Customs Clearance 101: What Canadian Importers Need to Know

Customs Clearance 101: What Canadian Importers Need to Know in 2025
(A starter guide for first-time importers)

Why read this?

If 2025 will be the first year you bring goods into Canada, you’re about to meet the Canada Border Services Agency (CBSA), a stack of unfamiliar forms, and a duty calculator that seems to change by the hour. The good news? With a clear checklist and the right partner, customs clearance doesn’t have to be intimidating—or expensive.

Our brokerage team has been clearing freight for Canadian businesses for 20+ years, from single-pallet shipments to full container loads. This guide distills two decades of lessons into one beginner-friendly roadmap.

  1. Register for a business number (BN), surety bond (RPP), and CARM before anything ships.
  2. Classify products correctly with HS codes—or expect delays.
  3. Understand duties, GST, and trade agreements that may lower your costs.
  4. Keep a paper trail for six years (CBSA audit rule).
  5. A licensed customs broker can handle the red tape so you can focus on sales.

1. Get Your Business Number (BN), surety bond (RPP), & CARM Registration First

Why it matters: CBSA’s CARM portal is now mandatory for all commercial importers. If you haven’t set up your account, your goods will be held at the border until all setup is complete.

Quick steps:

  1. Apply for a 9-digit CRA Business Number (free, typically same day).
  2. Enroll in CARM Client Portal: assign roles, delegate access to your broker
    (For more details, check out our page on CARM)
  3. Post Surety Bond (RPP bond or cash).

Pro-tip: Set up delegated authority for your broker in CARM; they’ll post duties & taxes on your behalf, avoiding last-minute holds and expensive extra fees.

2. Master the HS Code—Your Shipping “Passport”

Every product needs a 10-digit Harmonized System (HS) code. It tells CBSA what the item is, where it fits in tariff schedules, and how much duty you owe.

Beginner pitfalls:

  • Guessing or copying a supplier’s code (it may be wrong for Canada).
  • Using a 6-digit “world” code instead of the required Canadian 10-digit version.

How to get it right:

  • Use CBSA’s Customs Tariff tool.
  • Ask your supplier for supporting specs, materials, and end-use.
  • Let a broker review and classify; misdeclarations triggers delays, penalties, or duty re-assessments up to four years later.

3. Know Your Duties, GST, and Free-Trade Savings

COST STANDARD RATE CAN YOU REDUCE IT?
Import Duty 0 – 18 %+ depending on HS code Use trade agreements (CUSMA, CETA, CPTPP) + proper Certificate of Origin and supporting documents
GST 5 % on most goods Claim back as ITC if you’re GST-registered
Additional Levies SIMA, surtaxes on specific goods Check CBSA notices and consult your broker before you ship

4. Prepare the “Golden Trio” of Documents

  1. Commercial Invoice – Accurate values in CAD, matching CARM declaration.
  2. Packing List – Quantity, weights, serial numbers, pallet count.
  3. Bill of Lading / Air Waybill – Issued by carrier; confirms transport details.

Missing or mismatched data = CBSA examinations (read: delays and fees).

5. Choose Your Incoterm & Shipping Mode Wisely

  • EXW / FCA / FOB are common for beginners—seller hands off early, you control freight.
  • DDP sounds easy (seller pays duties) but can hide costs in product pricing.
  • Air vs. Ocean vs. Courier: balance speed, cost, and liability.

A seasoned broker + freight forwarder can price all modes side-by-side, so you don’t overpay by defaulting to “air-every-time”.

6. Keep Records for Six Years—Audits Happen

CBSA may audit past shipments for valuation or duty accuracy. Digital PDFs are fine, but they must be retrievable within 24 hours. Your broker’s portal should hold copies but keep a secure backup.

7. When to Call a Broker (Spoiler: Most First-Timers Do)

  • Unsure about HS classification or duty rates.
  • Need CARM bonding but don’t want to post cash security.
  • Shipping multiple SKUs or mixed commodities.
  • Want to avoid the learning curve and focus on sales.

Why us?

  • Licensed Canadian brokerage, 20 + years clearing freight from China, EU, India, and the U.S.
  • 24/7 shipment visibility and in-house classification experts.
  • Flat, transparent pricing. No surprise “disbursement fees”.

Ready to clear customs the easy way?

📞 Book a free 15-minute import consult or email us

Key Take-Aways (Save/Share)

  1. Register for BN + RPP + CARM before goods leave origin.
  2. Validate HS codes + origin docs to cut duty costs.
  3. Accurate invoice, packing list, BoL = faster clearance.
  4. Keep records for 6 years to comply with CBSA audits.
  5. Partner with a licensed customs broker to avoid rookie mistakes.

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