A Complete Guide to Exporting Goods from China to Canada
A Complete Guide to Exporting Goods from China to Canada
With the continued expansion of China's manufacturing industry and the rapid growth of Canada's e-commerce
market, logistics and transportation from China to Canada have become a core component of cross-border trade.
Whether you're a first-time exporter or already experienced, understanding the shipping process will help you save
time, reduce costs, and improve customer satisfaction. This article will detail several key aspects of how to efficiently
optimize the entire shipping process.
1. Do you need a freight forwarder?
1.1 What is a freight forwarder? What does it do?
Freight forwarders are professionals responsible for coordinating and optimizing the transportation of
international goods. Simply put, they act as "intermediaries" across the global supply chain, ensuring your goods
arrive safely and on time.
Core services they provide include:
Transportation coordination: The forwarder reserves shipping space for your shipment, ensuring you receive
the best shipping rates and timely delivery services.
Document processing: Processing key documents such as commercial invoices, packing lists, and bills of lading.
Customs clearance: Working with customs brokers to ensure smooth customs clearance and compliance with
laws and regulations.
Cargo tracking: Providing real-time tracking to keep you informed of the latest updates on your shipment.
Insurance: Most freight forwarders offer insurance during transportation to protect against loss or damage.
Freight forwarders also offer other value-added services, such as warehousing, packaging, and cargo consolidation.
1.2 Should I choose a freight forwarder in China or Canada?
When choosing a freight forwarder, you can base your decision on the following factors:
Language and Communication: Chinese freight forwarders are fluent in Chinese and understand the local supply
chain regulations in China. They can connect directly with domestic suppliers, reducing the time and expense
associated with secondary consignments.
Cost: Chinese freight forwarders are generally more cost-effective due to lower labor costs in China, allowing
you to obtain more competitive rates.
Timeliness: Chinese freight forwarders are generally quick to respond and handle issues more efficiently.
However, if you already have an existing partner in Canada or require more localized service, you may also choose
a Canadian freight forwarder.
1.3 How to Evaluate the Reliability of a Freight Forwarder?
Choosing a reliable freight forwarder is crucial to ensuring smooth cross-border shipping. You can evaluate the
reliability of an agent based on the following six aspects:
Business License: Ensure the agent has a valid business license and complies with relevant laws and regulations.
Website and Online Reviews: Check whether the agency has an official website, customer reviews and feedback,
and the company's size.
Insurance: Check whether the agency offers cargo insurance to protect against risks during transportation.
Cargo Tracking: Check whether the agency provides real-time cargo tracking services to ensure you can
monitor the status of your shipment at all times.
Waybill and Bill of Lading: Ask the agency for a recent waybill or bill of lading to verify their shipping
experience and service quality.
Response Speed: Check whether the agency responds to your inquiries quickly and professionally. You can
verify their service quality by placing a small trial order.
2. What are the shipping options from China to Canada?
After understanding the options for a shipping agency, the next step is to choose the right shipping method. When
choosing a shipping method, consider the type of cargo, budget, and timeliness.
2.1 Ocean Freight (Suitable for Bulk or Cost-Sensitive Shipments)
Ocean freight is the most commonly used cross-border shipping method, particularly suitable for bulk cargo,
offering the advantages of low cost and high volume. Ocean freight is generally suitable for heavy, bulky, or
non-perishable goods.
Less than Container Load (LCL): For smaller shipments, you can choose to ship your goods together with other
shipments. Fees are calculated by cubic meter (CBM) and typically arrive in Canada in 10-45 days.
Full Container Load (FCL): For shipments large enough to fill a container, FCL is the best option and is charged
per container. This option is suitable for large, consistent shipments.
Additional Costs: In addition to the basic freight, ocean freight may also incur additional charges such as port
fees and customs clearance fees.
Packaging Requirements: Goods must be packaged according to standards to prevent damage during
transportation. Use five-layer cartons, shrink film, and wooden pallets that meet ISPM-15 standards. Clear
packaging and labeling are essential for smooth customs clearance.
Shipping Time: Ocean freight shipping times vary depending on the specific route, typically ranging
from 20 to 60 days.
