Expanding into Canada is one of the most natural first steps for U.S. ecommerce brands. The geography is favorable, consumer behavior is familiar, and English is the primary language in most provinces.
For brands looking to expand their market and go global, it can be a challenge to take on the myriad of regulations and restrictions. And shipping personal care products to Canada is no exception. However, there is ample opportunity for brands to go global, estimate landed cost, and more clearly understand trade regulations.
We have compiled a simple list of Do’s and Don’ts for your brand to tackle importing cosmetics and personal care products to Canada.
How Canada Classifies Personal Care Products
Before getting into do’s and don’ts, it’s worth understanding how Health Canada classifies personal care products, because the classification determines the entire regulatory pathway.
Under Canada’s Food and Drugs Act, a personal care product may fall into one of three regulatory categories: cosmetics, drugs, or natural health products. Which category applies depends on how the product is represented for sale and its composition.
In practice, this means:
- A moisturizer that simply hydrates skin → cosmetic, governed by the Cosmetic Regulations
- A moisturizer that claims to treat eczema or a skin condition → likely a drug or natural health product, requiring a Drug Identification Number (DIN) or Natural Product Number (NPN)
- A supplement, probiotic, or vitamin-based product → natural health product (NHP), requiring an NPN before it can be sold in Canada
Each NHP must be approved by Health Canada and receive a Natural Product Number (NPN) before being sold. Claims must reflect general health maintenance or symptom relief, and the product must meet quality, safety, and efficacy standards.
Getting this classification right before you ship is not optional. Misclassifying a product can result in customs holds, removal from sale, or enforcement action. See Passport’s guide to Shipping Cosmetics to Canada for more details.
Do: Check the Health Canada Cosmetic Ingredient Hotlist Before You Ship
If your products qualify as cosmetics, ingredient compliance is the first and most critical regulatory check.
Health Canada maintains the Cosmetic Ingredient Hotlist. This is a list of substances that are either prohibited for use in cosmetic products or restricted to specific concentrations or conditions of use. The Hotlist is enforced under the Food and Drugs Act and the Cosmetic Regulations.
What this means for your brand: Screen every SKU against the current Hotlist before launching in Canada, and re-screen whenever you reformulate or when Health Canada publishes an update. Subscribe to Health Canada’s cosmetics mailing list to receive update notices automatically.
Do: Understand How GST and HST Apply to Personal Care Imports
Taxes on personal care products and other goods shipping into Canada are not uniform since they depend on the destination province and the method of shipment.
Any item imported into Canada may be subject to customs duties as well as taxes like the Goods and Services Tax (GST), Harmonized Sales Tax (HST), or Provincial Sales Tax (PST). For items imported by mail (postal shipments), duties and taxes will apply if the value exceeds the CAD $20 postal de minimis threshold. The CBSA calculates duties based on the customs value of the goods, and duty rates vary by product type (HS code) and the country of origin.
For courier shipments specifically, the USMCA (United States-Mexico-Canada Agreement) established split de minimis thresholds: for goods imported into Canada from the U.S. or Mexico by courier, taxes (GST, HST, or PST) will be payable if the goods are valued over CAD $40, while customs duties will be payable if the goods are valued at CAD $150 or more.
Don’t: Surprise Your Canadian Customers With a Bill at the Door
One of the most common and most avoidable mistakes U.S. brands make when entering Canada is shipping under a Delivered Duty Unpaid (DDU) model — meaning the customer is responsible for paying duties and taxes upon delivery.
For personal care products, where orders are often $30–$80, a surprise customs bill of similar or greater magnitude at the door creates a terrible customer experience. It leads to refused packages, higher support volume, negative reviews, and lost repeat customers.
The alternative is a Delivered Duty Paid (DDP) model, where duties and taxes are calculated and collected at checkout. Customers see the full landed cost before they buy, and there are no surprises at delivery.
Do: Check CUSMA Eligibility to Reduce or Eliminate Duties
Not all personal care products shipped from the U.S. face duties in Canada, but it is critical to understand that tariffs are based on where a product was manufactured, not where it ships from.
Under the USMCA (CUSMA), goods that are manufactured in North America and qualify as originating in the U.S. or Mexico may enter Canada duty-free. Courier shipments from the U.S. or Mexico benefit from elevated USMCA de minimis thresholds, allowing them to enter duty-free if valued under CAD $150 (and tax-free under CAD $40). However, for goods that exceed this $150 CAD threshold, securing the proper supporting documentation to confirm USMCA originating status can reduce or completely eliminate the duty component of the landed cost.
