A supplier's price tells you what the goods cost where they are made. What matters to your budget is what they cost once they are at your door. That is the delivered cost, sometimes called the landed cost. For goods from abroad, the difference can be large.
What goes into the delivered cost
| Cost | What it is |
|---|---|
| Product price | The goods themselves, including any custom packaging or labels. |
| Freight and insurance | Moving the goods by sea, air or truck, and insuring them on the way. |
| Duties | Customs duty set by the product's tariff classification and where it was made. Canada's trade agreements can lower or remove duty on goods that qualify. |
| Sales tax on imports | The Canada Border Services Agency (CBSA) collects GST on imported goods. If your business is registered for GST/HST, you can usually recover it as an input tax credit. Ask your accountant. |
| Customs broker | A licensed customs broker prepares the import paperwork and clears the goods for you. |
| Delivery to your door | Transport from the port or airport to your address, and any unloading. |
| Payment and currency fees | Bank fees and exchange-rate costs when you pay in another currency. |
Compare quotes on the same basis
Suppliers quote under different terms, and the terms change what is included. Three you will often see:
- EXW (Ex Works): the price at the supplier's door. You arrange and pay for everything after that.
- FOB (Free On Board): the supplier loads the goods onto the ship. Sea freight, duties and delivery are yours.
- DDP (Delivered Duty Paid): the supplier delivers to your address with duties paid.
An EXW price always looks cheapest, because nothing else is included. Convert every quote to a delivered cost before you compare. See our sample quote for a worked example.
Don't forget time
Sea freight from overseas can take weeks longer than buying from a Canadian supplier. If the goods arrive after your opening or launch date, a lower price can cost you more in lost sales.
Importing for the first time
To import goods for your business, you need a business number with an import-export account from the Canada Revenue Agency. A licensed customs broker can guide you through the rest.
This guide is general information, not customs or tax advice. We are not a customs broker. For your specific goods, confirm with a licensed customs broker.
Every quote we send shows the full delivered cost and the lead time.