Canada Customs Brokerage Market Size

Canada Customs Brokerage Market Analysis

The Canada Customs Brokerage Market is valued at about USD 450 Million in the current year and poised to grow at a CAGR of over 7% during the forecast period. The market is driven by the increase in trade in the region. Furthermore, the market is driven by the increasing demand for custom brokers because of the complexity of the trading systems.

• Many people identify customs brokers with importing, although their skills and particular knowledge can be beneficial to exporters in today's complicated and frequently unpredictable trade climate. Aside from multiple new trade agreements, there have been the disruptive impacts of the global pandemic and an increasing tendency by the US government to utilise trade agreements aggressively rather than as a tool to encourage international trade. As a result, the global trade environment has shifted from one that was formerly very predictable to one that is becoming increasingly unpredictable. In actuality, a broker's function is to facilitate trade and assist exporters in risk management.
• The Canada Border Services Agency (CBSA) has also adopted the Canadian Export Reporting System (CERS), a web-based, self-service site, and no longer accepts paper-based export declarations. With this mechanism in place, the Canadian government may easily audit export declarations. If exporters do not meet all of the rules, they are more likely to face financial penalties. A customs broker can help exporters ensure they are doing everything correctly to avoid these penalties. A list of brokers and specialists is available from the Canadian Association of Importers and Exporters (IE Canada). The Canadian Society of Customs Brokers (CSCB) maintains the Importers Network, which also assists to help exporters and importers choose what type of broker or specialist they may want. Another organisation that provides a list of brokers and specialists is the Canadian International Freight Forwarders Association (CIFFA). Not all brokers are created equal. Some do a little bit of everything, while others specialise in one area, such as goods.
• The Covid-19 epidemic continues to have an impact on global trade flows and economic growth in 2022 and is expected to continue into 2023. The third year of Covid-19, along with the Ukraine/Russia conflict, has increased geopolitical instability, potentially impeding global economic recovery. The World Trade Organisation (WTO) predicts a 3% increase in merchandise trade volume in 2022, down from a previous prediction of 4.7% and 3.4% in 2023. Commodity prices have risen as a result of the Russia/Ukraine situation, which has had the most immediate economic impact. Russia and Ukraine are significant suppliers of critical items such as food, electricity, and fertilisers. This has had a global impact, particularly in low-income nations where food makes up a major portion of household income. In Canada, the top 3 exports are crude petroleum, cars and refined petroleum with the top 3 imports being cars; car parts and accessories; and trucks.
• The United States' decision to reduce Section 301 tariffs (Trade Act of 1974 (U.S.)) on over 100 Chinese-made medical items may have an impact on Canadian enterprises that sell competing goods to the United States. The customs brokerage industry is highly competitive, with many brokers operating, particularly near borders. The major players, however, control a sizable piece of the market. Companies that offer customs brokerage services are investing in R&D to acquire a market advantage. R&D spending is likely to rise during the predicted period as demand develops for streamlined and more efficient customs-clearing systems with quick turnaround times.