Importing goods into Canada
Checklist for Importing Commercial Goods into Canada
This checklist, to be used in conjunction with the Step-by-Step Guide to Importing Commercial Goods into Canada, is intended to complement and not replace existing regulations, acts and references.
Importing requirements include the following:
- Obtain your import/export business number from the Canada Revenue Agency.
- Identify what type of goods you want to import.
- Determine whether you will use the services of a customs broker.
- Determine the country of origin for the goods you are importing.
- Verify whether the goods are controlled, regulated or prohibited by the Canada Border Services Agency (CBSA) or any other government department or agency.
- Ensure that the goods are marked and labelled as required.
- Determine the 10-digit tariff classification number and the applicable rate of duty for each of the items you are importing using the Canadian Customs Tariff.
- Determine whether the goods are subject to any other duties or taxes including the goods and services tax (GST).
- Obtain invoices, certificates of origin and any other required documents.
- Determine the value for duty of the goods you are importing.
- Select the method of shipping and communicate with the transportation company on cross-border requirements.
- Await notification that your shipment has arrived.
- Submit the required CBSA documents and pay any duties and taxes owing in order to have the goods released. Note: Shipments valued at CAN$2,500 or less arriving by mail or courier may be assessed for duties and taxes and then released by the CBSA or the courier company.
Basic Documentation Requirements Guide
Every Import is Regulated by CBSA and requires a minimum amount of information
Invoice
The Canada Customs Invoice is the most common form to use. Your commercial (sales) invoice can be used instead of a Canada Customs Invoice (CCI), provided the required data elements are included:
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Vendor, Exporter and Consignee name and addresses
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Importer of Record (if other than the consignee)
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Full Description of all items in layman’s terms (what is it, what does it do, what is it made of? ect)
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Country of manufacture
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Properly completed free trade certificate to ensure duty free status
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Quantity (Packages and Weight)
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Value (Unit Price and Extension)
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Currency of Settlement
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Reason for shipment (sale/replacement/testing etc)
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Purchase Order or Invoice Number
Fillable Canada Customs Invoice (CCI)
Some Imports are regulated by CBSA & Other Government Agencies or Certificates
Permits, Certificates, and Licenses
It helps to know your HS Tariff Classification when you are trying to narrow down additional requirements, many agencies may provide information based on the tariff classification.
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CBSA
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Canadian Food Inspection Agency
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Transport Canada
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Health Canada
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Fisheries and Oceans Canada
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Global Affairs Canada
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Environment and Climate Change Canada
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Natural Resources Canada
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Canadian Nuclear Safety Commission
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Public Health Agency of Canada
Find out what agencies regulate your product, what they need
Free Trade Agreements
You need to know the HS Tariff Classification to determine whether or not the goods are duty free.
If they are not duty free, were manufactured and are coming directly from a country that Canada has a free trade agreement with, then you will also need free trade certification in order to relieve yourself of any duty.
Countries that Canada has free trade agreements with:
Need CUSMA Certification?
Unlike the old NAFTA Certificate of Origin, the new CUSMA agreement does not require a specific format for proof and certification of origin. Instead the agreement requires that very specific data requirements be supplied on any of the shipping documents produced by a party to the transaction.
Ensuring that all of the specific data requirements are included can be confusing, so you can make it easy by continuing to generate a dedicated CUSMA certification document to accompany your imports.
Duty Calculator
Your Canadian Customs Broker can be a huge help in navigating the complex waters of determining what your import duties and taxes may be. It’s important to remember that accurately classifying your goods before they are imported is the best way to ensure you are not surprised by high unexpected costs and delays.
Import Duty Tax Estimator: Duty Calculator
Paying Duties & Tax
Duties, taxes, delays, exams, 3rd party supply chain handling charges etc, are all separate from the government charges related to importing.
Determine if your goods are subject to the goods and services tax (GST), excise tax or excise duty
Any commercial item shipped to Canada may be subject to the Goods and Services Tax (GST) and/or duty. Unless specifically exempted, you must pay the 5% GST on items you import into Canada.
