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Canada Customs Duty and Taxes and Classification of Goods – Canada Customs Duty

Customs Duty is basically a tax or tariff on foreign goods being imported. The amount of duty on a particular commodity is based on the H.S. Code and the Tariff Treament applicable.

The H.S. Code is set under the Harmonized Description and Coding System as developed and agreed upon by the World Customs Organization. Almost all countries of the trading world belong to the WCO and the first 6 digits of the code are universal. The remaining 4 digits of a total of 10 digits that make up the HS Code can be unique from country to country. These codes, duty rates and tariff treatments available are listed in the Customs Tariff linked here for Canada.

The Customs Tariff identifies commodities by sections, 21 in all. Each of these sections is divided by chapters. Chapters are numbered 1-99 and have a heading based on type of goods or material/composition. i.e Section I is titled “Live Animals; Animal Products” and within Section I are chapters 1-5, chapter 1 being titled “Live Animals”, chapter 2 “Meat and edible meat offal”, and so on…

The key to classifying your goods correctly is to follow the “General Rules for Interpretation of the Harmonized System“. There are 6 universal agreed upon rules and 3 Canadian additions. You can read about the GRI linked here for more detail.
The most important rule in my opinion and one that many people get wrong is Rule number 1. That is …”classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such heading or notes do not otherwise require, according to the following provisions…(goes on to rule 2).

The basic meaning of this rule is that you must classify according to the headings if one exists…the most accurate being the correct choice. So for example, if you purchased a hand made wool carpet while on vacation and had it shipped back to Canada and wanted to figure out how much duty would be owing on the item, you would not classify it as wool, or wool fabric. It would also be incorrect to try and classify it as just as wool carpet. A quick look of the headings under Chapter 57 for Carpets and Other Textile floor coverings would result in seeing that the chapter distingushes between “machine knotted” and “other” carpets when it comes to those made of wool. Thus, the correct description of which a heading exists is “carpets, or wool or fine animal hair, other” and the corresponding HS code would be 5701.10.90.00 with a duty rate (for the Most Favoured Nation Tariff 02) of 13%. Now, if the purchased carpet was manufactured in country that qualified for a Tariff Treatment like GPT (general preferntial tariff 09) i.e. Pakistan and you had either a certificate of origin or statement from the exporter in the prescribed format, then the duty rate is usually lower. So make sure to check to see if your goods qualify for a lower rate. It is suprising how many seasoned importers and brokers make this basic mistake.

Classifying correctly is key to paying the correct amount of duty and to avoid administrative monetary penalties (AMPS) or worse, seizure action of your goods and even criminal charges if the value for duty evaded surpass specific thresholds. In the event that you cannot find a classification that fits, you should request an Advanced Ruling. Here is the link on how to make such a request and here is a link for advanced rulings that have already been made. Check there before you request one.

The second key part to assessing duties and taxes is to understand Tariff Treatments (TT). The roughly 200 countries that are members of the WCO are assigned different TT by Canada. Canada also has trade agreements in place with specific countries that qualify for a lower rate of duty to no duty at all. I.e. with US and Mexico, Canada has NAFTA (North American Free Trade Agreement) which has eliminated duty on goods imported within the 3 countries. Canada also has free trade agreements with Israel, Costa Rica, Peru, Chile, Panama, Jordan, and European Free trade association (Iceland, Lichtenstein, Norway, and Switzerland). Just because there is a free trade agreement does not mean that all duties are eliminated. Some agreements cover only specific commodities and can be phased in over a period of time. A list of our free trade agreements and the details and what they cover is linked here.

Goods from countries with no free trade agreements with Canada but are a member of the World Trade Organization, by default, qualify for Tariff Treatment 02 or the Most Favoured Nation tariff (MFN). However, some goods from these countries can qualify for other Tariff Treatments which carry a lower rate of duty than MFN. For example TT 09 – GPT or General Preferential Tariff, can on certain commodities reduce the duty by a few percent or completely to zero. It varies from commodity to commodity. Linked here is page from the CBSA website with guides and forms for Tariff Treatments and Free Trade Agreements. And linked here is the list of countries and the applicable tariff treatments.

