Right now with our Canadian dollar sitting 20% below our American cousins makes this the best time ever to ship our scrap south. I've shipped many semi loads to the yard in Tacoma, there is no duty on scrap coming into the US.
If you’re trucking the load yourself you may have to pay a fuel permit to the Canadian Government who are aware of the fuel price advantage of filling that rig south of the border and want some flesh.
In the early days I needed a yard here in Canada to broker my loads going south most any yard would do for a small fee, smaller yards could not as they also had to use a larger well established yard to broker for them, but this practice of brokering has long ago been dropped from practice you can now ship direct.
If a yard wasn't able to broker for you, you knew they were peanuts in the industry, to be able to broker you had to have quota. Any yard having quota sold at a locked in price, if they could not meet their quota paid a penalty.
When a yard met his quota any scrap shipped after would have been out of contract, now the yard who had money backing them would stock pile until a new favourable contract for quota had been negotiated.
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Part two: I'm going to use my shipment of cats to the US as an example.
The trucking company you consign to carry your load to its destination will ask you for a bill of lading, on the bill of lading will be the consignees name with export number and address with destination and a tariff code and weight for the product being shipped.
Customs has a master list with tariff codes and cat comb and bead were on the list but nothing for milled cat comb which made my job difficult, fortunately I found a document on the net where someone had made an application to Customs to have this product evaluated and classified and given a tariff code which was not in the master list.
You'll need an export number for yor bill of lading any broker will give you the toll free number and there is no charge for the export number and while your at it get an import number as well.
With the above information provided to the broker along with a small fee, my bill of lading is completed then forwarded from them to the trucking company.
To begin with it was very confusing, but next time will be a walk in the park.
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Part three: Drop shipping from China, The tariff code tells the Customs people wither the item is duty free or not.
My induction furnace is duty free with a tariff code classifying it as heating equipment with only provincial tax due on arrival.
I had the idea of selling these furnaces on fleabay but wanted the sale to be seamless to my customer so I spoke with broker about prepaying any duty or tax required on arrival so all my customer had to do was sign for delivery.
If you ever had to pay the courier for duty and tax your also paying a premium for using their money which prepaid these fees on your behalf.
Anyhow for those of you with an entrepreneurial spirit the possibility’s are there to make your imported drop shipped sales less painless to the buyer, get yourself a broker with good email skills and your in business.
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Exporting to China, first order is to obtain an export number.
Here is a list of HS export codes for China and yes electronic scrap is on the list.
electronic scrap - China HS code & import tariff for electronic scrap, page 1
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