The establishment of diplomatic relations between Turkey and Canada goes back to 1943. The bilateral trade volume between Turkey and Canada, which was 2,1 billion U.S. Dollars in 2020, increased to 2,76 billion U.S. Dollars in 2021. On 8 June 2019, Turkey and Canada signed a Memorandum of Understanding establishing a Joint Economic and Trade Committee (JETCO) to expand bilateral trade and investment opportunities. The first JETCO meeting was held in Istanbul on 13 – 14 November 2019.
In November 2022, the top imports of Canada from Turkey were other small iron pipes (C$24.6M), raw iron bars (C$21.3M), jewellery (C$9.55M), motor vehicles; parts and accessories (C$8.11M), and hand-woven rugs (C$7.96M).
How can you import products from Turkey to Canada?
Preparation of the Imported Goods
Before importing commercial goods into Canada, as a business or an individual, you will need to obtain a Business Number (BN) issued by the Canada Revenue Agency (CRA) for an import/export account. This import/export account is free of charge.
After obtaining a Business Number, you should identify the goods you want to import. In this regard, you must gather as much information as possible about the goods you intend to import. Obtain descriptive literature, product composition information and, whenever possible, product samples. This information will be crucial when it comes time to determine the tariff classification of the goods you want to import. The tariff clarification number will determine the duty rate applied to your goods.
Next, you must determine if you will use the services of a licensed customs broker. You may feel comfortable preparing your own release and accounting documentation and transacting business directly with the Canada Border Services Agency (CBSA), or you may authorize a Licensed Customs Broker to act as your agent to transact business. However, it is necessary to remember that you are ultimately responsible for the accounting documentation, payment of duties and taxes, and subsequent corrections, such as re-determination of classification, origin and valuation, even if you use the services of a broker.
The CBSA licenses customs brokers to carry out customs-related responsibilities on your behalf to clear goods across the Canadian border. A broker’s service typically includes:
After this step, you need to determine the country of origin for importing goods. Thus, it is necessary to identify the country where your goods originate. Again, it is critical to remember that this does not only mean the country from which the product was shipped to you. It may also include where individual parts of the product are from and where it was constructed into the final product.
It is also required to ensure the goods you wish to import are permitted into Canada since certain goods are not allowed to be imported into Canada.
Finally, you should determine whether the goods you intend to import are subject to any permits, restrictions or regulations for global trade. Many goods are subject to the requirements of other government departments and agencies and may require permits, certificates, and/or inspection. The CBSA is responsible for administering the legislated import requirements on behalf of other government departments.
More than one government department may have a role to play in the requirements and regulations about the importation of certain goods. It is, hence, beneficial to contact any that may play a role.
Classification of the Imported Goods
Once you are sure that the goods may be imported, you will need to determine the correct tariff classification number. These numbers, along with the goods’ country of origin, are used to determine the rate of duty you must pay when importing.
Most trading countries, including Canada, use the Harmonized System (HS) as the basis of their classification systems. The first six digits are a common identifier across all countries using the HS for that particular good. The following four are unique to Canada and used to establish the duty rates and for statistical purposes.
Determination of Duties and Taxes
First, you have to determine the applicable tariff treatment and rate of duty. Then, once you have determined the correct tariff classification number, you need to establish the applicable tariff treatment that applies to your goods before determining the duty rate. Therefore, when viewing any chapter of the Canadian Customs Tariff Schedule, you will notice two columns on the right-hand side entitled “Most-Favoured-Nation (MFN) Tariff” and “Applicable Preferential Tariffs”.
The requirements of the particular trade agreement or tariff treatment must be satisfied to benefit from a preferential duty rate. In addition, you must possess proof of origin for the specific trade agreement at the time of importation.
Secondly, it should be determined if your goods are subject to the goods and services tax (GST), excise tax or excise duty. You have to remember that some importations, such as prescription drugs, medical and assistive devices, basic groceries, and agriculture and fishing goods, are non-taxable. You must quote the tax exemption code on your import documentation if your goods are tax-exempt.
Examples of goods subject to excise tax include automobile air conditioners, whether separate or permanently installed ($100 per air conditioner), certain vehicles designed for use as passenger vehicles and certain fuels. Examples of goods subject to excise duty include tobacco and certain alcohol products.
Thirdly, you must determine the value of the goods you are importing. Now that you have established the tariff classification number and the tariff treatment of your imported goods, you need to determine their value for duty. In most cases, the value for duty is the amount paid to the vendor for the goods. Your declaration of value for duty should be supported by a receipt or sales invoice from your vendor. This document must include a complete description of the goods, the selling price and the conditions and terms of the sale.
Lastly, it is needed to be estimated in advance how much duty and taxes you will be required to pay. In this sense, take the value in the currency indicated on the invoice. Then, convert the value into Canadian dollars using the exchange rate from the date of direct shipment (the date the goods began their direct and continuous journey to a specific destination in Canada). Finally, you must call the Border Information Service (BIS) to obtain the proper exchange rate.
Shipping and Reporting Process
First of all, you have to place your order and select a method of shipping. Concerning this, place your order with the vendor, shipper or exporter. Then, identify the mode of shipping that will be used (highway, marine, rail, air, postal or courier service).
It has to be determined by the desired or expected CBSA Office where your goods will be released. Most shipments are released at the CBSA office, where they arrive in Canada. Yet, if you use a CBSA bonded carrier, you may choose another inland service point closer to you.
After this, you must report your goods since all commercial goods must be reported to the CBSA whether you transport them yourself or have a carrier transport them for you.
When shipments valued at more than CAN$3,300:
When shipments valued at CAN$3,300 or less:
Getting Your Goods Released
There are two options for releasing your goods. With both options, you may prepare the release and accounting documents yourself or hire a licensed customs broker on your behalf. Regardless of your method, the CBSA will assign each shipment a 14-digit transaction number to identify your goods throughout the clearance process. Method 1 is ‘’full accounting and payment of duties for release of goods.’’ Method 2 is ‘’releasing goods before the payment of duties.’’
After Your Goods are Released
At first, you have to adjust errors in the accounting information you submitted. Suppose you make an error in the accounting information, and the CBSA has not already made the corrections. In that case, you must correct the information within 90 days after discovering the error where the change is revenue neutral, or you owe money. If a change in the accounting information results in a refund of duties or taxes paid to us, an application for a refund can be filed in most cases up to four years from the date the goods were accounted for. You must pay this amount and the applicable interest when the self-adjustment results in additional duties owing. For self-adjustments which reduce the amount of duties payable, it will be refunded the customs duties, and the applicable goods and services tax credit or a rebate will be made.
Secondly, you must keep all records of your importations for six years following the importation of goods in either electronic or paper format. This includes information about the quantities received, the price paid, the country of origin, the vendor, the product, and all other related information.
At last, you should be aware that your importations may be verified and adjusted by the CBSA since the commercial importations may be verified and modified by the CBSA for origin, value for duty, or tariff classification up to four years after importation.
If the CBSA adjusts your accounting document, it will be issued a Detailed Adjustment Statement (DAS) that outlines the adjustment, and you will have 30 days to pay any duties and taxes owed.
As the importer, you (or your representative) have the right to ask for an impartial review of most decisions made on tariff classification, origin, or value for the duty of imported goods. You must make your request by 90 days after the date of the initial decision.