*Please note that goods that have import restrictions to Canada usually do not qualify for reduced duty rates under any TT and usually default to MFN and often require permits and have high duty or excise taxes associated. i.e Steel products, dairy, textiles, meat, etc.
*Also please note the requirements of the forementioned link for how origin of goods are determined and the required certificate of origin or statement from the exporter used as supporting proof to use a TT with a lower duty rate of the goods qualify.

So once you’ve figure out what HS classification code is correct, the origin of the goods and then what tariff treatment or free trade agreement applies you should usually use the ad valorum method of declaring the value to Customs…which is the final purchase price/cost not including freight/shipping charges (only from the where the goods left the foreign country and arrived in Canada). I.e.  Wool Hand knotted Carpets from Pakistan so TT 02 would have 13% duty associated but you have a certificate of origin from Pakistan so the goods qualify for TT 09 at lower duty rate of 10%. A savings of 3%! Which can add up if you are a commercial importer…but even if this a one time import, 3% can make a difference as Sales taxes are calculated based on what you purchased the goods for plus duty. So if the carpet was $1000, then duty would be $100 under TT 09 GPT and sales tax (GST/HST) is assessed on $1100.

If this is a personal importation than PST could also apply depending on province of residence. In Ontario and B.C. where the HST has come into force, the cost would be Duty and HST. If the import is a commercial import than only duty and GST would apply.

The only other tax that may an importer may incurr is Excise duty or tax. This is usually associated with Alcohol and tobacco. Check out this link here for the excise rates. Also, on importations of vehicle there is a $100 tax if your car has airconditioning and a green levy tax if its a gas guzzler…check out my previous post on importing vehicles for the details.

I hope this post helps clarify the duties and taxes on imported good to Canada. If you have any questions please post, tweet or email me.

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71 Responses to Canada Customs Duty and Taxes and Classification of Goods – Canada Customs Duty

  • Ankit says:

    Question 1)

    What if you find out after a few shipments that you had been mis-classifying the goods you had imported? Turns out that you have paid less duty than required due to this misclassification, and these are items that you import regularly. Should you ignore those earlier shipments and start correctly classifying the new imports? Or go back to CBSA, admit your mistake due to a lack of knowledge, and pay the difference in duties on the old shipments.

    Question 2) You import goods and pay duty and GST based on the value of the goods.

    a) The goods turn out to be unusable and the supplier credits you back for the invoice or reduces the price of the goods.

    b) You find out after bringing the goods to your warehouse that the quantities listed on the supplier invoice are wrong (either more or less).

    What are you supposed to do in the above cases?

    Thanks

  • Customs Info says:

    Hi Ankit,

    As per questions 1. technically you should declare your mistake on a adjustment request – Form B2. here is the link to the instructions http://cbsa.gc.ca/publications/dm-md/d17/d17-2-1-eng.pdf
    You could choose not to declare it but you would risk an audit in the future and pay any penalties owing as well as interest on the duties payable.

    Question 2a) You can try submit a B2 for this too but if the goods are not damaged and not exported then I don't know if you would have a case…but I don't know for sure. Try.

    Question 2 b)This one for sure submit a B2 with proof and an explanation. i.e. invoices, letter from the exporter etc.

    I hope this helps

  • Anonymous says:

    I have a question regarding the shipping of items abroad for services and then having them shipped back to Canada.

    I have a hockey card collection of which I plan to send 100 of the most valuable cards to a professional grading service in the U.S.

    While I have no problem possibly paying HST on the value of the services they will provide evaluating the cards, my concern is avoiding duty on the value of the items when they ship them back to me.

    They claim they use USPS Global Express all the time and Canadians aren't subjected to customs/duty, but all I have is a verbal assurance from a junior employee and I'm afraid of taking a chance that they are not correct. Or that there are steps that need to be followed that I want to be aware of.

    Can you assist me please?

