Importing goods into Canada

To start importing goods, you need to register your business. This involves applying for a business name and registering as a sole proprietorship, partnership, or corporation. For detailed information, visit the Canadian government website. Consult your accountant regarding tax implications.

Once your business is registered, you need to register with the Canada Border Services Agency (CBSA) and the CBSA Assessment and Revenue Management (CARM) system. This includes applying for a business number (BN) and a customs account (RM). The RM application process is crucial for managing your imports and dealing with CBSA.

Ensure the products you want to import can legally enter Canada. Use the CBSA step-by-step guide to check for any restrictions. It's important to classify your goods correctly using the Harmonized System (HS) code. See below for information on regulated and controlled materials, as well as other Participating Government Agencies (PGA) requirements.

• HS Classification: Each product has a specific HS code that determines its duty rate.
• PGAs: Some goods may be subject to regulations from PGAs, which enforce health, safety, and environmental standards.
• Restricted/Controlled/Prohibited Items: Verify if your goods fall under any restricted, controlled, or prohibited categories.

The Harmonized System (HS) is an international nomenclature for classifying products, developed and maintained by the World Customs Organization (WCO). This system allows participating countries to classify traded goods on a common basis, facilitating international trade and ensuring a standard method of categorization across borders. With over 17,000 unique classification codes, each country has its own tariff schedule. These codes are used to ensure uniformity in the classification of goods for customs purposes.

What is an HS Code?

An HS code is a six-digit identification code used internationally for customs classification. The code is divided into chapters, headings, and subheadings:

• Chapters: The first two digits denote the chapter, representing the broader category of products.
• Headings: The next two digits define the heading within that chapter, narrowing down the product category.
• Subheadings: The final two digits specify the subheading, providing a more detailed description of the product.

For example, an HS code for a certain type of fruit might look like this:

• 08 (Chapter for Edible Fruits and Nuts)
• 08.10 (Heading for Other Fruits)
• 08.10.10 (Subheading for Strawberries)

Why Are HS Codes Important?

• Uniform Classification: HS codes ensure that products are uniformly classified in every participating country, which is critical for international trade.
• Simplifies Documentation: Accurate HS codes simplify the documentation process for importers and exporters, as they are universally recognized and understood.
• Determines Duties and Taxes: Customs authorities use HS codes to determine the applicable duties, taxes, and regulations for each product, ensuring that the correct tariffs are applied.
• Trade Statistics: Governments and organizations use HS codes to compile trade statistics, analyze trade patterns, and make informed policy decisions.
• Compliance and Regulation: HS codes help in compliance with national and international trade regulations, including import/export restrictions and quotas.

HS Codes in Canada

Canada Border Services Agency (CBSA): he CBSA uses HS codes to classify imported goods and determine the applicable tariffs, duties, and regulations. The codes help in enforcing compliance with Canadian trade laws and collecting accurate trade statistics. Importers can refer to the CBSA Customs Tariff to find the appropriate HS codes for their products.

How to Look Up an HS Code

Finding the correct HS code for your products is essential for smooth customs clearance. Here are steps to look up an HS code:

• Consult the Harmonized Tariff Schedule: Canada has a version of the Harmonized Tariff Schedule (HTS) that lists all HS codes and their corresponding descriptions.
• Use Online Databases: Various online databases and tools are available to help you find the appropriate HS code for your product. For shipments into Canada, you can use the CBSA’s Customs Tariff.
• Determines Duties and Taxes: Customs authorities use HS codes to determine the applicable duties, taxes, and regulations for each product, ensuring that the correct tariffs are applied.
• Seek Expert Assistance: If you are unsure about the correct HS code, consulting a customs broker or trade specialist can ensure accuracy and compliance.

Navigating the complexities of duties and taxes is a crucial aspect of importing goods into Canada. These charges include import duties, the Goods and Services Tax (GST), the Harmonized Sales Tax (HST), and in some provinces, the Provincial Sales Tax (PST) or Quebec Sales Tax (QST). Understanding how these taxes are calculated, the applicable rates, and the procedures for compliance will help ensure a smooth import process and prevent unexpected costs.

• Consult the Harmonized Tariff Schedule: Duties and taxes are based on the value, type, and origin of the goods.
• Use Online Databases: Use BorderBuddy’s Duty Calculator to quickly estimate duty rates and taxes on goods imported into Canada from the United States. Estimate My Duty
• Determines Duties and Taxes: For details on types of goods and applicable duty and tax rates, refer to our Industries We Service page.