2.2 Air Freight (Suitable for Time-Sensitive, High-Value Goods)
Air freight is suitable for high-value, urgent, or small-volume shipments. Although more expensive, it offers faster
delivery times (1-13 days) than sea freight.
Economy Air Freight: 6-13 days, suitable for non-urgent shipments.
Standard Air Freight: 4-7 days, a cost-effective option.
Urgent Air Freight: 1-4 days, suitable for fresh produce, urgent orders, or critically important shipments.
Fee Calculation: Air freight charges are calculated based on the greater of the actual weight and the volumetric
weight. For example, if the volumetric weight is greater than the actual weight, the volumetric weight will be charged.
2.3 Express Delivery (Suitable for Small, Urgent Orders)
Express delivery services are suitable for urgent, small shipments, offering door-to-door delivery and the fastest
delivery times (3-13 days).
Advantages: Express delivery services are fast and convenient, cover customs clearance and duty processing, and
provide full shipment tracking.
Disadvantages: Costs are high, suitable for small shipments weighing less than 500 kg.
3. How to ensure on-time delivery?
To avoid delays, you can implement the following strategies:
Ensure consistency of customs declaration documents: Ensure the customs declaration value,
commercial invoice, and bill of lading are consistent to avoid delays caused by customs discrepancies.
Arrange transportation in advance: Confirm transportation arrangements with the freight forwarder in
advance to avoid delays during busy periods.
Plan ahead for holidays: Holidays in both China and Canada may affect shipping times, so plan ahead to
avoid peak shipping periods.
Cargo insurance: Purchase insurance for high-value shipments to protect against losses during transportation.
High-quality packaging: Ensure that the supplier uses high-quality packaging to reduce damage or the need
for secondary packaging.
Customs clearance bond: Pay a customs bond in advance if necessary to avoid delays in the customs
clearance process.
4. Key points for Canadian customs clearance
4.1 Required documents for customs clearance
The following documents are required for customs clearance:
Commercial invoice: Lists the value, description, and quantity of the goods.
Packing List: Details of the packaging of the goods.
Bill of Lading: The transportation contract.
Import Declaration: Contains the tariff classification and HS Code.
Other Documents: If necessary, provide product certificates of compliance, etc.
4.2 HS Code and Taxes
HS Code: A globally recognized 10-digit commodity classification code that determines the tariff rate for goods.
You can check the specific tax rate on the Canada Border Services Agency (CBSA) website.
Taxes: Canada imposes fees such as GST (Goods and Services Tax) or HST (Harmonized Sales Tax) on imported
goods. The specific tax rate varies depending on the type of product and the province in which it is located.
5. E-commerce and Fulfillment Logistics
For e-commerce sellers or dropshippers, choosing the right logistics and fulfillment solutions is crucial.
5.1 Shipping to Amazon Canada (Fulfillment by Amazon)
Freight forwarders provide the following key services:
Consolidation: Combines goods from multiple suppliers and delivers them to Amazon warehouses, reducing
shipping costs.
Product Inspection and Labeling: Ensure that products meet Amazon standards, pre-label them, and then ship
them to the warehouse after packaging.
Shipping Method Selection: Choose the appropriate shipping method based on the volume of goods (express
delivery for small items, sea or air freight for large quantities).
5.2 Dropshipping
Dropshipping is suitable for sellers on e-commerce platforms such as Shopify. The agent can ship directly from
the warehouse to the buyer, streamlining inventory management and logistics.
6. Warehousing and Distribution Options
For cross-border e-commerce or bulk exports, choosing the right warehousing service is crucial.
6.1 Benefits of Warehousing Services
Consolidation and Distribution: Centralized storage and on-demand delivery.
Inventory Management: Reduce inventory costs through warehouse management.
Value-Added Services: Services such as Amazon labeling and quality inspection.
6.2 Choosing a Suitable Warehousing Location
China Warehouse: Suitable for preparing goods and packaging and inspection, with low costs.
Canadian Warehouse: Suitable for late-stage fulfillment and fast delivery, providing more localized service.
7. Freight Insurance
Purchasing freight insurance is an effective way to protect your cargo, especially for high-value or fragile goods.
It covers loss or damage during transportation and storage.
