Agricultural equipment and parts travelled duty free across the U.S.-Canadian border long before the North American Free Trade Agreement was a twinkle in former prime minister Brian Mulroney’s eye.
However, duty free doesn’t mean smooth sailing when it comes time to clear customs with machinery.
U.S. customs officers will not release a self-propelled vehicle into Canada unless they have had 72 hours notice before the northbound implement arrives at their border station. The regulation applies to all vehicles, from self-propelled lawnmowers to 400 horsepower combines.
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This explains the anecdotal stories about farmers importing an American implement and being forced to drop it at the border and wait for days before retrieving it. Most of those stories relate to the 72-hour requirement on the American side rather than Canadian customs rules.
However, Don George, John Deere’s transport co-ordinator for Canada, said agricultural implements move over the border relatively easily when all paperwork is in place and regulations are followed.
“There’s a lot of used equipment movement across the border in both directions,” George said.
“For prairie farmers, it’s mainly (4WD) tractors, combines and sprayers. All brands. If it’s on a Deere lot somewhere and it needs to be shipped, that’s what I do.”
George said that when a Canadian farmer buys from American Deere dealers, the farmer often does his own pick-up and trucking or hires a Canadian-based trucker.
“It seems to work better that way,” George said.
There are likely few people in Western Canada with more experience in transporting equipment over the border than Charlie Smith, owner of Combine World at Allan, Sask.
“A farmer will always have more trouble getting a machine over the border himself because they’ll single him out,” Smith said.
“The red flags automatically go up. Maybe they think the hopper isn’t clean enough or they didn’t get the 72 hours notice just right in their view. Or maybe they hit a particularly ornery person at the U.S. border. Or worse yet, at both borders.
“The U.S. side can be absolutely brutal about releasing machines into Canada, but if a broker handles the papers, it usually rolls on through OK.”
Smith said farmers aren’t required to use a broker, but it’s not a place to cut corners when the brokerage fee on a typical combine import is $150.
“I have no idea how much work they actually do for their 150 bucks, but I know I can’t even begin to put pen to paper for that money. It’s a deal.”
He said this is true whether the item’s value is as small as $10,000 or as large as $200,000.
The diesel cost is another consideration.
A lot of wasted fuel goes through a semi-truck if farmers are forced to drop the implement on the U.S. side and then go back three days later.
Smith said he uses Percy H Davis Custom Brokers in Saskatoon because it is connected to brokers at every port of entry from the Maritimes to Vancouver.
“If I have an implement going from New York to Ontario, I still use Percy Davis because they’ll have a connection to a brokerage house where the machine crosses.
“That costs me an extra 40 bucks, so it’s not a big deal, and certainly not worth my time to even think about doing it myself.”
Mark Davis of Percy H Davis said the border horror stories that people tell are often true.
“We know of cases where people have gotten themselves into a lot of trouble by not understanding the rules,” he said.
“In the eyes of U.S. Customs, you’re still breaking a law. Ignorance is no excuse. We know of fines, seizures and other consequences.”
Davis said some U.S. stations can be strict if information is missing or paperwork isn’t in order. For example, there is an automatic minimum fine of $500 if the officer thinks the 72-hour notice has not been filed properly.
“U.S. law states that every port has the same regulations, but some ports are much stricter. It’s very difficult to satisfy their requirements.
“On the Canadian side, the importer is ultimately responsible to deal with any and all errors, whether it’s the fault of the vendor, the carrier, the broker or anyone else.
“If you’re importing a tractor and the U.S. dealer you bought it from gave you the serial number wrong, it’s all your problem. You have sole responsibility. That’s why we always work very closely with the importer to make sure there are no issues.”
Davis said it is possible to prepare documents at customs stations, which have computers and instructions to help with the process, but if the importer isn’t present at the border, the item stops.
The carrier cannot substitute as the importer, he added. If the importer is not there in person, then a broker is required.
Davis said the customs system is becoming more computerized, with electronic formats for release and clearances.
This trend probably makes it more difficult for individuals to do their own brokering because of the investment in specialized hardware and software.
For more information, contact Charlie Smith at 306-257-3800 or www.combineworld.com or Mark Davis at 306-244-4422 or www.percydavis.com.
