Developing your Landed Cost for Canada

A Hot Tip about Taxes and Accounting in Canada

Posted on: 19 Oct 2011

You have set up as a Non-Resident Importer (NRI) and are ready to continue your sales marketing plan to Canada.

Make sure you have done the discovery process before you start making the sales and quoting landed costs (delivered price) to your customers or you may be selling yourself short (or at least your company profits)

1. have your product database professional classified to discover possible duty rates on your products.

2. have the necessary tools handy like a Canadian Tax Chart  to make sur eyou are charging the correct rate of tax.

3. have your Canadian Customs documents reviewed for accuracy and proper data elements needed for Customs clearance.

4. practice your calculations  - Value of product x duty rate = Value for tax  - i.e. add the value of your product and your duty together and now muliply by the  applicable tax rate for the province you are selling into. This is your delivered price, not including Freight or Brokerage.

5. Review your valuation, tariff classification and NAFTA Certificates  with your Customs Broker to ensure you are covered in the event of an audit.

6. Keep in constant contact with your Customs Broker to make sure you are up to date in industry changes and updates on any new Customs Regulations or iniatives.

 

 


Posted: 19 October 2011

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