Blog Details

Travellers – Paying duty and taxes

Duty and Taxes

What are duty and taxes?

Duty is a tariff payable on a good imported to Canada. Rates of Duty are established by the Department of Finance Canada and can vary significantly from one trade agreement to another.

No duty is payable on goods imported for personal use, if it is marked as “made in Canada, the USA, or Mexico”, or if there is no marking or labelling indicating that it was made somewhere other than Canada, the USA, or Mexico.

More information on duties payable on all goods imported into Canada is provided in the Customs Tariff.

Most imported goods are also subject to the Federal Goods and Services Tax (GST) and Provincial Sales Tax (PST) or, in certain provinces and territories, the Harmonized Sales Tax (HST).

Personal Exemption Limits

Personal exemptions

You may qualify for a personal exemption when returning to Canada. This allows you to bring goods up to a certain value into the country without paying regular duty and taxes.

Are you eligible?

You are eligible for a personal exemption if you are one of the following:

  • a Canadian resident returning from a trip outside Canada;
  • a former resident of Canada returning to live in this country; or
  • a temporary resident of Canada returning from a trip outside Canada.

Children are also entitled to a personal exemption as long as the goods are for the child’s use. Parents or guardians can make a declaration to the CBSA on behalf of the child.

What are your personal exemptions?

The length of your absence from Canada determines your eligibility for an exemption and the amount of goods you can bring back, without paying any duty and taxes. (The exception is a special excise duty that may apply to certain tobacco products. )

Absence of less than 24 hours

  • Personal exemptions do not apply to same-day cross-border shoppers.

Absence of more than 24 hours

  • You can claim goods worth up to CAN$200.
  • Tobacco products and alcoholic beverages are not included in this exemption.
  • If the value of the goods you are bringing back exceeds CAN$200, you cannot claim this exemption. Instead, duty and taxes are applicable on the entire amount of the imported goods.
  • Goods must be in your possession and reported at time of entry to Canada.
  • A minimum absence of 24 hoursfrom Canada is required. For example, if you left at 19:00 on Friday the 15th, you may return no earlier than 19:00 on Saturday the 16th to claim the exemption.

Absence of more than 48 hours

  • You can claim goods worth up to CAN$800.
  • You may include alcoholic beverages and tobacco products, within the prescribed limits. Refer to sections Tobacco Products and Alcoholic Beverages.
  • Goods must be in your possession and reported at time of entry to Canada.
  • If the value of the goods you are bringing back exceeds CAN$800, duties and taxes are applicable only on amount of the imported goods that exceeds CAN$800.
  • A minimum absence of 48hours from Canada is required. For example, if you left at 19:00 on Friday the 15th, you may return no earlier than 19:00 on Sunday the 17th to claim the exemption.

Absence of more than 7 days

  • You can claim goods worth up to CAN$800.
  • You must have tobacco products and alcoholic beverages in your possession when you enter Canada, but other goods may follow you by other means (such as courier or by post). However, all of the goods you are bringing back must be reported to the CBSA when you arrive. See Unaccompanied Goods section.
  • A minimum absence of seven daysis required. When calculating the number of days you have been absent, exclude the day you left Canada but include the day you returned. For example, we consider you to have been absent seven days if you left Canada on Friday the 7th and return no earlier than Friday the 14th to claim the exemption.
What conditions apply?
  • You cannot combine your personal exemptions with another person’s or transfer them to someone else.
  • You cannot combine your personal exemptions. For example, if you are absent from Canada for 9 days total, you cannot combine your 48-hour exemption (CAN$800) with your 7-day exemption (CAN$800) for a total exemption of CAN$1,600.
  • In general, the goods you include in your personal exemption must be for your personal or household use. Such goods include souvenirs that you purchased, gifts that you received from friends or relatives living outside Canada or prizes that you won.
  • Goods you bring in for commercial use or for another person do not qualify for the exemption and are subject to applicable duties and taxes. In all cases, goods you include in your 24-hour exemption (CAN$200) or 48-hour exemption (CAN$800) must be with you upon your arrival in Canada.
  • Except for tobacco products and alcoholic beverages, goods you claim in your 7-day exemption (CAN$800) may be shipped to your home by mail, courier or other means of transportation.
  • You must always report the value of the goods you are importing in Canadian funds. Foreign currency amounts including any foreign taxes must be converted to Canadian dollars at the applicable exchange rate recognized by the CBSA.

 

Original Resource: Canada Border Services Agency

[Total: 0    Average: 0/5]

Leave your thought

Login

Lost your password?