 | Shipments to Canada: As a Canadian buying from a US or international seller (the "exporter"), you are the "importer" of goods. Goods entering Canada will be inspected by the Canada Border Services Agency (CBSA) and assessed for applicable Customs duties, taxes and charges. It is the importer's responsibility to account for any duties and/or taxes, while ensuring compliance with Customs regulations in Canada. • Duties and Taxes Payment • Duty and/or Tax Free Items • Customs Brokers |
What does the US or International Seller have to do?
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Attach a Customs Declaration Form. The exporter must complete and attach a standard Customs declaration to all items they ship by mail to Canada, accurately describing the goods, stating their origin, and reporting their value. A false or incomplete declaration could result in unnecessary delays in processing your shipment. A Canada Customs Invoice or Commercial Invoice is the most common form used.
What does the Canadian Buyer have to do?
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Pay Applicable Customs Duties and Taxes. You must pay for applicable duties and/or taxes before the goods can be released to you
• You pay duties based on the value of the goods in Canadian funds (duty rates vary according to the type of goods you are importing and the country they came from or were made in);
• You pay Goods and Services Tax (GST) on most goods you import into Canada. GST is 5%, calculated on the item's total value (in C$) plus any duties that apply;
• You pay Provincial Sales Tax (PST) on all goods that are taxable under the province's tax base if you live in BC, Ontario, Manitoba, PEI, Saskatchewan or Quebec. PST is charged according to the provincial tax rate that applies.
• You pay Harmonized Sales Tax (HST) instead of GST if you live in New Brunswick, Nova Scotia, Newfoundland or Labrador. HST is 14%, calculated on the item's total value (in C$) plus any duties that apply.
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| US$100 x 1.16 = C$116 (Value for Duty) |
| C$116 (Value for Duty) x 4% (Rate of duty)= C$4.64 (Customs Duties) |
| C$116 (Value for Duty) + C$4.64 (Customs Duties) = C$120.64 (Value for Tax) |
| C$120.64 x 5% GST = C$6.03 (Amount of GST) |
| Total Taxes and Duty to pay: C$4.64 + C$6.03 = C$10.67 |
Pay a Canada Post C$5 Handling Fee. You pay a $5 handling fee to cover Canada Post's cost for performing Customs services on your behalf. If your mail item is duty- and/or tax-free, you do not have to pay the fee.
Ensure Canada Customs Compliance. Make sure your US or international seller provides accurate and compliant documentation with the shipment. You will enjoy faster release times and avoid unnecessary import penalties.
Understand NAFTA Duty-Free Rates. You are ultimately responsible for having a fully completed and valid NAFTA certificate on file for any goods claiming the duty free rate of duty under NAFTA. To learn how to complete an accurate and valid NAFTA certificate, click here.
What Items are Duty and/or Tax-Free?
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Gifts Worth $60 or Less. A gift valued at C$60 or less is exempt from duties and taxes, as long as the gift is worth C$60 or less. For gifts worth more than C$60, you have to pay duties and taxes on the amount over the C$60 exemption.
• The Customs declaration form should clearly identify the good as a gift and should include a gift card to avoid any misunderstanding
Items Worth $20 or Less. Any good valued at C$20 or less is exempt from duties and taxes. For goods worth more than C$20, you have to pay duties and taxes on the entire value.
NAFTA-eligible Goods. Qualifying goods with a valid NAFTA Certificate of Origin will enter Canada duty free.
Can I Determine in Advance What Duties and Taxes I will have to pay?
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Calculate Duties and Taxes Before Buying. You can determine the duties and/or taxes you will have to pay on the goods before buying or bidding by using the My BorderPro Landed Cost Calculator. It is important that you have a thorough description of the goods and know the value and country of origin.
Customs Brokers
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As an importer, you can opt to hire a professional Customs broker, like A and A Contract Customs Brokers, licensed to carry out customs-related responsibilities on your behalf. This ensures the compliance and quick release of your product through Canadian Customs.
For more information on importing into Canada, please visit the CBSA's Step-by-Step Guide to Importing.
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