Importing goods into Canada can be straightforward, but only if you understand the customs rules in advance. Below are the most important points importers should be aware of to avoid delays, extra costs, or shipment holds.
1. Duties & Taxes: What Happens Before and After Shipping
For international courier shipments (such as DHL, UPS, or FedEx), duties and taxes can often be prepaid before export.
Once a shipment has left the origin country, the prepaid tax option cannot be changed.
In many cases, Canada Customs may pre-clear the shipment while it is in transit, even before it arrives at the final destination. This allows the importer to know in advance:
- How much duty and tax is payable
- What customs documents may be required
Duty-Free Threshold
- Canada’s duty-free threshold is CAD 20 (approximately USD 15).
- If the declared value exceeds CAD 20, import duties and taxes will apply, as determined by the Canada Border Services Agency (CBSA).
Low-Value Shipments
- For most standard imports with a declared value above CAD 20, the importer only needs to pay the assessed duties and taxes for release.
- No additional documentation is usually required.
High-Value Shipments
- When the declared value exceeds USD 2,500, CBSA typically requires a formal customs entry.
- In this case, the importer must:
- Check whether the courier (e.g., DHL) can handle formal clearance, or
- Appoint a licensed Canadian customs broker to complete the entry
2. Bill of Lading & Cargo Description Requirements
All shipping documents must include a clear and detailed product description.
Generic descriptions such as “FOOD STUFF” or “GENERAL GOODS” are not acceptable and may result in delays or inspection.
3. Customs Clearance for Amazon FBA Shipments
Canadian Customs has tightened regulations for e-commerce shipments, especially when the importer is a non-resident company.
Key requirements include:
- Sender verification
The shipper’s company information must be valid and verifiable, such as:- Business registration documents
- Import/Export account number or business number (BN)
- Complete and accurate product details
Product descriptions must match the actual goods. - Amazon product listing link
CBSA may request the Amazon product URL for reference. - Non-Resident Importer (NRI) compliance
- Importer numbers on all documents must match the registered information.
- Having only a Canadian NRI number is no longer sufficient.
- Importers must sign a Record Keeping Agreement with CBSA.
- Shipments from unregistered or unapproved companies (including U.S. companies) may be detained or seized.
A. Who Clears the Goods
Once the goods arrive at the port of entry, the consignee listed on the original Bill of Lading is responsible for customs clearance.
B. Clearance Options Available to Importers
Depending on the shipment type, CBSA assigns a Cargo Control Number (CCN).
Customs brokers then select PARS or RMD and submit the B3-3 Customs Coding Form.
1) Immediate Release Entry
Goods are released immediately upon approval.
2) Confirming Immediate Release Entry
For goods not requiring inspection or permits:
- EDI release: approximately 45 minutes
- EDI automated release: approximately 5 minutes
This option is also available for commercial goods carried by travelers, which must be cleared at the first port of entry.
3) Full (Perfect) Entry
Required documents include:
- Two copies of Form A8A-B
- Cargo Control Document (CCD) from the carrier
- Two copies of the Commercial Invoice (CI1)
- Copies (paper or electronic) of all required import permits, licenses, or certificates
Some ports offer CCEPS (Commercial Cash Entry Processing System), which assists in completing the B3-3 form and calculating duties and taxes.
Accepted payment methods:
- Cash
- Debit card (most ports)
- Certified cheque or bank draft
- Traveller’s cheques
- Credit cards over CAD 500
- Under specific conditions, uncertified cheques for shipments under CAD 2,500
4) Sight Entry (Bill of Sight)
Allows temporary release with incomplete documentation.
- Duties and taxes are not paid at the time of release
- Missing documents must be provided within a specified period
- Usually requires prior approval and financial security
- Commonly used by high-volume importers
Important: If the declaration format, color, or number of copies does not meet CBSA requirements, the entry may be rejected.
5. Declared Value of Imported Goods
CBSA determines the value based on:
- The commercial invoice issued by the exporter, or
- CBSA’s valuation of similar imported goods
If the importer disputes the assessed value:
- A security deposit may be paid first
- Supporting documents must be submitted within one month
- Extensions of up to six months may be granted if justified
6. Special Regulatory Requirements
- Health Canada / CFIA
Products related to medical devices, healthcare, baby products, food, or cosmetics require approval from Health Canada or CFIA. - Solid wood and timber products
Must be fumigated before importation. - P.O. Box addresses
Courier shipments cannot be delivered to P.O. Box addresses in Canada.