Import Declaration Canada: How the Customs Declaration Process Works
Before commercial goods can be released into Canada, the required customs information must be prepared and submitted to the Canada Border Services Agency (CBSA). This information identifies the goods being imported, including their tariff classification, value for duty, country of origin, importer details, and other information required for customs clearance.
The import declaration process typically involves reviewing commercial documents, determining the correct tariff classification, confirming customs valuation and origin, calculating applicable duties and taxes, electronically transmitting customs information to CBSA, and completing commercial accounting through CARM.
Accuracy throughout the process is essential. Errors in classification, valuation, origin, or importer information can result in clearance delays, reassessments, additional duties and taxes, penalties, or post-release corrections.
What is an Import Declaration?
In Canada, an import declaration provides CBSA with the information required to identify, assess, release, and account for commercial goods entering the country.
The declaration includes key shipment details such as the importer, description of the goods, Harmonized System (HS) tariff classification, country of origin, value for duty, and applicable duties and taxes.
Under Canada's CARM system, commercial accounting is completed using the Commercial Accounting Declaration (CAD). Depending on the release process being used, importers and customs brokers may submit release information separately or use an applicable CAD to obtain release and account for imported goods.
Importers may prepare and submit their own customs documentation or authorize a licensed customs broker to transact with CBSA on their behalf.
Regardless of who prepares the declaration, the importer remains responsible for the accuracy and completeness of the information reported to CBSA, the payment of applicable duties and taxes, and any required corrections after importation.
What Information Is Required for an Import Declaration?
The exact information required depends on the shipment and the goods being imported, but a commercial customs declaration will generally include:
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Importer business number and RM program account
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Vendor or exporter information
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Detailed description of the goods
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Country of origin
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Applicable tariff treatment
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Quantity of goods
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Transaction value and value for duty
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Currency
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Applicable customs duties and GST
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Shipment and transportation details
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Required permits, licences, certificates, or other regulatory information
Commercial invoices and other supporting records must provide enough information to support the declaration being made to CBSA.
Importers should also ensure that their importer account information is properly established before attempting to obtain release or account for commercial goods. For more information about importer obligations, see Importer of Record Responsibilities in Canada.
How the Import Declaration Process Works in Canada
Step 1: Review the Commercial Invoice and Import Documents
The customs declaration process begins with reviewing the commercial invoice and supporting shipment documentation.
The commercial invoice should clearly identify the seller and buyer, provide an adequate description of the goods, show the quantity and transaction value, identify the currency, and provide origin information where required.
Additional documents may include:
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Packing lists
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Bills of lading or other transportation documents
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Certificates of origin
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Import permits or licences
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Product certificates
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Purchase orders
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Importer account information
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Other documents required by CBSA or participating government departments
Accurate commercial documentation provides the foundation for the rest of the customs clearance process.
Businesses should ensure that the information provided by suppliers is complete and consistent before goods arrive at the Canadian border.
For a broader look at common shipping documentation, see Freight Shipping Documents in Canada.
Step 4: Determine Origin and Tariff Treatment
The country where goods are shipped from is not necessarily the same as their country of origin for customs purposes.
Origin can affect the tariff treatment available to imported goods and whether a preferential duty rate may apply under a free trade agreement.
Importers claiming preferential tariff treatment must ensure that the goods satisfy the applicable rules of origin and that required origin documentation is available.
Origin information should therefore be reviewed alongside tariff classification and customs valuation before the declaration is finalized.
Step 7: CBSA Reviews the Shipment and Makes a Release Decision
Submission of customs information does not automatically guarantee immediate release.
CBSA reviews the information associated with the shipment and determines whether the goods may enter Canadian commerce.
Depending on the shipment, CBSA may:
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Release the goods
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Request additional documentation
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Request clarification
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Refer the shipment for further review
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Examine the goods
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Verify permits or regulatory requirements
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Hold the shipment until an issue is resolved
Clear and consistent documentation can reduce avoidable delays, but CBSA may review or examine shipments as part of its normal border enforcement responsibilities.
For a more detailed explanation, see How the CBSA Release Process Works.
If a shipment is delayed, our guide to Common Reasons for Customs Holds in Canada explains several issues that can affect release
Step 2: Determine the Correct HS Tariff Classification
Every imported product must be classified under the Harmonized System (HS).
The HS tariff classification identifies the goods for customs purposes and is used to determine the applicable duty rate. Classification can also affect tariff treatment, permits, restrictions, and requirements administered by other government departments.
A product's correct classification depends on factors such as its composition, function, design, and intended use.
Incorrect HS codes may result in:
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Incorrect duty rates
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Customs reassessments
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Additional duties and taxes
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Interest
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Administrative penalties
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Delays while CBSA reviews the shipment
Because classification affects several parts of the declaration, it should be determined before duties and taxes are calculated.
Learn more in our guide to Tariff Classification in Canada.
Step 5: Calculate Customs Duties and GST
Once classification, origin, tariff treatment, and value for duty have been established, the applicable customs duties and taxes can be calculated.
