Can A Trading Company Without An Import Or Export Licence Manage By Interacting Directly With The Cfia The Process Of Returning A Meat Container/consignment They Own Back To Canada Without Having The Original Meat Processing/packing Establishment Handle The Process With The Cfia
No, only a licence holder will be allowed to return meat shipments back to Canada and this would normally be the establishment of origin that requested the export certificate although a non-licensed trader can facilitate the return procedure ).
The CFIA currently works with all parties implicated in the shipment of Canadian goods returned to verify that the integrity of the container was maintained. Traders will not see any changes to the procedures for returning containers to Canada as a result of the SFCR. The product will still need to be presented at a licensed establishment for the purposes of inspection.
Average Prices For Colombian Coffee
The price per kilo can vary widely and depends on many factors. But heres a breakdown of how absolute minimum costs are calculated:
The National Federation of Coffee Growers provides daily list prices for coffee in cargas, or 125kgs of parchment , on their website. To take an example on April 8th, 2020, the price is 1,200,000 COP per carga which is $309 USD per 125kg parchment, or $2.47 per kilo. Once you account for average parchment weight you can calculate an absolute minimum price of $3.37 per kilo in green.
This is the minimum price that an exporter will pay at the farm. There are still a number of other process expenses, fees, and taxes that need to be added to this before youre given a quote, including:
- Domestic transportation
- Taxes
- International shipping
A very large variable in cost can come from milling, and the milling rule your exporter will use. A standard milling rule in commercial Colombian coffee is 12/60, or 12 allowed faults of the first group of defects and 60 faults of the second group of defects in a single sample. Other common milling rules are 3/20 or 0/5. The more strict you will request your coffee to be milled equates to more beans that are thrown aside, raising the price of the per kilo cost.
For anything higher quality than commercial beans, or specialty coffee with unique profiles or processes, prices can increase from anywhere between 5% to 1,000% per carga.
How To Import Food Products To The Us For Resale
The United States is home to a massive variety of imported food from all over the world. Americans’ appetite for unique flavors drives the demand for businesses to bring this food into the U.S. If youre planning to import food to the U.S. to meet this demand, there are some important details you need to be aware of.
To import food products into the U.S. for resale, youll need to comply with numerous import regulations in place through the FDA, USDA, and CBP. Food that comes from wildlife is also subject to U.S. Fish & Wildlife Service requirements. Due to the strict nature and amount of regulations, CBP recommends working with a Licensed Customs Broker when importing food.
To get a complete understanding of how to import food products to the U.S. for resale, weve put together the comprehensive guide below. The information below outlines the entire process for importing food and gives you a clear path to success.
If youre in a hurry or dont have time to read through all of the information below, no need to worry. Our Licensed Customs Brokers are available to provide immediate assistance for your importing needs. You can schedule a 1-on-1 import consulting session with our Licensed Customs Brokers. Theyll answer all of your questions and address your specific importing needs to help you safely import your food.
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I Am An Importer What Are My Traceability Requirements
Importers need to prepare and keep documents to identify the food, trace the food 1 step back, and trace the food 1 step forward.
- Distribute or trade food across provincial borders
- Make food for interprovincial trade or export
- Sell food to consumers at retail
For example, in the 2 scenarios below a distribution center who provides food to a grocery store in another province is required to trace the food 1 step forward and 1 step back regardless of the business model they follow:
Import Beans Us Consumers Crave
In 2015, the U.S. led the coffee import charts with $6 billion worth of coffee imports purchased.
Todays U.S. consumers crave fresh gourmet coffee beans. Flavored coffee and holiday blends are made by adding flavored oils to the beans after they are roasted and before the beans are ground up. Four major flavored coffee categories that are broken down to create a variety of coffee flavors include:
- Clove
- Cardamom
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Payment And Invoicing Norms
The default currency for paying Colombian coffee exporters is the US dollar, usually via wire transfer.
Bear in mind that the value of the Colombian peso can fluctuate against the dollar, so once a quote expires, the same order might then change in price. Therefore if its currently a favorable exchange rate, it can pay to complete the purchase quickly while a quote is valid, rather than spending time shopping around.
Importing Food With A Licensed Customs Broker
As you can see, importing food products to the U.S. for resale is a highly involved process with many regulations and rules. Unfortunately, its easy for mistakes to occur which can lead to major issues for importers. To avoid these problems and make the process easier, many importers choose to work with a Licensed Customs Broker. Dealing with strict customs requirements and regulations is part of a customs broker’s daily responsibilities.
