Challenge: A leading U.S. electronics retailer successfully entered the Canadian ecommerce market, only to face higher-than expected brokerage fees, and maximum customs charges.
Solution: Purolator used its customs expertise to take advantage of Canadian programs that allow for expedited clearance for low-value shipments, and for reimbursement of duties paid on those shipments. Purolator also reviewed shipment tariff classifications, to ensure that products were properly coded and not subject to duty overpayment. And, the retailer’s shipping fees were restructured, so that duty payments are no longer included in the calculation to determine brokerage fees.
Results: The retailer has dramatically reduced duty payments through more efficient tariff classification, and by taking advantage of Canadian trade incentives. It has also lowered brokerage fee obligations by restructuring the way in which fees are calculated.
About the Solution Provider: Purolator International is a US subsidiary of Purolator Inc., Canada’s largest integrated parcel and freight delivery services provider. Purolator International specializes in the air and surface forwarding of Express, Freight and Parcel shipments, customs brokerage, and fulfillment and delivery services to, from and within Canada.