For a comprehensive walk-through, refer to the detailed section below on Canadian duties and taxes.

FAQs Related to Duties and Taxes:

How are duties and taxes calculated?
‍Duties and taxes are based on the value, type, and origin of the goods. Use our Duty Calculator for estimates.

What is GST?
The Goods and Services Tax (GST) is a fixed federal tax of 5% applied to the supply of almost all goods and services in Canada. This tax is payable at the border for both commercial and personal imports.

What is PST?
The Provincial Sales Tax (PST) is a tax collected at the provincial level, with rates varying by province. Currently, only four provinces collect PST in addition to GST: Manitoba, British Columbia, Quebec, and Saskatchewan.

What is HST?
The Harmonized Sales Tax (HST) is a combined tax used in provinces where GST and PST are merged into a single value-added sales tax.

What is QST?
The Quebec Sales Tax (QST) is a provincial tax of 9.975% applied to the supply of most goods and services in Quebec, in addition to the federal GST.

Effective Tax Rates by Province:

A customs declaration is a form submitted to the CBSA detailing the nature, quantity, and value of the goods being imported. This helps in determining applicable duties and taxes. The required paperwork typically includes:

• Commercial Invoice: A document detailing the transaction between the exporter and importer.
• Bill of Lading: A document issued by a carrier acknowledging receipt of cargo for shipment.
• Import Permits: Specific permits required for certain goods.
• Additional Documentation: Depending on the goods, additional documents may be needed to comply with regulations.

FAQs Related to Customs Declarations:

What is a customs declaration?
A customs declaration is a form submitted to the CBSA detailing the nature, quantity, and value of the goods being imported. This helps in determining applicable duties and taxes.

What documents are required for importing?
Typical documents include a commercial invoice, bill of lading, and any necessary permits. Ensure all paperwork is complete to avoid delays.

While not legally required, hiring a customs broker can streamline the importing process. A good broker will handle paperwork, ensure compliance, and provide import-export advice, making it easier to get products across the border efficiently.

Benefits of Using BorderBuddy’s Services

Use tools like BorderBuddy’s Duty Calculator to get an estimate of the duties and taxes on your goods.

• Expert Advice: Our team provides detailed guidance on import regulations, HS classification, and compliance.
• Efficient Customs Clearance: We handle the paperwork and manage interactions with CBSA, ensuring a smooth clearance process.
• Comprehensive Support: From duty calculations to document preparation, we support you every step of the way.
• Personalized Assistance: For any questions about importing goods to Canada, contact BorderBuddy. We’re here to help.

FAQs Related to Customs Brokers:

Use tools like BorderBuddy’s Duty Calculator to get an estimate of the duties and taxes on your goods.

Do I need a customs broker?
‍Use tools like BorderBuddy’s Duty Calculator to get an estimate of the duties and taxes on your goods.

What types of goods can I import into Canada?
Most goods can be imported, but some are restricted or prohibited. Check our Import Regulations and Requirements in Canada page.

Are there any goods that cannot be imported?
Some goods are prohibited or restricted, including certain hazardous materials, specific food products, and items subject to trade embargoes. Always verify restrictions before importing.

Navigating the complexities of importing goods into Canada involves understanding various regulations, including the Import Control List (ICL), Participating Government Agencies (PGAs), restricted and prohibited goods, and obtaining necessary import permits. Additionally, being prepared for customs inspections, holds, and seizures is crucial for a smooth import process. This comprehensive guide covers all these aspects to help you ensure compliance and avoid potential issues.

Import Control List (ICL):

The Import Control List (ICL) is a list of goods that are subject to import controls under the Export and Import Permits Act. These controls are implemented to regulate the importation of certain sensitive goods that could impact national security, public health, safety, and the environment.

Goods on the ICL Include:

• Food and agricultural products (e.g., meat, dairy, plants)
• Health products and pharmaceuticals (e.g., prescription drugs, medical devices)
• Controlled goods and substances (e.g., firearms, narcotics, chemicals)
• Vehicles and vehicle parts (e.g., cars, motorcycles)
• Endangered species (e.g., certain animals, plants)
• Cultural property (e.g., artifacts, historical items)
• Radioactive materialsEnergy products (e.g., petroleum, natural gas)
• Telecommunications and broadcasting equipment

For more detailed information, visit the Import Control List page.

Participating Government Agencies (PGAs):

Certain imports may be subject to regulations from Participating Government Agencies (PGAs), which enforce health, safety, and environmental protection standards. Each PGA has specific requirements that importers must comply with.