When you work with our Licensed Customs Brokers, youll have peace of mind knowing that your import will safely and quickly clear customs. We take the stress and worry out of importing food and allow you to focus on other critical aspects of your business.
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What Are The Pros & Cons
Pros
- Limited liability. This is one of the biggest benefits of buying coffee through an importer. Youre not subject to the same risk factors as a roaster buying directly from a farmer because importers assume responsibility for ensuring the quality of the coffee you order.
- The option to buy beans from other regions in case of bad weather. Its almost impossible to ensure youll receive the same quality of coffee from the same farm with every order. Each lot of coffee differs significantly based on the environmental conditions of the growing season. That means some coffees you ordered in the past may no longer be available.
Cons
- Higher prices. You will pay more for the service an importer provides than you would buying directly from a farm. However, when you buy beans from a farm, youll still incur additional expenses to import your coffee.
- Lack of influence over the treatment of farmers. One key benefit of buying from a farmer is the relationship you can develop with the people producing your coffee. This includes ensuring the producers receive fair wages and quality living standards.
Check out our guide on How to Buy Ethical Wholesale Coffee Beans
Coffee Import Customs Duties In The Us
In the United States, there are no limits to the amount of coffee you can import into the country and green coffee bean imports are duty-free.
If the coffee beans are ground and already brewed, however, there are special duties to pay on coffee containing syrup or sauces. Again, an experienced coffee supplier or licensed customs broker will assist you with this.
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Would Trading Companies With A Licence For Other Food Commodities For Example Fruits Or Vegetables Have Any Advantage On The Services They Can Provide Managing Meat Versus Trading Companies Specialized In Meat
No, trading companies with licences for other commodities will not have any advantage over those specializing in meat exports. While other commodity traders may become licensed and request certificates as per existing program structures for other foods, they will still need to go back to the operator of the meat establishment for the meat certificates.
Importing Coffee Into Canada
If you plan to start importing coffee into Canada, you must already know that coffee is the most consumed beverage amongst Canadians above 16 even more than tap water. The coffee importing business is also the center of a very important market globally, estimated at around US$20 billion. The income generated by growing beans supports 25 million farmers around the world. Moreover, the last decade saw the rise of legions of aficionados interested in high-quality, fairly-traded coffee, a phenomenon that only added value and relevance to this market.
So heres some information for you to get the best out of importing coffee into Canada and to earn a profit by the right means. Youll be surprised to find out that importing coffee beans into Canada is not a very complex process customs-wise, but as with many other food items, taking the right steps with the help of a knowledgeable customs broker will save you a fair amount of headache.
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Determine The Country Of Origin For The Goods You Are Importing
Identify the country where your goods originate. It is important to remember that this does not simply mean the country from which the product was shipped to you. It may also include where individual parts of the product are from, as well as where it was assembled into the final product.
Requirements for proof of origin can be found in Memorandum D11-4-2, Proof of Origin.
How Do You Import Coffee In The Us
You need to fill out a prior notice form with the FDA.
I imported some from Nicaragua last year and Ibelieve just about everything we had to do was through the FDA. Ifyou don’t fill out forms before you go, most likely it will takeweeks for your coffee to be cleared through customs.
On the FDA website you can find everything that you’ll need.
If you are importing from central/south America most countrieshave serious export requirements, I would recommend finding someonein country to help you out with these.
The coffee will have to be tested at a lab even before you cansubmit export paperwork in many producing countries.
Hope this was helpful.
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Get An Import License Or Permit
In most cases, you will not need a license to import goods into the U.S. But, for certain goods being imported, some agencies may require a license, permit, or other certification.
Follow this checklist to avoid problems when importing:
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Check the requirements of federal agencies. These guidelines from U.S. Customs and Border Protection describe the types of items that may require a license or permit. You can also get contact information for the agency that regulates a specific item youre importing.
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Contact the local port of entry youll use to import your goods for import requirements and other information about the process.
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Even if you do not need an import license, you must fill out CBP entry forms within 15 calendar days of the date that your shipment arrives at a U.S. port of entry. Make sure to provide your importer number on all these forms.
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Your importer number is your IRS business registration number. If you do not have this number or you do not own a business, then your importer number is your Social Security number .
You may also request a CBP assigned number by completing CBP Form 5106 and presenting it to the entry branch at a CBP port of entry.
What Are The Benefits Of Applying For The Certificate Of Free Sale Online
Your online application takes only minutes to complete, provided you already have a My CFIA account. As part of the online application process once you log into your My CFIA account, you will be taken through a series of questions that will determine the requirements. Once completed, you will be able to immediately download and print an electronically signed certificate from your dashboard.
