Blog Posts

Is your Canadian customs broker offshoring?


Did you know that some Canadian customs brokers “offshore” specific customs processes to third parties?
 
Are you wondering if your information is being viewed and accessed by a third party in another country?
 
Do you want some information on what this could mean for you?
 
Then read on!
 
In today’s competitive global marketplace, many companies are outsourcing one or more aspects of their business to offshore providers. Canadian Customs brokers are no different – a number of brokers make use of the lower labour costs in other countries to handle some of the Custom entry creation processes. Outsourcing is less prevalent for U.S. brokers as they are prohibited by law from outsourcing anything that is considered customs business.
 
While a lower cost outlay may make this option appealing, there are tradeoffs when using an offshore company – such as reduced data security and an absence of industry certification and compliance auditing.
 
Not sure if your customs processing is staying in Canada? Ask!
 
canadian offshoring
If you were unaware of the growing industry trend toward outsourcing when you first enlisted your broker, you may have already authorized this without even realizing it. And even if you did okay it, is data offshoring consistent with your company’s compliance program requirements? In some cases, it may not be.
 
It is your responsibility to know how, where and by whom your data is accessed and it’s within your rights to ask your broker. Hopefully your broker has been upfront with you and you know already. But if the possibility of data offshoring concerns you, it may be time to have a talk.
 
Investing the time to find a good business partner and develop a positive relationship with your broker is key. Your broker should know what you do, understand why you do it and be able to help improve your business in any way they can.
 
Because brokers handle sensitive and competitive trade data, you should ensure you know where your data is at all times. Consider signing an agreement that ensures your data remains in Canada and is processed fully by Canadian brokerage firms without offshore assistance.
 
We can help!
 
Cole is a 100% North American company and we never offshore our client data. Our professional and experienced customs brokers are happy to answer your questions about this or any other aspect of your import business.
 
Contact us today!
 
Information provided by: Canadian Customs Brokerage Dept. - Cole International