As of Friday, the small companies in Canada are no longer shipping small packages to customs duties-and some sellers online are concerned that their companies will not survive the strike.
DE MINERVEIS’s exemption, which has been allowed in recent years of goods of less than $ 800 to enter the United States without additional fees, ends as an executive order in July Donald Trump.
This means that these shipments will now undergo duties of up to $ 200, depending on the country of origin, and the Canadian small companies that have American clients will be hit at additional costs that eat their profits.
“We have cut all shipping to the United States because, at the present time-with the amount of risks and the absence of information about shipping to the states-we cannot justify it,” said Jess Sternberg, the owner of the Vancouver’s free clothes.
For years, the United States government has expressed concern that minimal shipments were used to smuggle deadly opioids into the country, because they were not searched closely by the habits of the United States. Firstly, the exemption of shipments from China was commented earlier this year, which is a policy change Patch Like Shin and Timo.
But the end of the minimum for the rest of the world, including Canada, will affect the mother and base stores “inappropriately”, according to John Buscariol, a commercial expert and partner in McCarthy Titridite in Toronto.
“Many of them who relied on these low -value charges to the United States as part of bread and butter in order to stay are disturbed, and they may have to get out of work.”
A story from two Canadian companies
Canadians can still send messages and gifts less than $ 100 to the United States without any additional cost, and companies that meet the Canada-USA (CUSMA) Convention (CUSMA) Rules of origin In theory, it will still be able to charge free from customs duties. To qualify, the product must meet specific criteria, such as obtaining at least a certain percentage in North America.
However, even in these cases, small and medium-sized companies are not completely outside the hook, as Boscariol said, pointing to additional administrative costs of customs clearance-such as mediation fees for companies whose shipments must be proven compatible.
Sterinberg is concerned about these costs. Her work, specialized in slow -sized fashion for women, makes her clothes in Canada from a mixture of local and imported materials.
However, its Canadian sales have actually diminished during the past year, which they attributed to economic uncertainty. Meanwhile, its customer base grows in the United States, as it constitutes approximately 45 percent of all sales since the beginning of this year.
She said: “It is not only that the possibilities of growth, as this is the place where it is possible to preserve it, which is now important for small companies, because it was a few difficult years.”
Sternburg said that with recent changes, there is definitely an opportunity because commercial activity will not survive this period.
“We will move forward with only focus on our Canadian customers and international customers, and we hope that things will change and we can ship to the states in the future.”
Meanwhile, another small Canadian company says it will accommodate the cost of additional duties – because increasing sales from the Canadian movement has given it a maneuvering room to do so.
“We have made the cost of adding cost, which is great, it is huge,” said Jin Harper, founder of the Cosmetic Cosmetic Foundation, a cosmetic company owned by the indigenous population based in Saint Catherine.
About 30 to 35 percent of its sales from the United States, according to Harper. However, the company witnessed an increase in Canadian orders at the forefront of the year in response to Trump’s commercial escalation and annexation threats.
Harper says the additional costs reach 25 to 30 percent in shipping fees, and the company may not be able to absorb it in the long run.
“We are doing this on a temporary basis to see its effect on the end of the final result,” she said. “But we made this decision because we do not want to intimidate any of our customers in the United States.”
“rapier”
The DE Minimis program is a “double -edged sword” for small companies that will be harmed because of its loss, according to Bob Kirk, Executive Director of the Canadian Clothes Union.
“On the one hand, it allowed many smaller companies to increase sales, directly to the consumer, to the United States. There are no paper business, no duties. It is great,” he said.
“But it is over. We left with many companies that should know these rules of origin better, but they did not have to do so for a few years. This will be the amendment.”
The parcels of less than $ 800 were not subject to the duties of the United States under a long -term trade policy, known as minimal exemption. But President Donald Trump has signed an executive thing that, as of August 29, it will be eliminated, leaving many companies to know how to move in change.
Some CBC News told how you would adapt to the end of the minimum. FEDEX still accepts US shipments related to the United States, while Canada Post says it works with a third party to collect duties and convert them into American customs.
However, the shipping companies’ shipping talks are no longer the packages associated with the United States. ETSY and Ebay e -commerce companies say they will not accept the purchase of the Canada Post Shipping Package for Package to the United States
Kirkk admitted that some small companies can be closed with the end of the exemption. He added that the other challenge is that Canadian entrepreneurs will not be able to innovate the same degree without reaching the United States market.
“It will lead to some of this innovation, and some of this growth, and this is the industry of life (to make). So this is the challenge,” he said.
“I took a truly valuable tool for startups.”
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