This distinction matters significantly for personal care products, where duty rates vary heavily by product type and HS code a point Passport covers in depth in its HS code classification guide.
Don’t: Register as a Non-Resident Importer (NRI) Unless It Actually Applies to You
Registering as a Non-Resident Importer (NRI) allows a U.S. business to act as the Importer of Record (IOR) for Canadian shipments, but it is not always the best strategy for direct-to-consumer (DTC) brands.
As Passport’s Canada NRI guide explains, operating as an NRI makes the most sense for brands with B2B channels (such as wholesale or retail distribution) or those importing bulk inventory into Canadian warehouses. For pure DTC brands shipping parcel-by-parcel from the U.S., voluntarily becoming an NRI forces merchants to consolidate the value of all shipments, effectively eliminating duty-free de minimis advantages and introducing heavy commercial compliance obligations, such as CARM registration and security deposits.
Don’t: Treat GST Registration the Same as Tax Liability
A common misconception among U.S. brands is assuming they need to register for a GST/HST ID simply because they are selling to Canadian consumers. For most U.S. direct-to-consumer (DTC) brands shipping from the U.S., GST and applicable provincial taxes (HST/PST) are collected at the border or during customs clearance, meaning the brand does not need to independently register for a Canadian tax number.
In Canada, tax registration is generally only required if a brand holds inventory in Canada, has a physical place of sale in Canada, or exceeds the specific registration threshold of CAD $30,000 in annual sales.
Passport’s compliance resources explain that maintaining a standard DTC model without GST registration is often the simplest approach, while voluntary registration (such as becoming a Non-Resident Importer) introduces significant tax and operational obligations.
Passport’s Canada HST and GST guide covers when registration is and is not required for U.S. ecommerce brands.
Do: Model the Full Landed Cost Before Launching
Passport’s landed cost calculator guide walks through how to accurately model the total import cost, which includes the product cost, freight, customs duties, taxes, insurance, brokerage fees, and handling, so your pricing remains competitive and customers are never surprised by hidden fees at delivery.
How Passport Can Help
Shipping personal care products to Canada involves more regulatory touchpoints than most categories — product classification, ingredient compliance, labeling, customs documentation, GST and HST, NRI decisions, CARM registration, and landed cost modeling.
Passport helps U.S. beauty and personal care brands navigate all of it. From compliance services and HS code classification to DDP shipping and Seller of Record solutions, Passport’s team helps brands enter the Canadian market correctly — and scale from there.
Contact Passport to review your catalog, map your compliance requirements, and build a Canada go-to-market strategy that protects your brand and your margins.
Frequently Asked Questions
Do I need to notify Health Canada before selling personal care products in Canada?
Yes. Under Section 30 of the Cosmetic Regulations, manufacturers and importers must notify Health Canada within 10 days of the first sale of a cosmetic in Canada. Failure to do so may result in the product being denied entry or removed from sale.
What is the Health Canada Cosmetic Ingredient Hotlist?
The Cosmetic Ingredient Hotlist is Health Canada’s official list of ingredients that are prohibited or restricted in cosmetics sold in Canada. It is updated periodically and must be checked against your full ingredient list before entering the Canadian market.
What is the difference between a cosmetic, a drug, and a natural health product in Canada?
Under Canada’s Food and Drugs Act, a personal care product may fall into one of three regulatory categories: cosmetics, drugs, or natural health products. Which category applies depends on how the product is represented for sale and its composition. Products making therapeutic claims generally require a DIN or NPN rather than a cosmetic notification.
How are GST and HST calculated on personal care shipments to Canada?
Unless specifically exempted, the 5% GST applies to most items imported into Canada. The CBSA calculates duties based on the value of goods in Canadian funds, and duty rates vary by product type and country of origin. Provincial tax rates on top of GST vary by province. See Passport’s Canada GST and HST guide for a full breakdown.
Should I ship to Canada DDP or DDU?
For most personal care brands selling DTC, DDP is strongly recommended. It eliminates surprise charges at delivery, reduces refused packages, and creates a better customer experience. See Passport’s DDP vs. DDU guide for a full comparison.
Do I need to register as a Non-Resident Importer (NRI) to sell to Canada?
Not necessarily. Most DTC brands shipping parcel-by-parcel from the U.S. do not need NRI registration, and registering when it is not warranted can reduce de minimis eligibility and increase compliance obligations. See Passport’s Canada NRI guide for a full assessment.
