Importing from China to Canada: Duties, Tariffs, and Compliance

Importing from China to Canada comes down to a few mechanics. Canada has no trade agreement with China, so Chinese goods pay the Most Favoured Nation tariff for their HS code, then 5% GST on the duty-paid value. Since October 21, 2024, every importer must be registered in the CBSA's CARM Client Portal, and goods are released before payment only if your business has posted its own financial security under the Release Prior to Payment (RPP) program.

Thousands of small Canadian businesses do this every week. The border paperwork is the manageable half; expensive surprises usually come from the China side: a factory that ships something different from the sample, labeling that fails Canadian rules, or a surtax nobody checked. That is where a sourcing partner on the ground like CN Ally pays for itself. This guide covers the Canadian side: costs, accounts, CARM, surtaxes, and product compliance.

How much does importing from China to Canada actually cost?

Three layers make up the landed cost: customs duty, GST/HST, and service fees. Duty is a percentage of the customs value (generally the price paid plus freight and insurance), set by the product's HS code. Then GST of 5% applies to the duty-paid value, customs value plus duty. Freight, insurance, broker fees, and port charges sit on top.

MFN rates for Chinese goods typically run from 0% to around 18%. Many electronics and toys enter at 0%; footwear and some textiles run higher. There is no preference to claim on Chinese goods, so the MFN column in the CBSA Customs Tariff is simply the rate you pay. The table shows the arithmetic for three hypothetical CAD 10,000 shipments; the duty rates are illustrative assumptions, since your real rate depends on your exact 10-digit HS code.

Shipment (CAD 10,000 CIF) · Illustrative duty rate · Duty · GST 5% on duty-paid value · Total border taxes

• LED lights (low-duty category): 0% · $0 · $500 · $500
• Home textiles (mid-duty category): 8% · $800 · $540 · $1,340
• Footwear (higher-duty category): 12% · $1,200 · $560 · $1,760

GST-registered businesses recover the GST through input tax credits, so for them it is a cash-flow item. Duty is never recoverable, which is why classification accuracy matters more than almost anything else here.

Do you need a Business Number and import account before you start?

Yes. Before CBSA will account for a commercial import in your name, your business needs a Business Number with an import-export program account (the RM account). These accounts were historically handled through the Canada Revenue Agency; CBSA has since taken over their administration, though the registration mechanics will feel familiar to anyone who has dealt with the CRA.

Online BN registration often completes within a few business days. The import-export account and the surrounding setup can take longer, so do not leave this for the week your goods are on the water. Start as soon as you have a business name and a product in mind. Note that you do not need a Canadian legal entity: CBSA allows non-resident importers to register, though importing in your own name keeps control of your classifications, duty costs, and compliance record.

How do HS codes and MFN rates work for Chinese goods?

Canada classifies imports with a 10-digit HS code: the first six digits are international, the last four are Canadian. The code sets your MFN duty rate and flags which other agencies' rules apply to the product. Since China has no trade agreement with Canada, Chinese goods always get the MFN column. No certificate of origin, no preference claim, no discount, just the scheduled rate.

That makes accuracy the whole game. Two traps deserve attention. First, some Chinese goods attract anti-dumping and countervailing duties under the Special Import Measures Act. CBSA has run SIMA cases against products such as certain steel goods and gypsum board from China, and the extra margins can be steep. A ten-minute check of the SIMA measures in force before you commit to a product category can save five figures. Second, surtaxes: Canada has imposed additional surtaxes aimed specifically at Chinese-origin goods, covered in detail below.

What is CARM, and what changed in October 2024?

CARM, the CBSA Assessment and Revenue Management system, became the official system for assessing and collecting duties and taxes on October 21, 2024. The core change is who carries the compliance burden: under CARM the importer of record is directly responsible for their customs account, declarations, payments, and financial security. Your broker no longer manages all of this on your behalf.

In practice, you register your business in the CARM Client Portal. From there you view statements of account and transaction history, file Commercial Accounting Declarations (the CAD, which replaced the old B3 form), pay CBSA directly, and delegate authority to your customs broker. That last step trips people up: a broker cannot file declarations or manage your security until you grant delegated access in the portal.

Starting fresh in 2026, the sequence is simply register, post security, delegate your broker, and import.

Do you need an RPP bond to get goods released quickly?

