7 Steps to Import Products to Canada Successfully

If you want to import products to Canada, you need to follow some rules and regulations to avoid any problems at the border. In this article, we will guide you through the process of importing goods into Canada, from preparing to import, to shipping and reporting your goods, to paying duties and taxes. We will also provide you with some useful resources and tips to help you import products to Canada successfully.

Step 1: Obtain a Business Number

Before you can import products to Canada, you need to obtain a Business Number (BN) from the Canada Revenue Agency (CRA). A BN is a unique identifier that allows you to register for various tax accounts, such as an import/export account. You can apply for a BN online, by phone, or by mail. You will need to provide some information about your business, such as your name, address, contact details, and type of business activity.

Step 2: Identify the Products You Want to Import

The next step is to identify the products you want to import and gather as much information as possible about them. You will need to know the following:

The description and composition of the products
The country of origin of the products
The tariff classification number of the products
The value and currency of the products
The quantity and weight of the products

The tariff classification number is a 10-digit code that determines the rate of duty and tax that applies to your products. You can find the tariff classification number of your products using the Canadian Customs Tariff or by contacting the Canada Border Services Agency (CBSA).

Step 3: Determine if You Need a Permit or License

Some products are subject to import permits, licenses, or restrictions in Canada. For example, you may need a permit or license to import food, plants, animals, firearms, drugs, or hazardous materials. You should check with the relevant government department or agency before importing these products. For example, you can consult the Canadian Food Inspection Agency (CFIA) for information on importing food products.

Step 4: Choose a Customs Broker or Self-Account

You have two options when it comes to preparing and submitting your import documents to the CBSA: you can either use the services of a licensed customs broker or do it yourself. A customs broker is a professional who can act on your behalf and handle all the paperwork and procedures involved in importing goods into Canada. A customs broker can also help you with tariff classification, valuation, duty and tax calculation, payment, and compliance. However, using a customs broker is not mandatory and you can choose to self-account for your imports if you feel comfortable doing so. In either case, you are ultimately responsible for the accuracy and completeness of your import documents and for paying any duties and taxes owed.

Step 5: Ship and Report Your Goods

Once you have prepared your import documents, you can ship your goods to Canada using your preferred mode of transportation (air, sea, rail, or road). Depending on the value and type of your goods, you may need to report them to the CBSA before or upon arrival at the border. You can report your goods electronically using the Integrated Import Declaration (IID) system or by presenting a paper copy of Form B3-3, Canada Customs Coding Form. You will also need to present other documents such as invoices, bills of lading, certificates of origin, permits, or licenses.

Step 6: Get Your Goods Released

After reporting your goods to the CBSA, you will need to get them released from customs control. This means that the CBSA has verified that your goods are admissible into Canada and that you have paid or secured any duties and taxes owed. The CBSA may release your goods immediately or after conducting an inspection or examination. The CBSA may also ask you for additional information or documentation if they have any questions or concerns about your goods.

Step 7: Pay Duties and Taxes

The final step is to pay any duties and taxes that apply to your imported goods. Duties are fees charged by the government on imported goods based on their tariff classification number. Taxes are charges levied by federal and provincial governments on imported goods based on their value. The most common taxes are the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST). You can pay your duties and taxes online using the IID system or by mail or in person at a CBSA office. You will receive a receipt or proof of payment once you have paid your duties and taxes.

The State of Canada’s Import Industry in 2022

Canada is one of the world’s largest importers of goods and services, ranking 11th among all countries in 2020 with a total import value of $561 billion USD. In 2022, Canada’s import industry faced both challenges and opportunities amid the COVID-19 pandemic, global trade tensions, and changing consumer preferences. In this blog post, we will examine some of the key trends and statistics of Canada’s import industry in 2022, focusing on the top products, sources, and destinations of Canada’s imports.

Top Products Imported by Canada in 2022

According to Canada import data, Canada’s top 10 import categories in 2020 were Machinery (15.1%), Vehicles (13.8%), Electrical Machinery & Equipment (9.7%), Mineral Fuels & Oils (4.9%), Pearls & Precious Stones (4.2%), Plastics & Articles (3.9%), Pharmaceutical Products (3.5%), Optical, Photographic, Medical Equipment (2.8%), Articles of Iron & Steel (2.1%) and Furniture, Bedding, mattresses (2.0%). These categories accounted for 64% of Canada’s total imports in 2020.

