Importing to Canada: The Complete Guide for Businesses (CARM, Duties, HS Codes, Incoterms & Shipping Options)
Build a compliant, cost-efficient Canadian import program. This pillar covers CARM registration, HS classification and valuation, duties and taxes, Incoterms, de minimis, documentation, importer models (Resident vs NRI), broker/carrier choices, and best practices for B2B and eCommerce flows.
Updated: October 2025
Executive Summary
- Compliance first: Correct HS classification, declared valuation, and permits as necessary
- Cost clarity:Model landed - to door - costs (duty + GST/HST + fees)
- Confirm who pays what: Understand Incoterms (DDP/DAP) to define responsibility for shipping and import fees
- Scale with the right network: Express/ courier, postal, airfreight, ocean, and hybrid flows via a carrier-agnostic approach
Download PDF accompanying video: Import Guide to Canada
Getting Started: What You Need Before Your First Import
- Define the importer: Canadian entity or Non-Resident Importer (NRI).
- Register for CARM: set roles and payment methods; delegate to your broker/carrier as needed.
- Classify products: assign HS codes and confirm admissibility, licenses, and labeling.
- Pick Incoterms: DDP vs DAP (for eCom) or CIP/FOB (for B2B freight).
- Choose clearance path: Express integrated brokerage (LVS), independent broker, or self clear
- Prepare documents: commercial invoice, packing list, certificates/permits, waybill/BOL.
CARM and Importer Accounts
CARM (CBSA Assessment and Revenue Management) centralizes importer accounts, statements, and payments. Ensure your entity (or NRI program) is registered, program roles are assigned, and your broker/carrier has appropriate delegation.
- Create/claim your business account and assign program roles.
- Set up payment instruments and ensure statement visibility.
- Pre-map SKUs and HS codes to streamline entries and reduce exceptions.
Learn more: Canada importer registration for CARM
HS Codes and Valuation (Get These Right Before Shipping)
Classification drives duty rates and admissibility. Pair it with a defensible valuation method (usually transaction value) and plain-English line descriptions that match HS notes.
- Include material, function, and use in descriptions.
- Check for specific regulations (textiles, food, batteries, health products, etc.).
- Validate valuation components (e.g., assists, royalties) and currency.
Resources: HS codes basics · Declared value and CIF (cost, insurance, freight)
Duties plus Taxes in Canada
- Duties: Based on product classification/HS code, country of origin and value. Free trade agreements can eliminate duty
- GST/PST/HST: Applied to the customs value plus duty (province dependent)
- Fees: Brokerage, disbursement/advancement, handling, and storage (if applicable).
Deep dive: Common Canadian import fees
Incoterms for Canadian Imports
Align risk and cost between the buyer and seller. Understand who, for example, will be responsible for paying import duty and fees.
- DDP (seller pays duties/taxes) → frictionless CX, more admin for seller (NRI recommended).
- DAP (buyer pays duties/taxes) → simpler for seller, more delivery friction if consignee is unprepared.
Understanding Terms of Sales and "inco-terms"
De Minimis (Low-Value Shipments)
Low-value streams may clear via simplified processes. Although often the duty free benefit no longer applies to many destinations.
- Transmit complete, accurate data (SKU, HS, value, origin, consignee).
- Screen for restricted goods. Not all products qualify for express/ courier clearance.
Importer Models: Canadian Entity vs Non-Resident Importer (NRI)
Canadian Entity
- Traditional setup for local operations and warehousing.
- Full control over importer obligations and tax recovery.
Non-Resident Importer (NRI)
- Sell DDP into Canada without a physical presence.
- Improves customer experience by including duties/taxes at checkout
- Requires a customs bond and CARM setup.
Understand customs value for NRI Shipments
Choosing Shipping Options and Logistics Networks
- Postal Network: Best for small personal shipments and occasional e-commerce package
- Express courier; Fastest transit, integrated brokerage, predictable total cost.
- Airfreight + broker: Good for bulk shipments and cost effective up to around 200 kilograms
- Ocean LCL/FCL: best unit cost for heavy bulk freight. Lead lead time of over 1 -2 months
- Hybrid eCommerce: Consolidate and ship in bulk for unified clearance + low cost last-mile delivery via domestic networks
Explore options: Ocean freight overview
Customs Broker: When to Use One
Express carriers / couriers often include brokerage for importing parcels under $3,300. For complex products and high value shipment, use of a broker is recommended. However, the importer themself has the right to clear without a broker.
Documentation for Imports
The most important document is simply the commercial invoice. Make sure all the necessary details are included.
- Commercial Invoice: Precise description, HS code, value (include currency code) and shipping terms
- Packing List: Often required from the exporting country (from Taiwan, for exampl)
- Certificates/Permits: May be necessary based on commodity. Certificate origin required for duty free import via a FTA).
- Waybill / Bill of Lading: This is simply the shipping document from the carrier.
Guides: Commercial invoice · Bill of lading / waybill
Landed Cost: Your Forecasting Model
Landed cost = Product cost + International freight + Insurance + Duty + GST/HST + Brokerage + Disbursement/Advancement + Handling.
| Component | What to watch |
|---|---|
| Duty | Rate by HS classification, country of origin and value |
| GST/PST/HST | Calculated on value + duty. Destination province tax rate applies |
| Brokerage | Entry preparation, bond fee, disbursement |
| Disbursement | When a broker or carrier fronts payment of duties/tax, this fee applies |
Returns and After-Sales
International shippers to Canada should have an address to receive and manage your returns. Contact our team.
Common Mistakes (and How to Avoid Them)
- Vague product descriptions → misclassification; use precise, plain-English details.
- Wrong HS codes → incorrect duty; validate with chapter notes/rulings.
- No importer/broker decision → delays; assign roles before shipping.
- Ignoring Incoterms → surprise costs; make sure you understand the fees prior to shipping
- Underestimating fees → model brokerage & disbursement in pricing.
Build a Compliant, Cost-Efficient Canada Import Program
Work with Jet Worldwide to map HS codes, estimate landed costs, and choose the best carrier mix for your lanes.
Frequently Asked Questions
What documents do I need to import goods into Canada?
At minimum: a commercial invoice with precise descriptions and HS codes, a waybill/BOL, and any required permits or certificates. Include consignee/importer details and Incoterms.
Who should act as importer of record in Canada?
Either a Canadian entity or a Non-Resident Importer (NRI). The importer of record is broadly defined as the owner of the goods at the time of import.
How are duties and taxes calculated?
Duties are based on the tariff classification, country of origin and value. Sales tax is applied to the customs value plus duty. Brokerage, disbursement, and handling fees may apply.
What is de minimis
Low-value clearance/ LVS processes for eligible shipments; they require accurate data and may exclude restricted goods.
Do I need a customs broker?
Use of customs broker is not required. However, it is usually best to use a broker to ensure compliance.
