Laws to know when importing goods into Canada for resale

From medieval trading ships to today's cross-border trading by land, air and sea, selling consumer products across countries has evolved significantly. Now, businesses not only export goods, but also import products that are cheaper, more durable, and potentially more profitable. 

But new opportunities arise for Canadian retailers, there are strict rules and regulations for industries importing goods into Canada for resale. In this article, we’ll cover the key laws you need to know and explain how a cross-border lawyer can assist at every stage. 

What does it mean to import goods into Canada for resale? 

Importing goods for resale means bringing products from another country into Canada with the intent of selling them to others. Under Canadian law, importing of goods for commercial purposes includes: 

• physical selling (e.g., through stores, market stalls, fairs, bazaars) 
• sale through online platforms  
• giving away products for free as part of a promotion 

Canadian law also imposes many requirements upon importers of commercial goods, from the licensing of importers to the actual sale of the imported goods. Notably, these are more stringent compared to laws on importation of goods for personal use. 

This video from the Canada Border Services Agency (CBSA) briefly explains the process of importing goods into Canada for resale: 

If you need help importing goods, reach out to the best international trade lawyers in Canada as ranked by Lexpert. 

What are the laws governing importing of goods into Canada for resale? 

As implemented by the CBSA and other government agencies, here are some major laws that you should know about as an importer of commercial goods for resale: 

• Canada Consumer Product Safety Act (CCPSA) 
• Export and Import Permits Act (EIPA) 
• Food and Drugs Act (FDA) 

Let's delve deeper into these laws below. 

Registration and import permits 

Before you can import goods into Canada, you must first register and acquire certain permits from the government. Here’s a summary of how the registration process works: 

1. Business Number (BN): register for a BN for an import/export account with the Canada Revenue Agency (CRA) and the CBSA 
2. Import-export program (RM) account: register for an RM account using the CARM Client Portal on the CBSA's website 
3. Harmonized Description and Coding System (HS): get an HS number to identify the commercial goods to be imported using the latest Canadian Export Classification (CEC) 
4. Import permits: register for an EIPA number, which is used to get an appropriate import permit based on the type of commercial product you’re going to import and its exporting country 

Importing consumer products 

Under the CCPSA, the following standards must be met when you import consumer products into Canada for commercial purposes: 

• must not be prohibited in Canada under CCPSA’s Schedule 2  
• must not pose a danger to human health or safety, as defined by the CCPSA 
• meet the requirements of the CCPSA Regulations specific for the imported goods (e.g., label or packaging specifications) 
• must not be voluntarily recalled, ordered recalled, nor be subject of a measure or review by Health Canada 

"Danger to human health or safety" 

The CCPSA defines “danger to human health or safety” for the purpose of importing goods into Canada, among others. Below are the factors to consider when determining whether your products fall under this category: 

• unreasonable hazards: products with hazards are those that are not commonly known, expected, or accepted by the public 

• danger: goods can pose a danger, either existing or potential, even if there are no deaths, injuries, complaints, or incidents due to its use 

• normal or foreseeable use or misuse: including those that are reasonably predicted for the imported goods’ use and misuse, such as:  

• uses other than its intended use  
• incorrect use that could be reasonably anticipated 
• a reasonably predictable product modification  
• but excluding the user’s gross negligence or criminal activity 

• adverse effect on health: any negative impact on health, no matter how mild or severe, though the risk is higher when the health effect is more serious 

Import duties and customs 

After completing the registration process, you must still deal with taxes and customs when importing goods into Canada for resale. 

Below are important points regarding these import duties and customs procedures: 

• calculate import taxes: the amount depends on the HS code and the product’s value, while extra paperwork is required for goods imported under the Canada-United States-Mexico Agreement (CUSMA) 

• clear the imported goods from customs: you can do this by yourself, or with the help of a lawyer and/or customs agent licensed by CBSA, through the Customs Self-Assessment (CSA), or the Free and Secure Trade Program (FAST) 

Responsibilities of importers 

As an importer of consumer goods, you will have to meet a lot of requirements imposed by the CCPSA, including: 

• requests for information by inspectors from Health Canada, such as tests or studies of imported goods 
• report any health and safety incidents or product defects to Health Canada within a certain period 
• prepare and keep documents, for a certain period, for purposes of tracking unsafe products in the supply chain 
• recall imported consumer products whenever ordered to do so by Health Canada 

There are also special rules when it comes to importing food into Canada, as provided by the Safe Food for Canadians Regulations (SFCR). Watch this video to learn more: 

Looking for lawyers as you plan on importing goods into Canada for resale? Check out our directory of the Lexpert 500 Cross-Border Guide for a list of lawyers who can help you and your business. 

Goods that cannot be imported 

In addition to goods that must be personally declared when entering the country, some consumer products cannot be imported into Canada for resale.  

Here’s a list of these restricted or prohibited goods under different laws: 

• cannabis 
• counterfeit money 
• explosives, fireworks, and ammunition 
• firearms and weapons 
• invasive food, plants, and animals 
• obscene materials 
• pesticides 
• used or second-hand mattresses and motor vehicles 
• white phosphorous matches 

For reference, most of these products have their own Memorandum issued by the CBSA, based on the prohibitions under the:  

• Customs Act 
• Customs Tariff 
• Criminal Code 

Some are absolutely prohibited, while others have some exemptions. You can reach out to a law firm specializing in international trade law for more details on these memoranda. 

Special rules for importing cosmetics 

When it comes to the importation of cosmetics into Canada for commercial purposes, the FDA and its Cosmetic Regulations have specific rules that you must follow. The following are your obligations as an importer, in relation to these rules: 

• safety and cleanliness: products must not:  

• cause injury to the user 
• consist of any filthy or decomposed substance or foreign matter 
• be manufactured under unsanitary conditions 

• ingredients: products must not contain ingredients that are prohibited or restricted listed under the Cosmetic Ingredient Hotlist 

• Cosmetic Notification Form: Health Canada must be notified when you import cosmetic products through the online Form 

• claims or classification: must not make therapeutic claims or pest control claims on its label and advertisements 

• labelling: labels must include:  

• the ingredient list  
• the importer’s contact information 
• if applicable, the directions for safe use, identity of the product, and the warnings or cautions (all in English and French) 

How can lawyers help clients import goods into Canada for resale? 

As every shipment costs a lot of time and resources, it is important that you and your imports are legally compliant to avoid any issues. Thankfully, we have international trade or cross-border lawyers to guide you. 

Here are just a few ways these lawyers can help you import goods into Canada for resale: 

• importer registration: while you can register as an importer by yourself, getting help from someone who has knowledge of import and export laws can make the process smoother 

• resolve issues in the borders: in addition to reviewing contracts and checking shipping paperwork, lawyers can address legal issues as they arise, especially when goods are already at the border 

Importing goods into Canada for resale: Unpacking growth, one shipment at a time 

Every importer, whether a large retailer or a small business, must know the laws on importing goods into Canada for resale. Taking the time to learn about permits, duties, and product standards sets your business up for success. When in doubt, you can always turn to legal professionals, including international trade lawyers near you. 

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