How Long Does Customs Clearance Take?

Understanding customs clearance times is essential for your eCommerce business when shipping.

Seamless customs clearance directly affects delivery timelines, potential costs, and customer satisfaction, including fines and penalties for non-compliance. 

Failing to comply with customs regulations can result in delays, inspections, and even penalties.  

Also, delays due to customs issues can lead to negative customer experience and affect your business reputation. 

Besides, when it comes to cost, delays and compliance issues can cause extra storage fees, penalties, and higher shipping costs. 

Some of the key factors influencing customs clearance are below:

• Documentation Accuracy
• Duty and Tax Calculations
• Product Classification
• Shipping Method
• Customs clearance times 
• Customs Regulations.

Understanding Customs Clearance

Customs clearance is the process that a government enforces to clear goods that arrive via shipping. 

To answer the common question, of how long does customs clearance take in Canada, we need to understand that the customs process ensures compliance with regulations and payment of duties and taxes. 

Things that you need to understand regarding customs clearance are below: 

1. Key Documents: While shipping, the importer/exporter needs to provide all the required documents, such as invoices, packing lists, bills of lading, and certificates of origin. 

2. Declaration: You need to declare your shipped items to the customs authorities. The declaration provides details about the goods, their value, and possible use. 

3. Classification of Goods: Customs authorities classify the shipped items based on the Harmonized System (HS) codes and determine their value by assessing duties and taxes. 

4. Duties and Taxes: After classifying and valuing the items, the next step is calculating the applicable import duties, taxes (like VAT), and other charges. 

5. Verifying Information: Customs authorities may verify the items after inspecting them to confirm the accuracy of the declared information. 

6. Licenses and Permits: Depending on the type of items, you may need specific permits or licenses for import or export.

 7. Customs Release: After fulfilling all the requirements and making payments, the customs authorities clear the goods for release.

Typical Customs Clearance Timelines in Canada

In Canada, how long can customs detain you at the airport? Air freight customs clearance usually takes 24-72 hours. Ocean freight might take a few days to a couple of weeks depending on shipment complexity and port efficiency. 

The detailed breakdown of Customs Timelines in Canada is below:

Air Freight:

Timeline: Customs clearance for air freight usually takes between 24 hours and a few days. 

Factors that Affect Timeline: 

Documentation: Correct and complete documentation is crucial for fast clearance. 

Inspections: Additional inspections may be required and can delay the process further. 

Port Congestion: Backlogs at airports can cause delays. 

Cargo type and size: Large, oversized, and hazardous items require more time. 

Expediting Clearance: Using a well-known customs broker can help you take through the process and potentially accelerate clearance. 

Ocean Freight:

Timeline: Customs clearance for ocean freight can take from a few days to a couple of weeks. 

Factors that Affect Timeline: 

Port Congestion: Congestion at ports can significantly affect clearance times. 

Shipment Complexity: The complexity of the shipped items and required documentation can influence the process. 

Documentation: Correct and complete documentation is crucial for fast clearance. 

Port Operation Disruptions: Any disruptions to port operations can cause delays. 

Cargo type and size: Large, oversized, and hazardous items require more time 

Expediting Clearance:

Engaging a customs broker can help ensure smooth and efficient clearance. Arrival Notice: When the vessel is 3-7 days at the port, an arrival notice is sent to customs, freight forwarders, carriers, and others.

Factors Influencing Customs Clearance Duration

The duration of customs clearance depends on the following factors: 

1. Type of Goods and Inspection Needs:

Certain goods, like food or pharmaceuticals, need specialized inspections by relevant authorities, possibly extending the clearance time. 

Customs authorities may carry out random inspections based on the nature of the goods, their country of origin, and the importer’s compliance history. 

Besides, the complexity and size of the shipment can also influence the duration of customs inspections. 

2. Correct Documentation and Completeness:

Missing or incorrect documents, such as licenses, invoices, packing lists, or certificates of origin, can lead to delays.

Discrepancies in different documents can raise red flags and prompt further scrutiny. This is why you need to ensure all documents are accurate and speed up the process. 

3. Origin of Goods:

A few countries may have specific import restrictions that affect the clearance time.

Also, trade agreements between countries can simplify customs procedures and possibly accelerate clearance. 

4. Customs Policies and Regulations:

The complexity of customs policies and regulations in the destination country can affect clearance time.

Inadequate customs staffing can lead to delays in processing shipments.

