International E-Commerce Shipping Guide from Australia to Canada

Welcome to our comprehensive guide on expanding your cross-border e-commerce business into Canada!

We will discuss the essential topics for success in the Canadian market. Join us on this insightful journey as we provide you with the insights and resources needed to excel in this dynamic and profitable landscape.

Max weight: 30kg

Tracking: End-to-end

Delivery aim: 6-15 business days*
*End-to-end delivery for major metro areas

Canada offers a wealth of opportunities for e-commerce businesses seeking expansion. As of 2024, it ranks among the top 10 largest economies in the world, with over 27 million e-commerce users, representing 75% of the population.

Few countries are as well-connected to global markets as Canada. It is a member of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which creates access to some of the fastest-growing markets worldwide. Additionally, Canada is part of the Canada-United States-Mexico Agreement (CUSMA) and the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), which together eliminate 98% of tariffs between Canada and the EU.

With its robust economy, favorable trade agreements, and growing digital consumer base, Canada presents an ideal environment for e-commerce businesses looking to thrive and expand into new markets.

Source: ITA | Financial Times

Convenience for Online Shoppers

Key factors fueling online shopping in Canada are home delivery, competitive prices, and convenience. A Statista survey reveals that shoppers often compare prices across platforms to find the best deals.

Additionally, a study by the Retail Council of Canada highlights that consumers expect a hassle-free shopping experience and pay close attention to retailers' return policies when shopping online.

Rise of Mobile E-Commerce

With more than 36 million internet users and a penetration rate of 94.3%, the rise of online shopping in Canada’s e-commerce sector is unavoidable. According to a report by Data Reportal, 70.1% of the population made purchases using their smartphones or the internet in 2023. Furthermore, 54% of internet users have engaged in online shopping at least once a week.

Digital payment and digital wallet trends.

The ease of online payments through credit cards and digital wallets has fueled the rise of online shopping in Canada, enabling fast and secure transactions.

According to Data Reportal's 2024 Digital Report, 27% of B2C e-commerce transactions are made using digital wallets, while 52% are conducted with debit and credit cards.

Growing Preference for Online Shopping

Post-pandemic, Canada’s e-commerce landscape has seen substantial growth as many consumers have become accustomed to shopping online.

This shift has resulted in a permanent change in consumer behavior, leading to greater demand for a wider range of products and streamlined delivery options.

personalised shopping experience online ecommerce_Edited

Top E-Commerce Categories Segmentation by Popularity

According to Statista, the most popular online shopping categories for B2C e-commerce in Canada are:

Popular Online Shopping Platforms in Canada

Online marketplaces are the preferred shopping platforms in Canada. As of September 2024, Amazon.ca holds the title of the most visited retail website in the country, based on traffic data from SEMrush.

Here’s a look at the top 5 most frequented online shopping sites in Canada:

Amazon.ca
Walmart.ca
Canadiantire.ca
Homedepot.ca
Bestbuy.ca

Important Sales Season in Canada

Maximizing sales during peak seasons can be highly rewarding, but it’s equally important to manage inventory and ensure timely deliveries, particularly during the hectic holiday rush. The holiday season is usually the busiest period for the retail industry. In Canada, shoppers often spend more during this time, particularly during Cyber Week, which kicks off with the U.S. Thanksgiving holiday and includes Black Friday and Cyber Monday. Additionally, many major shopping holidays in Canada reflect those celebrated in the United States:

Valentine's Day – February 14^th
Easter – March / April
Mother's Day – May
Father's Day – June
Back-to-school – August
Halloween – October 31^st
Christmas – December 25^th
Boxing Day – December 26^th

Source: ITA

Customs Regulations Overview in Canada

In Canada, the De Minimis Value is set at CAD 20, which means you won’t have to pay taxes and duties on shipments valued below this amount. However, if your shipment exceeds this threshold, you will be responsible for any applicable duties and taxes. Additional taxes, such as excise duties or luxury taxes, may also apply depending on the nature or value of the goods. For gifts received from family or friends abroad, the GST is exempt for items valued at CAD 60 or less.

Source: Canada Border Services Agency | ITA

Import Tax

When importing goods into Canada, you are required to pay the Goods and Services Tax (GST) or the federal portion of the Harmonized Sales Tax (HST), except for items designated as non-taxable imports. Both GST or HST are collected at the time of import, along with any applicable duties and taxes.

The GST in Canada is a 5% federal tax applied to the value of the product plus any duties. Several types of provincial taxes exist:

Provincial Sales Tax (PST) is an additional tax that some provinces impose on top of the GST.
Harmonized Sales Tax (HST) combines PST and GST into a single, simplified rate in certain provinces.
Quebec Sales Tax (QST) is a distinct provincial tax specific to Quebec.

