Transforming Import Operations for a Chinese Marketplace

Introduction:

A leading Chinese marketplace, renowned for its vast array of consumer products and efficient direct-from-manufacturer-to-consumer delivery services, has rapidly grown to be a prominent player in the Canadian e-commerce market. This case study explores how this e-commerce giant navigates the complexities of Canadian imports to deliver their products effectively, with significant assistance from BorderBuddy Technologies.

Objectives:

The e-commerce shipper aimed to streamline its import process to ensure rigorous compliance, timely delivery of products, improved cost efficiency, all while meeting the diverse needs of its customers.

Challenges: The marketplace faced several challenges in its import process, including:

• Enormous Direct-to-Consumer Parcel Volumes: The shipper was confronted with an explosion in consumer orders, with tens of thousands of daily parcel-level shipments from various international manufacturers, arriving at Canadian airports and bound for individual consumers, but consolidated into only a few dozen daily Airway Bills (AWBs).
• PGA-Regulated Goods: The marketplace frequently deals with products regulated by various Partner Government Agencies (PGAs), including Health Canada, Natural Resources Canada (NRCan), Global Affairs Canada (GAC), Environment and Climate Change Canada (ECCC), among others. These goods cannot be processed through the Courier Low Value Shipment (CLVS) clearance method.
• Operational Inefficiencies: The CLVS processes were extremely slow and operationally expensive, hindering the company's ability to scale effectively.
• New Canadian Legislation: Preparing for new regulations such as Bill S-211 and the upcoming Canada Border Services Agency Assessment and Revenue Management (CARM) requirements.

Solution: To address these challenges, the marketplace implemented a multi-faceted approach:

• Regulatory Compliance: BorderBuddy helped the shipper stay updated with the latest import regulations, ensuring all products comply with Canadian safety and import standards to reduce the risk of delays and penalties. They assisted with Bill S-211 filings and prepared the shipper for CARM.
• Customs Clearance: BorderBuddy worked closely with the shipper to build accurate and compliant data and documentation for CBSA’s High Volume Ecommerce (HVEC) shipping product, including a Master AWB enumerating ultimate consignee names and delivery addresses for every parcel. This also included consolidating multiple containers and Bills of Lading (BOLs) into single clearances, reducing clearance fees by over 40%.
• Duty and Tax Management: BorderBuddy assisted the shipper in registering with CBSA’s CARM client portal to pay duties and taxes directly to the Canadian government and authorized BorderBuddy as their customs broker to manage import/export transactions on their behalf.

BorderBuddy Technologies' Role: BorderBuddy Technologies played a crucial role in assisting the marketplace with their customs importation process:

• Thorough Data Analysis: BorderBuddy proactively conducted an in-depth analysis of the shipper's import data to verify all required information and build an automated PGA processing capability. This proactive approach ensured that all necessary documentation and compliance measures were in place, significantly reducing the risk of CBSA rejections, inspections, and delays upon arrival.
• Streamlined Customs Processes: BorderBuddy helped the shipper navigate Canadian customs regulations by recommending the CBSA High Volume Ecommerce (HVEC) clearance method, ensuring compliance and reducing the risk of delays.
• Visibility to Entry and Release Process: BorderBuddy provided the shipper with real-time visibility and messaging for entry and release notifications, enhancing customs event tracking and shipment management. By automating release messaging, BorderBuddy ensured timely updates on shipment statuses, improving overall efficiency.
• Collaboration with 3PL Partners: BorderBuddy worked closely with the shipper’s third-party logistics (3PL) partners to address and resolve any issues in the supply chain, ensuring a smooth import process from start to finish.
• Technology Integration: BorderBuddy automated key processes to enhance efficiency, reduce errors, and provide real-time reporting. Key integrations included:some text
  • Automated Document Processing and AWB Ingestion: API-based systems to automate AWB data collection and pre-population.
  • OCR and GPT-Based Scanning: Advanced text extraction for unstructured data on AWBs and invoices.
  • Automatic Sublocation Code Assignment: Ensuring accurate shipment handling.
  • Automated ETA and ATA Collection: Integration with air freight notification services to create dynamic sequencing based on accurate arrival data.
  • Automated Warehouse Arrival Notification: Real-time alerts for warehouse arrivals to trigger CBSA releases.
  • Customs Clearance Dashboard: Real-time prioritization and reporting with client-based login for visibility and On-Time-Performance monitoring.
  • Automated Parcel Level Billing: Flexible invoicing for consolidated entries.
  • CBSA File Size Reduction: Collaborating with CBSA for data compression and streamlining of submissions without compromising accuracy or completeness.
  • Automated Error Alert System: Prompt notifications for discrepancies, ensuring timely resolution and seamless operations.

Results: The marketplace's strategic approach to managing its Canadian imports, coupled with the support from BorderBuddy, yielded impressive results:

• Sales Growth: The shipper achieved substantial sales growth, with significant increases in market reach and customer base.
• Customer Retention: The company boasts a high customer retention rate, indicating high customer satisfaction and loyalty.
• Expansion: The shipper expanded its product availability by partnering with major retailers, further boosting its market reach and sales.
• Operational Efficiency: BorderBuddy successfully met a 99.8% On-Time Performance metric for submitting entries four hours prior to ETA, demonstrating significant operational efficiency.
• Cost Savings: Setting up on the CARM portal and leveraging trade agreements such as CUSMA/USMCA enabled the marketplace to reduce duties and taxes, making their products more competitively priced in the Canadian market.

Conclusion:

The marketplace's success in managing its Canadian imports and overall business strategy highlights the importance of efficient and cost-effective customs clearance, proactive regulatory compliance, and continuous innovation. BorderBuddy’s market-leading capabilities played a pivotal role in this success: their investment in AI and various technologies streamlined document processing, automated PGA and customs compliance, enhanced visibility into customs acceptance and release notifications, and automated the majority of processes where other brokers still rely on error-prone human involvement. These efforts have not only streamlined their import process but also positioned the shipper as a leading name in the e-commerce industry.

By learning from this marketplace’s approach and leveraging the expertise of partners like BorderBuddy Technologies, other businesses can enhance their import strategies to achieve similar success in the competitive Canadian market.

Ready to streamline your import process? Contact us today to learn how BorderBuddy can transform your cross-border trade operations.

Contact Information:

• Get a Quote: BorderBuddy Quote
• Email Us: service@borderbuddy.com
• Call Us: 1-877-409-8163
• Learn More: CBSA High-Volume E-commerce Product

‍