Country guide
Everything Indian exporters need to know about selling to Canada. CBSA customs duties, GST/HST, regulatory compliance, shipping logistics, payment repatriation, and e-commerce channels.
By Aaryan Kakani · · 8 min read
India-Canada bilateral merchandise trade exceeds
| Category | Key Products | Approx. Share |
|---|---|---|
| Gems & Jewelry | Cut & polished diamonds, gold jewelry, silver articles | ~18% |
| Pharmaceuticals | Generic drugs, APIs, formulations, OTC medicines | ~14% |
| Textiles & Apparel | Cotton garments, home textiles, silk, handicrafts | ~12% |
| Chemicals | Organic chemicals, dyes, pigments, agrochemicals | ~10% |
| Iron & Steel | Flat-rolled products, bars, rods, pipes, stainless steel | ~8% |
| Agricultural Products | Spices, rice (basmati), tea, shrimp, cashew nuts | ~7% |
| Machinery & Equipment | Auto parts, electrical machinery, boilers, engines | ~6% |
| Indian Port | Canadian Port | Transit Time (Sea) |
|---|---|---|
| JNPT (Nhava Sheva) | Vancouver, BC | 25-30 days |
| Mundra | Vancouver, BC | 25-32 days |
| JNPT (Nhava Sheva) | Montreal, QC | 30-38 days |
| Chennai / Kolkata | Halifax, NS | 32-40 days |
Canada Border Services Agency (CBSA) administers customs on the import side. Documentation must satisfy both Indian export customs (ICEGATE) and CBSA requirements. Canada Customs Invoice (CCI) is strongly preferred over a standard commercial invoice.
| Document | Purpose | Required By |
|---|---|---|
| Canada Customs Invoice (CCI) | CBSA-specific invoice format (Form CI1) with HS codes, value for duty, country of origin | CBSA |
| Commercial Invoice | Standard trade invoice; accepted if CCI is not available, but must include all CCI data fields | Both sides |
| Bill of Lading / Airway Bill | Contract of carriage; title document for sea freight | Both sides |
| Packing List | Itemized contents with weights, dimensions, package marks | Both sides |
| Certificate of Origin | Certifies goods were manufactured/produced in India; issued by Chamber of Commerce or FIEO | CBSA |
| Shipping Bill | Indian customs export declaration filed via ICEGATE | Indian Customs |
| IEC (Import Export Code) | 10-digit code from DGFT; mandatory for all Indian exporters | Indian Customs |
| CFIA Import Permit | Required for food, plants, animal products, and agricultural goods | CFIA (food/agri only) |
| Phytosanitary Certificate | Certifies plant products are pest-free; issued by NPPO India | CFIA (plants only) |
| Bilingual Labels | All consumer product labels must be in English and French per the Consumer Packaging and Labelling Act | CBSA / Competition Bureau |
Canadian import duties are governed by the Canadian Customs Tariff, based on the Harmonized System. India receives MFN (Most Favoured Nation) rates. There is no India-Canada FTA. Negotiations were paused and have not resumed as of August 2026.
India is not a member of CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) or CETA (Canada-EU Trade Agreement). Both would offer reduced or zero-duty access to Canada, but neither applies to Indian goods. Competitors like Vietnam (CPTPP) and the EU (CETA) enjoy preferential rates that undercut Indian exporters in categories like textiles, seafood, and auto parts.
