All about the $60 Gift exemption under Tariff 9816
With the Xmas season around the corner, Do you know what qualifies as a “Gift” for Canada Customs?
Today’s topic is one that is commonly misunderstood by the general public and it is to do with the $60 gift exemption under tariff 9816. So here are 8 facts associated to tariff 9816:
1. This tariff 9816 applies only to casual donations sent by non-residents of Canada to a resident of Canada. A common mistake is that some residents of Canada returning from a trip or holiday purchase gifts for friends and family and believe that these items will qualify under 9816. They do not. These types of gifts retired to fall under tariff 9804 to be imported duty and tax-free as part of their personal exemption.
2. Gifts under tariff 9816 may not be considered advertising matter, or the alcohol or tobacco.
3. If the value of the gift under tariff 9816 exceeds the $60 amount, then the taxable amount will be reduced by $60. For example, your uncle from Poland brings you a sweater valued at $100 Canadian, then tariff 9816 would be applied by taking off $60 and leaving $40 is the amount duties and taxes would be applied to.
4. An association, organization, company, or business of any kind does not qualify as eligible recipient under tariff 9816.
5. In order to qualify under tariff 9816 for duty and tax free importation, no individual item/gift can be valued at more than $60 Canadian, notwithstanding the number of joint recipients. For example, a gift valued at $180 cannot be divided equally by 3 family members.
6. There are no limits to the number of gifts that can be imported free under tariff 9816 so long as they are under $60 Canadian and for different individual who is a resident of Canada.
7. In order to qualify for tariff 9816, items should be clearly marked and identified as a gift. For example, they should be a card or gift to be wrapped.
8. Gifts can be sent by nonresident Canada directly from a third-party such as an online store and qualify for tariff 9816 so long as the customs officer is satisfied that the gift was unsolicited and bona fide.