Are you looking to reduce costs, diversify your product offerings, expand your market, and lower your prices? Importing into Canada from India could be a viable option to meet these business goals. India has the fastest-growing economy in the world, and its export capacity is continuously increasing. In this article, learn more about the importing process and how your business can benefit.

Steps for Successful Importing

To ensure a smooth import process, keep the following steps in mind:

• Obtain a Business Number (BN) – Getting a BN from the Canada Revenue Agency (CRA) will allow you to create an import/export account which is essential in this process.
• Understand Canada’s import requirements – Learn about import regulations, tariffs, duties, and taxes that will apply to your imported goods. You’ll also want to ensure that your goods will be allowed into the country. Take a look at the Canada Border Services Agency’s (CBSA) list of prohibited importations for more information.
• Ensure products comply with Canadian standards – You must check that your products meet Canada’s safety, health, and quality standards, as well as obtain any additional labels, inspections, certifications, or authorizations.
• Determine your classification number – Use the Canadian customs tariff to determine the rate of duty for your products. For more details, read our article, The Importance of Choosing the Right Tariff Classification for Your Imports. 
• Prepare documents – You’ll need documents, including an invoice, bill of lading, certificate of origin, and possibly other certificates depending on the type of goods. 
• Clearing customs – If you’ve hired a customs broker, this will be handled by them. Otherwise, you will be responsible for providing the necessary documents and paying associated duties and taxes.

For an in-depth look at the import process, read the CBSA’s Guide to importing commercial goods into Canada.

What Are the Benefits of Importing From India?

The trade relationship between India and Canada is strong. Some of the top products imported from India include pharmaceuticals, machinery, precious stones, and metals. Here are some of the major benefits of importing from India:

• Saving money – Sourcing goods from India is often more cost-effective as they have much lower manufacturing costs compared to other countries.
• Accessing varied products – Importing allows Canadian businesses access to a greater variety of goods and materials they may not be able to find elsewhere. 
• Becoming more competitive – Canadian businesses can expand their offerings, sell at lower prices, and tap into new sections of the market by importing.
• Getting high-quality products – India is known most notably for its high-quality textiles, spices, and technology services. 

Is Importing From India Different From Other Countries?

Here are a few ways importing into Canada from India might differ from other countries:

• No trade agreement – Canada doesn’t have a Free Trade Agreement (FTA) with India. This means that importers have to pay all tariffs and duties. However, the countries have been in negotiation over establishing a Comprehensive Economic Partnership Agreement (CEPA) which would decrease tariffs and duties applied to products.
• Unfamiliarity with culture and language – Being unacquainted with Indian culture, business practices, and having a language barrier may affect your ability to communicate and build a relationship with your manufacturer. You could consider hiring a local agent to teach you about the Indian market and business culture to ease the learning curve.
• Anti-dumping and countervailing duties – The Special Import Measures Act (SIMA), helps protect Canadian industries from the negative effects of dumping and subsidizing imports. In turn, Canada has placed duties on a number of Indian goods. Find a list of these products on the Canada Border Service Agency’s Measures in force page.
• Complying with regulations – Imported goods must comply with Canadian regulatory standards, including health and safety standards, labeling requirements, and environmental regulations. Also, certain goods require marking of their country of origin. A list of these products can be found on the CBSA’s page, Marking of imported goods. Meeting regulations is essential to avoid delays and issues of compliance.
• Considering logistics – Shipping logistics, like routes, times, and costs, can vary. Make sure to consider these factors when planning your import operations to avoid any unforeseen barriers.

More Resources

Take a look at our Import and Export FAQ and article, Importing Into Canada From China, to learn more about the importing process and how it varies from country to country.

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