Import Taxes and Duty for Canada

Import Taxes and Duty for Canada

The Duty amount that you will need to pay is going to depend on the specific kinds of goods that you will import as well as the country where these were made. You also have to keep in mind that this is just part of the whole picture as there is still a need for you to pay for the PST or other forms of taxes.

How is Duty Calculated?

While particular products in a category of goods tend to have different duty rates, the highest rate is used in order to come up with the estimate. Tariff classifications, personal exemptions, tax rates as well many other things which affect the amount of the data can change often so you will find that the amount you will pay is going to change over time.

Also, you may be interested to know that you will only be paying provincial tax if you arrive in the province where you live. For instance, if you are living in British Columbia but you go through customs located in Alberta, you will only be paying the GST. However, you are supposed to go to the liquor board once you arrive in your province and you will be paying the provincial taxes on that time.

A Compensation for the Long Wait

In case there is something good about being stuck in line for long hours at the border, it is the fact that the Canadian officers are at times instructed to waive through those travelers who are still owing duties on items bought in the United States. It is being done to ensure that the line keeps moving. However, there is definitely no guarantee that it will happen and there might still be a need for you to declare all purchases.

The Canadian Duty Calculator

CBSA or Canadian Border Services Agency has a dedicated duty calculator that you can use in order to estimate the duty amount that you will have to pay on different items you bought in the United States and bring back across the border through Canada. Even though the tool is made available by the CBSA, the Canadian Customs will not be bound by any estimate and will not guarantee the accuracy. The real amount of duty that you will pay might be lower or higher compared to the amount that is shown. With this being said, it is a very useful method to get some idea about the amount you will owe once you get to the border crossing.

You will be able to compute estimated Canadian duty in household appliances, clothing, baby items, automotive products, electronic equipment, home furnishings, jewelry, health products, food, music, movies, toys, sports equipment, books, and other similar items.

Duty rates can vary greatly which depends on the product as well as the country where it was manufactured. Items which are not made in North America and are not qualified for NAFTA exemption might be subjected to hefty tariffs. Most goods which are not qualified under NAFTA are still going to attract tariffs. Aside from Canadian customs tariffs, products imported to Canada will be subjected to GST, HST or PST, which depends on province where you will import the products to.