Importing commercial goods into Canada is subject to rules that are similar for exporting. Importing is important because it helps businesses meet market demands.
Step One- Business Number
The Company that wants to import commercial goods into Canada will need a valid business number. This number is obtained through the Canada Revenue Agency and must include an import/export account.
Step Two-Product Identification
Goods that are going to be imported may be subject to tariffs. Businesses must provide a detailed and accurate description of the goods they want to bring into Canada.
Step Three-Using Customs Brokers
Many businesses find exporting to be a complex and time-consuming task. It means having to deal with government bodies like the Canada Border Services Agency. A lot of business owners prefer to put their exporting tasks in the hands of a licensed customs broker. However, this does not relieve the business owner that is exporting of their responsibilities of following the rules and regulations. Customs brokers can help with:
- Duty payments
- Preparing all documents
- Record maintenance
- Answering any queries from the CBSA
- Getting the release of the goods being imported
Step Four-Identifying Country of Origin of Imported Goods
This may sound easier than it is. It isn’t just about identifying the country of origin for the finished product. It can mean identifying the country of origin of specific parts as well as the country of origin where the product is assembled.
Step Five- Are Imported Goods Allowed in Canada?
Something else the importer must do is determine if the imported goods are allowed in Canada. Several commercial goods are not allowed to be brought into the country. The Canadian Government has a bulletin that outlines prohibited goods.
Step Six-Rules and Regs Regarding Products
Some imported goods may require special permits. Or there may be restrictions that are applicable. It is up to the importer to determine if any of these apply, or if any other regulations pertaining to them.
The above six steps are just the starter steps for importing. There are several other requirements such as:
- Determining what the tariff classification number is
- Identifying whether goods are subject to various taxes like GST, excise tax, excise duty.
- Place a value on the imported goods
- Estimation of duty and taxes
- Order placement and shipping options
- Goods reporting
- Getting the goods releases
- Error adjustments for accounting data
- Record maintenance and record keeping
- Awareness of verifications and adjustment of CBSA.
As one can see, there is a lot to importing goods which are good reasons for using licensed customs brokers. However, once the importer becomes used to the process of importing it becomes a much easier task. Importing goods can help businesses reach new target markets.