By Sharad Gondaliya, CPA
Many of my non-resident clients incorporate in Canada for one reason: a Canadian retailer or distributor wants them to deliver duty paid. The buyer does not want to deal with customs. Your Canadian corporation becomes the importer of record, pays duties and GST at the border, and sells to the customer inside Canada.
Here is how importing works for a corporation owned and run from abroad.
The path in order
- Incorporate in Ontario or BC. You can be the sole director and shareholder while living abroad.
- Get the Business Number. We register it with CRA, along with the GST/HST account. No SIN is needed.
- Register the import-export (RM) account in CARM. Since October 21, 2024, CBSA runs this account through the CARM Client Portal. The person who completes the registration becomes the Business Account Manager.
- Post financial security. Since May 20, 2025, an importer that wants goods released before paying duties and taxes must post its own financial security in CARM, as a cash deposit or a surety bond. A customs broker’s security can no longer be used.
- Appoint a customs broker. The broker files the release and accounting documents. You link the broker to your account in CARM.
- Pay your monthly statement. CARM issues a monthly statement of account. Payment is due 10 weekdays after the 17th of the month, when each billing period ends.
Release prior to payment vs paying at the border
| Option | What happens | Who it suits |
|---|---|---|
| With financial security | Goods are released first; duties and GST are paid on the monthly statement | Regular importers |
| Without financial security | Duties and GST are paid before CBSA releases the goods | Occasional importers |
The security amount depends on your import volume. Your customs broker can estimate it before the first shipment.
GST on imports
GST is charged on most commercial imports and paid to CBSA. When your corporation is registered for GST/HST, it claims that GST back as an input tax credit. Please register for GST/HST before the first shipment so the credit is not lost.
Selling duty paid (DDP) to Canadian retailers
Under DDP terms, your Canadian corporation:
- imports the goods and pays duties and GST
- invoices the retailer from Canada and charges GST/HST at the retailer’s provincial rate
- recovers the import GST as an input tax credit
- keeps import and sales records in Canada
The retailer gets a domestic supplier. You keep control of pricing and margins.
Records and audits
Importers must keep customs records, including invoices, proof of payment and origin documents. CBSA can review tariff classification, value for duty and origin claims after release. Clean records protect the corporation if a trade agreement rate, such as CUSMA, is questioned.
Common mistakes
- Shipping before the RM account and financial security are in place.
- Undervaluing goods or using the wrong tariff classification.
- Forgetting to register for GST/HST, which loses import GST credits.
- Mixing the foreign parent’s invoices with the Canadian corporation’s records.
How we help
We incorporate the corporation through Open Corporation for $35, register all CRA accounts, support your CARM import registration, and help open a Canadian business account without visiting Canada, with final approval by the financial institution. We then keep the books, GST/HST returns and corporate tax filings in order. Related reading: cross-border e-commerce tax in Canada.
FAQs
Can a foreign company import into Canada without a Canadian corporation?
Yes, as a non-resident importer, but many Canadian retailers prefer a domestic supplier with a Canadian corporation.
Do I need to visit Canada to register in CARM?
No. Registration is online and we support the process remotely.
Who pays the duties under DDP terms?
Your Canadian corporation, as importer of record. The cost is built into your selling price.
Speak with a CPA
Please book a free consultation at gondaliyacpa.ca/consultation. We are a 2026 Xero Awarded Firm with 1300+ five-star Google reviews, and we work on AFFORDABLE flat-fee annual packages.
Sharad Gondaliya is a CPA Canada & CPA USA with 15 Years+ experience of Accounting, Tax, Payroll of Corporate Small Businesses as Tax Accountant. He is a CPA Ontario member (61040184) and holds US CPA licences in Washington and Montana and is well known among corporate small businesses for tax planning, efficient tax solutions, and affordable CPA services. Sharad is the Principal (Director) of Gondaliya CPA – Affordable CPA Firm in Canada. Licenses: CPA Ontario: 61040184 | CPA USA (MT): PAC-CPAP-LIC-033176 | CPA USA (WA): 57629 | CPA Firm License: 61330051 View Full Author Bio