Buyer guide ·
Importing from China into Canada: a practical guide for businesses
How importing from China into Canada works for a business: tariff classification, duties and GST, customs brokers, CARM, Incoterms, landed cost and compliance.
Buying factory-direct can cut product cost substantially, but the price on a factory quote is only the start. Here is how an import actually works, step by step, and what to check before you commit.
1. Classify the product
Every imported product has a tariff classification (an HS code, extended to 10 digits in Canada's Customs Tariff). The classification sets the duty rate and tells you which other rules apply. Get it right before you order: two similar products can sit in different headings with different rates.
2. Know what you will pay at the border
- Customs duty: a percentage of the value for duty, set by the tariff item and the country of origin.
- Surtaxes: Canada applies surtaxes to some goods of Chinese origin (for example certain steel and aluminum products since October 2024). Check current orders for your tariff item.
- GST: charged on the duty-paid value at import. Registered businesses can usually recover it as an input tax credit; confirm with your accountant.
3. Register with CBSA
Commercial importers need a business number with an import-export account and must use the CBSA Assessment and Revenue Management system (CARM). Most businesses appoint a licensed customs broker to file entries for them.
4. Agree the Incoterms
Incoterms define where the seller's responsibility ends. FOB (free on board) means the factory delivers to the vessel at the origin port; you pay ocean freight, insurance, import costs and delivery. DDP means the seller delivers duty paid to your door. Compare quotes on the same basis.
5. Work out the landed cost
Landed cost = product + origin charges + ocean freight + insurance + duty and surtax + brokerage + port and terminal fees + inland delivery. Only then compare against a local supplier's delivered price.
6. Check compliance before production
Electrical products, medical devices, children's products, engines and some building materials have Canadian requirements. Ask for documentation before you pay a deposit, not after the goods land. See our certification guide.
7. Inspect before the balance is paid
Approve a pre-production sample, then inspect finished goods (or get photos and measurements) before releasing the balance.
Or let a distributor do it
Thames Valley Distribution handles sourcing, quality checks, consolidation, import paperwork and delivery, and quotes you one delivered cost. Send us your list and compare.