Also, congestion in the port during peak periods like holidays can cause delays.

Common Causes of Customs Delays

Common causes of customs delays in Canada include:

Incomplete or Incorrect Documents: Missing or incorrect information on commercial invoices, packing lists, bills of lading, or customs declarations can lead to additional inspections, and cause delays. 

Missing or Incorrect CN22 Form: Even an apparently simple error like a missing CN22 form or an incorrect recipient address can cause delays. 

Inaccurate Product Description: Unclear or inaccurate product descriptions can cause delays as customs cannot understand the shipped items. 

Incorrect Currency Code: A wrong currency code on the invoice can cause delays. 

Quantity or Weight Not Specified: Missing or incorrect information about the quantity or weight of the items can lead to delays. 

Missing or Inaccurate Incorrect Cargo Control No.: Missing information like the cargo control number can cause delays. 

Incorrect Tariff Classification Codes: Using the wrong Harmonized System (HS) code to classify your goods can lead to delays, penalties, or even rejection of the shipment. 

Errors in Product Valuation: Incorrect assessment and declaration of the product value can lead to delays and possible penalties. 

Compliance Issues: Not complying with the Canadian regulations regarding packaging and labeling requirements, or importing restricted items, can lead to delays and penalties.

Prohibited or Restricted Items: Importing certain goods, like firearms or plants, requires special permits and licenses, and failure to obtain them can cause delays.

• Failing to meet Canadian regulations for packaging and labeling can lead to delays.
• Some imports require approvals from other government departments and agencies, and failure to obtain these approvals can cause delays. 

Other Factors:

Seasonality and Port Congestion: Peak seasons and port congestion can cause delays due to high volumes of cargo. 

Unexpected Inspections: Customs may carry out random inspections, which can delay customs clearance. 

Unpaid Duties and Taxes: If duties and taxes are pending, packages are held until they are cleared. It may cause significant delays. 

Global Supply Chain Issues: Events like the COVID-19 pandemic, port disruptions, and trade disputes can cause delays in shipping. 

Weather Conditions: Unpredictable weather conditions can disrupt shipping schedules and cause delays. 

Labor Disputes: Labor disputes at ports can lead to delays in shipping or receiving goods. 

Using an Inexperienced Logistics Provider: Using an inexperienced logistics provider who is unfamiliar with Canadian customs procedures can lead to delays.

Tips to Expedite Customs Clearance

Here are the tips to accelerate shipping and customs clearance in Canada:

1. Prepare Accurate and Complete Documentation:

Include a detailed description of the items, their value, and the country of origin. 

Also, you need to provide a list of all the items in the shipment, including volume and descriptions. 

Ensure the bill of lading accurately shows the shipment details, including the shipper, consignee, and mode of transport. 

If required, obtain the certifications of origin to qualify for preferential tariff treatment. 

Depending on the goods, you might need permits, licenses, or other specific documentation. 

2. Understand Import Regulations:

Research the specific requirements for your goods, including any restrictions or additional requirements. 

Ensure you have the correct Harmonized System (HS) codes for your shipped items, as they classify goods for customs purposes. 

Stay updated with any changes in customs regulations or import procedures. 

3. Hire a Customs Broker/Freight Forwarder:

Hire a customs broker as they have the expertise in navigating customs procedures and can help ensure compliance with regulations.

Freight Forwarders can handle the logistics of shipping, including customs clearance, and can offer valuable advice about the process. 

4. Communicate Effectively:

Proactively address any questions or concerns your suppliers may have. Communicate with them and ensure they provide accurate information and documentation. 

Communicate with your freight forwarder/customs broker and keep them updated on any changes or issues that may arise. 

5. Other Helpful Tips:

To make your shipping process seamless, choose the right mode of transport (e.g., air freight, ocean freight). 

Use tracking features to monitor the status of your shipment and be ready to act if any issues arise. 

Ensure you have adequate funds to cover any import duties, GST, and other fees.

Impact of Customs Clearance on Delivery Times

How long after clearing customs to deliver?

Customs clearance delays can significantly impact delivery times. Here’s how:

Delays: Delays at customs can cause shipments to arrive late, affecting supply chains, production schedules, and customer delivery expectations. 

Increased Costs: Delays may lead to additional expenses, including storage fees (demurrage and detention), higher insurance costs, and possible penalties for non-compliance. 