RPP, Release Prior to Payment, is what lets CBSA release your goods before you have paid the duties and taxes. Without it, shipments sit at the port until payment clears, not a workable way to run a supply chain. Under CARM, your business must post its own financial security directly with CBSA to hold RPP privileges. The old practice of brokers posting security on clients' behalf is gone.

CBSA guidance sets two options for posting security. A written security agreement, effectively a surety bond from an accredited provider, is set at 50% of your highest monthly accounts receivable (inclusive of GST), with a minimum of $5,000 per import program. A cash security deposit is set at 100% of the same figure; CBSA's customs notices spell out the program requirements in full. New importers with no history typically start at or near the minimum and scale up with volume.

After release, you account for the goods by filing the Commercial Accounting Declaration with final duty and tax calculations, generally within five business days. Miss that window and you face monetary penalties under the Administrative Monetary Penalty System, and repeated contraventions can cost you the RPP privilege itself. The rhythm is simple: release on security, account within days, pay on the monthly statement. Your broker files; the liability and the deadlines are yours.

Which extra surtaxes apply to Chinese goods right now?

This is what separates a China-specific guide from a generic import guide. In August 2024 Canada announced two surtaxes aimed at Chinese-origin goods: a 100% surtax on Chinese-made electric vehicles effective October 1, 2024, and a 25% surtax on Chinese steel and aluminum products effective later that October. The EV surtax stacks on the existing 6.1% MFN duty and applies broadly to Chinese-made EVs, including vehicles built in China by non-Chinese brands.

Treat this area as moving ground. Ottawa has consulted on extending surtaxes to batteries, semiconductors, solar products, and critical minerals, and the steel measures have seen subsequent orders and amendments. If your product is anywhere near EVs, steel, aluminum, or their derivatives, check the current CBSA customs notices and Global Affairs Canada notices before signing a purchase order, not after the goods sail.

How does GST and HST work on imported goods?

Federal GST of 5% applies to the duty-paid value of virtually all commercial imports: customs value plus duty, times 5%. If you are a GST/HST registrant, as most commercial importers are, you claim the GST paid as an input tax credit on your return.

It gets more expensive when the importer is not registered and goods arrive through an HST province. Then the harmonized rate can be collected at the border: 13% in Ontario, 15% in the Atlantic provinces. There is also a de minimis rule worth knowing: goods valued at CAD 20 or less are generally exempt from duties and taxes. That covers casual low-value shipments; commercial consignments above it are fully dutiable. The higher courier thresholds sometimes mentioned online ($150 for duties, $40 for taxes) apply to goods originating in the United States or Mexico under CUSMA, not to goods from China.

Businesses in non-HST provinces should budget for provincial sales tax too. British Columbia, Saskatchewan, Manitoba, and Quebec levy PST or QST, generally self-assessed on imported goods used in the province.

What product rules must you clear before your goods ship?

Border clearance is only half of compliance. Product rules apply to the goods themselves, and most must be satisfied before the container leaves China. Relabeling in a Canadian warehouse is always more expensive than getting it right at the factory.

Consumer products fall under the Canada Consumer Product Safety Act, administered by Health Canada. Toys, children's products, and other consumer goods must meet the applicable Canadian safety standards, and non-compliant products can be pulled from the market. The testing burden sits with you as importer, which is one reason pre-shipment quality control matters: a supplier's lab report is only as trustworthy as the supplier.

Labeling is the next big item. Most prepackaged consumer goods need bilingual English and French labeling under the Consumer Packaging and Labelling Act, covering product identity, net quantity in metric, and dealer information. Textiles have their own bilingual fibre-content rules. Electrical products generally need certification to Canadian standards from an accredited body, with provincial requirements varying. Wooden pallets and crates must meet ISPM 15 heat-treatment or fumigation standards enforced by the Canadian Food Inspection Agency. One unmarked pallet can hold up a whole container.

Send your labeling artwork and packaging specs to the supplier for confirmation before production, and have them verified during inspection. Fixing a missing French line in Shenzhen costs almost nothing compared with fixing it in Toronto.

Which Canadian port should your shipment use?