  • Customs Info says:

    Hi, thanks for visting my blog.
    If the company in the US uses USPS then there is a possibility that you would be charged by Customs at Canada Post for the taxes on the value of the cards. But don't worry there is recourse.
    Firstly,if you can…request that the company include a folded invoice on the outside of the package showing what you were charged for grading and that the cards were sent from you in Canada.
    Secondly, keep the export documents…shipping receipt from whichever courier or postal service you use to send the cards.
    and lastly you can go to your local customs office and have a form y38 completed which documents canadian goods or duty paid goods. Its basically a small card that customs will fil out with information on what you plan on exporting, make, model, serial numbers, description…so I.e. 1 wayne gretzky rookie card etc… This is your proof so that if you reimport something you are not charged duty or taxes on something you have already paid on.
    So like I mentioned, if you are charged incorrectly because the invoice did not indicate clearly or was not read, then you can submit a B2 for a refund attaching your proof…the export docs, and a copy of the Y38 etc. If its canada post, on the back of the form e14 attached to the package are instructions on how to apply for a refund.

    I hope this helps.

  • Chloe says:

    Can you tell me how I would calculate the duties, fees and taxes on a Kindle e-reader? My cost would be $140. I would be going to Ontario from the US.

    This would be for a gift for someone in Canada but I know that the cost of the gift without taxes,duty, etc. cannot exceed $60.

    I did some reading on some of your links but could not determine how cost is calculated.

  • Customs Info says:

    Kindles and E-reader like it are most likely classifed under HS code 8543700000 and are not suject to duty. You would have to pay HST though on the remaining $80 after deducting the $60 exempion under tariff 9816.

    I hope this helps Chloe…thats a nice gift!

    CI

  • Chloe says:

    Thank you so much for clarifying! Happy Holidays!

  • John Wayne says:

    I just returned from a one day trip ( more than 24 hours ) from the US from a business trip. As I am not a frequent shopper there I was surprised that the customs charged us taxes on the full amount not on the value of the product. That is that I paid taxes on taxes. Is this legal? Can anyone point me to the article where this type of taxation is described.

    Thank you,
    John

  • Customs Info says:

    Hi John,
    Thanks for the post. Unfortunately the value for duty and taxes to be assessed upon does include any sales taxes you paid. On the flipside you may be able to recoup the sale tax paid in the US. Many states have this program of refunds to encourage tourism. In Canada, tourists can apply for a GST refund too. From what I understand it varies from state to state. Yes it does seem unfair but I guess that it is meant to encourage buying local.
    You should have received your personal exemption and had $50 cad deducted from your value for tax.
    As for legislation you can read the customs act section here http://laws-lois.justice.gc.ca/eng/C-52.6/page-1.html
    basically it says that duty (and taxes) are calculated primarily using the transactional method which is whatever it cost to acquire the goods.
    I hope this helps
    CI

  • John Wayne says:

    Hi CI,

    Thank you for your answer. I am not a regular US buyer, therefore I was taken by surprise, especially that the purchase was an occasion and it was not planned. It is Christmas time and It looked like that the customs are on a high alert.
    They gave me a booklet in which it is stated: " If the goods you bring in are worth more CAN $50 in total, you cannot claim this exemption. Instead your have to pay full duties on all goods you bring in". It appears according to the above that no exemption is allowed, so even if you co over with one cent to $50.01 you have to pay it in full.

    It is interesting to find out how can I get the tax back from NY state, however, the amount is not that high so I don't think that it is worth it this time, but it is good for the future. The amount is not that high, but the frustration is.

    Thank you again for your answer.

    On another note, I did not like how the Canadian customs officers treated us at the border. They treated us like criminals. I guess that they deal all day long with people trying to trick them and they lost their manners. What triggered the search was the fact that I said that I have no alcohol and cigarettes and that I was gone for less then 48 hours. I guess this is a red alert for them. In regard with your comment that it is not fair, I would go even further, it is an abuse. If they want to encourage you to shop local, which I mostly do, there are many other means and not by harassing people.

