Top 5 Tips for Importing Goods into Canada
1. ⚠️ Pitfall: Incorrect or Missing Documentation
The single biggest reason for border delays, fines, and shipment seizures is incomplete or inaccurate paperwork.
✅ Best Practice: Master Your Paperwork Checklist
Commercial Invoice: Must be accurate, complete, and clearly state the correct currency of the sale, the accurate value (transaction value + any applicable costs like royalties), a detailed product description (including material composition), country of manufacture, and the correct Incoterm® (e.g., FOB, EXW, CIF) that defines who is responsible for what.
Proof of Origin: Essential if you are claiming a preferential tariff rate under a Free Trade Agreement (like the CUSMA). Missing this means paying full duty rates.
Required Permits/Certificates: Verify if your goods (e.g., food, cosmetics, electronics) require permits from a Participating Government Agency (PGA) like Health Canada or the Canadian Food Inspection Agency (CFIA).
2. 💰 Pitfall: Misclassifying Goods and Underestimating Landed Costs
Using the wrong tariff code or only budgeting for the product price leads to surprise costs and potential penalties.
✅ Best Practice: Get the HS/HTS Code Right & Calculate the Total Landed Cost
Harmonized System (HS) Code: Every product must be classified using the correct 10-digit Canadian Customs Tariff (HS) code. This code determines the rate of duty. A simple error can lead to overpayment or being subject to a CBSA audit and penalties for underpayment.
Total Cost: Always factor in all expenses: Product Cost, Shipping/Freight and Insurance, Duties, Tariffs, and Taxes (GST/HST/PST), and Customs Broker/Clearance Fees.
3. 🧑💼 Pitfall: Ignoring Importer Responsibility (Even with a Broker)
Many small businesses assume their customs broker or courier handles all liability.
✅ Best Practice: Understand You are Ultimately Responsible
The Importer of Record (your business) is legally responsible for the accuracy of the information provided, the correct valuation, and payment of duties and taxes, even if you use a licensed customs broker.
Partner Wisely: Choose a reputable broker who specializes in your type of goods and is proactive about compliance. Communicate with them regularly and provide them with detailed product information.
4. 💻 Pitfall: Not Keeping the CARM Portal Registered and Up-to-Date
Ignoring the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) system, which is the new mandatory online portal for importers.
✅ Best Practice: Register, Delegate, and Maintain Your CARM Account
Register and Onboard: Ensure your business is registered on the CARM Client Portal and has completed all required steps. The portal is becoming mandatory for managing your import activities.
Financial Security: Understand the requirement for a financial security bond (surety bond) to be posted through CARM to secure payment of duties and taxes.
Delegate Authority: Ensure you have properly delegated authority to your customs broker within the CARM portal so they can act on your behalf and clear your shipments without delays.
5. 🗣️ Pitfall: Lack of Communication with Your Customs Broker
Not sending documents in advance or failing to communicate changes.
✅ Best Practice: Proactive and Timely Communication
Advance Documents: Send your broker all required documents (commercial invoice, bill of lading, certificate of origin, etc.) as soon as the shipment is booked or, ideally, before the goods leave the factory. This gives us time to review and classify the shipment.
Communicate Changes: Immediately inform your broker of any changes to the shipment, such as adjustments to the value, product composition, expected departure or arrival dates, or quantity. This prevents the broker from submitting incorrect information to the CBSA.
Pre-Clearance is Key: Giving your broker advance notice allows them to submit the necessary data to the CBSA for pre-clearance, significantly speeding up the process at the border.
