Top 5 Common Mistakes Businesses Make When Shipping Internationally

Top 5 Common Mistakes Businesses Make When Shipping Internationally 

Avoid delays, penalties, and customer complaints with these shipping tips.

When it comes to international shipping, even experienced businesses can fall into costly traps. Whether you’re sending goods from Toronto to Tokyo or from Vancouver to Vienna, understanding the key risks can save you time, money, and stress.

Here are the top 5 most common mistakes we’ve seen after 20+ years in logistics — and how your business can avoid them.

1. Incorrect or Incomplete Documentation

What often goes wrong:

Missing or inaccurate paperwork is the number one cause of shipment delays. We see businesses submit commercial invoices without harmonized descriptions, packing lists with missing weights, or air waybills missing consignee information.

Common consequences:

  • Delayed clearance due to manual customs reviews
  • Added demurrage or storage fees
  • Shipment held at border until re‑submission

How to fix it:

  • Use standardized templates reviewed by your customs broker
  • Double-check values, HS codes, and consignee details
  • Keep digital and printed copies for redundancy

Broker Tip:
We pre‐screen docs before export date to catch issues early—clients avoid costly last‑minute revisions.

2. Misclassified HS Codes

Typical mistake:

Importers often accept HS codes from suppliers without verifying them for Canada. Some equipment or mixed-material products fall under unexpected categories with higher duties.

Why HS codes matter:

  • Duty rates can vary from 0% to 20+%
  • Incorrect classifications can trigger fines, audits, or even product seizure

What to do:

  • Always confirm 10-digit Canadian HS codes via CBSA’s tariff lookup
  • Keep documentation supporting classification (material list or product spec sheet)
  • Review codes with your broker at least once yearly

Broker Tip:
We classify hundreds of items annually—our team ensures you don’t overpay tariffs or run into audit trouble.

3. Not Understanding Incoterms

Mistake in action:

Your supplier ships FOB but you assume DDP. You’re later surprised to find you owe additional duties, port fees, and hold due to cargo payments. Why this matters:

  • Incoterms determine who is responsible for shipping, insurance, and customs
  • Misalignment leads to unexpected cost and liability gaps
  • Internationally recognized terms

Best practices:

  • Confirm Incoterm in writing upfront (e.g., EXW, FCA, FOB, CIF, DDP)
  • Understand each term’s responsibilities and cost boundaries
  • Adjust your landed cost model to include everything from pick-up to delivery

Broker Tip:
We help clients compare quotes under different incoterms so they never get blindsided at the border.

4. Ignoring Country-Specific Import Rules

What happens:

You ship a product labeled in English only to an EU country—where multilingual labeling is mandatory—or a food product without FDA/CFIA pre-approval to the US.

Risks include:

  • Seizure at destination
  • Mandatory relabeling at your expense
  • Fines, product rejection, or costly repatriation

Solution:

  • Research import rules for each destination (CFIA, FDA, DG, etc.)
  • Provide destination-specific packaging and label instructions to suppliers
  • Ask your freight-forwarder in advance about permit or certificate requirements

Broker Tip:
We track regulatory updates in major markets monthly — our clients avoid ALF&E delays because they’re always prepared.

5. Inadequate Insurance Coverage

Common assumption:

“Carrier insurance will cover everything.” Unfortunately, most carriers only insure up to $0.50/lb (subject to carrier BoL and T&C) — not enough to replace damaged or lost high-value items.

What coverage protects:

  • Loss, theft, or damage during transit
  • Cold-chain temperature failures or unseen handling damage
  • Rejection of parcels without recourse

Smart approach:

  • Calculate realistic value as CFR + duties + insurance
  • Talk to your broker about all-risks cargo insurance
  • Add coverage for high-risk items like electronics

Broker Tip:
Our team options cargo insurance from $1M policies to small-shipment protection— clients never feel uncovered.

✅ Final Takeaway

International shipping gets expensive when avoidable errors happen. But with thorough planning, proper documentation, and the help of experts, you can ship efficiently—while protecting your time, money, and reputation.

Here’s a free downloadable checklist and infographic to help you onboard your team or share with logistics partners.
👉 [Download Now]

Want to make sure you’re not making these mistakes?
📞 Get in touch and we can will help you.