Services and Fees – Customs Clearance with ISL Customs Brokers
A Customs Broker’s primary function is to act as the agent to the importer in their relationship with Canada Customs. The role of the Customs Broker is the logistical process in ensuring that the clients goods are presented to Customs, as well as other Government Departments.
The Customs Broker must ensure that all regulations in effect are complied with to ensure release in a timely fashion. The Customs Broker for these services charges the client in accordance with the agreed remuneration package. The scale of services, whether basic or enhanced is outlined below.
Customs Clearance Fees:
The basic service of receiving documents from a carrier or exporter, reviewing the documents for trade compliance and presenting the documents either in hard copy or electronic format. These fees are generally established on a sliding scale according to shipment value, however in some cases fees may be “capped”, flat rates, monthly retainers or otherwise mutually agreed upon.
A fee of 4% based on the total disbursement to be paid is levied to cover administrative costs for the payment to vendors on the importers behalf. Authorized disbursements could be Customs Duties & Taxes, Terminal Fees, Ocean Freight, inland trucking or logistics and warehouse destination fees.
The cost levied for phone, fax and electronic format charges in communicating with suppliers, clients, carriers, Customs or other third parties.
R.M.D./ Non-EDI (Release on minimum documents):
This is an extra charge levied in some cases whereby Customs rejects the electronic package or where beyond the brokers control, a carrier does not provide the broker with documents in advance or arrives un-announced at a border crossing.
When goods that are manufactured in the USA and qualify for preferential rates of duty, but not accompanied by the required certificate. The broker will produce the certificate, contact the exporter and have the certificate processed, so that the preferential rate of duty can be applied. (ISL Customs Brokers will verify with the client before proceeding with this extra service).
After Hours Release:
When ISL is not pre-advised by the carrier, exporter or importer and the transport firm arrives at a border crossing with the driver waiting to receive instructions on what action is to be taken. This is also the case when documents presented by the carrier lack the required information to process the release. ISL fees are less than the costs associated with making the driver wait, checking the goods into the carriers warehouse or moving “in bond” to their destination.
In the event that import or export permits are required for a shipment, ISL Customs Brokers is an authorized Department of Foreign Affairs permit issuer. The user fees levied by the Department are included in this fee.
Vehicle Form 1:
Transport Canada requires the declaration of compliance form be accurately completed and presented at the time of import for any vehicle, truck, trailer or off-road vehicle. ISL charges a fee for completion of this requirement. Should Transport Canada ever reach the capability to receive this information electronically, we would no longer charge for this service.
In cases of ocean or air shipments, the Customs Broker, if requested by the client, will remit the amounts owing to the freight carrier, surrender required bills of lading, advice notices and manage the process for the client.
When requested by the client to advance funds to transport carriers, where ISL is not provided funds in advance or guaranteed payment by credit card, this charge is applied to cover the anticipated cost of financing the transaction.
For shipments under the jurisdiction of the Canadian Food Inspection Agency, a user fee is levied. Our fees charged for interacting with these classes of shipments include the user fees billed to our account by CFIA.
These fees cover such costs as couriers and any other payments as instructed to the broker by the client.
Where the client requests ISL to apply for a refund to Customs, where the error was not made by ISL, a fee is charged based on the value of the shipment and refund amount.
Export Documents/US Customs:
When requested by the client, ISL will prepare the required export declarations to Customs. If further requested, ISL is able to appoint a US Customs Broker on behalf of the client to effect Customs clearance for goods entering the USA for consumption or transit to another country.
The above explanation provides a basic description of how a Customs Broker bases their charges to the client. A more detailed explanation of the rights and obligations of the ISL/Client relationship is found in our “Standard Trading Conditions & Power Of Attorney” on our website. Should any of the above require further discussion or clarification, kindly contact your ISL representative.