Import Charges

NBNB Posts: 2subscriber Member
Hi, We are an online retailer based in Canada. I was wondering if someone from the US or other international country purchases tea from our website, would they be subject to import charges? Does anyone have any experience with this? I would like to make the process as streamlined as possible for customers.
Thanks!

Comments

  • PZagottiPZagotti Houston, TXPosts: 22subscriber Bronze Level Member

    Hi NB,

    I have a few clients that manufacture in a foreign country and import into the US.  Here are a few thoughts:

    1.   Tea is considered a food and is subject to the US Food and Drug Administration, (FDA) review and approval.  You will need to get their approval before shipping.  The approval is not that hard to get.  Their website where the discuss importing goods is: https://www.fda.gov/Food/GuidanceRegulation/ImportsExports/Importing/ucm2006837.htm

    2.  Import duties are generally controlled by trade agreements between the two counties.  In your case Canada and the US currently have a trade agreement called NAFTA.  I say currently because there is talk about modifying the agreement.

    3.  If you are talking about pre-bottled tea with sugar and other additives then there are other trade quota issues the consider outside of import duties.

    4.  A good freight company with experience in exporting to the US should have someone on staff who can help you through the process and give you a reasonable guess as to shipping cost. 

    Good luck.

    Phillip Zagotti
    Partner
    Zagotti & Burdette CPA, LLC
    ZnBcpa.com
  • NBNB Posts: 2subscriber Member
    Thanks Phillip for such detailed information. I will look into the regulations as most of our customers would be from Canada and US.
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