Port · Best for · Typical transit from China

• Vancouver: Largest gateway, most sailings, rail east · ~14–20 days port-to-port
• Prince Rupert: Fastest transpacific crossing, direct rail east · ~13–18 days port-to-port
• Montreal: All-water arrival for Eastern Canada · ~30+ days all-water
• Halifax: Atlantic alternative, growing capacity · ~30+ days all-water

Treat these as 2026 planning ranges, not quotes; they move with capacity and congestion. For door-to-door timing, add the rail leg: roughly another week to ten days from the West Coast to Toronto or Montreal. A logistics coordinator who knows the lane can also advise on FCL versus LCL; shipments under roughly 12–15 CBM are often cheaper consolidated than in a dedicated container.

What documents does CBSA expect?

The carrier handles pre-arrival eManifest data; your job is the commercial documentation behind the shipment.

Document · Purpose · When required

• Commercial invoice: Value, currency, Incoterms · Every shipment
• Packing list: Quantities, weights, dimensions · Every shipment
• Bill of lading / air waybill: Carrier transport document · Every shipment
• Canada Customs Invoice (CI1): CBSA's prescribed invoice format · Commercial shipments above ~CAD 2,500
• Certificates / test reports: Product compliance evidence · Regulated categories
• Import permits: Authorization for controlled goods · Only for goods under permit controls

Most ordinary goods need no import license at all. What you need is an accurate invoice value, a defensible classification, and compliance certificates that actually match the shipped goods. Before scaling an order, consider having the factory audited: the most common documentation problem is not a missing form but a supplier whose paperwork describes a different reality than the container holds.

Do you need a customs broker, or can you clear goods yourself?

Self-clearance is legal, and the CARM portal was partly built to make direct importer management feasible. In practice, most regular importers use a licensed broker, and under CARM you must formally delegate that broker access to your portal account before they can file anything for you.

A one-off shipment of a simple product is manageable on your own; regular or complex shipments belong with a broker. Either way, liability stays with you: your broker's classification error becomes your reassessment. Confirm the CARM delegation is active, and review your own statements of account every month. That monthly review is the cheapest compliance control in this entire guide.

How long does it take to set up a Canadian import account?

The Business Number registration often completes within a few business days online. The import-export account, CARM registration, financial security, and broker delegation each add lead time, so budget several weeks end to end. Start before you place your first factory order, not while the goods are sailing.

Do I pay GST if my business is GST/HST-registered?

You account for it but generally recover it. GST paid on imports is claimed as an input tax credit, so for registrants it is a timing and cash-flow item.

Are shipments under CAD 20 really duty-free?

For casual low-value goods, yes. Commercial consignments above the threshold are fully dutiable, and splitting shipments to stay under it is exactly what CBSA watches for. The higher CUSMA courier thresholds do not apply to Chinese-origin goods.

Can I import from China without a customs broker?

Yes. Under CARM you manage your own account either way; many importers start with a broker and bring simple clearances in-house once they understand the process.

What happens if I use the wrong HS code?

CBSA can reassess the shipment and you owe the duty difference plus interest from the import date. AMPS penalties can follow, especially for repeated errors. CARM provides a correction window for amending your declaration, generally 90 days from the accounting date without penalty, so fixing a discovered error promptly is far cheaper than waiting for CBSA to find it.

Do Chinese goods face extra tariffs in Canada in 2026?

Beyond standard MFN duties, the headline measures are the 100% surtax on Chinese-made EVs (in force since October 2024, on top of 6.1% MFN) and the 25% surtax on Chinese steel and aluminum. SIMA anti-dumping orders add margins on specific products. Verify the current CBSA notices for your HS code before costing any product.

Your first-shipment rule: clear the runway before you order

Do not place the factory purchase order until five things are true. One, your Business Number and import-export account are active and your business is registered in the CARM Client Portal. Two, your RPP financial security is posted, so release will not stall at the port. Three, your broker's delegated access is confirmed in the portal. Four, your HS code is researched, the MFN rate is known, and you have checked for SIMA orders and surtaxes. Five, labeling, packaging, and product compliance are confirmed in writing with the supplier: bilingual labels, certifications, and ISPM 15 packaging where they apply.

Get those five right and the rest is execution: book the freight, file the paperwork, review your monthly statement. If you want help on the China side (vetting the factory, confirming the specs, checking the goods before they ship), write to hi@cnally.com and tell us what you are sourcing. Getting the supplier right makes everything downstream easier.