How to import goods from India to Canada?

Importing goods from India to Canada offers numerous opportunities for businesses seeking to expand their product offerings and enter new markets.

However, the import process involves various procedures and considerations that must be carefully navigated to ensure compliance with Canadian regulations. 

This comprehensive guide aims to provide importers with a clear understanding of the steps involved in importing goods from India to Canada.

Major Products Imported To Canada From India

India and Canada have good trading relations, and some products from India are pretty popular in Canada. Some of the things that India exports to Canada are pharmaceuticals, clothing, machinery, nuclear reactors, chemicals, and even precious gems and jewelry.

You might be surprised, but India also sends a lot of tea to Canada. Canadians love their tea!

What are the top 3 imported goods to Canada from India?

You must want to know what are the major products that are imported to Canada from India. So, here are the top three product categories that are majorly imported from India to Canada. 

1. Pharmaceuticals contributed to $566.85M in the FY 2022.

2. Machinery, nuclear reactors, and boilers contributed to $495.57M in the FY 2022.

3. Pearls, precious stones, metals, and coins contributed to $448.34M in FY 2022.

[ Read How to import products from India to the USA? ]

Trade between India and Canada

India and Canada share a robust trading relationship, making it beneficial for businesses and economies in both nations. This trade partnership involves the exchange of goods and services, contributing significantly to economic growth. 

Based on the India-Canada Trade Data for 2020, Canadian imports from India accounted for approximately 0.92% of the total World-Canada trade, making a substantial contribution amounting to billions of dollars for India.

If you're thinking about importing goods from India to Canada, the strong trade connection between the two countries offers a dependable structure with clear steps and helpful resources to make the process easier.

You have to sincerely follow the trade rules and guidelines to ensure a successful and mutually beneficial exchange of goods and services.

[ Read How to import steel products from India? ]

Setting Up an Import Business in Canada

Before starting the import process, you’ll need to establish a legal framework for your import business in Canada. You have to register with the Canada Revenue Agency (CRA) to obtain a business number.

The CRA is the primary government authority responsible for tax administration in Canada and plays a crucial role in the import process. Then, you can proceed to the next steps.

One thing that can be more helpful for you is to know that contacting organizations such as the Canadian Association of Importers and Exporters and local Entrepreneurship Centers can provide valuable resources and guidance for setting up an import business.

Making Contacts Abroad

Building reliable contacts abroad is crucial when importing goods from India to Canada. The trade offices of Global Affairs Canada and the local embassies or consulates of supplier countries can provide assistance in establishing valuable connections.

Trade Commissioners, available through Global Affairs Canada, offer expertise and support in facilitating international trade opportunities.

Understanding Import Conditions

Importing goods into Canada is subject to specific conditions imposed by federal and provincial governments.

These conditions cover a range of factors, including prohibited products, products requiring import permits, goods subject to federal regulations, privately-certified standards, and provincial rules, as well as customs duties and taxes.

It is essential to familiarize yourself with these conditions and ensure compliance before initiating the import process.

The Import Process

The import process involves several key steps that must be followed systematically to ensure a smooth and efficient operation. These steps include 

• Assessing and selecting merchandise 

• Negotiating delivery and payment contracts 

• Making payments abroad 

• Arranging freight shipping 

• Clearing customs 

• Storing and distributing goods in Canada 

• Addressing issues related to defective or sub-standard goods 

• Managing client payments within Canada 

The shipping process involves the following necessary things to be considered:

Conducting Research and Due Diligence

Conducting thorough research and due diligence is crucial for successful importing. Engaging with customs brokers, freight forwarders, and the Canadian Importers' Association can provide valuable insights and assistance in navigating the complexities of the import process. 

These industry professionals can offer guidance on customs regulations, freight logistics, and other critical aspects of importing goods from India to Canada.

Shipping and Documentation

Once you've selected a supplier and finalized the details, it's time to arrange for shipping and prepare the necessary documentation:

Invoice: Prepare a commercial invoice that includes details of the goods, their value, and the terms of sale.

Bill of Lading/Airway Bill: This document serves as proof of shipment and provides information about the goods, the shipping company, and the destination.

Import Declaration: File the required import declaration with the CBSA, including information about your goods and their value.

Certificate of Origin: If applicable, obtain a certificate of origin to prove the source of your goods, which may help you benefit from preferential tariffs.

Other Certificates: Depending on the type of goods (e.g., food, electronics), you may need additional certificates or permits.

Customs Clearance

Your goods will arrive at a Canadian port, where customs officials will inspect and clear them. If you've hired a customs broker, they'll handle this process for you. Otherwise, you can do it yourself by providing the necessary documentation and paying any import duties and taxes owed.

Distribution and Marketing

Once your goods clear customs, you can begin distributing and marketing them in Canada. Consider building a strong marketing strategy to reach your target audience effectively.

[ Read How to import products from India to the UK? ]

Key Considerations for Importers

To ensure a seamless import process, importers must consider several key factors specific to their goods and industry.

This includes understanding tariff codes and classification, compliance with labelling laws, meeting health and sanitary checks for food and agricultural products, certifying electrical appliances and equipment, and obtaining authorization for importing alcoholic beverages.

The United States-Mexico-Canada Agreement (USMCA) provides expanded market access opportunities for various goods, including dairy products.

Importers should familiarize themselves with the specific provisions and tariff-rate quotas (TRQs) established under the USMCA to take advantage of preferential trade benefits. Additionally, regulations regarding the importation of wine, beer, and spirits should be considered when importing goods from India.

[ Explore How to import products from India to Dubai? ]

Useful Resources and Contacts

Throughout the import process, it is essential to have access to reliable resources and contacts. The Canada Border Services Agency (CBSA), Canadian Wildlife Service, Standards Council of Canada, Trade Commissioners, and the Canadian Importers' Association are valuable sources of information and assistance for importers. 

These organizations can provide you with proper guidance on customs procedures, product standards, and industry-specific information.

[Read How to import products from India to Bangladesh? ]

How ExFrO can help?

By following the step-by-step procedures outlined in this guide, importers can navigate the possibilities of importing to Canada from India and expand their business successfully. 

ExFrO, a top-rated exporter in India, is a reliable partner to assist you in importing various goods from India to Canada seamlessly. We're an export company based in India.

We offer a range of services, including shipping, dealing with customs paperwork, and providing logistics support. 

We're here to simplify the process, so you don't have to deal with all the complexities of importing. With our help, you can confidently navigate the import process and get Indian products into the markets of Canada.

Stay informed about changes in regulations, build strong relationships with industry professionals, and continually adapt to the evolving landscape of international trade between India and Canada.