Four things you should know before exporting to Canada
Blog
Canada is an emerging market for European businesses. The country is actively seeking new trading partners to reduce its reliance on the US, and thanks to the CETA free trade agreement, most EU products can now enter the Canadian market duty-free. Combined with the fact that imports from Europe are on the rise, there has rarely been a better time to test the Canadian market.
When the Danish Export Association asked for advice on exporting to Canada, it was Emil Vrbovci who helped untangle the most common challenges. Here, he shares his four key insights – covering customs, documentation and logistics solutions – to help you avoid pitfalls and succeed in Canada.
1. Make the most of CETA, but beware of pitfalls
The CETA agreement came into effect back in 2017, enabling most EU products to enter the Canadian market duty-free. But to benefit, your documentation needs to be accurate.
"We often see companies miss out on tariff benefits simply because their origin documentation, product classification or tariff codes are not in order. In those cases, they don’t get the duty exemptions they’re entitled to," says Emil Vrbovci.
Tip: Make sure your goods meet the rules of origin before shipping. The right documentation can mean the difference between duty-free entry and unnecessary costs.
2. Be prepared for Canada’s new customs system – CARM
Canada is in the process of introducing CARM (CBSA Assessment and Revenue Management), a digital system where exporters must register in order to pay duties and taxes.
"On paper CARM looks straightforward, but in practice it requires a local partner in Canada. If registration isn’t done correctly, deliveries risk being delayed or even rejected," explains Emil Vrbovci.
Tip: Register early and seek help from someone familiar with the Canadian system. Blue Water has local experts on the ground in Canada who can guide you through the process.
3. Understand your Incoterms – and clarify responsibilities
A common source of confusion in international trade is Incoterms, which define who is responsible for transport, customs and risk at different stages of the journey.
Examples include:
- DAP (Delivered at Place): You arrange delivery to the customer’s address in Canada. The customer pays duties and taxes.
- DDP (Delivered Duty Paid): You, the seller, take on full responsibility – including transport, duties, VAT and risk.
- FOB (Free on Board): You deliver the goods to the port, and the buyer assumes responsibility from there.
"It’s not just about logistics – it’s also about responsibility and cost. We always recommend going through the Incoterms thoroughly to ensure all parties share the same understanding," says Emil Vrbovci.
Tip: Discuss Incoterms early in the sales process and make sure both you and your customer are clear on who is responsible for what.
4. Start small with LCL
One of the biggest barriers when entering a new market is logistics. Committing to a full container load can feel risky when you’re only testing the waters. This is where Blue Water’s tailored LCL (Less than Container Load) solution is ideal.
"With our LCL service from Northern Europe to Canada, you only pay for the space your goods occupy in the container. It allows you to start small without tying up too much capital in logistics," says Emil Vrbovci.
Tip: Use LCL to test the market step by step. It’s a cost-effective way to gradually build your presence in Canada. Read more about our LCL-solution
To summarise
Exporting to Canada offers exciting opportunities, but it also comes with new rules and requirements. By securing the right documentation, preparing for CARM, clarifying Incoterms and choosing a flexible logistics solution, you can avoid costly mistakes and gain a strong foothold in this growing market.
Want to learn more about how Blue Water can support your expansion into Canada?
Get in touch with us – we’ll be happy to help.
