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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.

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
  • INIndia MFN (CEPA in talks) In negotiation
  • CNChina MFN + surtaxes on steel, aluminium In force
  • VNVietnam CPTPP preferences In force
Full duty picture and sources ↓
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
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 CEPACanada and India
    In negotiationTarget end-2026

    Four rounds completed; ministerial meeting on 21 September 2026.

  • Canada–China arrangementCanada and China
    In forceJanuary 2026

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

  • CPTPPCanada, Vietnam and others
    In forceIn force

    Preferential rates for Vietnamese goods with origin evidence.

  • General Preferential TariffCanada → 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 Compare 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
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
    14–20days

    Transpacific, direct

  • Nhava Sheva / MundraMontreal / Halifax
    25–35days

    Via Suez

  • Nhava Sheva / MundraVancouver
    30–40days

    Transhipped in Asia

  • Ningbo / ShanghaiMontreal / Halifax
    30–45days

    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
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
  • Apparel and home textilesCotton garments, towels and bedding, with bilingual labels set up at the factory.
  • Castings, forgings and machined partsEngineering clusters for industrial and agricultural equipment parts; check steel measures for semi-finished items.
  • Leather goods, décor and furnitureSpecialist clusters with long export records to North America.
CN

Strong from China

About sourcing from China
  • Electronics and small appliancesComponent depth and certification experience for Canadian marks.
  • Plastics and household goodsFast tooling and consolidation through Vancouver.
  • Solar and componentsUnder 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

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

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

Free tool

Landed cost calculator

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

Free tool

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

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

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

Compliance

Test advisor

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

Canada buyer questions

Straight answers.

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

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.

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