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International Logistics
How to Export from the U.S. to Canada: Avoiding GST Pitfalls and Customs Delays
On: November 17, 2025 | By: 
Kari Crane |
9 min. read
Exporting goods to Canada seems like it should be simple—after all, it’s the U.S.’s largest trading partner and shares a border, a language and countless supply chains. But as we learned in our free webinar How to Export from the U.S. to Canada, it’s anything but straightforward. From Canadian customs rules to GST recovery and the CARM portal, even experienced exporters can face costly delays or unexpected tax burdens.
We were joined by international trade expert Alessio Lencioni, Head of Product & Strategy at VATIT Stream, to break down the most common mistakes and walk U.S. businesses through a compliant, profitable approach to cross-border trade.
Keep reading for highlights from the webinar, or watch the full recording here:
And if you need help with your exports to Canada or to another global market, you’ll want to take a look at our export management service GLOBAL GATEWAY by Shipping Solutions. It combines discounted international shipping rates with expert logistics and compliance support.
Why Exporting to Canada Is More Complicated Than It Seems
The Canadian border is more than just a line on a map—it’s a legal and tax jurisdiction. Once your shipment crosses into Canada, it triggers a complex web of customs declarations, tax obligations and compliance requirements.
As Alessio explained during the webinar, many U.S. exporters get tripped up by the same assumptions:
- “We don’t need to do anything—we’ll let the carrier handle it.”
Without proper Canadian registration, even trusted carriers like FedEx or UPS may clear goods under their own business number (BN), leaving exporters unable to reclaim GST or access shipment data. - “We’re just sending a few boxes—it’s not a big deal.”
Regardless of volume, if you're the importer of record, you need to be properly set up with the Canada Revenue Agency (CRA) and the Canada Border Services Agency (CBSA)—or your shipments could be delayed, returned or destroyed. - “We already paid taxes—why pay again?”
Canada assesses a 5% Goods and Services Tax (GST) on most imports, in addition to any duties owed. But many U.S. companies don’t realize they can reclaim that tax—if they’ve registered properly.
In other words, treating Canada like a domestic shipment is one of the biggest mistakes exporters make.
Common Compliance Challenges When Shipping to Canada
Here are the most common—and costly—mistakes exporters make when selling into Canada:
Missing Business Number (BN) Registration
The BN is your tax ID in Canada, issued by the Canada Revenue Agency (CRA). Without it, you cannot register for GST or appear as the official importer of record. If your broker clears shipments using their own BN, you lose visibility, tax recovery and control.
No CARM Portal Setup
As of 2024, CARM (CBSA Assessment and Revenue Management) is required for all imports into Canada. If you’re not registered and your account isn’t linked to your BN, your goods can’t clear customs. No exceptions.
No Importer Bond in Place
This financial guarantee assures the Canadian government that duties and taxes will be paid. Without a valid bond, your shipments may be delayed, returned or even destroyed at the border.
Relying on Disconnected Vendors
Using different providers for logistics, customs clearance and tax filing often results in a fragmented, error-prone process. When something goes wrong—like a misfiled customs entry or missing documentation—no one takes full ownership.
Not Registering for GST
While not mandatory for importing, GST registration is essential if you want to reclaim the 5% import tax. Without it, those funds become a sunk cost that eats into your margins.
The Export-to-Canada Playbook: A Step-by-Step Roadmap
Don’t let the compliance challenges above intimidate you—you’re not without solutions. Alessio shared a practical framework during the webinar that any U.S. company can follow:
Phase 1: Lay the Foundation
Before you ship anything across the border, set up the three pillars of a compliant import program:
1. Register for a Business Number (BN)
This is your company’s identity with the Canadian government. It enables GST registration and allows you to act as the importer of record—a requirement for shipping with the Incoterm Delivered Duty Paid (DDP).
2. Create a CARM Portal Account
You’ll need this account to submit customs entries, manage payments, and stay in good standing with the CBSA. CARM is now mandatory for all importers.
3. Obtain a Canadian Customs Bond
Think of this as your safety net. A bond ensures that duties and taxes will be paid, allowing your goods to be released at the border. No bond = no clearance.
Phase 2: Launch Your Shipping Operations
Once the foundation is in place, it’s time to move goods across the border with confidence.
4. Appoint an Approved Canadian Customs Broker
Choose a broker who is registered with the CBSA and familiar with CARM. They’ll file entries on your behalf and connect directly with your account.
5. Register for GST (if not already)
This allows you to reclaim the 5% import GST—a major savings opportunity for shippers using DDP. It also sets you up for compliant quarterly tax filings.
6. Align Logistics, Customs & Tax Workflows
When your systems and service providers are in sync, you eliminate delays, duplication and guesswork. Integrating documentation, tracking and reporting makes shipping more efficient—and auditable.
Phase 3: Optimize and Scale
With your program up and running, it’s time to fine-tune.
7. Consolidate Data and Document Management
Maintain accurate records of every shipment, including invoices, GST filings and customs declarations. This not only ensures compliance, but prepares you for audits and future growth.
8. Apply DDP the Right Way
Use your new capabilities to take full control of delivery, eliminate surprise charges for your customers and gain a competitive advantage.
How Global Gateway Helps You Export to Canada Without the Guesswork
If the playbook above feels like a lot to manage, especially if you're already stretched thin, you're not alone. Most U.S. companies don’t have the time, tools or in-house expertise to manage customs, tax and shipping across borders. That’s exactly why we created Global Gateway.
What Is Global Gateway?
Global Gateway is an all-in-one export management service that helps you move goods from the U.S. to international markets like Canada, the EU and the UK—compliantly and confidently. It combines discounted international shipping rates with expert support for compliance, documentation and tax recovery.
Our team works as a dedicated extension of your logistics department to manage:
- Export and import documentation
- GST registration and reclaim
- CARM registration and customs bond setup
- Canadian customs broker coordination
- End-to-end shipping logistics
- Recordkeeping and audit readiness
You get peace of mind, full compliance and a predictable process you can trust.
Every business is different—and your export solution should be too. Whether you ship once a month or every day, we’ll tailor a plan that fits your needs.
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