Benefits of Using a Bonded Warehouse for Imports and Exports in Canada
According to the Canadian Trucking Alliance, trucking is a $65 billion industry. It creates jobs for over 400,000 workers, including nearly a quarter of a million drivers. The Trade and Transportation Corridors Initiative is expected to spend as much as $2 billion in the next 10 years to improve the flow and efficiency of Canada’s infrastructure. Data from 2012 indicates that trucking carriers transported 90% of food and other consumer products across Canada. For-hire trucking companies in Canada handle about 80% of the products moved within provinces. The food and beverage processing industry makes up 2% of Canada’s Gross Domestic Product (GDC) and produces 17% of all manufacturing shipments. In 2014 alone, food and beverage processing provided shipments worth $105.5 billion, making this Canada’s second-largest manufacturing industry.
Canada’s Trucking Industry and United States Trade
The United States is Canada’s major trade partner — and heavy haul trucking plays a crucial role in this relationship. Trucking companies move about two-thirds of goods travelling between the U.S. and Canada, with 80% of these goods being transported from the U.S. to Canada.
Benefits of Using a Bonded Warehouse for Imported and Exported Goods
Warehouse storage in a customs bonded warehouse can be used for imported goods as well as domestic goods under certain circumstances. For example, this method can be used if the products are considered inventory, the imported products are on consignment, or the domestic products are slated for export. They may be kept in the warehouse for as long as four years. You will not be subject to duties such as the goods and services tax (GST) during the period when goods are kept in the warehouse and if they are eventually exported. Only those goods that are sold in Canada are subject to duties. While they are kept in a bonded warehouse, goods may be labelled and marked, packaged and repackaged, reassembled after disassembling for the purpose of transportation, or otherwise given value-added changes.
Consider using a bonded warehouse for imported and exported goods to save on duties. For more information, please contact us today.