The amount payable may depend on:
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HS tariff classification
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Value for duty
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Country of origin
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Applicable tariff treatment
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Free trade agreement eligibility
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Type of imported goods
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GST
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Excise duties or taxes where applicable
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Surtaxes or special import measures where applicable
Some commercial goods may enter Canada duty-free while still being subject to GST or other applicable charges.
For a detailed explanation, see Understanding Duties, Taxes and GST on Imports Into Canada.
Step 8: Complete CARM Accounting and Retain Import Records
Release of the goods does not necessarily complete the importer's customs obligations.
Commercial accounting must be completed through Canada's CBSA Assessment and Revenue Management (CARM) system in accordance with the applicable accounting process.
CARM is CBSA's system of record for the accounting of commercial imports and the assessment and collection of duties and taxes.
Businesses unfamiliar with the system can review What Is CARM in Canada? and our guide to CARM for Commercial Importers.
Importers are also required to maintain records supporting their commercial import transactions. These may include:
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Commercial invoices
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Customs declarations
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Purchase records
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Transportation documents
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Proof of origin
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Permits and certificates
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Valuation records
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Accounting records
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Documentation supporting tariff classification
Commercial import records are generally required to be retained for six years following importation.
Importers remain responsible for their customs records and the accuracy of their declarations even when a customs broker has acted on their behalf.
More information about ongoing importer obligations is available in our CARM & Import Compliance resources.
Step 3: Determine the Value for Duty
Imported goods must be reported using a value for duty determined in accordance with Canadian customs valuation rules.
For many commercial transactions, valuation begins with the price paid or payable for the goods. Depending on the transaction, certain amounts may need to be added, deducted, or otherwise adjusted when determining the amount reported to CBSA.
The review may include:
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Invoice value
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Currency
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Assists or supplied materials
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Royalties or licence fees where applicable
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Packing costs
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Selling commissions
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Certain transportation-related costs
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Other adjustments required under Canadian valuation rules
Foreign currency amounts must also be converted using the applicable exchange rate for customs purposes.
The value for duty is important because customs duties and GST may be calculated using the declared customs value.
Step 6: Submit Customs Information Electronically to CBSA
nic submissions provide CBSA with the information necessary to assess the shipment and determine whether the goods may be released.
Licensed customs brokers routinely prepare and transmit customs documentation on behalf of commercial importers using systems connected with CBSA.
For more information about whether a broker is required, see Is a Customs Broker Required to Import Into Canada?.
Common Import Declaration Errors
Import declaration errors can lead to clearance delays, incorrect duty assessments, post-release corrections, compliance reviews, and penalties.
Incorrect Tariff Classification
Using an incorrect HS code can result in the wrong duty rate being applied and may cause regulatory requirements to be missed.
Classification errors can also be identified by CBSA after the goods have already been released, resulting in reassessments and required corrections.
Incorrect Customs Valuation
Declaring an incorrect value for duty can affect the amount of duty and GST payable.
Problems may arise when the invoice value is incorrect, required additions are omitted, currency is handled improperly, or the declared transaction does not reflect the applicable customs valuation method.
Incorrect Country of Origin or Tariff Treatment
Incorrect origin information can result in an importer claiming a preferential duty rate that the goods do not qualify for.
Importers should be able to support tariff treatment claims with appropriate origin information and documentation.
Incomplete Product Descriptions
Descriptions such as "parts," "samples," "equipment," or "general merchandise" may not provide enough information to identify and classify the goods accurately.
Commercial invoices should describe what the product actually is and provide enough detail to support customs processing.
Missing Permits or Regulatory Documentation
to CBSA.
Missing permits, licences, certificates, or other required documentation can prevent a shipment from being released.
Incorrect Importer Account Information
M program account.
Incorrect or incomplete importer information can cause release or accounting problems and should be addressed before the shipment reaches the border whenever possible.
Who Is Responsible for the Import Declaration?
The importer is ultimately responsible for the accuracy and completeness of its customs transactions.
Using a customs broker does not transfer that responsibility away from the importer.
Importers remain responsible for matters including:
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Classification
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Origin
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Valuation
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Accounting documentation
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Duties and taxes
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Required corrections
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Import record retention
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Compliance with applicable customs requirements
A customs broker can prepare and transmit declarations and provide professional customs support, but businesses should still maintain appropriate internal records and provide accurate information to their broker.
For a more detailed explanation, see Importer of Record Responsibilities in Canada.
How a Licensed Customs Broker Helps With Import Declarations
A licensed customs broker can act on behalf of a commercial importer when dealing with CBSA.
Depending on the services required, a customs broker may assist with:
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Reviewing commercial invoices and import documentation
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Determining HS tariff classifications
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Reviewing customs valuation
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Confirming tariff treatment
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Calculating duties and taxes
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Preparing electronic release requests
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Preparing Commercial Accounting Declarations
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Transmitting customs information to CBSA
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Responding to CBSA requests for additional information
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Supporting post-release corrections
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Maintaining consistent customs procedures across recurring shipments
For businesses importing regularly, structured customs processes can help improve consistency across suppliers, products, and shipments.
Garden City Customs Services Inc. provides commercial customs brokerage services for businesses importing goods into Canada.
Related Customs Resources
For additional guidance on import declarations, customs clearance, and commercial importing in Canada, review the following resources: