How Customs Clearance Works in Canada

Most people who call about customs clearance in Canada aren’t confused because they didn’t make an effort. They’re confused because what they thought would happen didn’t.

Every day things we hear on the phone:

• “It was moving fine until it hit customs.”
• “They’re asking for documents I don’t have.”
• “No one can tell me what’s wrong.”
• “I didn’t know I was responsible for this.”

This article explains how customs clearance in Canada actually works, step by step, using the same issues and questions that come up repeatedly in real calls.

What Does “Customs Clearance” Mean in Canada?

Customs clearance is the process by which the Canada Border Services Agency (CBSA) decides whether a shipment can legally enter Canada and under what conditions.

It is not automatic.
It is not guaranteed.
And it does not happen all at once.

CBSA is trying to answer four core questions:

1. What is being imported?
2. What is it worth?
3. Where did it come from?
4. Who is responsible for it in Canada?

If any of those answers are unclear, inconsistent, or missing, clearance will slow down or stop. This is the root cause behind most delays.

Step 1: The Shipment Is Reported to CBSA

When a shipment arrives in Canada, or just before it arrives, it is reported to CBSA by a carrier or a customs broker.

That report includes:

• A description of the goods
• The declared value
• The country of origin
• Importer information
• Supporting documents, usually a commercial or customs invoice, but can also include a packing list, a bill of lading, an airway bill, proof of origin, CUSMA/USMCA certificate, an import permit, license or Partner Government Agency (PGA) approval, depending on the nature of the goods.

CBSA does not “figure out” missing details. They assess exactly what is submitted.

If the description is vague, the value appears incorrect, or the documents don’t align, the process does not move forward.

Step 2: CBSA Reviews the Information

This is where most delays begin. CBSA reviews the submission to confirm:

• The goods are admissible
• The value makes sense
• Duties and taxes can be calculated
• Required documents are present

From the importer’s perspective, this stage usually looks like:

• “In customs”
• “Under review”
• “Held”

Those statuses do not necessarily mean something is wrong or inadmissible. They mean CBSA has not yet completed its review of the information.

Step 3: Duties and Taxes Are Assessed

Once CBSA understands the shipment, they assess what is owed.

This can include:

• GST or HST
• Surtaxes
• Duties, depending on the goods and origin
• Other applicable charges

A common misunderstanding we hear is:

• Those duties are flat
• That tax works like a sales tax
• The carrier decides the amount

The CBSA determines the charges. Carriers and brokers only collect them.

Step 4: CBSA May Ask for More Information

If something doesn’t add up, CBSA will ask questions.

This often happens because:

• The product description is too generic
• The invoice is incomplete or inconsistent
• The declared value doesn’t match expectations
• Importer details are unclear

Callers often say:

• “I already sent everything.” 
• “Why are they asking again?”
  
  

In most cases, the issue isn’t that nothing was sent. It’s what was sent that didn’t fully answer CBSA’s questions.

Step 5: Release, Hold, or Inspection

After review, one of three things happens:

1. The shipment is released
2. The consignment is released after payment
3. The shipment is held for review or inspection

A “hold” does not mean the shipment is seized. It means CBSA needs clarification or additional verification.

This is one of the most stressful points for importers because:

• Status updates are vague
• Timelines are unclear
• Responsibility feels uncertain

Step 6: Release and Delivery

Once CBSA is satisfied and any required payments are made, the shipment is released.

At that point:

• Customs clearance is complete
• The carrier can continue delivery
• Border-related delays usually stop

If clearance took longer than expected, it is almost always because issues were discovered after shipping, not before.

Who Is Responsible During Customs Clearance?

This is one of the most misunderstood parts of the process. CBSA holds the importer of record responsible for:

• Accuracy of information
• Payment of duties and taxes
• Responding to questions

Many importers assume the carrier or seller handles this automatically. In reality, responsibility often falls on the importer, even when they didn’t realize it.

Why Customs Clearance Feels So Unclear

Based on interactions with our customers, clearance feels confusing because:

• Multiple parties are involved
• Status messages lack detail
• Minor errors can cause significant delays
• Problems are often discovered late

Most people only learn how customs work after something goes wrong.

The Key Takeaway

Customs clearance in Canada is not random, but it is strict. When shipments clear smoothly, it’s usually because:

• The information was clear
• Documents matched the shipment
• Responsibilities were understood upfront
  
  

When they don’t, it’s usually due to:

• Missing or unclear paperwork
• Incorrect assumptions
• Discovering issues at the border instead of before shipping

What will customs clearance cost you?

Use the BorderBuddy duty & tax calculator to estimate duties, taxes, and potential surcharges before problems start. BorderBuddy’s calculator also uses AI to help classify goods under the correct HS (Harmonized System) code, a key factor in determining the duty rate applied to an import.

What to Read Next

If this raised questions, these are the following topics people usually ask about:

• Why shipments get stuck at Canadian customs
• What documents are required for customs clearance in Canada
• How long does Canada customs clearance really take?
• What “held at customs” actually means
• Customs broker vs self-clearance in Canada

Still Need Help With Your Import?

If you still didn’t find what you were looking for, BorderBuddy is here to help.

• Call us at 1 (877) 409-8163
• Or email us anytime at service@borderbuddy.com

Our team can help you get clear answers and avoid delays at the border.

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