    Regards,
    John

  • Customs Info says:

    Hi John, yes you are correct…or the booklet…the 24 hour exemption is the exception. If you are gone at least 48 hours the exemption is deducted from your taxable amount.
    As for your bad experience at border…it is a shame that some of us treat fellow human beings in this way. Please do not judge us all the same. Also, we are human too, we have bad days, we are not perfect.
    I try to go in to do my job with the attitude that I am here to help Canada and Canadians and other human beings of regardless of their backgrounds just for being people.
    Sometimes, I admit that when I have dealt with one issue after and another…and then I have a member of the public that is adversarial or underhanded or talks down to me…it takes all my patience to remain professional as possible. What usually works for me is that I know that this is not personal. People are human, they are tired, feel overtaxed (I know I do lol), and some don't like any kind of authority…who knows…maybe they just go divorced or lost their job…
    Anyway, I am not perfect…I try to do my best…most of the time…lol…I just hope that my fellow Canadians can extend the same courtesy to me that I try to give them.
    John, I hope you have a better experience next time.

    Cheers
    CI

  • John Wayne says:

    Hi CI,

    Thank you for your kind words. I did not take it personally as I saw that everyone was treated like that. There is a trend, which probably should be reversed. The presumption of innocence is not applied. Partially I understand the "deja vu" scenario makes the customs personnel to be suspicious, but a higher level of politesse will not hurt anyone. If fraud is proven then I don't complain, otherwise I expect apologies.

    Next time? Who knows when is going to be? Last time I traveled to US in 2002. Following the pattern perhaps in 2018 :-)

    Cheers,
    John

  • Anonymous says:

    i bought a watch online. payed duty and taxes. then i sent the watch back because i didnt like it .can i get duty and taxes back

  • Customs Info says:

    Yes you can if you can provide proof that you paid and that you returned it. you can submit a form B2G with any documentation you have that proves you sent it back like an export waybill or receipt from the courier service you used.

  • Anonymous says:

    Can you confirm that the method of valuation used by Canada Customs is the transaction method?

    For example, I want to buy an item on ebay that is selling for $100.00 US. The transaction will cost $100.00 US plus shipping. The item is not made in the US so duty and of course taxes would apply. Is $100.00 the transaction value?

    Now, if the $100.00 item was made in the US, please confirm that duty would not apply but taxes would.

    Also, does Canada Customs make a distinction between new and used items?

  • Customs Info says:

    Yes the primary method of valuation used is the transaction method.
    In your example duties would apply to the 100 and taxes to the value of duty and the 100 combined.
    If made in the US then only taxes would apply to the 100.
    Generally speaking there is no distinction except for certain goods like clothing as far as classification goes that I am aware of. E.g. a used car is classifed the same as a new one and carries the same rate of duty and taxes.

    I hope this helps
    CI

  • Anonymous says:

    I am located in Ontario and purchased a pair of boots from an online US retailer. I pre-paid $130 in duty when they were shipped to me. I ended up returing the boots – is there a process I can follow to recoup that duty paid? I have a confirmation pdf from the US retailer confirming the item returned, amount of duty paid, etc.

    Thank-you in advance for any info you might provide!!

    Signed – Online Shopper

  • Customs info says:

    Yes you can submit form B2G along with supporting documentation and get a refund.
    here is the link for the form http://cbsa.gc.ca/publications/forms-formulaires/b2g.pdf
    I hope this helps

    CI

  • Anonymous says:

    Very interesting Blog. I have a question about a 4×4 utv side by side I was looking at buying in the US. The UTV is manufactured in China and I was looking at bringing it into Canada. What kind of duty would I have to pay at the border. The cbsa website is a little confusing since it is showing a couple of different numbers. Here is a link the the said UTV. http://www.buyatvscheap.com/Wolverine-4WD-500-UTV-p/utv500.htm

  • Customs Info says:

    Hi thanks for checking out my blog. The only way you can import one of these UTV is through a importer recognized by Transport Canada and on the preclearance list.
    For this particular UTV the manufacturer appears to be Jiangsu Linhai Power Machinery Group and the recognized importers are Autoco Motor Sports Corp., Gold Leaf Imports, Inter Source Trading Corp., Sell to Canada (STC) Trade Services Inc., and Visionary Motorsports LTD.
    UTVs are classified under HS code 8703219000 with 6% duty.
    If the UTV is 15 years or older then anyone can import one.