| Product Category | MFN Duty Range | Notes |
|---|---|---|
| Textiles & Garments | 12-18% | Higher on finished garments vs. Fabrics |
| Gems & Jewelry | 0-8% | Cut diamonds often 0% |
| Pharmaceuticals | 0-8% | Many generics at 0% if on Patent Register |
| Chemicals & Dyes | 0-6.5% | Specialty chemicals at higher end |
| Iron & Steel | 0-8% | Safeguard duties may apply on specific products |
| Agricultural Products | 0-20% | Supply-managed items (dairy, poultry) face 200%+ |
| Spices | 0-5% | Most common spices duty-free or low |
| Leather Goods | 5-16% | Finished goods higher than raw leather |
| Auto Parts | 0-6% | CPTPP competitors get preferential rates |
| Handicrafts & Home Decor | 0-12% | Handloom products often lower |
| Electronics | 0-6% | ITA-covered products at 0% |
| Seafood (Shrimp) | 0-5% | Subject to CFIA inspection requirements |
Canada's de minimis threshold is CAD 20 for duty exemption and CAD 20 for GST/HST exemption on most imports. Under CUSMA, the threshold was raised to CAD 150 for duty-free entry. But only for US and Mexico origin goods (GST still applies above CAD 40). Indian goods are subject to the CAD 20 threshold, making DTC small-parcel e-commerce significantly more expensive than shipping from the US.
All goods imported into Canada are subject to the federal Goods and Services Tax (GST) at 5%. Some provinces levy the Harmonized Sales Tax (HST), which combines federal and provincial portions into a single rate collected at the border.
| Province / Territory | Rate | Type |
|---|---|---|
| Alberta, BC, Manitoba, Saskatchewan, Territories | 5% | GST only (provinces levy separate PST where applicable) |
| Ontario | 13% | HST (5% federal + 8% provincial) |
| New Brunswick | 15% | HST (5% federal + 10% provincial) |
| Newfoundland & Labrador | 15% | HST (5% federal + 10% provincial) |
| Nova Scotia | 15% | HST (5% federal + 10% provincial) |
| Prince Edward Island | 15% | HST (5% federal + 10% provincial) |
GST/HST = (Customs Value + Duty Amount) × GST/HST Rate
Example: CAD 10,000 shipment to Ontario with 12% MFN duty
Indian exporters who sell directly to Canadian consumers (DTC/e-commerce) can register as a Non-Resident Importer with CBSA. As the NRI, you become the importer of record, handle duty/GST payments, and control the customer experience. This requires a Canadian business number (BN9) and GST/HST registration. The benefit: you can claim input tax credits on GST/HST paid at import if you're registered, and the customer sees no surprise charges at delivery.
Canada has strict product safety, health, and labeling regulations enforced by multiple federal agencies. The category of your product determines which agency has jurisdiction.
CFIA regulates all food, plant, and animal product imports into Canada under the Safe Food for Canadians Act (SFCA).
CFIA Requirements for Indian Exporters
Health Canada regulates drugs, medical devices, natural health products (NHPs), and cosmetics.
Electrical and electronic products sold in Canada must carry a recognized certification mark (CSA, UL, or equivalent NRTL mark). Key requirements:
The Workplace Hazardous Materials Information System (WHMIS 2015) aligns with the Globally Harmonized System (GHS). Chemical exports to Canada must include:
The Consumer Packaging and Labelling Act (CPLA) and Textile Labelling Act set mandatory labeling rules:
Canada's geography and port infrastructure create two distinct routing options: trans-Pacific to the West Coast, or Suez Canal to the East Coast. The right choice depends on your final destination within Canada.
| Method | Transit Time | Cost (approx.) | Best For |
|---|---|---|---|
| Sea Freight (FCL) | 25-40 days | $3,000-$6,000 per 20ft container | Bulk shipments, FBA inventory |
| Sea Freight (LCL) | 30-45 days | $60- 00 per CBM | Smaller volumes, mixed cargo |
| Air Freight | 3-5 days | $5- 0 per kg | High-value, pharma, perishables, urgent |
| Express Courier | 4-8 days | 0- 8 per kg | Samples, small DTC orders |
| Route | Port | Best For | Consideration |
|---|---|---|---|
| Trans-Pacific | Vancouver | BC, Alberta, and even Ontario via CN/CP rail | More frequent sailings; intermodal rail to Toronto (4-5 days) |
| Suez → Atlantic | Montreal / Halifax | Quebec, Maritimes, Eastern Ontario | Montreal port closes to deep-draft vessels Dec-Mar (ice); Halifax stays open year-round |
| Incoterm | Seller's Responsibility | Common Use Case |
|---|---|---|
| FOB | Delivery to Indian port; export customs clearance | Most B2B exports; buyer arranges ocean freight |
| CIF | Freight + insurance to Canadian port; buyer handles CBSA clearance | First-time buyers; seller controls shipping |
| DDP | Everything including Canadian duties, GST/HST, CBSA clearance, and delivery to door | E-commerce / DTC; Amazon FBA; NRI sellers |
Payment repatriation from Canada to India follows the same FEMA framework as other destinations. The Canadian dollar (CAD) is freely convertible, and most Indian banks handle CAD transactions without issues.
