Harmonised for Canada and the US, the governments said the higher ceiling aims to ensure that an increased volume of goods can move faster between the two countries to bolster the trade relationship. Low value shipments between Canada and the US qualify for expedited customs clearance.
The new harmonised ceiling for Canada and the US is $2,500. Canada raised its limit from CAD$1,600 to CAD$2,500 while the US has increased its threshold to US$2,500 from US$2,000.
The change represents the Canadian government’s successful implementation of a key item in the Beyond the Border Economic Action Plan, which aims to enhance trade through efficient movement of goods and regulation harmonisation at the border.
UPS, one of the largest transporters of goods across the Canada-US border, welcomed the move. “Canadian and US businesses are the true beneficiaries of the Beyond the Border Action Plan and this change,” said Mike Tierney, president, UPS Canada.
Each day, more than $1bn worth of goods crosses our common border, bringing the annual value of traded goods to more than $580bn. Yet, every year $16bn in trade activity has been lost due to border delays. This change will allow for swifter movement of goods for importers and exporters of all sizes.” He added that, since its original implementation, the programme offering faster clearance for low value shipments has been successful in ensuring timely movement of shipments without compromising security.
The program expedites release using the practice of reporting goods to the Canada Border Services Agency (CBSA), before goods arrive at the border, permitting Customs review/targeting and fostering a secure trade environment.
