How to Export to Canada: Duties & Entry Rules

For SME exporters looking to enter a stable, high-purchasing-power market, learning how to export to Canada is a logical next step. Canada’s population of 40 million sits at the top of the global income distribution, with strong consumer demand for a wide range of imported goods — from food and furniture to industrial components and personal care products.

Understanding the Canadian Import Framework

Canada’s import system is administered by the Canada Border Services Agency (CBSA). Every commercial shipment entering Canada must be declared through the CBSA, which assesses duties, taxes, and admissibility based on the declared HS code, country of origin, and goods value.

Canada applies Most Favoured Nation (MFN) tariff rates to countries with which it has no preferential trade agreement. However, Canada has Free Trade Agreements with over 50 countries, including the CUSMA (Canada-United States-Mexico Agreement), CETA (with the EU), CPTPP (with 10 Asia-Pacific nations), and CCFTA (with Chile). If your country is a party to any of these, your goods may qualify for reduced or zero-rated duties — provided you meet the Rules of Origin requirements.

How to Export to Canada: Step-by-Step

Step 1: Classify Your Product with the Correct HS Code

Canada uses a 10-digit tariff classification system based on the international HS framework. The correct code determines your duty rate and whether any import permits, quotas, or inspections apply. Use the CBSA Customs Tariff to look up your product, or work with a licensed Canadian customs broker to confirm the classification before your first shipment.

Misclassification is one of the most common compliance errors we see with first-time exporters to Canada. The CBSA can reassess duties years after entry, so getting the HS code right from the start protects your margin.

Step 2: Determine Applicable Duties and Taxes

Once you have your HS code, you can calculate your buyer’s landed cost. The components are:

• Customs Duty — based on HS code and country of origin; MFN rates for most non-FTA countries range from 0% to 18%, with higher rates on certain agricultural and textile goods
• GST (Goods and Services Tax) — 5% applied to most imported goods on the CIF value plus duty
• HST or Provincial Sales Tax — applies in some provinces depending on the point of delivery
• Excise Tax — applies to specific categories such as alcohol, tobacco, and certain luxury goods

In our experience, buyers in Canada often ask exporters to quote DDP (Delivered Duty Paid) so they can see a full landed cost upfront. If you cannot offer DDP, DAP (Delivered at Place) is a clean alternative that puts customs clearance responsibility on the Canadian importer.

Step 3: Prepare Your Export Documentation

A standard export shipment to Canada requires the following documents:

• Commercial Invoice — must include seller and buyer details, full description of goods, quantity, unit price, total value, and currency
• Packing List — itemised list of all packages, weights, and dimensions
• Bill of Lading or Airway Bill — transport document issued by the carrier
• Canada Customs Invoice (CCI) — required when the goods value exceeds CAD 2,500; this form is specific to Canadian customs entry
• Certificate of Origin — required if claiming preferential duty rates under an FTA

For food products, Health Canada and the Canadian Food Inspection Agency (CFIA) impose additional labelling and inspection requirements. For textiles, fibre content and care label regulations apply under the Textile Labelling Act.

If you are also exploring other developed markets, our guides on how to export to the EU and how to export to Japan cover comparable regulatory entry frameworks for two of the world’s largest import markets.

Step 4: Work with a Licensed Canadian Customs Broker

Unless your Canadian buyer handles customs clearance themselves, partnering with a licensed customs broker is strongly recommended for first-time exporters. Canadian customs brokers are licensed by the CBSA and are responsible for filing your import entry, paying duties and taxes on your buyer’s behalf, and resolving any CBSA queries or examinations.

Major brokers operating in Canada include Livingston International, UPS Trade Management Services, and Deringer. Many freight forwarders offer integrated brokerage services on trans-Pacific or trans-Atlantic lanes.

Step 5: Register with Canada’s Import Requirements Where Applicable

Certain product categories require the foreign exporter or the Canadian importer to be registered with specific regulatory bodies. Food and beverage exporters must ensure their facilities comply with the Safe Food for Canadians Regulations (SFCR). Cosmetics must be notified to Health Canada. Electrical and electronic goods must meet Canadian Standards Association (CSA) or equivalent certification standards.

Research your product’s regulatory classification on the Global Affairs Canada trade portal before your first shipment departs.

Common Pitfalls and Expert Tips

Undervaluing shipments. Declaring a lower invoice value to reduce duties is a compliance violation under CBSA rules. The CBSA uses transaction value as the primary basis for duty assessment, and it actively audits import entries. Penalties and interest on underpaid duties can far exceed any short-term saving.

Ignoring province-level requirements. Canada’s regulatory environment includes both federal and provincial layers. Product standards, labelling requirements, and sales tax treatment can vary by province. If your Canadian buyer distributes nationally, confirm their provincial compliance obligations before designing packaging.

Missing bilingual labelling rules. Federal law requires consumer product labels to be in both English and French. This applies to food, cosmetics, textiles, and many household goods. Non-compliant labels can result in goods being held at the border.

Overlooking CPTPP benefits. If your country is a CPTPP signatory (including Vietnam, Malaysia, Mexico, Japan, Australia, and others), you may be eligible for phased tariff reductions on specific HS codes. A common trap we see is exporters defaulting to MFN rates simply because they are unaware of their FTA eligibility.

If you are looking to expand your export catalogue with distinctive, export-ready products, TheExporter.co offers a curated range of authentic Indonesian handmade furniture and home goods with international shipping standards built in.

Frequently Asked Questions

What is the GST rate on imports into Canada?

Canada applies a federal GST rate of 5% on most imported goods. This is calculated on the CIF (cost, insurance, freight) value of the goods plus any applicable customs duty. In provinces that have harmonised their sales tax with the federal GST, the combined HST rate is higher — typically 13% in Ontario or 15% in the Maritime provinces.

Does my product need bilingual labelling for Canada?

For most consumer goods — including food, cosmetics, textiles, and household products — yes. Federal law requires labels to appear in both English and French. Exporters should review the Consumer Packaging and Labelling Act and any category-specific regulations before producing packaging for the Canadian market.

Do I need a Canadian importer of record?

Yes. All commercial shipments entering Canada must have a designated importer of record (IOR) — a Canadian-resident individual or business entity responsible for the import entry and duty payment. As a foreign exporter, you cannot act as your own IOR unless you are incorporated in Canada. Your buyer typically acts as the IOR, or you can appoint a Canadian trade agent or distributor.

How do I know if my goods qualify for preferential tariff rates under CPTPP or CETA?

Check whether your country is a signatory to the relevant FTA, then verify that your goods meet the Rules of Origin requirements for that agreement. Your goods must be wholly obtained or substantially transformed in your country. A licensed customs broker or your national trade promotion authority can help you determine eligibility and prepare the required Certificate of Origin.

What is the de minimis threshold for duty-free imports into Canada?

Canada’s de minimis threshold is CAD 20 for courier and postal shipments — one of the lowest among developed countries. Commercial shipments above CAD 20 are subject to duties and taxes. This is significantly lower than the US threshold of USD 800, so exporters moving to direct-to-consumer models in Canada should factor this into their landed cost calculations.