Guide to Starting an Import Business in Canada

Before you can start importing, you need to establish a legal business entity. The steps include:

1. Choose a Business Structure – Decide whether to operate as a sole proprietorship, partnership, or corporation.
   
   
2. Register Your Business Name – If using a name other than your own, register it with your provincial or territorial business registry.
   
   
3. Obtain a Business Number (BN) – This unique identifier is necessary for tax purposes and is issued by the Canada Revenue Agency (CRA).
   • Apply Online: Business Registration
     
     
4. Register for Import/Export Account – Required for businesses importing goods into Canada. As of 2025, registration must be completed through the Canada Border Services Agency (CBSA).
   • Register at CBSA: CBSA Import/Export Program
   • You will be considered the Importer of Record, responsible for the accuracy of the documents, payment of duties, and eligible to claim GST input tax credits.
   • GST Info: GST/HST Guide

Need help setting up your business? Check out our Business Registration Services at QualiVests!

Identifying Profitable Products

• Conduct market research to determine demand for specific products.
• Use trade databases such as Trade Data Online to analyze import trends.

Understanding Product Restrictions

Certain goods are restricted or prohibited from entering Canada:

• Prohibited Goods: CBSA Prohibited Importations
• Quota-Controlled Goods: Includes poultry, dairy, and eggs. Permits required under D10-18-1 Regulations
• Import Control List (ICL): Import Control List
• CITES (Endangered Species): CITES Guidelines
• Other Government Department (OGD) Regulations: D19 Guidelines

OGDs involved may include:

• CFIA – Food Products: Importing Food
• Health Canada – Consumer Products: Consumer Product Safety
• CSA Group – Electrical Products: CSA Certification
• Transport Canada – Vehicles: Importing Vehicles

Finding Reliable Suppliers

• Attend trade shows and expos.
• Use B2B directories such as Alibaba, Kompass, and TFO Canada.

Due Diligence

• Request samples and verify supplier credentials.
• Seek references from trade associations or embassies.
• Check compliance with Canadian standards and prior experience with Canadian trade.

Tariffs and Duties

• Classify goods using the Customs Tariff Database
• Country of origin affects tariff rates – detailed in the Tariff Treatment Guide
• Leverage trade agreements for reduced duties: Trade Agreements

Certificates of Origin & Special Tariffs

• Required for preferential duty rates under trade agreements like CUSMA, CPTPP, etc.
• Proof of Origin

Countervailing & Anti-dumping Duties

• Imposed on underpriced or subsidized imports. Check SIMA Measures in Force

Economic Sanctions

• Verify if trade is restricted with certain countries. Sanctions List

• Include costs beyond purchase price: transport, insurance, customs, packaging, warehousing.
• Understand fluctuating exchange rates and associated bank charges.
• Plan for GST, excise tax, and possible repackaging/labeling.
• Secure insurance for all logistics phases.

Payment Methods

• Open Account – Low risk to buyer.
• Documentary Collection – Buyer pays bank to receive documents.
• Letter of Credit – Bank guarantees payment upon conditions.
• Advance Payment – High risk to buyer.

Shipping Options

• Air, sea, or courier, based on shipment size, value, and urgency.

Using Incoterms

• Clarify responsibilities using Incoterms 2020

Customs Brokers and Freight Forwarders

• Licensed brokers simplify CBSA procedures. CSCB Directory
• Freight forwarders and 3PLs offer end-to-end logistics. CIFFA Directory

Key Documents

• Canada Customs Invoice (CCI): CCI Info
• Form B3-3: Form B3-3 PDF
• Cargo Control Document (CCD)
• Certificates of Origin and OGD Permits as needed.

Release Procedures

• PARS (Pre-Arrival Review System)
• RMD (Release on Minimum Documentation)

Postal & Courier Imports

• Imports under CAD $2,500 use simplified process. LVS Program
• Canada Post Guide

• Maintain records for 6 years.
• Prepare for random or targeted CBSA audits. Compliance Info
• Apply for refunds, drawbacks, or temporary import programs:
  • Duty Relief (D7)
  • Refunds (D6)
  • Temporary Imports (D8)

Appeals & Dispute Resolution

• Disagree with CBSA decision? File Form B2 Adjustment Request
• Dispute Process