Customer Dissatisfaction: Late deliveries can cause customer dissatisfaction, negative reviews, and potential lost sales. 

Inventory Shortages: Delays can lead to inventory shortages, as items are held up at customs and unavailable for sale. 

Damage to Perishable Goods: For perishable goods, delays can lead to spoilage and a decrease in product value. 

Impact on Reputation: Frequent delays can damage the reputation of a business and lower customer trust. 

Financial Implications: Delays can lead to lost revenue, increased costs, and missed sales opportunities. 

Increased Transport Costs: Delays can lead to higher transport costs, as shipments may be held longer and require additional handling. 

Factors Contributing to Customs Clearance Delays:

Complex and Lengthy Procedures: The customs clearance process can be complex and time-consuming, with different procedures and requirements. 

Document Errors: Incorrect or incomplete documents can cause delays and require additional inspections. 

Non-Compliance with Regulations: Failure to comply with import/export regulations can lead to delays and penalties. 

Lack of Transparency and Consistency: Inconsistent or unclear customs procedures can create uncertainty and delays. 

Limited Working Hours and Staffing: Shortages of customs officers or limited working hours can contribute to delays. 

Lack of Automation: Lack of automation in customs procedures can slow down the process. 

Lack of Gate Capacity: Shortage of gates for receiving cargo can lead to delays. 

Trade Agreements: Importers who take part in trade agreements may enjoy faster customs clearance times.

Conclusion

In Canada, navigating the customs clearance process can be complex and time-consuming. However, understanding the process and factors that affect clearance times, and taking the right steps can help you accelerate the process.  

As soon as your customs broker completes your entry for customs and transmits the data, it takes around 20 minutes for the Canada Border Services Agency (CBSA) to receive it. 

After CBSA receives your entry, it is now up to a customs officer to review the entry and either accept or reject the shipment. This step can take from a few minutes to a few hours depending on the availability of customs staff and congestion at the port.

There is, however, the possibility that before the release of the shipment, it may be held for inspection. 

If the customs inspect your shipment, it will be kept in a bonded warehouse and a customs officer will inspect it as soon as possible.  

Generally, customs officers visit multiple sites during the day and release shipments in the afternoon. The process can take from 12 to 48 hours and even longer during high-traffic periods.

For a seamless customs clearance, you can think of hiring a reliable customs broker. A reputable broker can offer the required expertise and support needed to streamline your import operations.

Also, with preparation and proactiveness, you can minimize delays and ensure that your shipped items reach their destination on time. 

FAQs

Q1. How long does customs clearance typically take in Canada?

Ans: Customs clearance in Canada usually takes between 24 to 72 hours for air freight and 3 to 7 days for ocean freight. However, the timeline can vary depending on factors like port congestion, documentation accuracy, and the complexity of the goods.

Q2. What factors can cause delays in customs clearance?

Ans: Customs clearance delays can happen due to various factors, including incomplete or incorrect documentation, issues with product classification or value, non-compliance with regulations, and port congestion.

Q3. Can I expedite the customs clearance process for my shipments?

Ans: You can accelerate customs clearance by preparing accurate and complete documents, using a reliable customs broker, and taking advantage of technology, while also complying with proper packaging and labeling standards.

Q4. What documents are required for customs clearance in Canada?

Ans: For customs clearance in Canada, you’ll need a commercial invoice, bill of lading, packing list, and potentially a certificate of origin, import/export permits, and customs bond, depending on the nature of the goods.

Q5. Do all shipments undergo customs inspection?

Ans: Not all shipments necessarily undergo a physical customs inspection. However, all international shipments require customs clearance, which requires submitting necessary documents and paying duties and taxes. 

Q6: How long can customs hold my package?

Ans: In Canada, customs can hold a package for a few hours to several weeks. It depends on factors like the type of goods, accuracy of paperwork, and the volume of packages being shipped.

Q7. How can a customs broker assist with the clearance process?

Ans:​ A customs broker can simplify the customs clearance process by handling paperwork, and ensuring compliance with regulations. 

The broker also facilitates communication with customs authorities, accelerates the movement of goods, and reduces potential delays or penalties. 

Minimizing Delays and Costs: The expertise of customs brokers can help avoid costly delays and penalties that come with customs clearance issues, such as incorrect documentation or non-compliance. 

Understanding Tariffs and Duties: Customs brokers have a thorough understanding of tariffs, duties, and other import/export regulations. They help businesses optimize their operations and minimize costs.