Cash Conversion Cycle Formula: How to Calculate & Improve
Learn the cash conversion cycle formula and how to use it to improve your business’s cash flow and financial health.
Exporting goods to Canada can be complicated, even though it borders the United States.
The market for exports to Canada is enormous. In 2019, it was the number one destination for American goods. Vehicles ($52 billion), machinery ($45 billion), and plastics ($13 billion) are among the top export categories.¹
If you already export to Canada or wish to start doing so, this guide will help you with the ins and outs of filing a Canada customs invoice (CCI).
Cut the costs of doing
business in Canada with Wise
The Canadian commercial invoice is a document required for the majority of commercial shipments entering Canada. In it, you’ll find information about the shipment, vendor, and consignee.
A Canada invoice contains more information than a standard commercial invoice and is reviewed by the Canada Border Services Agency (CBSA).
It must be filled out by one of the following parties:
Without one, your shipment will be delayed, and the same applies if you fill out the form incorrectly.
If you’re exporting goods to Canada, it’s safe to assume you’ll need to complete a Canada customs invoice.
You don’t need to fill out a Canada customs invoice under the following conditions:
If you forget to fill out the CCI, your shipment will be delayed. This also applies if you fill out the form incorrectly, so it’s important to check the information you enter. Any delay to shipment can of course have a financial impact on your business.
💡 If you have concerns over adhering to the Canadian rules and regulations, you’re not alone. Many exporters choose to work with experienced freight forwarders, shipping companies, or third party logisticsto minimize the inconvenience. |
---|
Filling out a Canada customs invoice is straightforward, but there are many steps involved. Make sure you go over all the information you enter once you’ve finished, to clear up any errors if necessary.
Here are Canada customs invoice instructions to help you complete the individual invoice fields:
CCI Form section | Explanation |
---|---|
1. Vendor | Enter vendor company information, including a complete name. This can be for the seller or the party consigning goods. |
2. Date of direct shipment to Canada | Enter the date the shipment was sent. |
3. Other references | Include any relevant information such as purchase order (PO) number or commercial invoice number. |
4. Consignee | Fill out the complete name and address of the shipment recipient in Canada |
5. Purchaser’s name and address | Enter the name and address of the company or individual purchasing the goods |
6. Country of transshipment | Name any countries which the shipment will pass through on the way to Canada |
7. Country of origin of goods | Enter the name of the country the goods were grown or manufactured in, making sure to adhere to Customs Tariff restrictions |
8. Transportation | Write out the means of transport |
9. Conditions of sale and terms of payment | Outline any sales conditions or payment terms that you’ve agreed with the buyer |
10. Currency of settlement | Indicate the currency of the transaction |
11. Number of packages | Indicate how many packages you’re shipping |
12. Specification of commodities | Indicate what kind of package you’re shipping, any marks and numbers on the packaging, and provide a general description of the goods |
13. Quantity | Indicate the quantity for each item you’re shipping |
14. Unit price | Indicate the unit price for the goods sold in the relevant currency |
15. Total | Provide a total for the price paid |
16. Total weight | Indicate the gross and net weight of the shipment |
17. Invoice total | Indicate the total sum of the invoice |
18. If any of fields 1 to 17 are included on an attached commercial invoice, check this box. | Only check if fields 1 to 17 are included on an attached commercial invoice |
19. Exporter’s name and address | Write out the name and address of the exporter, who is the person or organization in charge of shipping the goods |
20. Originator | Indicate the details for the company or individual that paid the invoice |
21. CBSA ruling | Detail any CBSA ruling numbers or dates that apply to the shipment |
22. If fields 23 to 25 are not applicable, check this box | Only check if fields 23 to 25 are not applicable |
23. If included in field 17 indicate the amount: |
|
24. If not included in field 17 indicate the amount: |
|
25. Check (if applicable): |
|
There are some mandatory fields on the Canada customs invoice that you can’t ignore.
Details you must include are:
If you have to fill out a Canada customs invoice, there’s a good chance you’re shipping goods to sell in Canada.
If you’re doing business in Canada, then the Wise Business account can be a game-changer. You can have CAD account details, even as a US citizen, and receive payments like a local.
You can also pay Canadian suppliers, shipping companies, and more at the real mid-market rate. Wise users can even save up to 19x compared to PayPal when sending money from the business account.
Sorting out Canadian customs can be stressful and expensive, but managing your business finances doesn’t have to be.
Register with Wise for free,
start saving time and money today
💡 For all you need to know about invoices, don't forget to read and bookmark the ultimate guide to invoicing from Wise! |
---|
🔍 More articles you may find useful: |
---|
All sources checked March 3, 2022.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Learn the cash conversion cycle formula and how to use it to improve your business’s cash flow and financial health.
Thinking about buying business property in a foreign country? Explore key considerations, legal requirements, and tips for success.
Wondering about the cost of an accountant for your small business? Find out what to expect and how to budget for professional services.
Get essential bookkeeping tips for small businesses, from tracking expenses to managing cash flow and preparing for taxes.
Discover the key differences between PayPal Business and Wise Business. Compare features, fees, and benefits to find the best solution for your business needs.
Want to know how to set up direct deposit for your employees? Let’s go into the steps, costs/fees, documents, and tools you can use.