A US brand entering Canada should plan on one customs broker, one importer of record and one warehouse node close to its heaviest demand, and the node costs $1.40 to $2.00 per square foot per month all-in in Toronto and $1.65 to $2.40 in Vancouver (Warehouse Bridge network data, Q2 2026). Brands that do not need a full lease can instead pay $13 to $24 per pallet per month in Toronto and $14 to $28 in Vancouver. The duty and tax side is mostly paperwork: a broker clears the goods, CUSMA may reduce duty on qualifying products, and GST or HST is assessed at the border.
What does the first node cost in Toronto vs Vancouver?
The table below shows the Warehouse Bridge rate bands for the two cities most US brands consider first. Rent is all-in, meaning net rent plus TMI (taxes, maintenance and insurance), per square foot per month.
| Cost item | Toronto / GTA | Vancouver |
|---|---|---|
| Warehouse rent, per sq ft per month, all-in | $1.40 to $2.00 | $1.65 to $2.40 |
| Pallet storage, per pallet per month | $13 to $24 | $14 to $28 |
| Pallet handling, per move in or out | $7 to $13 | $8 to $14 |
| Pick, pack and ship, per order | $2.50 to $4.50 | $2.75 to $5.00 |
| Cross-dock, per container | $325 to $450 | $350 to $500 |
| Industrial vacancy | 1.5% to 3% | 1% to 2.5% |
For a dedicated lease, a 25,000 square foot unit works out to $35,000 to $50,000 a month in Toronto and $41,250 to $60,000 in Vancouver, before labour, racking or equipment. For most first-year brands, pallet-based pricing is the better fit because you pay for the space you use. The full Toronto and Vancouver pages are at warehouse space in Toronto and warehouse space in Vancouver, and the head-to-head is in Toronto vs Vancouver fulfillment.
Where should the first node go?
Put the first node where most of your Canadian orders and your inbound freight are. For truck freight coming up from the US, Toronto is the usual first stop, because Ontario and Quebec carry the largest share of Canadian e-commerce demand and the Brampton and Mississauga corridor is the logistics hub. Vancouver makes sense when the product arrives by ocean container through the port, or when the customer base is concentrated in British Columbia and the western provinces.
Vacancy is the other constraint. Both cities are tight, and Vancouver is the tighter of the two, so a brand that waits until it needs the space may find fewer options. That is one more reason to start with pallet storage inside a shared facility and move to a dedicated lease once volume is steady.
A second node is a later decision. Most brands run one Canadian node for the first year, then add a second city once order data shows where the delivery times hurt.
Do you need a customs broker?
In practice, yes. A licensed Canadian customs broker files the customs declaration, classifies each product by HS code, pays duty and tax to the Canada Border Services Agency on your behalf, and gets the goods released. Classification errors are the common source of delays and reassessments, so this is not a step to improvise.
Brokers charge by the entry or by the shipment, and the amount depends on the number of lines, the commodity and the port. We do not publish a broker rate because it is not part of the Warehouse Bridge network data. Ask two or three brokers for a written fee schedule before the first inbound.
If you do not already have a Canadian entity, a non-resident importer arrangement lets a US company act as importer of record without incorporating in Canada. Your broker will tell you what registrations they need. This is a general description and not legal advice; confirm the setup with a broker or a trade lawyer.
DDP or DAP: who pays duties?
DDP means delivered duty paid. The seller pays duties, taxes and brokerage, and the Canadian buyer pays nothing extra at delivery. DAP means delivered at place. The seller delivers to the destination and the buyer pays duties and taxes on arrival.
Parcel-by-parcel cross-border shipping tends to push buyers into DAP, and that is where surprise charges at the door come from. Shipping DDP fixes the customer experience but puts every order’s duty and tax on your books.
Holding stock in Canada changes the question. You import a pallet or a container once, as a commercial entry, clear it through your broker, and then ship domestic orders from the warehouse. Customers see a normal Canadian delivery with no border charge, because the border was crossed before the order existed. The cross-border mechanics are laid out in cross-border fulfillment from the US to Canada.
How does CUSMA affect your duty bill?
CUSMA is the Canada-United States-Mexico Agreement. Goods that qualify as originating in a member country may enter Canada at a reduced or zero duty rate. Qualification depends on the product’s rules of origin, not on where the goods shipped from. A product made in a third country and only packaged or labelled in the US generally does not qualify.
To claim the preferential rate you need a certification of origin that carries the data CUSMA requires, and your broker needs that information before the entry is filed. Keep the supplier records that support the claim, because the Canada Border Services Agency can ask for them after the fact.
Duty rates differ by product, so do not assume your category is duty free. Your broker can tell you the rate for your HS code with and without CUSMA before you commit to a launch.
How does GST work at import?
GST or HST is assessed at import on the value of the goods plus any duty. The federal GST rate is 5%, and harmonized provinces charge HST of 13% to 15%. The tax is due at the border, which means it is a cash outlay on every inbound shipment.
A brand that registers for GST/HST can generally claim input tax credits on the tax paid at import. Without a registration, that tax becomes a cost. Registering before the first shipment is simpler than recovering the tax later.
Quebec and Manitoba have provincial sales tax rules of their own. If your first orders ship to those provinces, ask your accountant how provincial tax is collected and remitted.
What does a first import look like end to end?
A typical first import has five steps:
- Choose the node city and confirm pallet or lease pricing in writing.
- Appoint a customs broker and settle the importer-of-record setup.
- Register for GST/HST and confirm the HS codes and CUSMA status of each product.
- Ship a first pallet or container, with the broker clearing it before it reaches the warehouse.
- Receive, put away and route a small share of Canadian orders from the node before moving all of them.
Cross-dock and container handling at the warehouse are priced per container, at $325 to $450 in Toronto and $350 to $500 in Vancouver (Warehouse Bridge network data, Q2 2026). Brands bringing ocean freight through the west coast should also read Vancouver import container programs.
How to get a real number
The bands above are market ranges, not quotes. Your cost depends on pallet count, SKU count, order profile and how fast the stock turns. Send your volumes through the quote form and we will return pricing from pre-vetted facilities in the city you pick. If you want to read the market first, the Toronto and Vancouver pages show current rate bands and what is available.