Guide to Importing: Part 1

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Guide to Importing: Part 1

Importing into Canada, or any other country for that matter is no simple task. Here is a simple step-by-step guide to keep you on track. 

1.     Before Importing into Canada, you must first:

  • Obtain a business number from the Canada Revenue Agency (CRA) for an Import-Export Account
  • Identify the goods you plan to import – an accurate description is necessary
  • Identify which country the goods are coming from and in which country they were manufactured
  • Make sure the goods are not prohibited from entering Canada
  • Determine whether or not the goods you plan to import are subject to restrictions or other requirements

 2.     Once you are sure the goods can be imported into Canada, you must            determine:

  • Tariff classification
  • Applicable tariff treatment
  • Rate of duty
  • Taxes payable upon importing

3.     Tariff Classifications are 10-digit numbers assigned to each item youare importing. These numbers are used to determine the rate of dutypaid when importing and are based on both the type of item being imported as well as the material it is made from.

4.     Once you have a tariff classification number, you can then determinethe applicable tariff treatment and rate of duty

5.     Your goods may then fall under one of many tariff categories

  • Most Favoured Nation (MFN) Tariff
  • Applicable Preferential Tariffs
  • Special Tariff Provision
  • In order to take advantage of a particular trade agreement or tariff treatment, you must possess proof of origin for the specific trade agreement at the time of importation

6.     Determine if your goods are subject to Goods & Services Tax (GST) Excise Tax,      or Excise Duty

7.     Determine the value for Duty on which you will calculate the rate of dutyand tax

  • The value for duty is essentially the price you paid for your goods converted to Canadian funds. In certain cases, some additions or subtractions must be made to this amount

8.     Calculate Duties and Taxes

  • Take the value in the currency indicated on the invoice. Convert the value into Canadian Dollars (CAD) using the exchange rate from the date of direct shipment
 
Canadian Customs Broker | Import Canada

Canadian Customs Broker | Clearit.ca | Canadian Import

 

 **Dont forget to check out part 2 of Clearit.ca’s “Guide to Importing” for our complete step-by-step guide!**