How to Export to Canada in 2026: Duty, 5% GST, CARM, Labels and Counter-Tariffs

Duty and GST: how the import cost is calculated

Each product is classified under a 10-digit number in Canada's Customs Tariff, which shows the Most-Favoured-Nation (MFN) rate and any preferential rates. In most cases the value for duty is the amount paid to the seller; under CBSA Memorandum D13-3-3, the cost of transporting the goods from the place of direct shipment to Canada is not included, so a CIF price is reduced by the international freight and insurance.

GST of 5% is charged at import on most goods, on the value for duty plus the customs duty. Basic groceries, prescription drugs, medical and assistive devices and agriculture and fishing goods are not taxable, and alcohol and tobacco also carry excise duty. Example with an illustrative 6.5% MFN rate: value for duty CAD 10,000, duty CAD 650, GST 5% of CAD 10,650 = CAD 532.50, so CAD 1,182.50 in total before broker fees.

Who imports: Canadian buyer, non-resident importer and CARM

The importer needs a nine-digit Business Number (BN9) from the Canada Revenue Agency with an RM import-export program account, and an account in the CBSA's CARM Client Portal, launched on 21 October 2024. The first person to register a business in the portal becomes its business account manager and can give a customs broker delegated access.

Since 20 May 2025, importers that want goods released before they pay duty and GST must be enrolled in Release Prior to Payment and post financial security, either a deposit or a security agreement with a financial security provider. Without it, duties and taxes must be paid at a CBSA office before the goods are released. A foreign company can be the importer, for example to sell DDP, as a non-resident importer: it must get its BN9 from the CRA before registering in the portal, post its own security, normally uses a Canadian customs broker and must keep import records for six years.

Product rules and labels to check before you ship

• Consumer Packaging and Labelling Act: prepackaged consumer goods show the product name in English and French, the net quantity in metric units and the dealer's name and principal place of business; Quebec has stricter French-language rules.
• Food: under the Safe Food for Canadians Regulations, importers of most foods need an SFC licence from the CFIA before importing and a preventive control plan; non-resident importers without a fixed place of business in Canada can apply.
• Cosmetics: a Cosmetic Notification Form to Health Canada within 10 days after the first sale, and bilingual labels with an INCI ingredient list; sunscreens and other products with drug claims need a DIN or NPN.
• Textiles: fibre content and dealer identity under the Textile Labelling Act.
• Other products: consumer products must meet the Canada Consumer Product Safety Act, and some goods need permits from other departments.

Trade agreements and proof of origin

Canada's preferential tariffs include those under CUSMA with the United States and Mexico, CETA with the EU, the CPTPP, the Canada–UK Trade Continuity Agreement and the Canada–Korea Free Trade Agreement. To claim a preferential rate, the importer must have proof of origin for that agreement at the time of importation. For courier shipments under CUSMA worth CAD 3,300 or less, the proof of origin requirement is waived.

Counter-tariffs and surtaxes in 2026

In response to US Section 338 and Section 232 tariffs, Canada has charged counter-tariffs of 15%, 25% or 50% since 8 September 2026 on about CAD 27.6 billion of US goods, including dairy, steel, wood and paper products, textiles, appliances, electronics, agricultural equipment and cosmetics. They apply to goods that qualify to be marked as US goods under the CUSMA marking regulations, so they follow the origin of the goods, not the shipping route. The surtax is charged on the value for duty, on top of customs duty, and GST is then charged on the higher total.

Canada also applies anti-dumping and countervailing duties under SIMA and has applied surtaxes to some goods from China, so check the CBSA customs notices for your tariff item and origin before quoting a delivered price.

Low-value shipments

By courier, goods that do not originate under CUSMA are free of duty and tax up to CAD 20. Goods originating in the US or Mexico under CUSMA are free of duty and tax up to CAD 40, pay tax but no duty from CAD 40 to CAD 150, and pay both above CAD 150. By post, goods of CAD 20 or less are free of duty and tax from any country. Qualifying courier shipments up to CAD 3,300 can be cleared under the CBSA's Courier Low Value Shipment Program.