Exportspark has been working quite a bit recently with Canadian entrepreneurs on importing products into Canada, for eventual sale to Canadian consumers. Although technically it’s not “exporting”, they share a lot of the same characteristics and a need for solid research.
Tariffs
One of the most critical pieces of information needed is the Harmonized System (HS) code and tariff rate that will be applied by CBSA upon importing into Canada. Products from countries that do not have a free trade agreement with Canada could see between 5% and 20% in added duties, which could greatly affect sales margins.
Labelling
All products that will be sold into Canada will eventually need packaging and labelling that is professional and more importantly conforms to CBSA and CFIA rules. All labels must be in French and English and conform to metric measurements and standards required by the Canadian government. Temporary labels can be used, but not for long.
Quotas & Restricted Selling
Canada has a number of sectors where products can’t simply be imported and sold. Alcohol and dairy for example. It is very important to work with someone that is an expert in these sectors to ensure that products can even be imported or if there is a need for a certified agent or quota holder.
If you are considering a new career in the import business, start with doing research on what it will take to get your product into Canada. Then figure out the costs and how much you can make selling it. It could take up to 8 months to get this information, so make sure you have a plan and a lot of patience!
Exportspark offers consulting services that provide research and reports on importing into Canada, including requirements, tariffs and other obligations. Contact us today to discuss!