Decoding Canada

Importing to Canada:

In the event you want to ship to (or within) Canada, there may be certain Canadian provisional taxes. DCL customers can work with our Canadian partner Go Direct, to ship within Canada.

Canada has a three different tax structures by province: GST, PST, HST

  • GST: Goods and Services Tax

  • PST: Provincial Sales Tax

  • HST: Harmonized Sales Tax

  • QST: Quebec Sales Tax

Samples of a DCL shipment that are taxed at the shipment level as per each provinces tax rate on the freight charge plus the fuel surcharge.

Non Resident Importer (NRI):

  • Non Resident Import (NRI) is a business located outside of Canada that ships goods to customers in Canada and assumes the responsibility for customer clearance and other import-related requirements.

  • By assuming complete responsibility to deliver the product to the buyers’ door, the NRI provides a seamless and cost effective experience to its Canadian customers

  • NRI’s must give consideration to the following key areas: Business Number, Valuation, HS Tariff Classification, Tariff Treatment, GST on Imported goods, Canadian Customs Clearance, Maintenance of Records, Compliance

  • Business number is required before you can begin importing into Canada

  • Register for GST/HST if worldwide revenues are more than CAD $30,000 and you are conducting business in Canada

  • Full NRI details can be found on https://www.livingstonintl.com/livingston-content/uploads/2017/07/NRI-guide-ONLINE.pdf

  • Please refer to “FedEx/UPS How to Apply for NRI#” for help applying for an NRI #

USCMA (United States Canada Mexico Trade Agreement)

  • Customers who are looking to pay less D&T to Canada and Mexico AND have products manufactured in US, CA, or MX can utilize USCMA certification to reduce overall duties & taxes from Canada and Mexico.

  • USCMA replaces NAFTA. What does USCMA do?

    • Provides for a fair and equitable trade environment to drive regional robust economic growth.

    • Promotes US based manufacturing leading to new and higher paying employment opportunities

    • Strengthens and protects trade tariff revenues through higher regional content requirements and stricter controls to qualify for preferential treatment

  • Effective July 1, 2020, USCMA modernized the North American Free Trade Agreement (NAFTA) to facilitate freer cross-border trade in 21st century. (NAFTA no longer accepted)

  • To qualify, for preferential treatment under USCMA:

    • Import to Canada:

    • shipment <$3,300 CAD - statement on CI is sufficient (Sample statement: "I hereby certify that the goods covered by this shipment qualifies as an originating good for the purposes of preferential tariff treatment under USMCA/T-MEC/CUSMA.")

    • shipment > $3,300 CAD -

      • certification of origin required to be filled out correctly

      • importer’s responsibility to be in possession of the certification of origin at the time of importation (Canada may reach out to importer for COO)

DCL Recommendations:

  1. Get certification to be USCMA compliant if you qualify and email to Canada imports:

  2. Maintain records detailing products compliance in accordance with the Rules of Origin

  3. Commercial Invoices requirement

    1. Certifier information

    2. Indicate Certifier

    3. Blanket period/single shipment

    4. Importer information

    5. HS Code / Goods Description

    6. Certification Signature & Date

    7. Origin Criterion

    8. Exporter Information

    9. Producer Information

Disclaimer

The information presented is general in nature and not intended to address the circumstances of any specific business entity or individual. While we strive to provide accurate information, there is no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without professional guidance following a thorough assessment of the business problem or situation. Third-party links are provided in this presentation for your convenience. DCL Logistics does not control nor is responsible for these sites or content.