The rate of PST or HST varies depending on the destination province. For more information on import requirements, duties, and taxes, you can visit the Canada Border Services Agency's website for further details.

Required Customs Documents

Prior to importing commercial goods into Canada, you must obtain a Business Number (BN) from the Canada Revenue Agency (CRA). This process is typically free and can be completed fairly quickly. You can register for a BN for your import account by visiting the CRA’s website.

Additionally, there are several customs documents that you need to prepare before importing goods into Canada:

1. Airway Bill or Bill of Lading

If your import is done via air freight, an airway bill is required. For shipments via sea freight, a Bill of Lading (BLAD) is needed. Both serve the same purpose: to provide detailed information about the shipment and enable tracking.

2. Canada Customs Invoice or Commercial Invoice

The commercial invoice is typically used to establish the actual value of goods for customs duty assessment. In contrast, a Canada Customs Invoice (CCI) is a specialized document that includes more detailed information than a standard commercial invoice.

If you are exporting to Canada and the value of your commercial shipment is CAD 2,500 or higher, a CCI is required. Additionally, the items in the shipment will be subject to sales tax and other duties. However, there are exceptions; for instance, items classified under HTSUS Chapter 9810 do not require a Canada Customs Invoice.

The CCI typically includes the following:

Items’ country of origin
Transportation mode
Currency of settlement
Date of direct shipment to Canada
Total weight

To view an example of the CCI or for more information, please visit the Canada Border Services Agency’s website.

3. Canada Customs Coding Form (B3-3)

The B3-3 form is an accounting document used to pay duties and taxes. When filled out accurately, it provides all the information required for the CBSA to facilitate the release of the shipment. This document generally includes the following details:

Importer name and address
Port of unloading
Country of origin
Direct shipment date
Description

For more information on the Canada Customs Coding Form (B3-3), please visit the Canada Border Services Agency’s website.

4. Certificate of Origin

The CBP Form 343 – North American Free Trade Agreement (NAFTA) Certificate of Origin is used to identify the country of manufacture or origin for the goods. If your shipment is valued at over CAD 3,000, you will need a NAFTA Certificate of Origin.

5. Electronics Export Information (EEI)

To ship goods across the border into Canada, you must complete the Electronics Export Information form. This form is used by the US Census Bureau to monitor trade statistics and guide trade regulations.

To import tobacco-related products, you must obtain a license from the Regional Excise Duties office at the Canada Revenue Agency (CRA). The imports may also be subject to excise duty which varies depending on the type of products. Imported cigars also have an additional duty of 65% of the duty-paid value.

Source: Canada Tax and Trade Bureau

Importing cannabis in any form requires a permit or exemption from Health Canada, it will also be subjected to duty payments. Health product containing cannabis or for use with cannabis is also regulated by the Cannabis Act, the Food and Drug Acts, and related regulations.

Various food, plant and animal products are restricted or prohibited to enter Canada as an effort to protect the ecosystem, as these items can easily harbour invasive species, foreign animal disease, or plant pests. Some regulated commodities can be imported with certain documents or registrations. Before shipping such items, you should use the Canadian Food Inspection Agency’s Automated Import Reference System (AIRS).

For more information, please visit the CBSA website.

Before bringing in health products into Canada, you must ensure they are authorized in Canada. It must also be manufactured, packaged, labelled, and tested at compliant foreign sites and contain the Canadian authorized labelling.

Canada regulates a variety of health products, including:

Prescription and over-the-counter drugs (antibiotics, heartworm medication, cough medications, and pain relief tablets).
Natural health products (vitamins, minerals, herbal remedies, and homeopathic medicines).
Active pharmaceutical ingredients (API) for human use and veterinary use.
Veterinary drugs and health products.
Medical devices (categorized into four classes; I, II, III, or IV based on the level of risk related to their use).
Blood and blood components for transfusion.
Cells, tissues and organs (CTO) for transplantation.

For detailed information, please visit the Health Canada’s guidelines on Importing and exporting health products for commercial use.

To import such items, you must declare and have valid purposes, such as hunting for hunting season (only for non-restricted firearms only), use in competitions, protection against wildlife in remote areas (for non-restricted firearms only), etc.

If you are importing non-restricted firearms and has valid Canadian firearms license, you need to show the license to the border services officer. If you do not hold a valid Canadian firearms license, you must complete Form RCMP 5589: Non-Resident Firearm Declaration and pay CAD25 fee.

For more information, please visit the Canada Border Services Agency website.

Prohibited Items List

The following list includes items that are strictly prohibited from being imported into Canada. If you send an item that is on this prohibited list, it may not be returned upon arrival at customs, as Canadian customs has the authority to seize or destroy the item.