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Importing From Canada to the US: The Ultimate Guide

August 15, 2025
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Importing goods from Canada to the United States can be a simple process but if you understand the regulations, documentation, and logistics involved. This guide covers everything you need to know—from customs procedures and costs to compliance tips and common pitfalls—ensuring a smooth and efficient import experience.

For successful import, you need to prepare the necessary documents. And here’s you can see the list of documents you need:

  • Commercial Invoice
  • Bill of Lading (BOL)
  • Certificate of Origin (USMCA Form)
  • Packing List
  • FDA/USDA Forms (if applicable)

Step 1: Determine Import Requirements – check if Your Product is Restricted

Some goods require special permits:

  • Food, drugs, cosmetics → FDA approval
  • Alcohol, tobacco, firearms → ATF licenses
  • Plants, animals, wood products → USDA/APHIS permits

Verify regulations:

  • CBP Import Restrictions
  • FDA Import Requirements

Classify Your Product (HS Code)

  • Use the USITC Tariff Database to find your Harmonized System (HS) code.
  • Determine if your product qualifies for USMCA duty-free treatment.

Step 2: Register Your Business for Importing

Obtain an EIN (Employer Identification Number)

  • Required for U.S. customs clearance.
  • Apply for free: IRS EIN Application

Set Up a Customs Bond

Required for commercial imports (ensures payment of duties).

FDA Registration (If Applicable)

Food, drugs, medical devices must register with the FDA.

Step 3: Prepare Shipping & Customs Documents

List of documents and their purposes:

  • Commercial Invoice – Shows product details, value, and terms of sale
  • Bill of Lading (BOL) – Legal contract between shipper and carrier
  • USMCA Certificate of Origin – Proves duty-free eligibility (if applicable)
  • Packing List – Details shipment contents and weights
  • FDA Prior Notice (if required) – Mandatory for food/drug

Step 4: Choose a Shipping Method & Logistics Partner

Method Best For Transit Time
Trucking (LTL/FTL) Land shipments (fastest for nearby provinces) 1–3 days
Rail Heavy/bulk goods (e.g., lumber, machinery) 3–7 days
Air Freight High-value, urgent shipments 1–2 days

Step 5: Clear U.S. Customs

  1. File Entry via ACE – Submit documents electronically.
  2. Pay Duties & Fees – If applicable.
  3. Inspection (If Selected) – FDA, USDA, or CBP may inspect.
  4. Release & Delivery – Typically 24–48 hours if no issues.

Step 6: Post-Import Compliance

  • Keep Records for 5+ years (CBP requirement).
  • Monitor USMCA Compliance – Ensure suppliers provide valid Certificates of Origin.
  • Audit Duty Payments – Verify correct HS code classification.

Common Mistakes to Avoid

  1. Incorrect HS Codes → Overpaying duties.
  2. Missing FDA/USDA Permits → Shipment seizures.
  3. No Customs Bond → Delays at the border.

If you will follow these steps, your first import from Canada will be easy and cost-effective.

US Imports from Canada: A Deep Dive

The U.S. and Canada share the world’s largest trade relationship, with over $1.2 trillion in total trade for 2023 . This deep economic integration is fueled by geography, supply chains, and trade agreements. Below, you can see an information about the major industries, top traded goods, and emerging trends shaping cross-border commerce.

2025 U.S.-Canada Trade Snapshot

Metric Value Change vs 2023
Total Trade Volume $1.3 trillion +8.3%
U.S. Exports to Canada $680 billion +7.6%
U.S. Imports from Canada $620 billion +9.2%
Trade Balance $60B U.S. surplus (Narrowed from $64B)

Top 5 Traded Commodities (2025)

Energy Products ($210B)

  • Canadian crude oil exports: +12% (US refineries increasing heavy oil imports)
  • New LNG shipments from Quebec to New England

Vehicles and Parts ($155B)

  • EV battery trade up 40% YoY
  • USMCA rules now cover 78% of auto trade (up from 72% in 2023)

Energy Products ($210B)

  • Canadian crude oil exports: +12% (US refineries increasing heavy oil imports)
  • New LNG shipments from Quebec to New England

Agricultural Goods ($85B)

  • Canadian canola exports hit record $12B
  • U.S. dairy exports to Canada up 15% under USMCA

Pharmaceuticals ($62B)

  • Critical medicine supply chain integration deepened
  • 58% of U.S. generic drug imports now Canadian-sourced

Key Challenges in U.S.-Canada Trade

Regulatory differences in safety and labeling standards, such as organic food certifications and automotive specs, drive up compliance costs.

