{"id":14662,"date":"2022-08-23T13:23:25","date_gmt":"2022-08-23T20:23:25","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=14662"},"modified":"2024-03-27T08:58:31","modified_gmt":"2024-03-27T15:58:31","slug":"common-questions-canadian-shipping","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/common-questions-canadian-shipping\/","title":{"rendered":"Common Canadian Shipping Questions, and Answers for Ecommerce Brands\u00a0"},"content":{"rendered":"

Deciding to ship to Canada is a big step, and it comes with layers of decisions. <\/span>How you ship into Canada<\/span><\/a> all depends on your product and your customers. But there are so many nuances with international shipping it can be daunting to figure out the <\/span>best way to route your shipments into a new market<\/span><\/a>.\u00a0<\/span>\u00a0<\/span><\/p>\n

Here are some of the common, and less common questions ecommerce merchants ask about shipping to Canada.\u00a0<\/span>\u00a0<\/span><\/p>\n

Should I Apply for GST?\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

The rule says that an ecommerce merchant needs to apply for a GST ID when products are made available or delivered to Canada. Many merchants assume that anything they are delivering to Canada requires a GST registration, which isn\u2019t entirely the case.\u00a0<\/span>\u00a0<\/span><\/p>\n

Learn the difference between GST, PST, and HST<\/span><\/a>.\u00a0<\/span>\u00a0<\/span><\/p>\n

If a merchant is selling direct-to-consumer, they don\u2019t need to register for GST. When they do so it becomes more complex and there is no benefit for the merchant in this scenario. Filing taxes and reconciling the <\/span>duties and taxes<\/span><\/a> paid at the border can be a big administrative burden, when it\u2019s not necessary in the first place.\u00a0<\/span>\u00a0<\/span><\/p>\n

When a merchant does need to register for GST is if they are fulfilling from Canada. If a merchant is stocking products in Canada, then that’s when GST applies.\u00a0<\/span>\u00a0<\/span><\/p>\n

Industry insight: Each of Canada\u2019s provinces has different taxes. Depending on where your Canadian consumers are you may consider entering products into Canada in different regions. There is a provincial sales tax that is included in some provinces. If you are entering products into one of the provinces where the provincial tax is applied, but moving products to consumers in a different province, you may be paying when the tax when you don\u2019t need to. Canadian tax officials won\u2019t remit that tax so make sure you are entering products where you are delivering them.\u00a0<\/span>\u00a0<\/span><\/p>\n

Do I Need to Apply for NRI (Non-Resident Importer)?\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

NRI stands for non-resident importer. It is a tax registration that distinguishes a foreign-based company that does not have a permanent residence in Canada but <\/span>imports into Canada<\/span><\/a> under their own name and business number.\u00a0<\/span>\u00a0<\/span><\/p>\n

When import laws between Canada and the US were under the NAFTA agreement, it was good advice for all merchants to register as NRI (non-resident importer). It made sense because of the de minimis levels of regulations at the time.\u00a0<\/span>\u00a0<\/span><\/p>\n

Now with the <\/span>USMCA<\/span><\/a> changes to import laws, a merchant who is shipping by courier (not by post) will likely see more duty or tax advantages if they don\u2019t apply for NRI.\u00a0<\/span>\u00a0<\/span><\/p>\n

Industry insight! Since customs fees are applied per shipment, merchants will get a cost reduction if they send fewer large shipments. There are brokerage fees and surcharges attached to each shipment, so by sending fewer you\u2019ll incur less.\u00a0<\/span>\u00a0<\/span><\/p>\n

If a merchant sets up as a non-resident importer, they still must aggregate all shipments through one customs entry, which means larger shipments will likely exceed the de minimis value. A merchant will need to consider this and how it factors into their overall shipping strategy.\u00a0<\/span>\u00a0<\/span><\/p>\n

Where registering as a NRI <\/span>does <\/span><\/i>make sense is selling high-value goods, having very large shipments or with a large percentage of B2B shipments.\u00a0<\/span>\u00a0<\/span><\/p>\n

Some merchants might look to Canadian tax advisors for help when setting up international shipping. But not all brands need to register for GST. A tax advisor will likely talk you into registering because that\u2019s what they do (it would be like asking your barber if you need a haircut, of course they\u2019re going to say yes!). While registering might be beneficial for your brand, if it\u2019s not you\u2019ll avoid a lot of legal complexity and administrative work that may be unnecessary.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Is it Better to Fulfill in Canada, or Fulfill in the US and Then Import?\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

There is no one-size-fits-all rule for international shipping. There are so many factors that come into play: where the product is manufactured, where the largest population of buyers is, etc. For some businesses it will be more cost effective to fulfill products in Canada, but for others fulfilling in the US and shipping into Canada is a better option operationally. To decide which option is best for you, weigh the following aspects of your supply chain:\u00a0<\/span>\u00a0<\/span><\/p>\n