Your guide to shipping products from Australia to Canada

Whether you’re shipping out vintage brooches or hand-knitted sweaters, international shipping from Australia to Canada can certainly be a head-scratcher. From figuring out costs to managing restrictions, there are a ton of considerations that make cross-border exporting potentially complicated. This guide simplifies the process, covering everything from cost considerations to navigating restrictions. Plus we’ll show you how Wise can help reduce your costs on international transactions.

What is the essential know-how for exporting goods from Australia to Canada?

Before importing anything from Australia, you’ll need to know the rules and regulations for international shipping. These guidelines are key to avoid disappointing your customers, getting slapped with penalties, or even getting your goods confiscated.

Luckily, Australia and Canada have straightforward trade regulations so that most products aren’t difficult to ship. That being said, taxes and fees depend on the province or territory you’re shipping to in Canada. For example, Ontario and Nova Scotia only charge HST (% depends on the province), while Alberta and Nunavut only charge GST. Unless your goods are worth CA$ 20 or less, you’ll typically have to pay 5% GST or more on duties on top of those charges.¹

Depending on the item you’re shipping, Canadian customs may require you to declare them. There might also be requirements for labelling and packaging. The CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) has also established duty-free trade-in goods, such as skincare products, printed materials, and more.²

What are the essential requirements for shipping goods from Australia to Canada?

Apart from those considerations, what are the non-negotiable requirements for shipping? There are certain processes, documents, and information that need to accompany the items you’re shipping as a business, no matter what they are.

• Business Number: If you’re shipping out commercial goods (items for commercial or institutional use), you’ll need a business number from the CRA. Otherwise, this won’t apply.
• Commercial Invoice/Receipt: Commercial invoices essentially list out the details of goods you’re shipping out, including quantities, description, selling prices, country of manufacturer, and more.
• Packing List: Similar to a commercial invoice, a packing list displays details about your product, but instead of prices and quantities, it focuses less on the financial components.
• Bill of Lading: The Bill of Lading is a legally binding document that has information about the nature of the goods, as well as about the shipper and consignee. The carrier requires this document to release the shipment once it arrives at the destination.
• HS Code: The International Trade Administration uses a Harmonized System to classify products and determine the duties you must pay.

If you aren’t shipping goods categorised as commercial goods, then things become much easier, and there aren’t as many requirements.

Are there any restrictions on shipping goods from Australia to Canada?

There are two types of restrictions: items that need to be declared before entering the country and certain items that are also entirely banned from being legally imported. Products that are banned include counterfeit products, animal products, ivory, used mattresses, and more.³

What are the typical costs of shipping goods from Australia to Canada?

Most business owners would want to discover the cheapest shipping options from Australia to Canada, but keep in mind that the actual shipping cost depends on several factors, including:

• Weight of Goods: The heavier the item, the more you’ll have to pay.
• Size and Shape of Goods: Got an oversized or oddly shaped package? Carriers consider the volumetric weight of the package, which includes its combined weight and size.
• Air/Sea Freight: Whether you send your item by air or sea affects costs - sea freight, usually cheaper, suits heavier, less urgent shipments, while air freight, though more expensive, delivers your package much sooner.
• Insurance: While not necessary, insurance can be important if you’re shipping an expensive or valuable item.
• Customs Duty/Import Tax: The Canadian government has certain stipulations for duties and taxes depending on the type of product you’re sending, where it comes from, and to which province it's being sent to.
• Currency Conversion Costs: If you’re paying fees in Canadian dollars, conversion fees could really add to the final cost of the shipment. These can fluctuate depending on how you’re making your payment, so it can be useful to shop around.
• Intermediary Bank Fees - For International Payments in the SWIFT Network: Currency conversion costs aren’t the only extra costs you’ll find with international payments. Banks in the SWIFT network typically charge a fee or markup to handle these cross-border transactions.

How to reduce costs on transactions between Australia and Canada

With conversion fees and intermediary fees to worry about on top of all those mandatory shipping fees, are there any ways to cut down on those costs?

While you can’t do anything about taxes and shipping costs, a multi-currency account can reduce currency conversion costs and remove those pesky intermediary bank fees.

A multi-currency account lets you hold and manage multiple currencies, allowing you to bypass conversion fees every time you need to make a payment or transfer. If you’re a Canadian business and need to pay in Australian dollars for your shipment, you can hold AUD, make payments like a local, and forget about the need to pay large amounts for a conversion.

Wise Business doesn’t just offer a multi-currency account, but also offers the mid-market exchange rate – the one you usually see on Google with no markups. Wise lets you hold major currencies such as; AUD, USD, CAD, PHP, etc. and provides automatic invoicing features, batch payments, and other extra features to make your shipping seamless. With transparent fees, you’ll always know what you’re paying. Wise includes integrated security features offering you and your business peace of mind such as 2-Factor authentication, biometric verification and 3D Secure payments.

Shipping companies for exporting from Australia to Canada

Among the many shipping companies out there, we will consider a few that are known for their reliable service when it comes to exporting goods from Australia to Canada.

ARC Worldwide

Arc handles air, sea, and road freight, as well as international shipments, with secure global delivery and prime customs navigation. They have a strong global supply chain network with offices and warehouses all across the world.

ARC ships practically anything, from small parcels to heavy cargo loads in household or commercial shipments. They do express pallet deliveries, FCL and LCL shipments, and more.⁴

ShipBob

ShipBob has 50+ fulfillment centres across 6 countries. They efficiently manage the entire shipping process from your online store to your customer’s door⁵, catering to ecommerce sites with international clients. They also offer customisable packaging, branding options, and an easy-to-use inventory platform. Standard fees with ShipBob include inventory receiving, warehousing, and shipping.

Australia Freight Forwarder

Australia Freight Forwarder is a diverse provider. They do fulfillment and parcel services, making it a perfect service for ecommerce businesses who want to retain an international customer base. They offer complete package plans that include free storage for a certain amount of time, handling for a certain amount of packages, upgrades to express shipping, and handling of customer returns ranging from 5 AUD to 50 AUD.⁶

Essential local know-how when shipping from Australia to Canada

Shipping can be unpredictable, and when your shipments get delivered can depend on a range of external factors. While Australia doesn’t typically have extreme weather conditions that can affect shipping processes, Canada’s weather can be extreme at times, especially during the middle of winter in remote areas.

Logistics providers might not operate on public holidays, and if you aren’t aware of them, this can lead to unexpected delays. Australia has holidays such as Anzac Day and Australia Day, while Canada has Canada Day and Thanksgiving, which can slow down the process.

Conclusion

Shipping goods from Australia to Canada can seem like a convoluted task, but choosing the right shipping partner and becoming familiar with the regulations and requirements of each country can change that. As you become well-versed in these nuances, shipping will become second nature. International business can be simplified, and one of the ways to do that is by making the financial aspect easier. With a multi-currency business account, you can transform your accounting and financial processes just as much as you plan to optimise your shipping.