Is DDP from China legal for Canadian importers?

Legal, when someone registered imports the goods

A DDP (delivered duty paid) quote means the Chinese supplier or its forwarder delivers to your door with Canadian duty and tax already paid. Canada allows it. Somebody still has to be the importer of record: a business with a business number and an import-export (RM) account in CARM that declares the goods, pays CBSA and answers for the declaration. A non-resident business can hold that account; it gets its business number from the Canada Revenue Agency. That is how DDP goods arrive without your own CARM enrolment.

The question to settle is who that importer of record is. If the forwarder declares the goods in your name, you are the importer and every obligation is yours, even though you never saw the declaration.

The GST input tax credit needs the import papers

A GST-registered business claims the 5% GST paid at the border back as an input tax credit. When the supplier is the importer of record, the GST is paid in the supplier's name. The Canada Revenue Agency lets the Canadian buyer claim it only with a copy of the import documentation showing the GST paid. A DDP price with no customs paperwork leaves that GST as a cost you cannot recover; on a C$10,000 shipment of coffee makers it is C$545.

Under-declared value is the importer's problem

Duty and GST are charged on the value for duty, which starts from the price paid for the goods. A forwarder that declares a lower value to cut its own costs makes the declaration false. The importer of record has to correct a wrong value within 90 days of having reason to believe it is wrong and pay the duty owed with interest, for up to four years after the goods were accounted for. When you are the importer, that bill comes to you.

A DDP invoice that includes freight, duty and tax in one price also hides the value for duty. Canadian valuation removes the freight from the place of export to Canada, and removes duties and taxes when they are shown separately on the invoice. Ask for each on its own line.

Forwarder quote checklist

1. Who is the importer of record, with the legal name, business number and RM account on the declaration?
2. Will you receive a copy of the CBSA accounting declaration showing duty and GST paid?
3. Is the declared value the price on your invoice, in Canadian dollars?
4. Which 10-digit tariff number is declared, and does it match the duty calculator rate for your product?
5. Does the price include duty, any China surtax or anti-dumping duty, GST and brokerage, and who pays if CBSA reassesses?
6. Is delivery to your address included, and is the cargo insured to its full value?
7. Are freight, duty and tax listed separately from the goods on the invoice?

A supplier whose terms are FOB or EXW leaves the import to you; the CARM step-by-step guide covers that route.