When importing commercial goods into Canada, the following taxes typically apply:

• Duties: Based on the product's HS (Harmonized System) code and country of origin.

• GST (Goods and Services Tax, 5%): A federal tax applied to the total value including duties.

• PST or HST (Provincial Tax): Not charged at the time of import, but must be collected from customers at the point of sale, depending on the province.

To qualify for duty exemption under the Canada–Korea Free Trade Agreement (CKFTA), all of the following conditions must be met:

1. Korean Origin Requirement

The product must qualify as “Korean origin” under the FTA Rules of Origin (Chapter 3).A valid Certificate of Origin (CO) or an FTA-formatted origin statement must be provided to prove this status.

2. Direct Shipment from Korea to Canada

The goods must be exported directly from Korea to Canada without passing through a third country.However, if transit through another country (e.g., the United States) is unavoidable, the shipment may still qualify if:

• All transportation routes and transshipment points are clearly documented, and

• The goods remained under customs control during transit, proven by documents such as bonded warehouse records, customs control certificates, or a Through Bill of Lading.

3. Consistency of FTA Documentation

All shipping and commercial documents — including the Commercial Invoice, Bill of Lading (B/L), and Certificate of Origin (COO) — must consistently indicate Korea as the country of export and Canada as the final destination.

The eligibility for FTA duty exemption is not determined solely by the country of manufacture.It depends on both the compliance of the logistics route and the accuracy of the supporting documentation.

Therefore, it is essential to plan the shipping route and prepare all FTA-related documents carefully before shipment to ensure smooth customs clearance and proper application of the duty-free benefit.

When importing goods into Canada, the following documents are required:

1. Commercial Invoice (상업 송장)

2. Packing List (포장 명세서)

3. Certificate of Origin (원산지 증명서)

4. Import Permit (수입 허가서) – required only for specific regulated items

5. Bill of Lading or Airway Bill (운송 서류)

These documents are mandatory requirements under the Canada Border Services Agency (CBSA) import regulations.

For more detailed guidance or assistance with document preparation and customs clearance, please contact Trufulfillment’s customer support team.

캐나다로 제품을 수출할 때 가장 많이 혼동되는 부분 중 하나가 바로 관세 계산 기준입니다.

많은 한국 수출기업이 견적 단계에서는 FOB(Free on Board) 기준으로 단가를 산정하지만, 캐나다 세관(CBSA) 은 실제로 CIF(Cost + Insurance + Freight) 기준으로 관세를 부과합니다.

즉, 단순히 제품가격만이 아니라 운송비, 보험료, 항만 Handling Fee 등 캐나다 항만에 도착하기까지 발생한 총비용(CIF) 이 과세 기준이 됩니다.

이 내용은 캐나다 Customs Act Section 48에 명시되어 있으며, CBSA는 다음과 같이 규정하고 있습니다.

“The value for duty of goods shall be the transaction value, which is the price paid or payable for the goods when sold for export to Canada, adjusted by adding the cost of transportation, loading, unloading, handling and insurance and any other cost incurred in respect of the goods to the place within Canada to which the goods are shipped directly.” — CBSA - Customs Act, R.S.C., 1985, c.1 (2nd Supp.), Section 48

A registered NRI (with a GST/HST account) is eligible to claim an Input Tax Credit (ITC) or request a refund for the GST paid on imports. However, customs duties (duties) are non-refundable. To claim ITCs or request refunds, proper registration and accurate accounting practices are required.

Generally, if your global annual revenue exceeds CAD 30,000 and you carry out business activities in Canada—such as sales, logistics, or advertising—you are required to register for a GST/HST account.

Once registered, your business can charge, collect, and claim refunds for GST/HST.

Most general consumer goods can be imported without issue. However, certain categories—such as food, medical devices, and cosmetics—may require prior registration or approval from government agencies (PGAs). Trufulfillment provides pre-assessment services to help you determine the specific requirements for each product category.

When importing goods into Canada, a standard 5% GST is applied to all imported items. If the seller is a registered Non-Resident Importer (NRI) with a valid GST account, they may be eligible to claim a refund through Input Tax Credits (ITCs). Depending on the destination province, additional taxes such as HST or PST may also apply. All import-related taxes and duties are managed through the CARM portal (CBSA Assessment and Revenue Management).

👉 Learn more about the CARM portal

In B2B transactions, the buyer must have the seller’s GST/HST registration number (Business Number, BN) included on the invoice in order to claim a GST/HST refund. Therefore, proper registration and obtaining a valid GST/HST number is essential for businesses operating as a Non-Resident Importer (NRI) in Canada.

The following methods can help reduce import duties when importing goods into Canada:

1. Utilize Free Trade Agreements (FTA) to receive preferential duty rates.

2. Submit a valid Certificate of Origin to qualify for duty exemption benefits.

3. Accurately classify products under the correct HS Code to ensure proper duty assessment.

Trufulfillment provides guidance and support to help clients minimize customs duties through these and other optimized import strategies.