7 Tips for Importing Goods into Canada for Resale
If you are thinking of importing goods into Canada for resale, you need to know the rules and regulations that apply to your business. Importing goods can be a lucrative way to expand your market, but it also comes with some challenges and risks. Here are seven tips to help you import goods into Canada for resale successfully and legally.
1. Know the customs duties and taxes that apply to your goods
Depending on the type and origin of the goods you are importing, you may have to pay customs duties, taxes, or both. Customs duties are based on the tariff classification, value, and origin of the goods. Taxes include the Goods and Services Tax (GST), the Harmonized Sales Tax (HST), or the Provincial Sales Tax (PST), depending on the province where you are selling the goods. You can use the Canada Border Services Agency (CBSA) website to find out the duty and tax rates for your goods.
2. Obtain the necessary permits and licenses for your goods
Some goods require special permits or licenses to be imported into Canada, such as food, plants, animals, firearms, drugs, or hazardous materials. You need to obtain these permits or licenses from the relevant government agencies before you import the goods. You also need to comply with any health, safety, or environmental standards that apply to your goods.
3. Choose a reliable customs broker and freight forwarder
A customs broker can help you clear your goods through customs and handle the paperwork and payments for the duties and taxes. A freight forwarder can help you arrange the transportation and delivery of your goods from the supplier to your warehouse or store. You should choose a reputable and experienced customs broker and freight forwarder who can offer you competitive rates and quality service.
4. Plan ahead for delays and inspections
Importing goods into Canada can take time and involve unexpected delays or inspections. You should plan ahead for these possibilities and have a contingency plan in case your goods are delayed or inspected by customs or other authorities. You should also keep track of your shipment status and communicate with your customs broker and freight forwarder regularly.
5. Label your goods correctly and accurately
You need to label your goods according to the Canadian requirements for language, measurement, origin, and product information. You also need to ensure that your labels are accurate and do not make false or misleading claims about your goods. Failing to label your goods properly can result in fines, seizures, or rejections by customs or consumers.
6. Protect your intellectual property rights
If you are importing goods that have trademarks, patents, or copyrights, you need to protect your intellectual property rights in Canada. You should register your intellectual property with the Canadian Intellectual Property Office (CIPO) and enforce your rights against any infringers or counterfeiters.
7. Build relationships with your suppliers and customers
Importing goods into Canada for resale requires trust and cooperation between you and your suppliers and customers. You should build strong relationships with them by communicating clearly, fulfilling your obligations, resolving any issues, and providing feedback. You should also seek feedback from them on how to improve your products, services, or processes.
Importing goods into Canada for resale can be a rewarding venture if you do it right. By following these tips, you can avoid common pitfalls and maximize your profits.
Importing Goods into Canada for Resale: A Statistical Overview
Canada is one of the world’s largest trading nations, with imports and exports accounting for about 64% of its gross domestic product (GDP) in 2020. Importing goods into Canada for resale is a common business activity that involves various regulations, procedures and taxes. In this blog post, we will provide some statistical insights into the trends, patterns and challenges of importing goods into Canada for resale, based on the latest available data from the Canada Border Services Agency (CBSA) and Statistics Canada.
Trends and Patterns of Imports
According to the CBSA, Canada imported $547.7 billion worth of goods in 2020, a decrease of 8.6% from 2019. This was mainly due to the impact of the COVID-19 pandemic on global trade and demand. The top five countries of origin for Canada’s imports in 2020 were:
- United States ($236.2 billion, 43.1% of total imports)
- China ($75.9 billion, 13.9% of total imports)
- Mexico ($27.7 billion, 5.1% of total imports)
- Germany ($18.5 billion, 3.4% of total imports)
- Japan ($16.3 billion, 3% of total imports)
The top five categories of goods imported into Canada in 2020 were:
- Vehicles and parts ($74.4 billion, 13.6% of total imports)
- Mechanical machinery and appliances ($69.8 billion, 12.7% of total imports)
- Electrical machinery and equipment ($51.9 billion, 9.5% of total imports)
- Mineral fuels and oils ($34.4 billion, 6.3% of total imports)
- Pharmaceutical products ($24.2 billion, 4.4% of total imports)
The CBSA also provides data on the value of imports by end-use category, which indicates the intended purpose or final destination of the imported goods. The end-use categories are:
- Consumer goods: Goods destined for direct consumption or use by individuals
- Intermediate goods: Goods used as inputs in the production of other goods or services
- Capital goods: Goods used to produce other goods or services, such as machinery and equipment
- Automotive products: Vehicles and parts
- Other: Goods that do not fit into any of the above categories, such as military equipment and aircraft
In 2020, the value of imports by end-use category was:
- Consumer goods: $137.9 billion (25.2% of total imports)
- Intermediate goods: $136 billion (24.8% of total imports)
- Capital goods: $104.8 billion (19.1% of total imports)
- Automotive products: $74.4 billion (13.6% of total imports)
- Other: $94.6 billion (17.3% of total imports)
These statistics show that Canada imports a diverse range of goods from various countries for different purposes, reflecting its complex and dynamic economy.