    I hope this helps
    CI

  • Anonymous says:

    Hi there,

    I am based in the UK, and I have a customer in Canada looking to buy several original paintings from me.
    Following the advice in your blog I think that there is zero duty associated to buying original works of Art – would that be correct? Would the customer therefore pay no additional duty/taxes other than shipping costs (and the cost of the paintings too).
    Thanks,
    Paul

  • Customs info says:

    Hi Paul
    Thx for your question. Yes no duty applies if they are original paintings not mass produced. But sale tax would still apply based on the province of residence of your buyer. I.e. Ontario 15%
    I hope this helps.
    CI

  • Anonymous says:

    I am very interested in purchasing some furniture online from the U.S. but I have heard so many differen't stories regarding duty and would like to make sure I am not going to be paying thousands more. I am very interested in purchasing a glass dining room table $1399 and a matching sideboard $1299. In accordance with the Miscellaneous Manufactured Articles Customs Tariff Schedule under secion 9403.20.00 – Other Metal Furniture (93) the duty rate is MFN 8% GPT 8% and CRT 5% (not sure what those acronyms mean). So does this mean it will be 21%, or will there be other hidden fees. Do I still have to pay HST after the 21% is added on?

    I am also interested in purchasing a refridgerator $1500. In accordance with the Machinery and Mechanical Appliances section 8418.21.00 it is 8% MFN and then 5% GPT so will that be 13% extra?

    I can get these things in Canada but the dining set is over $6200 and the fridge is $2800 so I think I could save thousands by getting them shipped from the states, unless the duty is too high.

    Any clarification would be greatly appreciated.

  • Customs info says:

    Thanks for your question.

    The glass dining room table if manufactured in a country with a free trade agreement there would be no duty..i.e. made in the US then duty free under NAFTA. If not then it would be subject to 8% duty or 5% if made in a country that qualifies for GPT i.e. China. So multiply your cost of 1399 and 1299 by say 8% and worst case scenario duty would be 215.84. so then add the duty to the total value to get 2913.84 and then add 13% sales tax of 378.80 and the total cost of the furniture is 3292.64.

    Very good on the classification of the furniture and the fridge btw! MFN means most favoured nation. GPT is for general preferential tariff and CRT is for Costa Rica Tariff. only one duty rate needs to be applied.

    The fridge would again either free of duty or 5 or 8% on the high end. So $1500 x 0.08 = 120 duty = 1620 * 0.13 = 210.60 for a total cost of 1710.
    So depending on how much shipping costs you it appears that you would save quite a bit. just a word of caution…make sure you check how the warranty works on the fridge…is it transferable to Canada? if so how will it be serviced if there is a problem? etc…

    I hope this helps and good luck!
    CI

  • Customs info says:

    PS please like me on Facebook if you can!

    thanks :)

  • Anonymous says:

    Wow, that is wonderful news for me. Thank you so much for your help.

  • Anonymous says:

    Love the blog! What a great idea and the knowledge I've gained is absolutely priceless so thank you for doing this, it is much appreciated!

    I have a rather basic question but would like clarification for peace of mind.

    I would like to purchase two loud-speakers from the US (Washington State). The dollar is actually above par now so it's a great time to buy. The two speakers I'm looking at purchasing would cost me anywhere from $2,500 to $3,000 here in BC (plus HST on top of that) depending upon where I purchase them from. I have found a US retailer willing to sell them to me for $1,800.

    If I were to buy in Washington state I'd like to know how much it would cost me. As far as I can tell the speakers are JBL and are manufactured in the US. Does this mean that there would be no duty?

    According to the tarrif guide I think these particular loudspeakers would fall under chapter 85 section 8518.22.00 (Multiple loudspeakers, mounted in the same enclosure). According to the pdf file the duty would be 6.5%. Do you think this is accurate?

