How to Get Import License in Canada
Traders in other countries looking to sell in Canada should know how to get an import license in Canada. The permit helps you navigate the complexities of bringing items to the country from other states.
The office of Global Affairs Canada gives traders import licenses after they apply. You will provide important information like the EAIP file number, supplier’s name, and country of origin during the application. You will also indicate the items’ value and quantity. The last step is to pay for the license.
The goods you want to import must comply with all the regulations set by the federal government. Ensure you read through the list of items you can bring into Canada, those with restrictions, and the prohibited goods.
How to Get Import Export License in Canada
Import-export license application in Canada is not challenging, but you must have all the required documents to succeed. Then, you can either apply individually or use a customs broker. If you use a customs broker, these steps will apply.
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Provide the EIPA File Number
When you start your license application, the office of Global Affairs Canada will ask for an EIPA file number. You can get an EIPA number by filling out the Application for an Export and Import Permits Act File Number. In addition, you will need to provide the applicant’s name, title, firm name, address, code, and postal address.
The office also asks for your telephone number and the business number you got from Canada Revenue Agency (CRA). Once you fill out your form, you can send it by facsimile.
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Fill Out the Import/Export Permit
Once you get the EIPA file number, the next step is completing the Application for Import/Export Permit form EXT-1466. The office will ask you to provide the EIPA file number, the supplier’s name, country of origin, and the country you are importing from.
You will also provide the Canadian port of entry details, shipment date, and product code. Finally, ensure you give the correct estimates of your product’s quantity and value in Canadian dollars.
Depending on the Export and Imports Permits and Certificates Fees Order, the applicant will then pay a fee for the permit. The cost ranges between $15 and $31 per license. The amount also depends on the total value of the goods imported. If you are paying in dollars, your amount depends on the exchange rates.
The import permit has a validity of 30 days from arrival. Importers should note that you cannot use an import permit from one quota period in the next quota period.
If you are not using a customs broker to apply for your permit, you will send your application directly to Global Affairs Canada. You should also fill out the import and export permit form application and send a check whose value is determined by your items’ value.
Steps to Importing Into Canada
Now that you know how to get an import license in Canada, you can start the importing process. Follow these steps.
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Determine If the Goods Can Be Imported To Canada
Before contacting the seller to buy the goods, you should first identify if they are on the list of items you can import to Canada. Then, please get to know everything you want to transport, their country of origin, and the manufacturer.
You should also check if the goods are on the list of controlled, regulated, or prohibited items according to Other Government Departments (OGDs). The regulated goods have specific permits and certificates you should submit to import them.
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Determine the Duties and Taxes
If the items are allowed into Canada, the next important step is to find the Tariff classification and duty rate. You should also determine the taxes payable when importing your items to Canada. The tariff classification is in the form of a code that shows the item and its duty rate.
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Register the Business for Import or Export
You cannot import items into Canada without an import/export license. There are steps to getting the permit, and you can also use a customs broker. You will have a Business Number, a business name, and a GST/HST account by completing the steps.
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Determine Methods You Will Use to Submit Your Entry Declaration to Customs
Business owners can choose a method of submitting their entry declaration from a list of options. For example, you can use a courier or freight forwarder to offer them on your behalf or hire a customs broker.
Custom brokers obtain the shipment and ensure the documents presented are complete and comply with customs regulations. Therefore, they are more efficient, and you will get fewer risks associated with cross-border trades.
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Prepare To Pay Duties and Taxes
You can pay your duties and taxes by yourself or get a licensed customs broker to do the process, but they charge a service fee. Notably, there are many rules and regulations that guide importers on how to pay duties and taxes.
The old businesses used the direct security method of tax payment. The company pays customs on the last business day, and penalties apply when you pay past the due date.
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Goods and Services Tax Direct
You must register to be able to use the GST directly. The business also pays its customs on the last day of the month, but you don’t have to post your bond and obtain your security. You will also be charged a penalty for late payment.
You can also use the customs broker’s bond to pay your taxes. However, the customs brokers charge a fee and might ask for a deposit first. Hire a licensed customs broker and obtain the requirements from them.
Once you have identified that the items are importable into Canada and have the necessary documents, prepare to get your goods. You can do this or hire a freight forwarder to take care of your importation.
Freight forwarders will do all the transportation processes. They will also make work easier for you if you need multiple carriers and choose the best mode of transportation. Alternatively, use a carrier directly if you have only one mode of shipment.
Ensure you choose the best mode for transporting your items. The options to choose from are marine, rail, highway, air, or through the post office. You can also select courier services.
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Get a Representative to Monitor the Customs Activity
Checking the progress of the customs can be tiring, and sometimes you might forget, especially if you are too busy. Therefore, you should get a company representative to monitor the Customs activities.
They will know the movements of your goods and be updated with any changing regulations at the customs. To comply with Customs rules, you should also ensure you have the required internal procedures, documents, valuations, and origins.
Final Words
Knowing how to get an import license in Canada is crucial to starting your importation business. To avoid losses, you should also identify the items you can bring into the country, those with restrictions, and the illegal items before buying.