Key PGAs and Their Websites:

• Canada Border Services Agency (CBSA): CBSA
• Canadian Food Inspection Agency (CFIA): CFIA
• Health Canada: Health CanadaEnvironment and Climate Change Canada (ECCC): ECCC
• Transport Canada: Transport CanadaCanadian Nuclear Safety Commission (CNSC): CNSC
• Natural Resources Canada (NRCan): NRCan
• Canadian Radio-television and Telecommunications Commission (CRTC): CRTC
• Canadian Heritage: Canadian HeritageInnovation, Science and Economic Development Canada (ISED): ISEDFisheries and Oceans Canada (DFO): DFO
• Public Health Agency of Canada (PHAC): PHACAgriculture and Agri-Food Canada (AAFC): AAFC

For a comprehensive overview of PGA requirements, visit the Participating Government Agencies page.

Restricted and Prohibited Goods:

Certain goods are restricted or prohibited from import into Canada due to safety, health, and environmental concerns. Importers must ensure that their goods comply with Canadian regulations to avoid penalties and seizures.

Examples of Restricted and Prohibited Goods:

• Tobacco and alcoholFirearms and ammunition
• Narcotics and controlled substances
• Hazardous materials
• Certain food products and agricultural items
• Endangered species and products made from them
• Cultural property and artifacts

For a detailed list of restricted and prohibited goods, visit the CBSA Restricted and Prohibited Goods page.

Import Permits:

Depending on the type of goods you are importing, you may need specific permits to ensure compliance with Canadian regulations. These permits are issued by the relevant PGAs and are necessary for goods listed on the Import Control List.

Types of Import Permits:

• Food and Agricultural Products: CFIA Import Requirements
• Health Products and Pharmaceuticals: Health Canada Licensing and Permits
• Controlled Goods and Substances: Public Safety Canada and Health Canada Controlled Substances
• Vehicles and Vehicle Parts: Transport Canada Vehicle Importation
• Endangered Species: ECCC CITES Permits
• Cultural Property: Canadian Heritage Cultural Property
• Radioactive Materials: CNSC Import PermitsEnergy Products: NRCan Import Permits
• Telecommunications and Broadcasting Equipment: ISED Import Permits

For more information on obtaining import permits, visit the CBSA Import Permits page.

Customs Inspections, Holds, and Seizures:

Customs inspections are conducted to verify compliance with import regulations, confirm the accuracy of declarations, and check for prohibited items. Understanding what to expect and how to manage inspections, holds, and seizures can help ensure a smooth process.

What to Expect During a Customs Inspection:

• Document Review: Customs officials review shipping documents, including commercial invoices, bills of lading, and import permits.
• Physical Inspection: Customs officers may physically inspect goods to verify their description and check for compliance with regulations.
• Verification of Compliance: Ensuring goods meet Canadian health, safety, and environmental standards.

Managing Customs Holds:

• Identify the Reason for the Hold: Review the hold notice to understand why your goods are held.
• Provide Additional Information: Submit any required documents or information promptly.
• Correct Documentation Errors: If there are errors in your documents, correct and resubmit them.
• Pay Outstanding Duties/Taxes: Ensure all applicable duties and taxes are paid.
• Engage a Customs Broker: A broker can help expedite the resolution of the hold.

Handling Customs Seizures:

• Review the Seizure Notice: Understand the specific reason for the seizure.
• Contact Customs: Engage with the CBSA to address the issue.
• Provide Additional Documentation: Submit any additional information or corrected documents required.
• Appeal the Seizure: If you believe the seizure is unwarranted, you can appeal the decision by submitting a written request to the CBSA.

For more detailed guidance, visit the CBSA Customs Inspections page.

By understanding and adhering to these regulations and requirements, importers can ensure a smooth and compliant import process into Canada. For additional assistance and detailed information, visit the provided links to the relevant government agencies.

How can BorderBuddy make this easier?

Our experts can guide you through every step of the import process, ensuring compliance and efficiency. Get a Quote to get started.

CARM is a multi-year project that will transform how the CBSA assesses, collects, manages, and reports on import revenue and trade information. It aims to simplify the importation process and improve compliance. For more information, visit our CARM page.

Non-Resident Importers (NRIs) are businesses that import goods into Canada but do not have a physical presence in the country. Becoming an NRI can simplify the import process and offer advantages such as easier access to the Canadian market. For more information, visit our NRI page.