    So worst case scenario I would think that I would pay 6.5% on the $1,800 cost once converted to Canadian dollars. And of course right now that would actually be slightly less than $1,800. Then on top of that I would pay 12% HST. I have this working out to an additional charge of $346.65. But if the loudspeakers are manufactured in the US I would only be paying the HST on the converted purchase price and I calculate that out to be an additional payment of $215.76. Does this sound accurate?

    I would also like to know if there is a state tax in Washington that I would be charged on top of the purchase price.

    Also, do you know how I can prove to the customs officials that the speakers are in fact made in the USA? If it says on a sticker on the back of the speaker "made in the USA" or somewhere on the box, or if I have an e-mail from JBL themselves saying they are manufactured in the USA?

    Even at a worst case scenario (paying an additional $346.65) seems worth the time, effort, and fuel to drive the 2 and a half hours as I would be saving a total of $650 from the one retailer and over $1,200 from the other.

    Thank you so much for your help and taking the time to read and hopefully respond to my post.

    JM
    :)

  • Anonymous says:

    Oops, one more thing…. how do you pay all of these fees at the border? Do they take debit? credit card? cash? personal cheque?

    Thanks again!

    JM

  • Customs info says:

    Hi JM
    thanks for the kind words. Looks like you've been paying attention! I think you have it right. Yes there are lots of deals to be had. It's a shame we have to pay so much more for the same product.
    Yes if its made in the USA then there is no duty and just HST.
    Read Customs D memorandum D11-4-2 paragraph 6(3) and paragraph 31 here http://cbsa.gc.ca/publications/dm-md/d11/d11-4-2-eng.pdf Basically it states that for casual goods (non-commercial) you don't need any proof if the goods are marked. The letter or packaging from JBL will also suffice.
    And you can pay with cash, debit or credit…cheques are accepted with government ID and a credit card unless certified.
    I hope this helps…
    If you can please "like" me on the right hand column through facebook.

    happy shopping!

    CI

  • Anonymous says:

    hi i have a question. how to claim a b2 customs Canada? i need that by today. can anyone please help me?? give me the answer in a short paragraph

  • Customs info says:

    here is the link for form B2G for casual refunds http://cbsa.gc.ca/publications/forms-formulaires/b2g.pdf you can drop it off at any cbsa office or mail it in to the address on the form.

  • Anonymous says:

    yeah thank you for ur reply. but i need that for school. i dont need to fill that form. ijust want to know HOW TO CLAIM B2 CUSTOMS CANADA? this is the question tht i have to answer it in a paragraph format. i went on that link that u gave. its just the b2 form is there. but i need to get teh asnwer for tht question. if u know can u please post it. i hope u'll do it if u knoww.. reply me if u can. thanks alot sir.

  • Customs info says:

    I don't understand your question. Are you asking about form b2g or b2? B2 is for applying for a refund or adjustment to a commercial entry. Just complete form b2, reference the pertaining transaction number and provide proof with any supporting documentation you may have to justify your claim. Then send it by mail or in person at any CBSA office. That's the best answer I can give you. I hope this helps.

    CI

  • Anonymous says:

    Hi there,I'm planning on buying aluminum pump jack scaffolding system.Total around $1800 for what I need.Do I pay duty and gst on that when it is shipped to canada,or is it just gst?

  • Anonymous says:

    oh okkk.. My question is that (how to claim B2 form in Canada customs?)i just started college and its my first semester.and (ITC first level) i just have to give a presentation in class. so i just want to know how to claim b2? this is wut my professor told me to do and he said there are some steps for claim B2. Anyways is that the answer that you gave for my question? thanks alot for replying me. if you still know more about my question, your most welcome to reply me..

  • Anonymous says:

    hello guys. does anyone know HOW TO FILL OUT B2 CUSTOMS CANADA FORM? if so, please respond for my question in a full answer.