Trade disputes persist, including U.S. softwood lumber tariffs (8-20%) and dairy market access conflicts under USMCA.

Border delays worsen due to trucker shortages (up 15% since 2023) and outdated customs tech, with Detroit-Windsor backups costing $500M annually. “Buy American” policies block Canadian firms from U.S. infrastructure contracts, while climate policy clashes arise over Canada’s oil/gas exports versus U.S. clean energy goals. Labor shortages in trucking, manufacturing, and tech further strain supply chains.

Mitigation strategies include using USMCA dispute resolution, adopting dual-compliance labeling, and leveraging trusted trader programs like FAST and CTPAT.

Top Products Imported from Canada to the US

Above, you could see the list of the top 5 traded commodities for 2025, but here is the list of the top 10 U.S. imports from Canada for 2024-2025:

1. Crude Oil ($105B)

  • Accounts for 18% of total imports
  • Alberta oil sands supply 50% of U.S. heavy crude imports

2. Passenger Vehicles ($48B)

  • Mostly from Ontario plants (Toyota, Ford, Stellantis)
  • EV share jumps to 22% of total (from 15% in 2023)

3. Natural Gas ($32B)

  • 30% increase via new LNG terminals in Eastern Canada

4. Pharmaceuticals ($25B)

  • Generic drugs + insulin dominate
  • 60% of U.S. vitamin imports now Canadian

5. Automotive Parts ($24B)

  • Battery components up 65% YoY (USMCA rules drive reshoring)

6. Aluminum ($15B)

  • 75% of U.S. primary aluminum imports
  • Quebec hydropower makes Canadian aluminum greener

7. Softwood Lumber ($12B)

  • Despite 18% tariffs, still supplies 80% of U.S. needs

8. Beef & Pork ($8.5B)

  • Grass-fed beef demand up 25%
  • USMCA increased quota access

9. Potash ($7B)

  • Saskatchewan supplies 95% of U.S. imports
  • Critical for American farmland

10. Aircraft & Parts ($6B)

  • Bombardier components for Boeing/Airbus
  • Drone tech trade growing fast (+40%)

Fastest-Growing Imports (2024-2025)

  • Lithium-ion batteries (+120%)
  • Rare earth minerals (+90%)
  • Fuel cells (+75%)
  • Plant-based proteins (+60%)

Required Documentation for Canadian Imports

Document Purpose When Required
Commercial Invoice Proof of transaction, value, and product details Always
USMCA Certificate of Origin Proves duty-free eligibility For USMCA claims
Bill of Lading (BOL) Carrier contract for shipment Always
Packing List Details shipment contents Always
FDA Prior Notice Mandatory for food, drugs, medical devices FDA-regulated goods
USDA Permit (e.g., APHIS Form 2006) Required for plants, animals, wood USDA-regulated goods
CBP Form 3461 Entry summary for customs Commercial shipments

Tariffs, Duties and Fees

Product Category USMCA Standard Duty Rate
Passenger Vehicles Yes (if 75% N.A. content) 2.5%
Dairy Products Limited quotas (e.g., cheese 3.6%) Up to 20%
Steel/Aluminum Duty-free if 70% N.A. sourced 25% (Section 232 tariffs)
Softwood Lumber No (excluded from USMCA) 8-20% (anti-dumping duty)

Other Import Fees

Fee Type Cost Applies To
Merchandise Processing Fee (MPF) 0.3464% of value (min $27.23, max $538.40) All commercial imports
Harbor Maintenance Fee (HMF) 0.125% of value Ocean shipments only
Customs Bond $250–$500/year Required for formal entries
FDA User Fees $7,917 (biennial for foreign facilities) FDA-regulated imports

Key Agencies Governing Imports

Best Practices for Smooth Imports:

  • Pre-Classify Products – Confirm HS codes and USMCA eligibility early.
  • Use a Customs Broker – Experts handle filings, reducing delays.
  • File Early – Submit ACE entry & FDA Prior Notice before shipment arrives.
  • Maintain Records – Keep documents for 5+ years (CBP requirement).
  • Monitor Changes – Subscribe to CBP CSMS Alerts for regulation updates.

