delays and penalties at Canadian customs involves importing restricted or prohibited items. The importation of certain goods is strictly regulated, such as firearms and some plants, for which special permits are required. It may also be illegal to sell counterfeit goods or products made from endangered species.

For example, goods such as alcohol, tobacco, and prescription drugs have restricted import quantities and special declarations. There may be extensive inspections required for shipments containing controlled or restricted goods, which can take weeks to clear.

Solution: First, you need to determine if the goods you are importing are controlled or prohibited under Canadian law. You can use the CBSA Automated Import Reference System (AIRS) to determine the requirements for your goods. For restricted goods, you must obtain all necessary permits and licenses, such as a Plant Protection Import Permit or Firearms License.

If you are unsure, you can review the D-Memoranda issued by the CBSA, which details rules for specific product categories. The D19-7-1 memorandum explains the rules for importing controlled substances; D19-6-2 covers firearm imports. 

6. Poorly Packaged or Labeled Shipments

Problem: Poor packaging and labeling are among the most common, yet avoidable, causes of customs delays and even rejections. During transit, poorly packaged products may get damaged and may be subject to customs inspection or rejection. A label that doesn’t describe the product, has an incorrect HS code, or has an unclear address may also confuse, delay, and cause fines. For example, shipments of fragile items without proper handling labels (“Fragile” or “This Side Up”) are often flagged for closer inspection to assess potential damage.

Solution: Good packaging and labeling begin by understanding the rules for your specific items. Use durable materials such as bubble wrap, padding, or strong boxes to ensure the items are well protected during packaging. Items that can get damaged should have clear handling instructions like “Fragile” or “Handle with Care”. For liquids or items that spoil, use containers that won’t leak and think about temperature-controlled packaging when needed.

For customs clearance, ensure labels contain the following accurate details:

  • HS codes for correct classification.
  • Country of origin to comply with trade agreements.
  • Weight and dimensions for precise shipping documentation.

7. High Cargo Volume and Seasonal Delays

Problem: During peak seasons, such as the holiday period of November to January or the fiscal year-end in March, customs offices are swamped with cargo. Due to the backlogs, shipments often experience delays lasting several days or weeks. Adding to the congestion are seasonal imports, such as holiday merchandise or year-end inventory restocking. 

The Canada Border Services Agency (CBSA) reports prolonged processing times during the holiday season because of increased e-commerce shipments. Even shipments with correct documentation may face delays due to the high volume of imports at customs. In these pressure periods, businesses that rely on timely deliveries to meet customer demand are especially vulnerable.

Solution: Schedule shipments to arrive well before peak times, such as early November for holiday goods or mid-March for year-end imports. Any company that relies on a steady supply chain needs to plan ahead since last-minute decisions will definitely cause bottlenecks.

Stay updated on shipping trends and customs warnings during peak seasons. CBAS will usually put out advisories on periods of expected delay, offering a chance for businesses to reschedule their logistics movements.

8. Lack of Communication

Problem: When customs officials require more information on documentation, classifications, or duties, importers who do not act quickly cause delays. For example, failing to respond quickly to customs’ inquiries about your shipment (such as permits or product info), without clear updates on the status, you won’t even know if there’s a problem until it’s too late.

Solution: Clear, consistent communication is how you avoid delays. First, make sure all the contact information in your customs and shipping documents is correct and current. This helps customs officials or brokers to get in touch with you immediately in case they require any clarification or additional information. Also, during peak seasons or when shipping high-risk goods, keep an eye on your shipments regularly. 

Conclusion:

Customs clearance delays can severely impact your business operations, but with the right strategies and expert support, they are entirely avoidable. By addressing these common issues and working with Clearit Canada’s experienced team, you can streamline your import process, minimize risks, and ensure timely delivery of goods.

Looking to simplify your import process? Contact Clearit Canada today and let our experts handle your customs clearance from start to finish.