  • Anonymous says:

    Hi there. I am looking at purchasing a dining room set (wood) from a US furniture vendor, but the furniture is actually manufactured in Asia. Do you know what duty would be payable on this (%)? I understand I will have to pay HST as I am in Ontario. Thank you in advance for any info you can offer. Cheryl

  • Customs info says:

    Hi Cheryl,
    Depending on where in Asia the dining room set is from the duty can be on the high side 9.5% and 6% on the low side if made in a country that qualifies for general preferential tariff treatment. Yes HST would also apply based on the value of the goods plus duty.
    Thanks

    CI

  • Anonymous says:

    Hi there. this is christine. im doing ITA second semester in college. i just want to get answer to this question.if anyone knows the answer for my question please respond it as much as u can.
    Explain the FLOW THROUGH method of tax recovery to a non resident importer?
    THANK YOU SO MUCH…:)

  • Anonymous says:

    Does anyone know the answer to my question… EXPLAIN HOW THE ITC WORKS FOR RECOVERING GST/HST?
    Plzz reply to itt.. and explain it clearlyy. and its very urgent for mee..
    thank you so much…
    priya…

  • Anonymous says:

    Hi There. My situation looks like this. I live relatively close to the Alberta/Montana border, and I regularly make online purchases in the US and have the goods shipped to a warehouse/depot just across the line. I then take the short trip to the US, pick up my goods and return home. My question is with regard to the value of the goods. I have been charged taxes/duties/etc based on the CAD equivalent of the total of the purchase prices for the goods most times, but other times, the CBSA agent insisted that the shipping charges (all within the USA)were also to be included in the total valuation. I have tried to find this information elsewhere, but can't seem to find anything official. What's you opinion? Thank you.

  • Customs info says:

    Unfortunately, all shipping charges except from the place of direct shipment to Canada are included in the value for duty/tax. Having said that, most officers in your scenario would not do so. This way of calculation is usually applied to commercial shipments. Personal items are rarely treated to this level of technicality. I guess you just were unlucky. Better luck next time and just be glad there's no provincial tax in your province!!! :)

    CI

  • Anonymous says:

    Hi!
    I plan on purchasing an unopened case hockey cards from the US to be shipped here to Canada.
    should I expect any additional charges?
    Informative blog – thank you!

  • Customs Info says:

    Hi,
    trading cards are classifiable under HS code 4911919020 and are subject to zero duty. However, if this is a personal shipment then you will have to pay HST/GST or provincial sales tax depending on province of residence. If this is for resale (your business) then only GST will apply but you will have to clear the shipment commercially.
    If you are having the cards shipped up via post or courier there maybe handling charges with post and brokerage charges with a courier.
    I hope this helps.

    CI

  • Anonymous says:

    Thank you!
    it does help, however is there anyways of me finding out how much those post and brokerage charges would be? if I phoned the courier would they be able to work out all charges?

    thanks again, and bless.
    how do I like you on facebook?

  • Customs Info says:

    yes the courier company should be able to give you a breakdown. Post is $8.50 for handing fees plus and taxes. there is link for facebook on the right hand side. thanks

    CI

  • Anonymous says:

    Hi,

    I have a question please:
    I'm a new canadian immigrant currently working in pakistan. I'm planning to return to Canada definitly in the next months and therefore need to take some of my goods with me or send them through courrier (especially the carpets who are new "3 carpets"). So how can I take/send them to Canada without paying the tax duty because these were in my possession earlier keeping in mind that in my first entrance to Canada, the immigration officer asked me about the pending list of item which will follow but i couldn't give the exact one as it was a long list. so, he then gave me a form and told me that you can bring your belongings for the first 5 years without problem…

    Thanks for your help in advance
    Regards
    SE

  • Customs Info says:

    Hi SE,
    That's a bit of a problem. Technically, you don't qualify for the exemption any longer. If you've been gone over 12 months then you may qualify for the returning resident exemption. Also I don't recommend sending anything before you are there to pick it up. You must be in Canada to claim any personal exemption.
    What you can try is have a relative or acquaintance send you your goods later. I would then present your list of goods at the airport upon your return and see what happens. The officer may be willing to validate your list and afford you the settler's exemption if you explain your situation.

