Importing from China to Canada: your goods’ journey from port to warehouse

Step 1: place the order and choose the Incoterm

Everything starts with the purchase order. Beyond price and quantities, it sets the Incoterm, the International Chamber of Commerce (ICC) rule that defines when costs and risks pass from seller to buyer. Three Incoterms come up often when importing from China:

• FOB (Free On Board): the supplier clears the goods for export and loads them on board the vessel at the port of origin. Ocean freight, insurance, Canadian customs clearance and duties are then on you. This rule is used for sea and inland waterway transport only.
• EXW (Ex Works): you collect the goods at the factory door. Transport within China and even export formalities fall on you or your forwarder.
• DDP (Delivered Duty Paid): the seller delivers the goods to destination, cleared and duties paid. It is the only rule where the seller pays import duties. It looks simple, but you lose sight of the customs declaration: check who the importer of record will be, how the value will be declared and whether duties will actually be paid.

Choose the loading mode too. With a full container load (FCL), the 20- or 40-foot container is yours alone: it is sealed at the supplier and opened at destination. With less than container load (LCL), your cartons or pallets share a container with other cargo and are separated at a consolidation warehouse on arrival, which adds a handling step.

Finally, write your requirements into the purchase order: a barcode on every carton, one SKU per carton where possible, clear markings and a detailed packing list. Once the container is sealed, it is too late.

Step 2: open your importer accounts before the first container

According to the CBSA import guide, a business importing commercial goods into Canada needs:

• a nine-digit business number issued by the Canada Revenue Agency;
• an import-export program account (RM), for example RM0001, added to that number;
• an account on the CARM Client Portal, the CBSA Assessment and Revenue Management system.

Since October 21, 2024, CARM has been the CBSA’s official system for assessing and collecting duties and taxes on imported commercial goods. If you work with a customs broker, you must delegate authority to them in the portal: without that delegation, they cannot submit a declaration on your behalf.

The CBSA also recommends enrolling in Release Prior to Payment (RPP), which requires financial security in an amount calculated by CARM. With RPP, your goods can be released before payment and you pay duties and taxes by the due date of the billing period. Without financial security, payment is required at the time of release.

Take care of this before the container leaves China: an incomplete account discovered on arrival delays clearance.

Step 3: the crossing and the port of entry

Once the container is loaded, the shipping line or your forwarder issues the bill of lading. This document evidences the contract of carriage and is used to take delivery of the goods at destination. Before arrival, the carrier sends the CBSA advance commercial information about the shipment, based on the cargo description you provide.

For Québec, three gateways come up:

• The Port of Montreal, the only container port in Québec. It is a destination port served by major shipping lines and directly connected to the CN and CPKC rail networks.
• The West Coast, through Vancouver or Prince Rupert. Several services from Asia call there; the container then crosses the country by rail to an eastern terminal.
• Halifax, on the Atlantic, from where the container reaches Québec by rail or truck.

The right route depends on the shipping line, price and the transit time you need: your forwarder will lay out the options.

Step 4: customs clearance

Customs clearance means declaring the goods to the CBSA, paying what is owed and obtaining release, the authorization to remove the goods. Most shipments are cleared at the CBSA office where they arrive in Canada; with a bonded carrier, they can be cleared at a sufferance warehouse closer to you.

The declaration gives each product’s description, value, country of origin and tariff classification. That 10-digit classification sets the duty rate: the first six digits follow the international Harmonized System, the last four are specific to Canada. Value for duty is declared in Canadian dollars and must be supported by an invoice: the CBSA accepts the Canada Customs Invoice (form CI1) or a commercial invoice containing the same information. If a product’s classification is unclear, you can ask the CBSA for an advance ruling.

What you pay on import:

• Customs duties, based on tariff classification and country of origin. Some goods originating in China, such as certain steel and aluminum products, have also been subject to surtaxes since 2024. These measures change: have your broker check your products.
• GST at 5%, which applies to most imports and is calculated on the value for duty plus duties.
• QST: according to Revenu Québec, a registered business that brings goods into Québec for use exclusively in its commercial activities, and that would be entitled to an input tax refund, does not pay QST on those goods. Otherwise, it reports the QST on its tax return. Confirm your case with your accountant.

The customs broker’s role. You can prepare the declaration yourself or hand it to a CBSA-licensed customs broker. The broker obtains release, transmits the documents and pays duties on your behalf, for a fee. Note that you remain liable for duties owing until you or your broker pays them, and you must keep your import records for six years, in Canada.

Step 5: from the port to the warehouse

Once the goods are released, the container can leave the terminal. At the Port of Montreal, it leaves by truck or by rail. For a warehouse in the Eastern Townships, a truck makes the trip directly: Sherbrooke is about 150 km from Montréal.

Two things need planning: the delivery appointment at the warehouse and the return of the empty container. Shipping lines and terminals allow a limited number of free days; after that, terminal storage and container detention charges apply.

To make this step easier, our shipping service can coordinate import and customs clearance: our team coordinates your imports, from logistics through customs clearance, so your goods arrive compliant and are put away quickly.

Step 6: container unloading and receiving at the warehouse

A container from Asia often arrives floor-loaded: cartons are stacked directly on the floor, without pallets, to use every inch of space. Unloading is then done carton by carton. The goods must be sorted by SKU, palletized, counted and put away. If it is poorly prepared, this is where inventory discrepancies start.

At Kolineo, container unloading and receiving follows this path: the container is unloaded, cartons are sorted by SKU and palletized, quantities are checked against the packing list and packaging condition is inspected. Any discrepancy is reported to you, then each product is put away and visible in real time. To plan the dock and the crew, we ask you in advance for:

• the container size (20 or 40 feet);
• the carton count;
• the number of different SKUs;
• the packing list and the expected arrival date.

A single-SKU container is processed much faster than one mixing dozens of SKUs. Once received, your products move into warehousing, ready for your online orders or retail deliveries. If part of your inventory serves the U.S. market, our Chicago warehouse also receives goods; importing into the United States follows U.S. customs rules.

Common mistakes when importing from China

• Accepting a vague commercial invoice. “Miscellaneous parts” or a rounded value make proper classification impossible. Require a precise description and the actual price of each item.
• Undervaluing the goods. A supplier who offers to declare a lower value exposes you: the importer is answerable for duties owing and for corrections required by the CBSA.
• Receiving cartons with no barcodes or markings. Every unidentified carton has to be opened and checked by hand, which slows receiving.
• Not warning the warehouse. A container that shows up unannounced waits at the dock while detention charges keep running.
• Overlooking permits and surtaxes. Some products require a permit from another department or carry a surtax. Check before you order, not on arrival.