UPS has welcomed moves to speed up cross-border trade between the US and Canada through fastercustoms clearance of low-value shipments.
In a recent move to facilitate US-Canada trade, the countries’ governments announced a rise inthe customs ceiling for low value shipments, allowing a wider range of shipments to pass throughcustoms more quickly.
Low value shipments between Canada and the US qualify for expedited customs clearance, allowinggoods to be released for delivery already on the day of arrival. With the latest rise, thethreshold for goods to be classified as ‘low value’ for both Canada and the US has been set to$2,500, up from previously $1,600 CAD in Canada and from $2,000 USD in the US.
The rise and the harmonisation are part of the Canadian government’s Beyond the Border EconomicAction Plan that aims to boost trade through minimising border-related delays and hindrances.Explicitly targeting the improvement of supply chain connectivity, the new harmonisation oflow-value shipment processes is to encourage small businesses to trade across the border, alsoraising the threshold below which shipments do not need a NAFTA certificate of origin whosecompletion poses a problem for many small businesses.
Canada’s Minister for International Trade, Ed Fast, commented: “Items in the action plan focuson ensuring security at the Canada-US border while improving processes to positively impactbusinesses, travellers, the economy and jobs. This low value shipment customs harmonisation willenhance speed of goods to market, which is a critical component to a successful trade model.”
As one of the largest carriers involved in Canada-US cross-border transport and as one of thecompanies authorised to use the provisions of the low value shipment system, UPS said it welcomesthis latest governmental move to accelerate the speed of trade.
“Canadian and US businesses are the true beneficiaries of the Beyond the Border Action Plan andthis change,” said Mike Tierney, president, UPS Canada. “Each day, more than $1 billion worth ofgoods crosses our common border, bringing the annual value of traded goods to more than $580billion. Yet, every year $16 billion in trade activity has been lost due to border delays. Thischange will allow for swifter movement of goods for importers and exporters of all sizes.”
