How to ship from the Philippines to Canada?

Canada is a key trading partner for the Philippines. In 2023, the Philippines exported $1.59 billion to Canada, marking a 6.47% annual growth over the past five years. This growth trajectory underscores a significant opportunity for Filipino businesses to expand their presence in the Canadian market. To successfully capitalize on this growth, having a fast, reliable, and efficient cargo shipping strategy is crucial.

This article will guide you through the process of shipping from the Philippines to Canada, covering everything from required documentation and customs procedures to choosing the right international courier service. You'll also discover how DHL Express can simplify the shipping process, offering fast delivery, expert support, and end-to-end tracking to help your business grow internationally with confidence.

Tips on shipping from the Philippines to Canada

The export landscape is constantly evolving, with new regulations and requirements emerging regularly. To stay competitive and ensure smooth delivery, exporters must follow standardized procedures and best shipping practices. 

Here are some practical tips to help you navigate the shipping process from the Philippines to Canada efficiently, compliantly, and with confidence.

1. Knowing what to ship to Canada

Identifying the right products to export from the Philippines to Canada is crucial for business success. In 2023, the Philippines exported $1.59 billion to Canada, with top products including insulated wires ($227 million), gold ($185 million), and integrated circuits ($138 million).¹ Beyond these high-demand items, emerging sectors like coconut oil have shown significant growth,² driven by Canada's demand for natural health and wellness products.

To capitalize on this opportunity, conducting focused market research is essential. Start with keyword tools like Google Keyword Planner to find trending product searches in Canada; terms like “organic shampoo” or “vegan skincare” can point to in-demand niches.

Next, utilize demographic and psychographic data to gain insight into your target market’s age, income, lifestyle, and values. This helps you tailor products to meet specific consumer needs. Competitor analysis is also key. Look for market gaps, products that are popular but lack local or eco-friendly options. Social media is another great tool to track trends and buyer behavior. Finally, consider conducting primary research, such as surveys or interviews, to gain direct insights from potential Canadian customers.

A strong example of successful market entry is SteelAsia Manufacturing Corp., the Philippines’ largest steelmaker. While primarily focused on the local market, SteelAsia has made significant strides internationally, exporting PHP1.5 billion worth of high-strength rebars to Canada since 2023.³ 

By understanding market demands, conducting diligent research, and learning from successful exporters, Filipino businesses can effectively tap into the Canadian market and drive growth.

2. Essential shipping documents required

To send a package from the Philippines to Canada, you must be familiar with the customs regulations of both countries and the shipping documents required. This will ensure that you provide customs officers with adequate information about the products you plan to ship. Philippines’ Bureau of Customs (BOC) stipulates that exporters have to prepare a list of documents, including a packing list, invoice, bill of lading, and export license. In order for goods to clear the Canadian borders, the Canada Border Services Agency (CBSA) mandates that a bill of lading, proforma invoice, insurance policy and customs declaration are required.

Here is a table of the key documents you’ll need when shipping from the Philippines to Canada:

3. Knowing which items are prohibited or restricted 

Prohibited items are goods that cannot be imported into Canada due to safety, security, or ethical concerns. These include items like counterfeit goods, obscene materials, hate propaganda, and goods made by prisoners. Other prohibited items include firewood, certain weapons (e.g., tasers, brass knuckles), radar detectors, and soil.

Restricted items, on the other hand, are goods that can be imported but require a special permit or license. These include food products like nuts, seeds, and fresh fruits, as well as firearms and vehicles. For example, importing restricted firearms into Canada requires a Possession and Acquisition License and Canadian Firearm Registration Certificate.

Both countries have different regulations, so exporters must be aware of the specific lists of prohibited and restricted goods for both the Philippines and Canada. In Canada, the Canada Border Services Agency (CBSA) provides detailed lists and guidelines for these goods. Ensuring compliance with these regulations will help avoid penalties, shipment seizures, and delays when sending packages to Canada.⁵

4. Calculating customs duties and taxes 

When importing goods into Canada from the Philippines, understanding customs duties and taxes is essential for accurate budgeting and compliance.

Customs Clearance Categories

• Informal Clearance: Applies to goods valued under CA$20. These shipments typically aren't subject to duties or Goods and Services Tax (GST).
• Courier Low Value Shipment (CLVS): For goods valued between CA$20 and CA$3,300, this program simplifies clearance but may still incur some duties.
• Formal Clearance: Applies to goods exceeding CA$3,300 or those requiring special permits. This process requires additional documentation, including import permits, certificates of origin, and licenses.

Estimating Duties and Taxes

The Canada Border Services Agency (CBSA) provides a Duty and Taxes Estimator tool to help importers estimate applicable duties and taxes. This tool considers factors like product category, country of origin, and value to provide an estimate.

Reducing Import Costs

To minimize duties and taxes:

• Classify Goods Accurately: Ensure your products are correctly classified under the Harmonized System (HS) codes to apply the appropriate duty rates.
• Leverage Trade Agreements: Utilize agreements like the Canada-Philippines Free Trade Agreement (CPFTA), if applicable, to reduce or eliminate certain duties.
• Maintain Proper Documentation: Keep detailed records and invoices to support the declared value and origin of goods.

For a comprehensive understanding of customs valuation, refer to the CBSA's Customs Valuation Handbook.

Choosing DHL Express for reliable and efficient deliveries

The last step is to figure out how to send these goods or services to Canada, i.e., planning for shipping logistics. This step is most critical as it determines the success of any export business. For instance, when exporting dangerous and hazardous goods, you will need an international courier service that offers expertise in customs regulations and guarantees safe delivery. 

DHL Express stands out as a global leader in international shipping. With our deep experience in handling time-sensitive shipments and navigating complex customs processes, we specialize in providing fast and secure services for Philippine businesses exporting to Canada. From on-demand delivery to seamless customs handling, DHL Express offers tailored solutions at competitive rates to meet your needs.

Sign up with us today to streamline your shipping process and ensure your goods reach Canada efficiently and securely.