A Guide to Shipping to Canada: What You Need to Know

Are you a business owner planning to expand your market by shipping to Canada? If so, you need to know the requirements and restrictions involved in shipping to this country before you get started. Shipping to Canada involves paperwork, costs, and compliance with Canadian laws, which can be confusing for first-timers. This blog post will help guide you through the process and provide you with valuable information that you need to know before shipping to Canada. We will cover what you can and can't ship, the paperwork you need to fill out, costs, duties, and taxes, as well as available shipping providers in Canada. We'll also introduce you to our cloud-based freight and logistics software, Deftship, which can help simplify your logistics operations. Whether you're new to shipping or have been doing it for a while, this blog post will provide you with valuable insights that can help make your shipping process smoother and more efficient.

Firstly, what can and can’t you ship to Canada? While almost anything can be shipped, certain items such as alcohol, furs, ammunition, and collectible coins are prohibited. On the other hand, some items like drugs and medicines can be shipped, but they must comply with Canadian law.

When it comes to paperwork, you need to fill out the necessary documents based on the shipment type and your chosen shipment partner. These may include bills of lading, commercial invoices, Canada customs invoices, manifests or cargo control documents, and proof of delivery, among others. Shipping providers offer blank customs forms on their websites while shipping software solutions can help pre-fill the relevant forms for you.

It may include but is not limited to the list below:

• Bills of Lading (BOLs)

• Commercial Invoices (CIs)

• Canada Customs Invoices (CCIs), for commercial shipments valued over $2,500CAD

• Manifests or Cargo Control Documents (CCDs), which are sometimes required if you’ll be shipping more than one package at a time (as in the case of contract customers shipping via Canada Post)

• Proof of Delivery (POD), if this isn’t handled directly on the BOL

• Electronic Export Information (EEI) forms, which replace the former Shipper’s Export Declaration (SED) form for controlled exports

• Import permits, for items that fall under Canadian Other Government Department (OGD) regulations

• NAFTA Certificates of Origin, if your goods are NAFTA-eligible

For high-volume shippers, we encourage you to check on the guidelines from the Canada Border Services Agency (CBSA) helpful.

Aside from shipping costs, duties, taxes, tariffs, and other fees must be paid on most goods imported into Canada, with a few exceptions. The duties and taxes can be paid either by the sender, receiver, or third party. However, if the receiver or a third party fails to pay them, the sender would be responsible for paying them.

Goods sold into Canada may be subject to duties and taxes, including:

• Goods and Services Tax (GST)

• Harmonized Tax (HST), which combines both GST and provincial taxes in some Canadian provinces

• Provincial Sales Tax (PST), for provinces not covered by a harmonized tax

• Quebec Sales Tax (QST), a taxation scheme used in Quebec province

When shipping to Canada, it's important to keep in mind that duties and taxes must be paid and can be covered by the Sender, Receiver, or third-party. In case the Receiver or Third-party fails to pay, the Sender becomes responsible for payment.

While Canadian consumers are responsible for paying Canadian sales taxes (GST, HST, PST, and/or QST), you may need to collect and remit them directly to the Canadian government.

If you are shipping more than $30,000 CAD of goods into Canada over a four-quarter rolling period, you may need to obtain a Canadian Business Number and register to collect taxes directly. You may also need to register if you “have a nexus” in Canada; for example, if you have a Canadian bank account or conduct any local advertising.

There are some exceptions to these rules, such as companies selling into British Columbia, Manitoba, Saskatchewan, and Quebec that may need to register for and remit PST, regardless of their size. Sellers of zero-rated supplies may also be exempt from tax collection requirements.

To avoid confusion, make sure to clearly state on your website which party will be responsible for each fee, and if possible, convert fees to CAD before checkout so buyers can fully understand the cost of their purchase.

If you're looking for a reliable shipping provider for your parcels to Canada, there are several options available to you. USPS is a great option for light parcels under 3 lbs, but be aware that they are not a door-to-door provider in Canada. If you prefer a faster service for parcels over 3 lbs, UPS and FedEx's International Ground services are good choices as they offer fast delivery and can guarantee delivery dates in many cases. For urgent shipments, DHL Express offers next-day delivery to major Canadian business centers as early as 9:00 am.

It's worth noting that you can also access these shipping providers through our cloud-based freight and logistics software, Deftship. With Deftship, you can easily compare shipping rates, track your shipments, and manage all your logistics needs in one place. So whether you're shipping to Canada or anywhere else in the world, Deftship can help simplify your logistics operations.

Here are helpful articles you can use if you need assistance in creating shipment orders through Deftship:

• Creating Batch Order

• Adding 'From Addresses'

• Adding 'To Addresses'

• Creating Service Ticket

If you have any questions or need assistance, our support team is always available to help you.