For small businesses in Canada, importing goods can unlock new growth opportunities, but navigating customs clearance can feel overwhelming, especially if you’re new to it. From documentation and duties to shipping delays and compliance, a lot can go wrong if you’re unprepared.
The good news? With the right knowledge and guidance, the customs clearance process becomes manageable—even smooth. This article breaks down the step-by-step process for Canadian small businesses, from placing an order to receiving your shipment.
1. Place Your Order with a Trusted Supplier
Before anything else, ensure you’re sourcing from a reliable supplier. Choose vendors that:
- Provide complete product details
- Offer commercial invoices
- Understand international shipping
- Know the required documentation
Pro Tip: Always ask if the supplier has previously shipped to Canada. That experience helps reduce errors in paperwork and HS code classification.
2. Understand What You’re Importing
Know exactly what you’re bringing into Canada. This determines:
- Duties and taxes
- Regulatory requirements
- HS (Harmonized System) codes
- Import restrictions or permits
Use the Canada Border Services Agency (CBSA) site or work with a trusted and licensed customs broker to identify your product’s classification and related import costs.
3. Gather Required Documentation
To avoid customs delays or penalties, make sure your shipment includes:
- Commercial Invoice
- Packing List
- Bill of Lading or Air Waybill
- Import Permits (if applicable)
- Certificate of Origin (for trade agreement benefits)
- HS Code(s)
4. Arrange for a Licensed Customs Broker
If you’re a small business, handling customs clearance yourself can be risky. A licensed customs broker helps:
- Classify goods correctly
- Calculate duties and taxes
- Submit required forms to CBSA
- Avoid unnecessary delays at the border
This step is especially crucial if your business doesn’t have in-house compliance knowledge.
5. Pay Duties, Taxes & Applicable Surtaxes
When your shipment arrives in Canada, you may be required to pay:
- Import duties
- GST (usually 5%)
- Surtaxes (on certain goods like steel, aluminum, or machinery)
- Other regulatory fees
Your broker will calculate these costs and ensure timely payment to the CBSA.
6. CBSA Review & Risk Assessment
Once submitted, CBSA reviews the declaration and may:
- Approve the release immediately
- Request additional information
- Select the shipment for inspection
Most goods are released promptly if all paperwork is in order and no red flags appear.
7. Shipment Release & Delivery
After customs clearance:
- Goods are released from the port, airport, or border
- A freight forwarder or carrier handles the final delivery
- You receive your order at your warehouse or retail location
Always track your shipment and stay in touch with your freight provider to ensure a smooth delivery.
8. Keep Records for Compliance
It’s important to maintain import records for at least 6 years, including:
- Invoices
- Payment receipts
- Import permits
- Shipping and customs documents
These records help you stay audit-ready and compliant with CBSA regulations.
Final Thoughts: Partner with Experts for Smooth Customs Clearance
Customs clearance shouldn’t be a hurdle for small businesses. You can easily navigate the process by understanding the essential steps, ensuring all necessary documents are in order, and partnering with a reliable customs broker. This proactive approach helps minimize delays, reduce costs, and empowers your business to grow confidently and efficiently in the global mar