Any personal item would be subject to the Total Tax Rate applicable in each province.
Some specialty items have excise
Duties
Duty rates vary according to the type of goods you are importing, and the country from which they came or were made in. The CBSA then calculates any percentage of duty owed, based on the value of the goods in Canadian funds. Anywhere from 0% – 300+%
Figuring out the correct HS Tariff Classification for your goods can become a complex undertaking, so it might be a good idea to consult with a Customs broker to advise you.
A few duty rates examples for major imports:
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Clothing 16-18%
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Textile articles (bedding, linen, towels, curtains) 16-18%
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Cookware 0-8%
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Computers and related equipment 0% and duty-free
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Small Appliances 0-8%
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Furniture 0-9.5%
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Auto parts 0-8%
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Plastic Articles 0-7%
Does SIMA Extra Cost Duty Apply?
How do I know if SIMA duties apply to the goods I import?
Headache already? Let us help.
Want to look it up yourself?
There are many online duty calculators available. Caution if all you need is a “description”. Most products are not specifically described and easy to find by description in the tariff listing.
Beware of numerous principals to consider that will influence and affect the HS Tariff Classification.
The Canada Tariff Finder enables you to check import tariffs for specific goods and markets and can also be used to compare tariffs for up to three different countries or products.
Tariff is not always specifically described, may have numerous statistical breakouts that require you to obtain further product information, and without the necessary expertise and insight to how the tariff is written, your international shipment could end up being delayed and cost more than expected.
When do I have to pay Customs?
All imports to Canada require financial security to be posted with Customs in order to receive release prior to payment privileges. Unless you or your broker has posted financial security with CBSA on your behalf, all of your import duties & tax are payable to CBSA at the time of import, in cash or other acceptable form of payment.
Not only does your broker provide critical trade advice and the ability to transmit declarations to Customs electronically instead of meeting each shipment upon arrival, they also often extend the use of their financial security bond to their clients.
Currently Customs brokers are allowed to assume the duty and tax liability on behalf of their clients through the use of their own customs broker surety bond, and invoice you with favorable negotiated terms.
What is going to change?
The process for clearing goods into Canada is approaching a fundamental shift. There will be significant changes in who will be the required party to post financial security and make payments. Separating the declaration of the goods, and the payment of duties and tax. Currently all done in one process, by a customs broker.
By 2023 Customs is moving to a model that requires each importer to be responsible for the posting of their own security with the CBSA, in the form of either cash or a customs bond and paying their own account on a monthly basis. This is called “CARM”, the CBSA Assessment and Revenue Management project.
Many importers are realizing that they need to be proactive to ensure they get their financial security bonds in place well ahead of the deadline, when inevitably surety companies will be faced with a significant influx of requests which they may struggle to deal with.
Importing Food into Canada
1. Admissibility
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Ensure your product is admissible by referencing the CFIA Automated Import Reference System
2. Create a My CFIA account and business profile
3. Obtain a Safe Food for Canadians (SFCR) Import License
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Once your account is created, you will be able to apply for your license online or access information about the license and regulations through your My CFIA account. When applying for a license, ensure that it covers importing food as well as the food commodity or commodities you are importing.
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You are required to create a preventive control plan (PCP) which outlines your import plan, details how your imports meet the requirements of import, and your procedure for recalls. Your imported food must be traceable with regards to where it was sourced and to whom it was distributed.
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Your import may be subject to one or more Participating Government Agencies and regulations depending on its ingredients. For example, your product could be subject to Safe Food for Canadians License and Tariff Rate Quota as outlined by Global Affairs Canada. We recommend that you obtain a detailed ingredients list and the use of this guide to determine what government agency requirements are required to be met.
6. Labelling Requirements
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Your food imports may be subject to specific labeling requirements
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Importing Produce? You will also need to become a member of the Dispute Resolution Corporation (DRC) and be issued a DRC#.
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