    good luck

    CI

  • Anonymous says:

    Hi,

    Thanks for the fast feedback and your valuable support :) .
    So, keeping in mind that i have been outside Canada for more than 15 months, what would be the procedure if I want to send my goods via courrier or decide to bring them along with me please?
    PS:
    I hope the exemption doesn't get affected if one has a house in canada or a canadian driving license…

    Bundle of thanks to you
    Regards,
    SE

  • Customs info says:

    exemption is not affected by owning property or having a driver's licence. The procedure would be to make your declaration at the airport when you return as "returning resident"…any personal household goods under 10k that you have owned, used and possessed can be imported duty and tax free. If you read my other posts and comments you will see the process of how to report and clear has been discussed.

    CI

  • Anonymous says:

    Hi,
    It is me again.
    Last question please :) .
    I'm confused with the term "you have owned, used and possessed" because I also want to bring our sofa clothes (30 meters long) designed for our future house's living room (traditional style) which was brought 1 year back but not used (have the detailed bill receipt).
    will this type of good still be exempt from taxes please?

    thank you
    Regards,
    SE

  • Customs info says:

    Hi SE,
    It appears that the couch will not meet the use requirement. The item must be used for 6 months to qualify to be duty and tax free.

    CI

  • Anonymous says:

    Hi, I am thinking to buy a two sets of two-way radios from Mainland, China for total of $200USD + $62USD (DHL shipping cost) to Canada. This is for personal use and wondering what is the duty fee cost? How do I pay for the duty fee if the package is delivered by DHL?

    David

  • Customs Info says:

    Hi David,
    Two way radios would be classified under HS code 8525.60. The last 4 digits would depend on the frequency in MHz. But regardless of frequency there is no duty on this commodity. You will have to pay HST/GST/PST depending on your province of residence. DHL will either pay it for you and then bill you COD or at a later date or you will have to go to a DHL location, pick up and pay any money owing there. It is also possible that within the 62.20 is including the sales tax.

    I hope this helps.

    CI

  • Anonymous says:

    Hello, this is a great idea.

    I am wondering about items produced in US or Canada. Specifically sports apparel, like hockey jerseys or uniforms. If they are made in Canada, or US, and I buy them in the US and have them shipped over, what are the charges that would apply? Does the fact that the apparel is used make a difference?

    Sometimes I ship a jersey from Canada to the US to have repair work or customization done. When its shipped back, should any charges apply?

  • Customs info says:

    Any goods made in US or Canada is duty free under NAFTA. Only HST/GST/PST would apply. Used or new does not make a difference.
    Any work done on goods exported and then returned to Canada should be subject to HST/GST/PST unless it falls under a warranty agreement.

    CI

  • Anonymous says:

    I have two scenarios.

    First, I'm purchasing from China commercially. I know my tariff code etc… The question I have is on the unit cost of the product that my duty will be calcualted on. The unit cost includes shipping, I am requesting a shipping invoice from the supplier, I can complete a B2 to request a duty rebate for the shipping value?

    Also, I'm purchasing from a US supplier, parts that are made in China. Does this fall under Nafta since I'm purchasing from US and they would have had to pay the importer fees etc… to bring from China to US? If this does not fall under NAFTA, they add a freight charge to send the parts from US to CDN, do I have to pay duty on the freight charge as well as the unit charge?

  • Customs Info says:

    yes you should be able to submit a B2 for a refund for the portion of the shipping from a foreign location direct to Canada if you have supporting documentation.
    As for the goods from the US made in China, they do not fall under NAFTA…and no you do not have to pay duty on the freight charge.

    CI

  • Anonymous says:

    Hello,

    I am looking at buying a pair of boots and having them shipped from the US to Ontario. They cost $26.90 plus $20.00 shipping fees. Can you please tell me how much the duty would cost, and the tax (wasn't sure if it was on cost only, or cost plus shipping fees)? Thanks.

  • Customs Info says:

    Hi,
    It depends. What kind of boots? Material? Where are they made?

    CI

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