Challenges and Opportunities of Importing Goods for Resale
Importing goods into Canada for resale can be a profitable business venture, but it also involves some challenges and risks that need to be carefully considered and managed.
One of the main challenges is complying with the various regulations and requirements that apply to different types of goods and countries of origin. For example, some goods may be subject to permits, restrictions or prohibitions by other government departments or agencies, such as the Canadian Food Inspection Agency (CFIA), Health Canada or Environment and Climate Change Canada.
Another challenge is determining and paying the applicable duties and taxes on the imported goods. Duties are fees that the government charges on some goods when they enter Canada, based on their tariff classification, origin and value. Taxes are levies that apply to most goods imported into Canada, such as the Goods and Services Tax (GST), Harmonized Sales Tax (HST) or Provincial Sales Tax (PST).
The amount of duties and taxes that an importer has to pay depends on various factors, such as:
- The type and quantity of goods
- The country of origin or export
- The country of destination or import
- The trade agreements or preferential tariffs that apply
- The exchange rate and currency conversion
- The valuation method used to determine the value for duty
To calculate the duties and taxes on imported goods, importers can use the Canadian Customs Tariff or consult a licensed customs broker or a CBSA officer.
Importers also need to consider the logistics and costs of shipping and transporting the imported goods from the point of origin to the point of destination in Canada. This may involve choosing a mode of transportation (such as air, sea or land), selecting a carrier or service provider, obtaining insurance and tracking the shipment.
Importing goods into Canada for resale also presents some opportunities and benefits for businesses, such as:
- Accessing new markets and customers
- Expanding product range and variety
- Enhancing competitiveness and innovation
- Reducing production costs and increasing profits
- Taking advantage of trade agreements and preferential tariffs
To seize these opportunities and benefits, importers need to conduct market research, identify customer needs and preferences, assess the demand and supply of the goods, evaluate the competition and pricing, and develop a marketing and sales strategy.
Importing goods into Canada for resale is a significant and dynamic aspect of Canada’s economy and trade. It involves various regulations, procedures and taxes that importers need to comply with and pay. It also involves some challenges and risks that importers need to manage and overcome. However, it also offers some opportunities and benefits that importers can leverage and enjoy. By following the steps and guidelines provided by the CBSA and other government departments or agencies, importers can successfully import goods into Canada for resale.
References:
http://www.cbsa-asfc.gc.ca/publications/pub/bsf5056-eng.html#s5x4
http://www.cbsa-asfc.gc.ca/publications/pub/bsf5056-eng.html#s5x1
https://www.cdnbeefcheckoff.ca/about-us/
https://www.dhs.gov/sites/default/files/publications/TSA%20FY18%20Budget.pdf
http://www.wcoomd.org/-/media/wco/public/global/pdf/topics/facilitation/instruments-and-tools/tools/safe-package/safe-framework-of-standards.pdf?la=en
http://www.wcoomd.org/en/Topics/Facilitation/Instrument%20and%20Tools/Conventions/pf_revised_kyoto_conv/Kyoto_New
https://www.statcan.gc.ca/eng/start
https://www.cipo.ic.gc.ca/eic/site/cipointernet-internetopic.nsf/eng/home
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