In 2022, some of these categories saw significant changes in their import values due to various factors such as supply chain disruptions, demand fluctuations, price movements, and trade policies. For example, Canada’s imports of mineral fuels and oils decreased by 23.6% from $44.8 billion USD in 2020 to $34.2 billion USD in 2022, mainly due to lower oil prices and reduced consumption amid the pandemic. On the other hand, Canada’s imports of pharmaceutical products increased by 18.7% from $20 billion USD in 2020 to $23.7 billion USD in 2022, largely driven by the demand for COVID-19 vaccines and other medical supplies.

Among the top 100 imported consumer products, the most valuable ones in 2022 were cars ($36.7 billion USD), refined petroleum oils ($24.6 billion USD), trucks ($18.9 billion USD), automotive parts or accessories ($15.4 billion USD), and phones including smartphones ($14.3 billion USD). These products represented 19% of Canada’s total imports in 2022.

Top Sources of Canada’s Imports in 2022

The latest available country-specific data shows that 70.8% of products imported into Canada were supplied by exporters in: United States of America (35.6% of Canada’s global total), mainland China (7.5%), Mexico (5.2%), Germany (5.1%), Japan (4%), South Korea (2.8%), Vietnam (2.7%), Italy (2.2%), Taiwan (also 2.2%), United Kingdom (1.8%), Brazil (1.7%) and India (1.3%).

The United States remained Canada’s largest import partner in 2022, accounting for more than one-third of Canada’s total imports. However, Canada’s imports from the US decreased by 6.4% from $199 billion USD in 2020 to $186 billion USD in 2022, partly due to the impact of the US-China trade war and the US-Mexico-Canada Agreement (USMCA) on cross-border trade.

China was Canada’s second-largest import partner in 2022, supplying more than $42 billion USD worth of goods to Canada, an increase of 12% from $37 billion USD in 2020. China was also the main source of several products that saw high growth in Canada’s imports in 2022, such as furniture, bedding, mattresses ($3 billion USD), toys, games ($1.6 billion USD), and electric machinery ($1.5 billion USD).

Top Destinations of Canada’s Imports in 2022

Canada is not only a major importer but also a major re-exporter of goods and services to other countries. In 2020, Canada re-exported $38 billion USD worth of goods to other countries, representing 6.8% of its total imports.

In 2022, some of the top destinations of Canada’s re-exports were Hong Kong ($4 billion USD), China ($3 billion USD), United States ($2 billion USD), United Kingdom ($1 billion USD), and India ($800 million USD). These countries received 28% of Canada’s re-exports in 2022.

Some of the most re-exported products by Canada in 2022 were pearls and precious stones ($7 billion USD), electrical machinery and equipment ($4 billion USD), optical, photographic, medical apparatus ($3 billion USD), vehicles ($2 billion USD), and pharmaceutical products ($2 billion USD). These products accounted for 47% of Canada’s re-exports in 2022.

Canada’s import industry is a vital component of its economy, providing access to a variety of goods and services from around the world. In 2022, Canada’s import industry experienced some significant changes and challenges due to the COVID-19 pandemic, global trade tensions, and changing consumer preferences. However, Canada’s import industry also showed resilience and adaptability, as it continued to source and supply goods and services that met the needs and demands of Canadians and other countries.

References:

http://www.cbsa-asfc.gc.ca/

http://www.cbsa-asfc.gc.ca/publications/pub/bsf5056-eng.html#s5x4

http://www.cbsa-asfc.gc.ca/publications/pub/bsf5056-eng.html#s5x1

http://www.bankofcanada.ca/wp-content/uploads/2010/11/inflation_control_target.pdf

http://www.bankofcanada.ca/wp-content/uploads/2015/07/mpr-2015-07-15.pdf

https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-potash.pdf

https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-niobium.pdf

https://www.statcan.gc.ca/en/subjects-start/international_trade
https://www.exportgenius.in/export-import-trade-data/canada-import.php
https://importedconsumerproducts.com/canada/