Your guide to shipping from Canada to the US
This guide shall cover how you can ship products from Canada to the US and save on currency conversions with Wise
Your guide to shipping from China to Canada
As a Canadian business owner, you may be looking to expand your market by importing goods from China. This can be a lucrative opportunity, but it also comes with its challenges - the most significant being shipping.
In this guide, we will walk you through everything you need to know about shipping goods from China to Canada.
What Is The Essential Know-How On Importing Goods From China To Canada?
- Taxes and Fees: When importing goods from China, you will be subject to various taxes and fees, such as customs duties, federal sales tax (GST), provincial sales tax (PST), excise tax, and more. These charges can significantly impact your overall cost. Therefore, it's crucial to research and factor them into your budget.
- Customs/Import Duties: As with any international trade, there are specific regulations set by both countries that need to be followed. Canada's customs laws require inspection of all imported goods and paying applicable duties and taxes before being released into the country.
- Restrictions: Certain goods may have restrictions or even prohibitions when importing them from China to Canada. Research these restrictions beforehand, as it can save you time and money in the long run.
- Shipping Routes: The most common shipping routes from China to Canada are by sea or air. Each has its advantages and disadvantages, such as cost, speed, reliability, etc., which we will discuss further in this guide.
- Documentation: Proper documentation is critical when importing goods from China to Canada. You will need a commercial invoice, bill of lading, certificate of origin, and other relevant documents. It's always best to consult with a customs broker or freight forwarder for assistance in preparing these documents.
What Are The Essential Requirements For Shipping Goods From China To Canada?
- Business Number (BN): This is a nine-digit number assigned to your business by the Canada Revenue Agency (CRA). You will need this number for all import and export activities.
- Import/Export Permit: Certain goods may require an import or export permit from specific government agencies. It's essential to research if your products fall under this category and obtain the necessary permits before shipping.
- Customs Broker/Freight Forwarder: As mentioned earlier, it's highly recommended to work with a customs broker or freight forwarder who can assist you in navigating the complex customs regulations and documentation process.
- Accurate Product Information: You will need to provide detailed information about the goods being shipped, such as product description, quantity, value, country of origin, etc.
- Appropriate Packaging: Your goods must be adequately packaged for shipping to prevent any damage during transit. It's best to consult with your chosen shipping company for their specific packaging requirements.
Are There Any Restrictions On Shipping Goods From China To Canada?
Some common items that cannot be imported into Canada include:
- Firearms and Weapons
- Food, Plants, and Animals
- Explosives, Fireworks, and Ammunition
- Cannabis
- Consumer Products¹
It's essential to note that both China and Canada have their own sets of restrictions and regulations when it comes to importing goods. Additionally, individual companies may also have limitations on what can be shipped, so it's crucial to research beforehand.
What Are The Typical Costs Of Shipping Goods From China To Canada?
The costs of shipping goods from China to Canada can vary depending on several factors. These include the weight, size, and shape of your goods, as well as the mode of transportation (air or sea freight) and the type of cargo (general vs express). For example, shipping a large shipment by sea will typically be cheaper than shipping it by air.
Other factors that may influence shipping costs include political or economic situations that can affect the routes taken, such as trade disputes or weather conditions. Additionally, if you choose to insure your cargo during transit, this will also impact your overall cost. And don't forget about currency conversion costs and intermediary bank fees when making international payments in the SWIFT network.
To ensure you have an accurate estimate of your shipping costs, it's best to consult with a customs broker or freight forwarder who can provide you with a detailed breakdown based on your specific shipment and needs.
How To Reduce Costs On Transactions Between China And Canada
The most effective method to reduce international costs is using a multi-currency account.
A multi-currency account allows you to hold multiple currencies in one place, including Canadian dollars (CAD) and Chinese Yuan (CNY). By holding the recipient's local currency in your account, you can avoid currency conversion fees charged by banks or payment providers.
With Wise's Business Account, for example, you can hold over 50 currencies and make payments at the mid-market exchange rate - the rate you usually see on Google, without any hidden fees or markups.
Additionally, using a multi-currency account can also save you from unexpected intermediary bank fees. By having control over your funds and choosing the most cost-effective payment method, you can reduce costs and have peace of mind during international transactions.
Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
Some Of The Well Known Shipping Companies For Importing From China To Canada
SINO Shipping
According to their website, SINO is known as “the best freight forwarder in China”. They offer sea, air, and rail freight, as well as trucking.²
Costs for shipping with sea freights3
| Route | Costs For Container 20’ | Costs For Container 40’ | Transit Duration |
|---|---|---|---|
| Ningbo-Toronto | 5,500 USD | 6,600 USD | 25 days |
| Ningbo-Montreal | 5,500 USD | 6,600 USD | 25 days |
| Shanghai-Toronto | 5,500 USD | 6,600 USD | 25 days |
| Shanghai-Montreal | 5,500 USD | 6,600 USD | 25 days |
| Shenzhen-Toronto | 5,600 USD | 6,740 USD | 30 days |
| Shenzhen-Montreal | 5,600 USD | 6,740 USD | 32 days |
DHL
DHL is a worldwide shipping agency offering both import and export services. They operate in over 220 countries and territories globally.
