How to Import Handicrafts from India into Canada in 2026: A Buyer's Guide

Oct 10

6 min read

Canada is a natural market for Indian home decor, block-print textiles and handmade gifts, but the import rules are different from the US or UK. Two points are worth knowing up front. Indian goods enter Canada at the standard Most-Favoured-Nation rates, and since October 2024 every commercial importer has to manage their own account in the CBSA's CARM system.

This guide sets out what a Canadian importer needs to know in 2026, step by step.

Step 1: Set up as an importer with the CBSA

You need a Business Number and an import-export program account before you import commercial goods. The CBSA says plainly: "You need a business number and an import-export program (RM) account before you import or export goods" (CBSA CARM).

Here is the usual sequence:

Get a nine-digit Business Number from the Canada Revenue Agency.
Use it to register a 15-digit import program (RM) account through the CARM Client Portal.
In the portal, enrol in the Release Prior to Payment (RPP) sub-program.
Post financial security with an approved provider (CBSA news release).

Why RPP matters: CARM has been live since 21 October 2024, and importers now have to post their own financial security to get release before paying duties and taxes. A broker's security no longer covers you. The CARM transition period ended on 19 April 2025. Importers without their own security lose electronic release before payment and face slower paper-based processing (CBSA news release). The security amount is based on your highest monthly accounts receivable in the past 12 months, including GST.

Tip: The CBSA recommends that at least two people in your business hold the business account manager role in CARM, so you don't get locked out (CBSA CARM). If you use a licensed customs broker, you still delegate their access through the portal.

Step 2: Understand India's tariff treatment

India trades with Canada on Most-Favoured-Nation (MFN) terms, the standard basis Canada uses with its major trading partners. When Canada updated its General Preferential Tariff (GPT) list from 1 January 2015, India moved to MFN treatment along with a long list of other countries (Canada Gazette, SOR/2013-161). The CBSA's 2026 list of countries and tariff treatments confirms MFN treatment for India (CBSA list of countries, 2026).

In practice:

Indian handicrafts pay the MFN rate in the Customs Tariff.
No preferential proof of origin is needed. Simply declare India as the country of origin correctly.

Indicative MFN rates for common products (2026 Customs Tariff)

Product	Tariff item	MFN rate
Printed cotton bed linen	6302.21.00	17%
Cotton table linen	6302.51.00	17%
Cotton curtains	6303.91.00	17%
Other cotton furnishings (not knitted)	6304.92.90	17%
Ceramic tableware, kitchenware (non-porcelain)	6912.00.90	7%
Ornamental ceramic articles	6913.90.90	6.5%
Wooden tableware and kitchenware	4419.90.00	6%
Wooden statuettes and ornaments	4420.19.00	6%
Wooden boxes, caskets and similar	4420.90.00	7%

Sources: Customs Tariff Chapter 63, Chapter 69 and Chapter 44. Final classification depends on the material and construction of each item, so confirm it with your broker. Our guide to documents and HS codes explains how classification works.

Step 3: Budget for GST

The CBSA collects GST at import along with any duty. GST or the federal part of HST is calculated on the Canadian-dollar value of the goods, including duty and excise tax. The importer of record pays it (CRA: GST/HST on imports). The GST rate is 5% (CRA rates).

If you are importing commercial goods into an HST province, the provincial part of HST is generally not payable at the border, but you may need to self-assess it.
GST/HST registrants can usually claim an input tax credit for the tax paid on imports, subject to the normal rules (CRA: GST/HST on imports).

Step 4: Label textiles before they arrive

Canada's Textile Labelling Act applies to consumer textile articles. It prohibits a dealer from importing them without a disclosure label (Competition Bureau guide). The basics are:

Fibre content: generic fibre names with percentages, for fibres making up 5% or more of the total.
Bilingual: fibre information must appear in both English and French.
Dealer identity: your company name and mailing address, or a CA Identification Number.
Permanence: bed linens, towels and draperies need permanent labels that survive 10 cleanings. Table linens can use non-permanent labels (Competition Bureau summary).

Curtains need a permanent label. Table cloths, runners and napkins, and the outer coverings of cushions, may use non-permanent labels. Handbags, luggage and carrying cases appear on the exempt list (Competition Bureau guide). If goods arrive incorrectly labelled, a dealer can re-label them in Canada, but only after notifying the Competition Bureau at or before importation.

This is where private labelling at source helps. Labels made in India to your specification can carry your CA number and bilingual fibre content. See our Sanganeri block print textiles guide for product details.

Step 5: Meet CFIA rules on wood

There are two separate sets of rules: one for packaging and one for the products themselves.

Wood packaging (pallets, crates, dunnage): CFIA Directive D-98-08 (11th version, effective 1 April 2026) requires wood packaging from outside the continental US to be:

made of debarked wood,
treated by an approved method,
marked with the IPPC mark.

Plywood, particle board and other processed wood are exempt. Non-compliant packaging can be ordered treated or removed from Canada (CFIA D-98-08). Our ISPM 15 packing guide explains the mark.

Wooden products: CFIA Directive D-02-12 covers decorative wooden items and handicrafts.

Exempt: completely finished wooden handicrafts that are bark-free and made entirely from processed wood, and dried, bark-free handicrafts with wooden components of 1.5 cm or less.
Not exempt: items with bark, or with thicker non-processed components, must be treated and carry a phytosanitary certificate.
Always: exempt goods must still be free of pests and soil, and they can be inspected on entry (CFIA D-02-12).

Finished, polished Saharanpur carvings will usually be in a different position from rustic pieces with bark, so check each design.

What about an India–Canada trade agreement?

Canada and India are negotiating a Comprehensive Economic Partnership Agreement. Four negotiating rounds had been completed by September 2026, and both sides say they aim to conclude by the end of 2026 (Global Affairs Canada, 21 September 2026). A fifth round was scheduled for 5–9 October 2026 (Global Affairs Canada, 2 October 2026).

Until an agreement is signed and in force, MFN rates apply. Plan your costings on today's rates and treat any future preference as an upside. For the wider picture, see India's trade agreements in 2026.

This guide is general information, not legal advice. Confirm the details for your shipment with your customs broker or the relevant regulator.

FAQ

Which tariff rate applies to Indian handicrafts in Canada?

The standard MFN rate in the Customs Tariff, confirmed by the CBSA's 2026 country list. India and Canada are negotiating a trade agreement that could improve this further.

Do I need my own CARM account if I use a customs broker?

Yes. To get release before paying duties and taxes, you need your own RM account in CARM, enrolment in RPP and your own financial security. A broker's security no longer covers this.

Do cotton bags need Canadian textile labels?

Handbags, luggage and carrying cases are on the Competition Bureau's exempt list. Bedsheets, curtains and table linen are covered, so check each product type with your broker.

Do wooden handicrafts need a phytosanitary certificate?

Not if they are completely finished, bark-free and made from processed wood. Items with bark, or with thicker unprocessed wood, need treatment and a certificate under CFIA D-02-12.

Working with Kraft Bharat

Kraft Bharat, the export brand of Giftofy Corporation, supplies:

Jaipur blue pottery
Saharanpur wood carving
Sanganeri block-print textiles
Epoxy resin and wood homeware
Quilted, patchwork and Banjara embroidery bags

We work with importers, wholesalers, retailers and online sellers. We can produce custom labels to your specification, including bilingual fibre content and your CA number, and we provide full export documentation. MOQs start around 500 pieces depending on the product, samples are paid, and production lead time is about 30–45 days. Contact us through kraftbharat.com to discuss your range.