Resources & Contacts

Agency Website Contact
CBP (Customs) www.cbp.gov U.S. visitors: 877-CBP-5511

Visitors outside the U.S.: +1-202-325-8000

FDA Import Program www.fda.gov/imports 1-888-INFO-FDA (1-888-463-6332)
USDA/APHIS www.aphis.usda.gov 1-844-820-2234
BIS (EAR) www.bis.doc.gov (202) 482-4811

Calculating Import Costs: Duties, Taxes, and Fees

  • Key Cost Components of Importing from Canada
  • Product Cost – Purchase price from supplier
  • Shipping and Logistics – Freight, insurance, fuel surcharges
  • Customs Duties – Taxes on imported goods
  • USMCA Tariffs – Preferential rates for qualifying goods
  • Merchandise Processing Fee (MPF) – CBP filing fee
  • Harbor Maintenance Fee (HMF) – Port infrastructure tax (ocean shipments)
  • Customs Bond – Guarantee for duty payments
  • FDA/USDA Fees – Food, drug, or agricultural inspections
  • State/Local Taxes – Sales tax, excise tax (varies by state)

Additional U.S. Import Fees

Merchandise Processing Fee (MPF)

  • Rate: 0.3464% of shipment value
  • Min/Max: $27.23 – $538.40
  • Example: $100,000 shipment → $346.40 MPF

Harbor Maintenance Fee (HMF)

  • Applies to: Ocean shipments only
  • Rate: 0.125% of shipment value
  • Example: $200,000 ocean freight → $250 HMF

Customs Bond

  • Single-Entry Bond: ~$50–$100 per shipment
  • Annual Bond: ~$250–$500/year

FDA/USDA Fees

  • FDA Facility Registration: $7,917 (biennial)
  • USDA Inspection Fee: $150–$500 per inspection

Total Landed Cost Formula

Total Cost = [Product Cost] + [Shipping] + [Duties] + [MPF] + [HMF] + [Bond] + [FDA/USDA Fees] + [State Taxes]

Cost Factor Amount
Product Value $80,000
Freight (Truck) $2,500
Duty (2.5%) $2,000
MPF $277
Customs Bond (Annual) $400
FDA Prior Notice $100
California Sales Tax (7.25%) $5,800

Total Landed Cost -$91,077

Cost-Saving Strategies

  • Use USMCA – 62% of goods qualify for 0% tariffs.
  • Optimize Shipping – Consolidate shipments to reduce freight costs.
  • Hire a Customs Broker – Avoid penalties and duty overpayments (~$300/shipment).
  • Pre-Clear FDA/USDA Goods – Submit paperwork early to prevent delays.

Common Mistakes to Avoid

  • Misclassifying HS codes → Overpaying duties.
  • Missing USMCA documentation → Losing duty-free benefits.
  • Underestimating MPF/HMF → Unexpected fees.

Do You Need a Customs Broker?

Top Benefits of Using a Customs Broker:

Avoid Costly Errors

Mistakes in paperwork can lead to:

  • Shipment seizures (+storage fees).
  • Penalties (up to 10x the duty owed).

Brokers reduce errors by 90% vs. self-filing.

Faster Customs Clearance

  • Brokers with C-TPAT/FAST certification get priority processing.
  • Average clearance time: 24–48 hours vs. 5+ days without one.

Duty Savings

  • Identify USMCA/FTA discounts you may miss.
  • Protest overpaid duties (up to 3 years retroactively).

Regulatory Expertise

  • Stay updated on FDA, EPA, DOT rules.

Handle special cases:

Temporary imports (Carnet, TIB).

Restricted goods (alcohol, firearms).

5. Cost-Effective for Businesses

  • Typical fee: $100–$500 per shipment (vs. $5K+ in penalties for errors).
  • No bond required (brokers provide their own).

How to Choose a Reputable Customs Broker

Check Credentials

  • Active CBP license – Verify via: CBP Broker Directory
  • NCBFAA member – Indicates industry adherence to best practices.
  • Trade specialization

Evaluate Experience and Tech

Here’s some criterion and what you need to look for:

  • Years in business – 5+ years preferred
  • ACE integration – Real-time tracking & filing
  • Compliance software – Automated denied-party screening
  • Client references – Ask about similar shipments

How to understand that you need a broker

  • First-time importers
  • Shipments over $2,500 (CBP formal entry requirement)
  • Regulated goods (food, drugs, chemicals)
  • Frequent imports (annual bond saves costs)

Resources for Canadian Importers

Here’s a curated list of essential resources for Canadian businesses importing goods into the U.S.:

https://www.cbsa-asfc.gc.ca/import/menu-eng.html

https://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2024/menu-eng.html

https://www.cbp.gov/trade/basic-import-export/importers

https://www.cbp.gov/trade/automated/ace

https://www.cbp.gov/trade/free-trade-agreements/usmca

https://www.edc.ca/en/contact-us/trade-advisor.html

https://hts.usitc.gov

 

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