# Sourcing from India and China for Canadian brands

> Canadian duty on goods from India, China and Vietnam as of September 2026, incl. CPTPP, CEPA talks and China surtaxes, plus CCPSA, textile labelling and lanes.

Source: https://sourcesquid.co/markets/canada/

Market guide · Canada

# Sourcing from India and China for Canadian brands.

Canadian brands pay MFN on Indian and Chinese goods, since both lost the General Preferential Tariff in 2015, while Vietnamese goods can use CPTPP. On top of that, Canada applies surtaxes and quotas to steel and some Chinese goods, and India–Canada CEPA talks were aiming to conclude by the end of 2026.

[Get a free teardown in 48 hours](https://sourcesquid.co/start/?from=market-ca) See the duty picture

MFN
    for Indian and Chinese goods

CPTPP
    preferences for Vietnam

25%
    surtax on steel derivatives since Dec 2025

Duty snapshot · checked 28 September 2026 **Goods into Canada**

  * _IN_ India **MFN (CEPA in talks)** In negotiation
  * _CN_ China **MFN + surtaxes on steel, aluminium** In force
  * _VN_ Vietnam **CPTPP preferences** In force

Full duty picture and sources ↓

  1. Duty
  2. Compliance
  3. Shipping
  4. India or China
  5. How we help
  6. Sources
  7. FAQ

The short answer

## What Canadian buyers need to know.

As of 28 September 2026. Checked against official sources.

  1. 01

**India** and **China** were removed from Canada’s **General Preferential Tariff** on 1 January 2015, so both pay **MFN**. **Vietnam** left the GPT on 1 January 2025 and uses **CPTPP**.

  2. 02

**India–Canada CEPA** : four rounds completed and ministers met on 21 September 2026; Canada aims to conclude by the end of 2026. Nothing has changed at the border yet.

  3. 03

**China** : 25% surtaxes on Chinese steel and aluminium products remain, with remissions for short-supply goods through 2026; the EV surtax was replaced in 2026 by a **49,000-vehicle quota at 6.1%**. **Steel** from non-FTA countries faces tight quotas with a 50% over-quota surtax.

1 · Duty picture

## What you pay at the border.

As of 28 September 2026. Every rate depends on the product’s HS code, so treat this as the map and check your own codes before you order.

### How duty works in Canada

  * Duty follows Canada’s Customs Tariff for the HS code. Value for duty excludes the cost of transport from the place of direct shipment to Canada, so ocean freight is outside the duty base. GST or HST is charged at import.
  * Importers must be registered in the CBSA Assessment and Revenue Management system (CARM) to account for goods and pay duties.
  * Steel mill products from non-FTA countries (including India and China) face tariff-rate quotas set at 20% of 2024 import levels with a 50% over-quota surtax, and a 25% surtax has applied to listed steel derivative products from all countries since 26 December 2025.

In flux · watch this

  * Canada’s steel measures changed several times in 2025. Confirm the quota balance and any surtax for each steel-containing product before quoting.
  * The Canada–China remissions run to the end of 2026; watch for renewal or change in the autumn.
  * A CEPA with India could change duty on Indian goods; the timing is not yet known.

IN

From India

### MFN, CEPA in talks

  * No agreement

India lost the General Preferential Tariff on 1 January 2015; Indian goods pay MFN.

  * In negotiation

CEPA negotiations: four rounds completed by September 2026; Canada aims to conclude by the end of 2026.

  * In force

Steel from India falls under the non-FTA quota and over-quota surtax rules.

CN

From China

### MFN + surtaxes

  * No agreement

China lost the General Preferential Tariff on 1 January 2015; Chinese goods pay MFN.

  * In force

25% surtax on Chinese steel and aluminium products remains; remission for listed short-supply products was extended through 2026 and widened from 1 March 2026.

  * In force

A separate China steel surtax covers steel goods from China or containing steel melted and poured in China.

  * In force

Chinese EVs: the 100% surtax gave way in 2026 to a quota of 49,000 vehicles a year at the 6.1% MFN rate.

VN

From Vietnam

### CPTPP

  * In force

CPTPP gives preferential rates to Vietnamese-origin goods; Vietnam was withdrawn from the GPT on 1 January 2025.

### Agreements and measures that apply

  * **India–Canada CEPA** Canada and India

In negotiationTarget end-2026

Four rounds completed; ministerial meeting on 21 September 2026.

  * **Canada–China arrangement** Canada and China

In forceJanuary 2026

EV quota at 6.1%, steel and aluminium surtax remissions extended through 2026.

  * **CPTPP** Canada, Vietnam and others

In forceIn force

Preferential rates for Vietnamese goods with origin evidence.

  * **General Preferential Tariff** Canada → developing countries

No agreementIndia, China out since 2015

Vietnam withdrawn from 1 January 2025. GPT itself extended to 2034.

