Understanding Duties, Taxes & Brokerage Fees for Canadian Imports

Billy Ng
12 minutes ago
2 min read

Understanding Duties, Taxes & Brokerage Fees for Canadian Imports: A Guide by Naraz Logistics

Importing goods into Canada can be profitable—but only if you understand how to manage your duties, taxes, and brokerage fees effectively. For many businesses, these costs are confusing, unpredictable, and sometimes unnecessarily high.

At Naraz Logistics, we specialize in helping importers cut through the confusion. Here’s a clear guide to what these charges are, how they’re calculated, and how our team helps you stay compliant and cost-efficient.

🧾 What Are Import Duties?

Import duties (also known as customs duties) are taxes imposed by the Canada Border Services Agency (CBSA) on goods entering the country. The amount depends on:

HS Code (tariff classification) of the product
Country of origin
Declared value of the shipment
Trade agreements (e.g., CUSMA/USMCA can reduce or eliminate duties)

Example:If you're importing clothing from China with a 17% duty rate and a shipment value of $10,000, you'll pay $1,700 in duties.

💰 What Are Import Taxes?

In addition to duties, you'll also be charged:

GST/HST: Applied at the federal and provincial levels
Excise Taxes: On specific items like alcohol, tobacco, or fuel
Environmental or recycling fees: On certain electronics or batteries

For most commercial goods, GST is 5% of the total value (including duties + shipping + insurance).

🧑‍💼 What Are Brokerage Fees?

If you're using a courier like FedEx, UPS, or DHL—or even a freight forwarder—they often act as customs brokers on your behalf. Their job is to:

File your declaration with CBSA
Classify your goods correctly
Pay duties/taxes upfront
Deliver your shipment

But this comes at a price: Brokerage fees can range from $25 to hundreds of dollars depending on shipment value, mode of transport, and whether the brokerage is automated or manual.

💡 How Naraz Logistics Helps

Importing is complex—but we make it simple. Here’s how we support your logistics journey:

✅ Tariff Classification & Duty Optimization

We ensure your goods are properly classified to avoid overpaying duties, and we help identify exemptions or trade agreement benefits.

✅ Customs Brokerage Coordination

Whether you use your own broker or ours, we streamline the documentation process and reduce delays at the border.

✅ Transparent Cost Forecasting

We give you upfront visibility on all import charges—so you're never surprised by hidden fees.

✅ Consolidated Shipments = Lower Costs

We group shipments to minimize the number of declarations and save you significantly on per-shipment brokerage charges.

✅ CARM-Ready Import Compliance

With CARM rolling out in Canada, importers are now directly responsible for duties and taxes. We help you stay compliant with CBSA’s latest regulations.

🚛 Why Importers Choose Naraz Logistics

Nationwide fulfillment from Vancouver
Direct freight, warehousing & last-mile delivery
Full compliance with CBSA & Health Canada requirements
Transparent pricing—no surprise fees

Want to Reduce Import Costs?Whether you’re a growing eCommerce brand or an established importer, Naraz Logistics is your trusted partner for navigating Canadian customs.

📧 info@narazlogistics.com📞 (604) 305-2878