Import From China Business
A practical guide for starting a small business
2010-
Real Experiences!
Faruk K. -
“Thank you for the information on branding my own products from China.”
Kele P. -
"Thank you so much for providing this wonderful, informative website."
Mark R. -
"I have always been interested in the import/export business but there is a lot of confusing information. Your site is practical and very helpful. Thanks."
What’s New!
China Imports
February 2012
Costume Jewelry
December 2011
Bamboo Towels
November
2011
Bamboo Flooring
November 2011
China Economy
November 2011
Ivory
October 2011
Wigs
October
2011
Drop Ship
September 2011
Photography Equipment
September 2011
Medical Supplies
September
2011
Ginseng
August 2011
Acupuncture
August 2011
Chinese Tea
August 2011
Chinese Herbs
August
2011
Trade Leads
August 2011
China Adoption
July 2011
Importing to Canada
Do I Need a License for Importing to Canada?
Importing to Canada from China or from any other country does not require a license. However, some goods are prohibited, restricted or controlled. A permit is required for certain classes of goods such as:
- Drugs
- Some agricultural items
- Certain textiles
- Endangered plant and animal species
- Natural gas
- Materials for atomic energy
The issue of permits is conducted by the Department of External Affairs and International Trade.
Getting Imported Goods Into the Canada
Canada is a large and diverse but sparsely populated nation. The diversity brings
about many different needs which is a great opportunity for someone looking to import
goods from China into Canada. If you are a Canadian wanting to bring goods into
Canada, make sure that your foreign business partner understands Canada Culture.
If you are a foreigner interested in exporting goods to Canada, understanding the
Canada Culture will prepare you for success. There are many Exporting to Canada
opportunities waiting for you in this affluent nation. Be sure to check out the
Canadian Fashion and Shoes Canada industries as an import opportunities.
Once you
decide on an opportunity, you need to determine logistically how to get the product
from China to Canada. Most of the time, it will involve Shipping to Canada and one
of its major ports. As an exporter looking for opportunities in Canada, you’ll need
some Canada Travel Tips to help you conquer this vast and diverse nation.
As a nation, Canada has good relationships with other trading nations such as the United States and Mexico under the North American Free Trade Agreement or NAFTA. Such agreements made it easier for those Canadian entrepreneurs who wanted to import into Canada.
When importing to Canada, the goods typically end up traveling to either Toronto or Montreal for further distribution due to the centers' proximity to the demand population. For instance, a large portion, about half of the electronic imports from China are sold in Ontario.
Here are the key individuals and steps for getting imported goods into Canada:
Packaging and Labeling
Goods packaged to be sold in Canada are subjected to the Consumer
Packaging and Labeling Act which governs the label, packaging, advertising of consumer
products.
The most notable standard is labels have to be in both English and French.
Any measure of volume or weight must use the metric system of meters, kilograms.
The labels cannot have any misleading claims.
Customs Canada, the government agency responsible for inspecting imported goods requires that all products must state a country of origin. For example: "Made in China".
Labels should also reflect Canadian concerns about environmental issues such as recycled content of the packaging, biodegradable packaging etc.
Packing documentation
Goods valued at less than C$20 only require a general invoice
Minimum
documentation is required for imported goods valued at less than C$1,200 as long
as full accounting is made and tariffs and duties are paid within 5 business days.
A
full Canada Customs invoice is required for all imported goods over C$1,200. This
document will contain information on the product name, quantity, buyer and seller
names, price paid, transaction number. Other documents required are the exporter's
Certificate of Origin and Bill of Lading.
Agents for Importing to Canada
Customs brokers who act as agents for importers are licensed by the government in Canada. The agent's duties include:
- Following the importer's instructions
- Remitting the title of goods on behalf of the importer
- Keeping accounts
- Transferring funds due
The importer pays the agent according to their agreement.
Distributors for Importing to Canada
Distributors can buy and sell their own account but they are not permitted to contract on behalf of the supplier.
Policies and Procedures for Importing to Canada
Shipping Documentation
In general, the more detailed your shipping documentation is,
the faster will your goods be processed through customs. So it is worthwhile to
pay attention to this step. Electronic versions are permitted today.
Mail and parcel
post shipments require postal documentation instead of the Bill of Lading. A copy
of the shipping invoice should also be included with the shipment.
Air cargo shipments
require air waybills instead of bill of lading.
Customs Clearance
All imported goods into Canada must be cleared at the port or location
of entry. Duties are assigned based on a percentage of the value of the goods or
on a specific basis by unit, measure or quantity. The value of the goods is indicated
by the selling price on the commercial invoice and it sometimes also includes shipping
and packing charges.
Duties fall under two classes:
1. Most Favoured Nation Tariff -
2. General Preferential Tariff
-
The Canada Border Services Agency's publication of the Customs Tariffs contains tariff rates for import products:
http://www.cbsa.gc.ca/trade-
Payment and Credit Conditions
Most business transactions typically are done using
open accounts.
This general process for importing to Canada from China is also the same procedure for importing to Canada from any other country around the world.
Real Experiences!
Jeff R. -
“I want to get acquainted with the custom and cultural formalities of dealing with the Chinese in business. This is one of many informative topics that I've learnt while navigating through your site. Thank you for all your time and diligence in creating such a wonderful tool. I am very excited about my importing career. I wish you all the best and deepest thanks again.”
