What Happens If You Don’t Clear Your Shipment on Time or Refuse to Pay Customs Duties?

canada-flag-nylite-200d

Shipping personal effects from the Dominican Republic to Canada requires timely customs clearance to avoid delays, extra fees, or loss of shipment. Below are various scenarios that could occur if customs clearance is delayed or if the receiver refuses to pay duties and taxes.


Scenario 1: Delayed Customs Clearance – Shipment Held in a Bonded Warehouse

Example:
John ships his personal effects from the Dominican Republic to Canada. Once the shipment arrives, CBSA notifies him that he must clear customs within 3 days. However, John is on vacation and doesn’t complete the customs process in time.

What Happens Next?
✔ After 3 days, the shipment is moved to a bonded warehouse, and storage fees start accumulating.
✔ If John doesn’t clear customs within the CBSA-specified timeframe (usually 40 days), his shipment is at risk of being:

  • Seized by CBSA
  • Auctioned to recover costs
  • Disposed of if it has little value
  • Returned to the sender at John’s expense

How to Avoid This:
✅ Track your shipment and be ready to clear customs as soon as it arrives.
✅ Have all required documents ready (BSF186, BSF186A, proof of residency).
✅ If you’re unavailable, authorize someone else to clear customs on your behalf.

📌 Reference: Learn more about bonded warehouses from CBSA:
CBSA Bonded Warehouse Information


Scenario 2: Failure to Pick Up Cleared Shipments from a Bonded Warehouse

Example:
Sarah receives notification that her shipment from the Dominican Republic has cleared customs and is ready for pickup. However, she waits more than 3 days before picking it up from the bonded warehouse.

What Happens Next?
✔ Bonded warehouses allow only a limited grace period (typically 3 days) for pickup.
✔ After this period, daily storage fees apply.
✔ If Sarah doesn’t collect her shipment within the warehouse’s final deadline, the items may be:

  • Auctioned by CBSA to recover costs.
  • Disposed of if they are not valuable.
  • Returned to the sender at Sarah’s expense.

How to Avoid This:
✅ Check the warehouse’s pickup deadline as soon as your shipment clears customs.
✅ Arrange for transportation immediately after clearance.
✅ If you can’t pick it up, authorize ShipToDR.com to retrieve it on your behalf.

📌 Reference: CBSA regulations on abandoned shipments:
CBSA Customs Clearance and Abandonment Policy


Scenario 3: Importer Fails to Pay Customs Fees on Time

Example:
Luis imports a used refrigerator and personal electronics from the Dominican Republic. CBSA assesses HST and possible duties on his shipment. He fails to pay these fees within the required time.

What Happens Next?
✔ Until customs fees are paid, CBSA will not release the shipment.
✔ After a certain period, the shipment is transferred to a CBSA storage facility, where additional storage fees apply.
✔ If Luis never pays the fees, CBSA confiscates the shipment and auctions it.

How to Avoid This:
✅ Be prepared to pay all customs fees as soon as the shipment arrives.
✅ Understand Canada’s HST and duty rules in advance to avoid surprises.
✅ If you cannot pay immediately, ask CBSA about payment options.

📌 Reference: CBSA Duty & Tax Calculator:
Estimate Import Duties & Taxes

Check out more posts below...

9edc78a51f69cf667c9a8c0a919e33de-1200

Shipping Scenarios