Canada

The Dominion of Canada (Canada) is the world’s 9th largest economy (by nominal GDP) and a highly developed, trade-oriented market with strong ties to both the United States and the global economy. It has a population of about 40 million people, with an Organisation for Economic Co-operation and Development (OECD) comparative price level of around 112, meaning Canadian consumers pay on average 12% more than Americans for the same product. Canada is a sophisticated and reliable ecommerce market with high internet penetration, affluent consumers, and well-established logistics networks.

Key info

• Country code (ISO 3166-1 alpha-2): CA
• Country code top-level domain (ccTLD): .ca
• Currency (ISO4217): Canadian Dollar CAD
• World Trade Organization (WTO) Status: Member

Duty information

Canada applies tariffs under the Customs Tariff, administered by the Canada Border Services Agency (CBSA).

• Most Favored Nation (MFN) ad valorem duty rates typically range from 0% to 20%, depending on the product (with higher rates on apparel, footwear, and some agricultural products).
• Many industrial inputs, raw materials, and IT goods enter duty-free.
• Canada has extensive free trade agreements, including CUSMA/USMCA (with the US and Mexico) and CETA (with the EU).
• Duty is calculated on the CIF value - the value of goods, shipping and insurance combined.

Sales tax

Canada applies a Goods and Services Tax (GST) and, in some provinces, a Harmonized Sales Tax (HST) or Provincial Sales Tax (PST):

• GST (federal): 5% nationwide
• HST (combined federal + provincial): 13% to 15% in participating provinces (e.g. Ontario, Nova Scotia, New Brunswick)
• PST (provincial only): 6% to 7% in provinces like British Columbia, Saskatchewan, and Manitoba
• Some provinces (e.g. Alberta) charge no provincial sales tax (only the 5% GST applies).
• GST/HST on imports is calculated on the value of goods, duty, shipping, and insurance.

Additional taxes & charges

• Excise duties apply on alcohol, tobacco, cannabis, and certain fuels.
• Environmental handling fees (EHFs) apply in some provinces on electronics, tires, and other designated goods.
• Anti-dumping (ADD) and countervailing duties (CVD) apply to certain products (e.g. steel, aluminum, upholstered furniture).

De minimis thresholds

Canada has a duty and sales tax de minimis threshold of CAD $20.

Different de minimis thresholds apply to courier shipments from CUSMA countries (US and Mexico) if the goods are considered to originate under CUSMA rules of origin. In this scenario:

• The duty de minimis is CAD $150
• The sales tax de minimis is CAD $40

Free trade agreements

Canada is one of the most open economies in the world, with an extensive network of free trade agreements (FTAs) that cover more than 60% of global GDP. These agreements provide Canadian importers and exporters preferential access to key markets and reduce or eliminate tariffs, subject to rules of origin.

Key agreements include:

• CUSMA (Canada–United States–Mexico Agreement): Successor to North America Free-Trade Agreement (NAFTA), it provides duty-free access for most goods traded between the three countries if they meet rules of origin.
• CETA (Comprehensive Economic and Trade Agreement): Between Canada and the European Union, eliminating tariffs on most goods of EU and Canadian origin.
• CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership): Covers 11 Pacific Rim countries (including Japan, Australia, New Zealand, Vietnam, and others), opening access to high-growth Asian markets.

Prohibited & restricted goods

Canada enforces import restrictions through CBSA, Health Canada, Canadian Food Inspection Agency (CFIA), and other authorities. Prohibited or restricted goods include:

• Firearms, ammunition, explosives, and weapons (without license/permits)
• Controlled drugs and narcotics
• Counterfeit goods and pirated media
• Endangered species and related products (CITES restrictions)
• Certain foods, plants, and animals (subject to CFIA rules and sanitary/phytosanitary requirements)
• Hazardous materials (asbestos, certain chemicals)
• Obscene material, hate propaganda, and prohibited publications
• Cultural property and antiquities (subject to permits)

An official list of prohibited and restricted items is available on the CBSA website.