Customs broker or non-resident importer? How European firms import into Canada

Who is the importer of record?

The importer of record is the party legally responsible to the Canada Border Services Agency (CBSA) for declaring goods, paying duties and GST, and keeping records. Choosing who plays that role is a commercial decision as much as a customs one: it decides who carries the paperwork and the risk, and what your Canadian buyer experiences.

• Your buyer or distributor imports (for example on FCA, FOB or DAP terms): simplest for you, but the buyer handles customs and may price that effort in.
• You import as a non-resident importer (typically on DDP terms): your customer receives goods duty and tax paid, like buying from a local supplier, but you take on Canadian obligations.

What a non-resident importer is

A non-resident importer is a business located outside Canada that acts as the importer of record for goods it ships into Canada. To do this it needs a Canada Revenue Agency business number with an import-export program account, registration in the CBSA Assessment and Revenue Management (CARM) Client Portal, and usually GST/HST registration so it can recover the GST paid at the border. NRIs are often asked to post security with the CBSA if they want goods released before duties and taxes are paid.

What a customs broker does

A licensed customs broker acts on behalf of an importer. Brokers classify goods under the tariff, calculate duties and taxes, file the electronic declarations, arrange release at the border and keep the importer informed of rule changes. Using a broker is not legally required, but most companies new to Canada use one. The importer of record still carries legal responsibility for accuracy.

CETA, proof of origin and tariff classification

Under the Canada–EU trade agreement most EU-origin goods enter Canada duty-free, but only if they meet the rules of origin and the importer holds a valid origin declaration from the exporter. Correct tariff (HS) classification matters too: it determines the duty rate that would apply without CETA and any other requirements for the product.

Taxes at the border

Goods are generally subject to GST at import even when CETA removes the duty. Provincial sales taxes are handled differently by province. An NRI registered for GST/HST can usually claim back GST paid on imports as an input tax credit; confirm your position with a Canadian tax adviser.

Which set-up suits you?

• Starting with a single distributor who already imports: let them be the importer and keep it simple.
• Selling to many project buyers or contractors who expect delivered pricing: an NRI set-up with a customs broker is often worth the effort.
• Holding stock in Canada: consider a third-party warehouse, and check whether that creates obligations to register a business in the province.