There are even more benefits of using My CFIA – such as the ability to use copy, re-use, and template functions, which will allow you to re-submit frequently used applications for exported commodities, saving you time.
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Which Customs Bond Is Best For Importing Food
As noted near the beginning of this guide, youll need a customs bond when importing food products to the U.S. Depending on your specific situation, you can opt for either a single entry or continuous bond.
In short, a single entry bond is used to cover a one-time import of goods, while a continuous annual bond covers all import shipments for 12 months. Essentially, if theres any chance that youll have more than 1 import shipment in a calendar year, it makes more sense to obtain a continuous bond.
We offer continuous customs bonds for just $245. You can purchase the bond directly on our website and complete the easy, hassle-free bond application. Upon completion of the application, you can receive same-day approval and your bond can be active in as little as 48 hours.
The first step in importing foods to the US is getting the right customs bond.
We make it easy to get the bond you need.
Am I Eligible To Apply For A Certificate Of Free Sale Online
Initially, applying for a Certificate of Free Sale online through My CFIA will only be available to newly licensed food businesses under the SFCR for foods that fall in the manufactured foods category. These food businesses were not previously registered with the CFIA.
All previously registered food businesses should continue to apply for their export certificates through their local CFIA offices, until further notice.
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Does The Food I Manufacture Always Have To Meet Canadian Requirements Related To Standards And Grades If I Intend To Export It
No, the food does not have to meet the Canadian composition requirements if it meets the requirements in the foreign country. If you manufacture food that does not meet Canadian requirements, you are required to keep a record of the foreign requirement and/or specification you are manufacturing to and the associated lot information. The CFIA does not permit the export of foods that are marketed in a deceptive, false or misleading manner. The product must be identified as being for export, to ensure it will not end up in the Canadian marketplace should the product not be exported or if it was returned.
Is An Export Licence Required By A Meat Trading Company To Export Meat The Health Certificate Is Usually Changing Ownership From The Packers To The Trading Company Before Port Loading And Then To The Foreign Importer Weeks Later Upon Payment
No, meat traders are not required to have a SFC licence. In the SFCR, exporters are only required to have a licence if they request an export certificate. Meat traders, who would be considered exporters under the SFCR, will not be able to request export certificates at this time as the CFIA will only issue meat export certificates to the licensed operator of the establishment, that is to say, current registered domestic establishments.
Meat traders who are importing and exporting may voluntarily chose export on their licence as well as import however, they will not be able to access export certificates from the CFIA.
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Understand The Incoterms For Your Imported Food
Experienced importers can attest to the importance of having a deep understanding of Incoterms. New importers might be wondering, what are Incoterms? When it comes to importing food products to the U.S., knowing your Incoterms is a must.
Incoterms, short for International Commercial Terms, outline who is responsible for the various logistical and financial components of an international commercial shipment. In total, there are 11 Incoterms, each represented by a unique 3 digit abbreviation, that determine the buyer and sellers responsibilities for these shipments.
Because the focus of this guide is on importing food, its important to note the responsibility of customs clearance for each Incoterm. For example, a shipment that is using the DDP Incoterm, puts nearly all of the responsibility and risk on the seller of the goods. This includes all aspects of customs clearance including paying for import duties and filing all appropriate import paperwork. Conversely, the EXW Incoterm, puts the majority of responsibility and logistics costs on the buyer, even including export customs clearance.
Before agreeing to an international shipment, make sure you understand the Incoterms that will be used. Its not uncommon to hear stories of importers being blindsided by thousands of dollars in import duties that they assumed the seller was responsible for.
Importing food products to the US is a challenging task with many regulations.
Determine Whether The Goods You Intend To Import Are Subject To Any Permits Restrictions Or Regulations
Many goods are subject to the requirements of other government departments and agencies and may require permits, certificates, and/or inspection. The CBSA is responsible for administering the legislated import requirements on behalf of other government departments.
It should be noted that more than one government department may have a role to play in the requirements and regulations pertaining to the importation of certain goods it is therefore beneficial to contact any that may play a role.
You will need to determine whether or not the goods you want to import are subject to regulations, restrictions, permits or other requirements. The CBSA’s Other Government Departments and Agencies: Reference List for Importers provides a list of some of the most commonly imported commodities that may require permits and/or certificates. More comprehensive information can be found in Memoranda Series D19, Acts and Regulations of Other Government Departments.
Additionally, if you are importing alcohol or tobacco products it is recommended that you check with the applicable authority in your province or territory.
The CBSA requires certain goods to be clearly marked with the country of origin. More information on marking requirements is found in Memorandum D11-3-1, .
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