Navigating US-Canada Trade: Avoiding Common Customs Clearance Mistakes

The United States and Canada share one of the largest trading relationships in the world, with billions of dollars in goods crossing the border daily. However, since the dawn of 2025, what was once a strong economic partnership is now plagued by frequent policy changes, tariff adjustments, and evolving compliance requirements, creating mounting challenges for businesses on both sides. Customs clearance between the two countries has become more complex and unpredictable than ever. 

Whether you’re exporting from Canada to the US or importing from the US to Canada, avoiding common customs mistakes can save time, reduce costs, and prevent delays. From documentation errors to underestimating duties, here’s what you need to know to keep your supply chain running smoothly. 

1. Assuming That Trade Agreements Will Protect You From Tariffs 

The Mistake: 

Many businesses overestimate the protections of the United States-Mexico-Canada Agreement (USMCA), assuming their goods will qualify for duty-free treatment. However, with recent policy shifts and stricter enforcement, customs authorities are scrutinizing USMCA claims more than ever. 

How to Avoid It: 

✔ Verify that your product fully meets USMCA Rules of Origin before claiming tariff exemptions. 

✔ Ensure all Certificates of Origin are properly filled out—CBSA and CBP are rejecting more incomplete forms. 

✔ Stay updated on policy changes—USMCA exemptions have come under review, and further changes could be on the horizon. 

2. Increased Customs Scrutiny Means Documentation Errors Are More Costly 

The Mistake: 

With rising trade tensions, customs officials on both sides are conducting more thorough inspections, looking for inconsistencies or missing documentation. Inaccurate invoices, incorrect product descriptions, or misclassified goods can result in immediate shipment holds. 

How to Avoid It: 

✔ Double-check that your commercial invoices, packing lists, and waybills match exactly. 

✔ Ensure that declared values are accurate—CBSA and CBP are more aggressively flagging undervaluation attempts. 

✔ Work with a customs broker to pre-verify all documentation before shipping. 

3. Changing Tariff Classifications Are Leading to Unexpected Fees 

The Mistake: 

The US and Canada have both introduced tariff adjustments on various goods, from raw materials to consumer products. HS codes that once had low duties may now carry higher fees, and misclassification can result in costly back-payments or penalties. 

How to Avoid It: 

✔ Regularly review and update your HS codes to ensure compliance with the latest tariff adjustments. 

✔ Consult with a trade compliance specialist if your goods are subject to new duties or countervailing measures. 

✔ Don’t assume past tariff rates still apply—verify before every shipment. 

4. Protectionist Policies Are Restricting Certain Imports and Exports 

The Mistake: 

Both Canada and the US are imposing stricter restrictions on certain products, particularly in steel, aluminum, dairy, and pharmaceuticals. Failing to check for new import/export restrictions can result in shipment seizures or heavy fines. 

How to Avoid It: 

✔ Check the CBSA and CBP restricted goods lists—recent policy changes have affected multiple industries. 

✔ If your product falls under a restricted category, secure all necessary licenses and approvals in advance. 

✔ If in doubt, consult a trade lawyer or customs expert to avoid legal complications. 

5. New Labeling and Packaging Requirements Are Causing Border Delays 

The Mistake: 

Regulatory authorities have tightened packaging and labeling requirements for several imported and exported goods. Non-compliant labels—such as missing bilingual information for Canadian imports—can cause shipments to be held for reprocessing. 

How to Avoid It: 

✔ Ensure that consumer goods entering Canada meet bilingual (English/French) labeling laws. 

✔ For food, pharmaceuticals, and chemicals, verify that your product packaging complies with FDA or CFIA regulations. 

✔ Use durable, properly marked packaging to prevent rejections due to unreadable labels. 

6. Customs Processing Times Are Increasing—Plan Accordingly 

The Mistake: 

Businesses that fail to factor in longer customs processing times are facing inventory shortages and missed deadlines. With heightened security and compliance checks, even routine shipments are taking longer to clear. 

How to Avoid It: 

✔ Build in extra lead time for customs processing, especially for high-value or high-risk goods. 

✔ Use C-TPAT (US) or PIP (Canada) trusted trader programs to speed up border crossings. 

✔ Work with a customs broker who can pre-clear shipments, reducing the risk of delays. 

7. Failing to Designate an Importer of Record (IOR) Can Halt Shipments 

The Mistake: 

Without a properly designated Importer of Record (IOR), shipments may be stopped at the border. This issue is becoming more common due to increased customs enforcement. 

How to Avoid It: 

✔ Clearly designate an IOR before shipping—this can be the buyer, seller, or a customs broker. ✔ Ensure the IOR has a valid tax ID (EIN for US, BN for Canada). ✔ Confirm that the IOR’s details are included on all customs paperwork. 

Why Businesses Can’t Afford to Handle Customs alone in Today’s Trade Climate 

With rising protectionism, evolving tariffs, and increased enforcement, navigating US-Canada trade is no longer as simple as filling out a few forms and sending a shipment. One misstep can result in unexpected costs, severe delays, or even legal consequences. 

That’s why working with a trusted customs broker isn’t just a convenience—it’s a necessity and for many, a peace of mind. 

Introducing Hemisphere Freight and Customs Brokerage  

 At Hemisphere, we specialize in helping businesses adapt to the new realities of US-Canada trade, ensuring your shipments clear customs smoothly despite increased regulatory scrutiny. Based in Toronto, we have a deep understanding of both Canadian and US trade regulations, positioning us to handle everything from tariff classification and duty optimization to real-time compliance updates—so you can focus on running your business, not stressing over customs paperwork.

With 40+ years of experience navigating a plethora of complexities across a diverse range of industries, we’re your trusted partner in cross-border trade. 

💡 So rest assured that we can help. Contact Hemisphere today and let’s avoid costly customs mistakes. 

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