Model it for your product: [Find the HS code](https://sourcesquid.co/tools/hs-code-finder/) [Compare landed cost](https://sourcesquid.co/tools/landed-cost/)

2 · Product compliance

## The rules your product has to meet.

Canada combines federal product safety law with bilingual labelling rules that catch many first-time importers.

Safety

### Canada Consumer Product Safety Act

Importing or selling a consumer product that is a danger to human health or safety is prohibited, and specific regulations cover toys, cribs, children’s jewellery and more. Importers keep records of who supplied and who bought the products, and report incidents to Health Canada within 2 days.

Textiles

### Textile Labelling Act

Consumer textiles need fibre content in English and French and the dealer’s identity (name and address, or a CA identification number). Permanent labels are required on garments, bedding and towels.

Labels

### Consumer Packaging and Labelling Act

Prepackaged consumer products need bilingual product identity and net quantity, plus the dealer’s name and address.

Electrical and radio

### Certification marks

Electrical products need certification from a body accredited by the Standards Council of Canada before sale, and radio devices need ISED certification.

Origin

### Origin evidence

Surtaxes and quotas follow origin, including melt-and-pour rules for steel. Keep mill certificates and bills of materials for anything metal.

[Origin dossier ](https://sourcesquid.co/services/origin-dossier/)

3 · Getting goods there

## Sea lanes, transit times and Incoterms.

Indicative port-to-port planning ranges, not a carrier schedule. Transhipment, blank sailings and routing change them; confirm with the carrier at booking.

  * Ningbo / ShanghaiVancouver / Prince Rupert

**14–20** days

Transpacific, direct

  * Nhava Sheva / MundraMontreal / Halifax

**25–35** days

Via Suez

  * Nhava Sheva / MundraVancouver

**30–40** days

Transhipped in Asia

  * Ningbo / ShanghaiMontreal / Halifax

**30–45** days

Via Suez or Panama, or rail from Vancouver

Routing in September 2026: carriers were returning Asia–Europe services to the Suez Canal gradually, service by service; sailings via the Cape of Good Hope take roughly 10 to 14 days longer.

### Incoterms norms

  * FOB (named port) for full containers and FCA for LCL; avoid EXW in India, where the Indian exporter must clear the goods for export.
  * Import on your own business number with CARM registration; non-resident importers are possible but DDP from Asian factories is rare.
  * Canadian value for duty excludes transport from the place of direct shipment, so freight terms do not change the duty base.

[Pick a term with the Incoterms advisor](https://sourcesquid.co/tools/incoterms-advisor/)

4 · India or China

## Which country suits which product.

For steel-heavy products, Canada’s 2025–2026 steel measures can outweigh the difference in factory price. Check them first.

IN

### Strong from India

[About sourcing from India](https://sourcesquid.co/india/)

  * **Apparel and home textiles** Cotton garments, towels and bedding, with bilingual labels set up at the factory.
  * **Castings, forgings and machined parts** Engineering clusters for industrial and agricultural equipment parts; check steel measures for semi-finished items.
  * **Leather goods, décor and furniture** Specialist clusters with long export records to North America.

CN

### Strong from China

[About sourcing from China](https://sourcesquid.co/china/)

  * **Electronics and small appliances** Component depth and certification experience for Canadian marks.
  * **Plastics and household goods** Fast tooling and consolidation through Vancouver.
  * **Solar and components** Under the January 2026 arrangement, Canada agreed not to impose previously announced tariffs on Chinese solar products and semiconductors.

Running both? [Plan a China + 1 second source](https://sourcesquid.co/sourcing/china-plus-one/)

5 · How SourceSquid helps

## From duty map to landed container.

Our teams in Bengaluru and Ningbo find, audit and inspect factories for Canadian brands buying from India and China, and collect the evidence your market asks for.

USD 390 · named factories

### [Supplier shortlist](https://sourcesquid.co/sourcing/)

Named manufacturers in India and China, checked by calls, matched to Canadian requirements.

Free tool

### [Landed cost calculator](https://sourcesquid.co/tools/landed-cost/)

Factory price, freight, duty and taxes side by side, so you compare lanes, not quotes.

Free tool

### [HS code finder](https://sourcesquid.co/tools/hs-code-finder/)

Find the likely HS code first; every duty rate on this page depends on it.

USD 990+ per product family

### [Origin and tariff defence](https://sourcesquid.co/services/origin-dossier/)

Melt-and-pour, bills of materials and process records for goods where Canadian surtaxes follow origin.

From USD 229 per person-day

### [Inspections and audits](https://sourcesquid.co/quality/book-an-inspection/)

In-line, pre-shipment and loading inspections by our own team in India and China.

Compliance

### [Test advisor](https://sourcesquid.co/tools/test-advisor/)

The Canadian rules above turned into a supplier evidence list, collected at the factory.

Sources

## Where these facts come from

Checked on 28 September 2026 and refreshed monthly. Official government, customs and EU sources first; commentary is named as such. This page explains the rules in plain English. For a view on your own products, ask our team or your customs broker.