DHL only offers personalised quotes, so instead we’ll discuss their three shipment options4 :
- DHL Express Worldwide: Offers you an end-of-business-day delivery service around the world for pieces up to 70kg and shipments up to 3,000kg.
- DHL Express 9:00: Offers delivery before 9:00 (10:30 to the USA) on lanes that guarantee either a next or second business day delivery.
- DHL Express 12:00: Offers delivery before noon on the next possible business day.
| DHL Express Worldwide | DHL Express 9:00 | DHL Express 12:00 | |
|---|---|---|---|
| Money-Back Guarantee | No | Yes | Yes |
| Delivery Attempts | 2 | 2 | 2 |
| Maximum Piece Weight | 70kg | 70kg | 30kg |
| Max. Pieces Per Shipment | N/A | 10 | 10 |
| Max. Piece Dimensions | 120x80x80cm | 120x80x80cm | 120x80x80cm |
| Max. Pallet Weight | 1,000kg | N/A | N/A |
| Max. Shipment Weight | 3,000kg | 300kg | 300kg |
| Max. Pallet Dimensions | 300x200x160cm | N/A | N/A |
DFH Freight
According to their website, “DFH is the best freight forwarder in China”. They work to make sure sensitive, irregular, and dangerous goods are shipped and well-protected.⁵
Costs for some of the shipping routes per 200 kg/m3 , for door-to-door shipments.5
| Sea Freight | Air Freight | |
|---|---|---|
| Shanghai - Toronto | $743 | $1,289 |
| Shenzhen - Vancouver | $657 | $1,399 |
| Ningbo - Montreal | N/A | $1,303 |
Freightos - Marketplace For International Shipping
According to their website, Freightos offers “painless global freight rate comparison and shipment management for 13,000+ importers and exporters”. They have 4 out of 5 stars on Trustpilot.⁶
Their shipping rates can be accessed upon logging in, along with a range of delivery providers and options to choose from.
FedEx
FedEx Canada is a trusted name in reliable shipping with over 35 years of experience.⁷
Costs (shipping 200kg from Beijing to Montreal on 3/15/2024)⁸
| Delivery Option/Weight | Shipping Costs |
|---|---|
| FedEx International Priority Freight | ¥40,415.70 |
| FedEx International Economy Freight | ¥36,236.10 |
It is important to bear in mind that these costs are indicative and can vary with factors such as insurance, packaging material used and delivery preferences.
Essential Local Know-How When Shipping From China To Canada
When shipping goods from China to Canada, it's essential to consider the local know-how of both countries. Here are some key points to keep in mind:
- Business/Logistics Operations: In China, most businesses and logistics providers operate on a Monday-Friday schedule with standard office hours. However, during Chinese holidays and weekends, there may be delays or closures that can affect your shipment's timeline.
- Time Zone Differences: As China is approximately 13 hours ahead of Canada (depending on the region), it's crucial to factor in this time difference when communicating with suppliers or logistics providers.
- Communication Barriers: Language barriers can be a significant challenge when dealing with suppliers or logistics providers in China. It's always best to have clear communication and confirm all details through written documentation.
- Cultural Differences: Canada and China have different business cultures, which can impact the way negotiations are conducted, expectations for delivery times, etc. It's essential to understand these differences and be respectful of them.
Conclusion
With this guide, you now have a better understanding of the essential factors involved in shipping goods from China to Canada. It's crucial to research and plan carefully before embarking on this venture to avoid any potential delays or unexpected costs.
Don't let the process of shipping goods from China to Canada hold back your business growth! Sign up with Wise today and experience seamless international payments like never before.
Sources:
- Government of Canada
- SINO Shipping
- SINO Shipping
- DHL
- DFH
- Freightos
- FedEx
- FedEx
- Business Registration Online – What you can do - Canada.ca
- Import Controls and Import Permits - Canada.ca
Sources verified on 22 March 2024
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Money without borders
Find out more
Your guide to outsourcing your accounting operations in India from Canada
This guide shall cover how you can outsource your IT operations to a company in India
Your guide to shipping from India to Canada
This guide shall cover how you can ship products from India to Canada
A closer look at outsourcing to call centers in the US
This guide shall cover how you can outsource your call center requirements to a company in India the US
Your guide to shipping from Canada to China
This guide shall cover how you can ship products from Canada to China
Top 8 Payroll softwares for Canadian businesses going global
Discover the best payroll softwares in Canada which could facilitate your international business
