Are You Overpaying Canadian Import Duty in 2026? Here Is What to Do About It

 If your business is importing goods into Canada and paying full tariff rates on every shipment, there is a reasonable chance you are leaving money on the table. Not because you are doing anything wrong, but because there are legal tools specifically designed to reduce your Canadian customs bill that most importers have simply never been told about.

Canada's headline tariff rates look modest at 4 to 5% on average. The real cost sits in what stacks on top. GST and HST apply on both the declared value and the duty. Missed free trade agreement claims add up across dozens of shipments. And since CARM launched in May 2025, compliance failures have been generating unexpected penalty assessments that catch businesses completely off guard.

The most common reason businesses overpay is not a wrong duty rate. It is a missed claim, an incorrect valuation, or a compliance gap that triggers an assessment nobody saw coming.

CUSMA should be your first stop

If you source goods from the United States or Mexico, CUSMA provides zero tariffs on qualifying goods. The claim requires a CUSMA Certification of Origin from your supplier. Without it, CBSA charges the standard rate regardless of the goods' origin. This happens constantly, and the remedy is simple once you know about it. If CUSMA applies to your supply chain and you have not been claiming it, a formal amendment process exists to recover overpaid duty within the allowable window.

July 1, 2026 opens the first formal joint review of CUSMA between all three governments. Any Canadian importer whose duty model depends on CUSMA zero rates needs to be paying attention to that review, because the outcome determines whether those rates hold.

CARM is not optional anymore

Canada's CARM system changed how customs releases work for all importers in May 2025. Unregistered importers lost release-prior-to-payment privileges. That means customs holds on effectively every shipment until registration is completed. If you are a non-resident importer and have not registered, got a Business Number, posted a bond, and connected your broker to your CARM account, you are generating delays on every single shipment today.

The full breakdown is here

The complete guide covers CPTPP rates for Asia-Pacific imports, CETA for European goods, First Sale valuation strategies, tariff classification reviews, duty drawback for re-exported goods, and bonded warehouse options. It also explains how your Importer of Record structure affects your ability to claim every one of these tools.

Before any duty reduction strategy works, the IOR structure needs to be correct. Read about what an Importer of Record does here: What is an Importer of Record

👉 Read the full Canada import duty guide

For IOR services in Canada or a review of your current duty position, speak with the Carra Globe team.

Importer of Record Canada | Carra Globe | Get in touch

Carra Globe provides Importer of Record and trade compliance services across 175+ countries. Learn more at carraglobe.com

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