  1. [Business Standard: India among 72 countries losing Canada’s GPT from 1 January 2015](https://www.business-standard.com/article/economy-policy/india-loses-canada-s-special-treatment-113032900028_1.html)
  2. [Canada Gazette: GPT Withdrawal and Extension (2023 GPT Review) Order](https://gazette.gc.ca/rp-pr/p2/2023/2023-10-25/html/sor-dors207-eng.html)
  3. [Global Affairs Canada: Canada advances trade talks on a CEPA with India (September 2026)](https://www.canada.ca/en/global-affairs/news/2026/09/canada-advances-trade-talks-on-comprehensive-economic-partnership-agreement-with-india.html)
  4. [Global Affairs Canada: preliminary joint arrangement with China (16 Jan 2026)](https://www.international.gc.ca/news-nouvelles/2026/2026-01-16-china-chine.aspx?lang=eng)
  5. [MLT Aikins: Canada–China tariff changes in 2026](https://www.mltaikins.com/insights/a-new-era-in-canada-china-trade-key-tariff-changes-and-industry-impacts/)
  6. [GHY International: Canada’s steel TRQs and 25% derivative surtax](https://www.ghy.com/trade-guides/canadas-steel-trqs-and-25-percent-derivative-surtax/)
  7. [Global Affairs Canada: tariff elimination under the CPTPP](https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cptpp-ptpgp/tariff-elimination-droits_de_douane.aspx?lang=eng)
  8. [CBSA Memorandum D13-3-3: transportation and associated costs](https://www.cbsa-asfc.gc.ca/publications/dm-md/d13/d13-3-3-eng.html)
  9. [Health Canada: Canada Consumer Product Safety Act FAQ](https://www.canada.ca/en/health-canada/services/consumer-product-safety/legislation-guidelines/acts-regulations/canada-consumer-product-safety-act/frequently-asked-questions.html)
  10. [Health Canada: mandatory reporting under section 14 of the CCPSA](https://www.canada.ca/en/health-canada/services/consumer-product-safety/legislation-guidelines/acts-regulations/canada-consumer-product-safety-act/industry/guide-mandatory-reporting-section-14.html)
  11. [Competition Bureau: textile labelling requirements in a nutshell](https://competition-bureau.canada.ca/en/labelling/textile-labelling/labelling-textile-requirements-nutshell)
  12. [Competition Bureau: guide to the Consumer Packaging and Labelling Act](https://competition-bureau.canada.ca/en/guide-consumer-packaging-and-labelling-act-and-regulations)

Canada buyer questions

## Straight answers.

Checked on 28 September 2026. We update this guide when duties or rules move.

[anirudh@sourcesquid.co](mailto:anirudh@sourcesquid.co)

### What duty do Indian goods pay in Canada?

The MFN rate in Canada’s Customs Tariff. India was removed from the General Preferential Tariff on 1 January 2015, and the India–Canada CEPA is still under negotiation, with Canada aiming to conclude it by the end of 2026. Steel products also face Canada’s quota and surtax measures.

### Does Canada charge extra tariffs on Chinese goods?

Yes, on some products. A 25% surtax on Chinese steel and aluminium products remains, with remissions for listed short-supply goods through 2026, and a China steel surtax covers steel melted and poured in China. Chinese EVs moved to a 49,000-vehicle quota at 6.1% in 2026.

### Can Vietnamese goods enter Canada duty-free?

Many can, under the CPTPP, if they meet its rules of origin and the importer has origin evidence. Vietnam was withdrawn from the General Preferential Tariff on 1 January 2025, so CPTPP is the preference route.

### What are the textile labelling rules in Canada?

Consumer textile articles need fibre content in English and French, and the dealer’s identity as a name and postal address or a CA identification number. Garments, bedding and towels need permanent labels.

### How long does shipping take from China to Canada?

As a planning range, about 14 to 20 days from Ningbo or Shanghai to Vancouver or Prince Rupert. From India’s west coast to Montreal or Halifax, allow about 25 to 35 days via Suez.

Other market guides

## Selling in more than one market?

[US · North America**United States** India pays MFN plus 10% under Section 301; China and Vietnam pay MFN plus 12.5%, and China keeps its older 301 lists.](https://sourcesquid.co/markets/united-states/)[UK · Europe**United Kingdom** India–UK CETA has been in force since 15 July 2026: zero duty on about 99% of tariff lines for Indian goods.](https://sourcesquid.co/markets/united-kingdom/)[AU · Oceania**Australia** Since 1 January 2026, every Australian tariff line is duty-free for Indian goods under ECTA.](https://sourcesquid.co/markets/australia/)

Start here

## Your Canadian landed cost, in 48 hours.

Send one drawing, photo or quote. We return the process chain, the right clusters in India and China, and a landed-cost comparison for your market.

[Get a free teardown](https://sourcesquid.co/start/?from=market-ca)[Talk to a principal](https://sourcesquid.co/contact/)