| Method | FX Cost | Speed | Best For |
|---|---|---|---|
| SWIFT Bank Transfer (CAD) | 0.5-2% spread + 5-$40 wire fee | 2-5 business days | B2B trade, large orders |
| Letter of Credit (LC) | 1-3% of LC value | 5-10 days after document submission | High-value B2B; new buyer relationships |
| Wise | ~0.5-1% (mid-market rate + transparent fee) | 1-2 business days | Small B2B, services, freelancers |
| Payoneer | ~2% FX markup | 2-3 business days | Marketplace payouts (Amazon.ca, Walmart.ca) |
| Marketplace Payouts | Amazon ACCS ~4%; Shopify Payments ~2.5% | 14-day settlement cycle | Platform sellers |
Canada is the world's 9th largest e-commerce market (~CAD 75 billion annually). Three major platforms dominate, and all accept international sellers.
Amazon operates fulfillment centers in Ontario (YYZ, YOW) and British Columbia (YVR). Indian sellers can either ship FBA inventory directly to Canadian warehouses or use Amazon's North America Remote Fulfillment (NARF) to fulfill .ca orders from US FBA inventory. Key considerations:
Shopify is headquartered in Ottawa, Canada, and powers a significant share of Canadian e-commerce. For Indian exporters going DTC:
Walmart Canada's online marketplace is growing and accepts international sellers. Requirements:
Despite the lack of an FTA, several structural factors make Canada an attractive and growing market for Indian exporters.
Canada has one of the largest Indian diaspora populations globally, concentrated in the Greater Toronto Area, Vancouver, Calgary, and Edmonton. This creates built-in demand for Indian food products, spices, textiles, ethnic wear, jewelry, and Ayurvedic/herbal products. India is also the #1 source country for Canadian permanent residents, adding 100,000+ annually.
Canada's public healthcare system drives strong demand for affordable generics. Indian pharmaceutical companies (Sun Pharma, Dr. Reddy's, Cipla) already have significant market share. The Patented Medicine Prices Review Board (PMPRB) reforms pushing for lower drug prices further favor competitively-priced Indian generics. Health Canada's ANDS pathway is well-established for generic approvals.
Canada's tech hubs (Toronto-Waterloo, Vancouver, Montreal) have deep ties with Indian IT companies. TCS, Infosys, and Wipro all have major Canadian operations. Services exports (IT, BPO, engineering design) don't face tariff barriers and benefit from Canada's proximity to the US market. The India-Canada CEPA (services component) discussions could further liberalize services trade.
India and Canada have discussed a Comprehensive Economic Partnership Agreement (CEPA) for over a decade. While negotiations are paused, any future agreement would significantly reduce or eliminate tariffs on Indian goods. Exporters who establish Canadian market presence now will be positioned to benefit immediately when (and if) an FTA materializes.
Canadian importers are actively diversifying away from China-centric supply chains. India is a direct beneficiary in categories like textiles, chemicals, auto parts, and electronics. Government-to-government initiatives on critical minerals and clean energy create additional pathways for Indian exporters in emerging sectors.
The growing Indian diaspora combined with mainstream Canadian interest in Indian cuisine has expanded the addressable market beyond ethnic grocery stores to mainstream retailers (Loblaws, Sobeys, Walmart Canada). Ready-to-eat Indian meals, spice blends, and snacks are among the fastest-growing imported food categories in Canada.
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