Canada is a significant trading partner for New Zealand, built on shared cultural ties and common commercial goals. This mutually beneficial relationship is further strengthened by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which provides New Zealand businesses with a valuable framework for trade1.
New Zealand’s main exports to Canada include meat, beverages, and dairy. However, beyond these traditional sectors, a host of homegrown tech, service, and e-commerce companies are finding success in North America, tapping into Canada’s dynamic market.
The e-commerce landscape, in particular, presents a prime opportunity for local businesses looking to expand their global delivery reach. This article provides a complete guide for businesses, breaking down the complexities of shipping from New Zealand to Canada, covering everything from market insights and consumer habits to Canadian customs, duties, and taxes.
Tapping into the Canadian e-commerce market: A guide for Kiwi brands
Understanding the Canadian consumer is the first step toward a successful expansion. The Canadian e-commerce market is mature, rapidly growing, and offers high-value opportunities for New Zealand brands.
E-commerce opportunities and advantages
The Canadian e-commerce market is a powerhouse. Revenue is projected to reach over USD 66.89 billion by 2025, confirming its status as a lucrative destination for global sellers2.
What makes Canada especially attractive to e-commerce businesses are these two factors:
- High Online Penetration: E-commerce makes up 11.5% of total retail spend, with mobile commerce accelerating that growth. A third of purchases happen on mobile, driven by a phone-first population and optimized shopping apps3.
- High Average Spend: Average revenue per user (ARPU) is expected to amount to US$2.20k4.
Canadian consumer habits
Canadian shoppers have specific expectations that your business should be prepared to meet.
- Price and Value: Canadians are savvy consumers who frequently compare prices. The data shows that 86% of shoppers will buy more frequently from companies that offer free shipping to Canada5. Offering competitive rates and transparent costs is crucial for success.
- Sustainability: On average, consumers are willing to spend 9.7% more on sustainable items6. Focusing on ethical practices and using sustainable shipping can be a significant competitive advantage.
- Mobile-First Experience: A third of all e-commerce purchases in Canada happen on mobile devices3. Offering a smooth, phone-first shopping experience is essential for capturing this accelerated growth.
What do Canadians buy from New Zealand?
Canadians already know and buy New Zealand quality. According to the Ministry of Foreign Affairs and Trade (MFAT), New Zealand exports to Canada are led by meat, beverages and dairy, along with services and mechanical machinery7. This creates strong halo effects for premium food and beverage brands, and for craft and wellness propositions tied to natural ingredients.
Promising categories local sellers can try exporting to Canada include:
- Primary Produce and Gourmet Goods: Grass‑fed lamb and beef, specialty dairy, artisanal spreads and Manuka honey.
- Beverages: Distinctive wines (Sauvignon Blanc and beyond) and low‑ or no‑alcohol innovations.
- Outdoor Apparel: Merino layers and performance gear suited to Canada’s seasons.
- Natural Skincare: Products leveraging unique Kiwi botanicals.
- Niche Sporting Goods: Rugby and outdoor sport accessories.
Key shopping holidays in Canada
Planning your inventory and marketing campaigns around these key dates can maximize your sales opportunities:
| Holiday | Date |
|---|---|
| Valentine's Day | 14 February |
| Mother's Day | Second Sunday in May |
| Canada Day | 1 July |
| Canadian Thanksgiving | Second Monday in October |
| Black Friday/Cyber Monday | Late November |
| Boxing Day | 26 December |
Navigating Canadian customs: Duties and taxes explained
When wondering how to export to Canada, a primary concern for any business is navigating the customs limits. Understanding Canadian import regulations, duties, and taxes is crucial for accurate pricing and ensuring a smooth customer experience.
Understanding Canada’s tax system
Most goods imported into Canada are subject to two types of sales tax:
- Goods and Services Tax (GST): This is a federal tax applied at a rate of 5%.
- Provincial Sales Tax (PST) or Harmonized Sales Tax (HST): Depending on the province, a provincial tax may be applied on top of the GST8.
| Province/Territory | Tax Type | Total Tax Rate (Approximate) |
|---|---|---|
| Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon | GST | 5% |
| New Brunswick, Newfoundland and Labrador and Prince Edward Island | HST | 15% |
| Ontario | HST | 13% |
| Nova Scotia | HST | 14% |
De minimis threshold: Tax-free importing
For businesses selling low-value items, Canada offers a customs tax exemption. Goods valued at CAD $20 or less can be imported free of both duties and taxes9. This is a critical point to consider when setting your product pricing and shipping methods.
Customs duties and the CPTPP advantage
Customs duties are separate from GST/HST and are calculated based on the product’s Harmonized System (HS) Code.
- Duty-Free Goods: A major benefit of the CPTPP is that a vast majority of New Zealand-originating goods can enter Canada duty-free. This provides a significant cost advantage over competitors in non-CPTPP countries.
- Preferential Tariff Rates: To claim these preferential tariff rates and benefit from the CPTPP, your business must provide a valid Certificate of Origin or an equivalent declaration that proves the goods originated in New Zealand.
How to calculate and pay import costs
Transparency in export costs is essential for a positive customer experience, as unforeseen fees can lead to poor reviews, cancelled deliveries, and extended shipping times to Canada.
A step-by-step calculation guide
To determine the total landed shipping cost for your customer in Canada, follow these steps:
- Determine the Value for Duty (VFD): Start with your transaction value in NZ$, convert to C$ at the customs rate, and add any includable charges required by Canadian rules to arrive at the VFD. CBSA’s valuation handbook explains the methods and inclusions.
- Classify Your Product and Find the Duty rate: Identify the correct HS code and the applicable tariff treatment (CPTPP for New Zealand‑origin goods). Many NZ goods will be duty‑free under CPTPP once origin is properly supported.
- Calculate Customs Duty: Apply the duty rate to the VFD. If CPTPP duty is 0%, your duty line may be zero.
- Calculate GST/HST (or GST+PST/QST): Apply the provincial rate based on the place of supply to the sum of VFD + duty.
- Total Import Cost: Duty (if any) + GST/HST/PST/QST = total tax and duty payable at import.
How to pay import taxes
You usually have two commercial choices for international shipping to Canada:
- Delivery Duties Unpaid (DDU): Your Canadian customer pays duties and customs taxes upon import. This can slow delivery and add friction.
- Delivery Duties Paid (DDP): You pay duties and taxes in advance so the shipment is delivered without extra charges on arrival. With DHL Express, you can streamline this via our ‘Duty Taxes Paid’ (DTP) option, reducing surprises and improving the delivery experience.
If you need a quick estimate before your checkout goes live, DHL My Global Trade Services (GTS) helps you identify HS codes and estimate landed costs up front, so you can display clear total prices.
Simplify your shipments to Canada with DHL Express
Canada is an attractive, high-value market for New Zealand brands. The CPTPP provides a critical duty-free advantage, but business success hinges on understanding the tax system (GST/HST) and maintaining accurate documentation. While customs can seem complex, partnering with a logistics expert like DHL Express ensures a smooth and efficient overseas delivery.
Open a DHL Express business account to access tailored solutions, cost-saving benefits, and dedicated support designed to elevate your shipping experience.
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