Understanding importing from Canada

Importing goods involves various fees, including import duties, taxes, and other charges. These costs are essential to understand to avoid unexpected expenses and ensure a smooth import process. Canada, not being part of the European Union, has its own set of import regulations and fees. This article covers everything you need to know about import duties, taxes, and the overall process of shipping goods to Canada.

Calculating import duties and taxes

When importing goods into Canada, import duties and taxes are applied based on the value and type of goods. The Canadian government imposes these duties to generate revenue and protect local industries. The duty and tax amount depends on several factors, including the product value, trade agreements, country of manufacture, product description, end use, and the Harmonized System HS code.

For an accurate estimate of import duties and taxes, you can use the CBSA Estimate Duty and Taxes Tool. This tool helps you calculate potential charges before shipping your goods.

Different Types of Sales Taxes in Canada

Canada has various sales taxes, which include:

• Provincial Sales Tax (PST): A tax levied by some provinces.

• Quebec Sales Tax (QST): A tax specific to Quebec.

• Goods and Services Tax (GST): A federal tax applied to most goods and services.

• Harmonized Sales Tax (HST): A combination of PST and GST, applied in some provinces.

These taxes can affect the total cost of your imported goods, so it's crucial to understand which taxes apply to your shipment.

Bringing goods to Canada

When moving to Canada, you can bring personal and household goods duty-free if they have been used. Items such as books, linens, clothes, jewelry, antiques, furniture, and hobby tools are typically exempt from duties. However, you must pay duties on new or leased items, farm equipment, business-use vehicles, and goods purchased en route to Canada.

Restricted and special items

Certain items face restrictions or special considerations when imported into Canada:

• Alcohol and Tobacco: Duty may be required.

• Vehicles: Must meet Canadian safety and pollution standards. More details can be found on the importing vehicles into Canada page.

• Jewelry: Declare all jewelry, using specific descriptions and including photographs and receipts to avoid delays.

• Gifts: Gifts worth up to CDN $60 can be imported duty-free. Higher-value gifts may incur duties and taxes.

Useful tips for importing goods to Canada

• Accurate documentation: Provide detailed and accurate information on your shipment, including the air waybill, commercial invoice, and any other relevant documents.

• HS codes: Use correct HS codes to help customs officials determine the applicable duties and taxes.

• Landed cost calculation: Consider all potential costs, including duties, taxes, and clearance charges, to estimate the total landed cost of your shipment. This can prevent unexpected expenses and delays.

Invoicing and customs clearance

Customs officials will assess duties and taxes based on the provided documentation. Ensuring that all paperwork is complete and accurate can facilitate a smoother customs clearance process. Be prepared to pay any assessed duties and taxes before your goods are released.

Need more information?

For more details on import duties, taxes, or the customs clearance process, contact us via Live Chat (weekdays 08:00-17:30) on our website. Our support specialists are ready to assist you with your queries. You can also reach us by phone or email for personalized advice.

Additional resources for import duties in Canada

• ParcelParcel import duties calculator: Estimate your import duties, VAT, and clearance costs within seconds.

• Canada Border Services Agency: Official resource for duty and tax estimation.

By understanding and preparing for these import duties and taxes, you can ensure a process without stress when shipping goods to Canada.

Start today with our help and tools you do not have anything to worry about!