Expanding into Canada from the US usually starts with shipping orders across the border, then moving to stock held in Canada once sales are steady. To import that stock you need a non-resident importer setup with a CRA business number and CBSA registration, a customs broker, proof of origin to claim duty-free treatment under CUSMA, and a plan for GST/HST. Quebec has its own French-language rules.
Canada is the natural first export market for many US brands, but expanding into Canada means dealing with a different customs system, sales taxes that vary by province and customers who expect Canadian prices and delivery times. This guide covers the options, the customs and tax basics, and the steps to get set up.
General information as at October 2026, not tax or customs advice.
What are the options when expanding into Canada?
| Option | How it works | Suits | Watch out for |
|---|---|---|---|
| Ship from the US | Each order crosses the border by courier or post | Testing demand, low volumes | Slower delivery, brokerage fees and duty or tax charged to customers above the thresholds |
| Marketplace fulfillment | Stock held by a marketplace such as Amazon.ca | Brands selling mainly on that marketplace | Only covers that channel |
| Canadian 3PL | You ship stock in bulk to a 3PL in Canada, which fulfils all channels | Steady Canadian sales | Importer and tax registration, stock split across two countries |
For comparison, courier shipments from the US are duty-free up to CAD 150 and tax-free up to CAD 40. Above those amounts, Canadian customers can face charges at the door, which is often the trigger for holding stock in Canada.
What customs rules apply when expanding into Canada?
- Non-resident importer: a US company can import into Canada without a Canadian entity. You need a Canada Revenue Agency business number with an import-export account, and registration in the CBSA’s CARM portal.
- Customs broker: most importers use a licensed broker to clear shipments and manage security for release.
- CUSMA: goods that qualify as originating under the Canada-United States-Mexico Agreement can enter duty-free. Keep proof of origin; “made in the US” is not automatically enough.
- Accurate paperwork: commercial invoices with correct HS codes, values and country of origin avoid delays and penalties.
- Quebec: French-language rules apply to product labelling, packaging and customer communication.
US brands expanding into Canada often assume they need warehouses on both coasts from day one. Most don’t. A single 3PL in Ontario reaches a large share of Canadian customers quickly by ground; add Vancouver only once West Coast orders and delivery times justify splitting stock.
How do Canadian sales taxes work?
- GST: 5% federal tax applies across Canada.
- HST: some provinces combine federal and provincial tax into a single harmonized rate of 13% to 15%.
- PST: British Columbia, Saskatchewan, Manitoba and Quebec (QST) charge their own provincial tax on top of GST.
- Registration: once you sell from Canadian stock you will generally need to register and collect GST/HST, and possibly provincial taxes. The rules depend on how your business operates in Canada, so take advice.
How do I set up fulfillment when expanding into Canada?
- Check demand: confirm Canadian orders justify local stock.
- Register: business number, import-export account, CARM and sales tax as required.
- Choose a 3PL: Ontario suits most brands first; Vancouver suits West Coast sales or freight from Asia. See our Canada 3PL warehouses page, or go straight to Ontario or Vancouver.
- Appoint a customs broker and confirm your products’ CUSMA eligibility.
- Connect your store so Canadian orders route to the Canadian warehouse.
- Ship your first stock by road, then switch Canadian orders over.
Frequently asked questions
Do I need a Canadian company when expanding into Canada?
No. Many US businesses import as non-resident importers and register for GST/HST without a Canadian company. Take tax advice on whether you are carrying on business in Canada.
Do I pay duty moving stock from the US to Canada?
Not if your goods qualify as originating under CUSMA and you have proof of origin. Goods made elsewhere may attract Canadian duty even when shipped from the US.
Ontario or Vancouver for a first Canadian warehouse?
Ontario for most brands, because it is closest to the largest population centres. Vancouver suits brands with strong Western Canada sales or freight from Asia.
Can I keep shipping from the US instead?
Yes, while volumes are low. Once customers regularly face brokerage fees or slow delivery, local stock usually pays for itself.
How long does it take to set up?
Typically four to eight weeks, covering registrations, choosing a 3PL, integration and the first shipment of stock.
Expanding into Canada?
Warenous matches US brands with pre-screened Canadian 3PLs and compares their quotes on your real orders, for free.
