Jazmin Li
When travelling to Canada, it is important to be aware of the duty and tax regulations that may apply to your trip. The Canada Border Services Agency (CBSA) collects duty and taxes on imported goods on behalf of the Government of Canada. Duty is a tariff payable on goods imported to Canada, and the rates are determined by the federal Department of Finance. The CBSA has areas at most major airports where travellers can pay any duty or taxes owed while waiting for their baggage. It is recommended to use the duty and taxes estimator to help estimate the amount of duty and taxes payable when entering Canada.
| Characteristics | Values |
|---|---|
| Who collects duty and taxes | Canada Border Services Agency (CBSA) collects duty and taxes on imported goods on behalf of the Government of Canada |
| Who pays duty and taxes | The recipient, shipper, or designated payor for the payment of duties, taxes, and other related fees |
| Where to pay duty and taxes | The CBSA has areas at most major airports where you can pay any duty or taxes you owe while waiting for your baggage |
| How to pay duty and taxes | Online through CBSA's online portal using a credit or debit card, or by Credit Card or PayPal through FedEx Billing Online |
| When to pay duty and taxes | Before receiving the shipment. The duty rate varies depending on the type of product and the country where it was manufactured |
| How to estimate duty and taxes | Use the duty and taxes estimator to help estimate the amount of duty and taxes you will need to pay when you return to Canada |
| Personal exemption | You can claim goods worth up to CAN$200. If the value of the goods exceeds CAN$200, duty and taxes are applicable on the entire amount of the imported goods |
| Gifts | Gifts worth no more than Can$60 can be sent to someone in Canada free of duty and taxes. If the gift is worth more than CAD$60, the amount over CAD$60 is subject to duties and taxes |
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What You'll Learn
Personal exemption
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. If you have been outside Canada for 24 hours, you can claim goods worth up to CAN$200 without paying any duty and taxes. These goods must be for your personal or household use, such as souvenirs, gifts from friends or relatives living outside Canada, or prizes. 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, and you must pay duty and taxes on the entire amount of imported goods.
If you have been outside Canada for 48 hours, you can claim goods worth up to CAN$800 without paying any duty and taxes. You can include limited quantities of tobacco products and alcoholic beverages in this exemption. For example, you can bring back up to 1.5 litres of wine or 1.14 litres of spirits, or up to 8.5 litres of beer. You must meet the minimum age for the province or territory where you enter Canada. If you bring in more than your personal exemption, you will have to pay regular assessments on the excess amount, including duty and taxes, as well as provincial or territorial fees.
If you are outside Canada for more than seven days, goods worth up to CAN$800 may be shipped to your home by mail, courier, or other means of transportation. You must report the value of the goods you are importing in Canadian funds.
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Alcohol and tobacco
Alcohol
The amount of alcohol you can bring into Canada duty-free depends on how long you've been away from the country. If you've been away for at least 48 hours, you can bring in a certain amount of alcohol without paying duty or taxes. The specific quantities of alcoholic beverages you can import are determined by the province or territory where you enter Canada and must be within the limit set by the relevant provincial or territorial liquor control authorities.
For example, if you enter Canada in Alberta, Manitoba, or Quebec, the minimum age to import alcohol is 18 years, while for the remaining provinces and territories, it is 19 years. You can bring up to 1.5 litres of wine, 1.14 litres of alcoholic beverages, or 8.5 litres of beer duty-free. However, if the amount of alcohol you import exceeds your personal exemption, you will be required to pay duty and taxes, as well as any applicable provincial or territorial levies.
It's important to note that alcoholic beverages are defined as products that exceed 0.5% alcohol by volume. Certain alcoholic and wine products that do not exceed this threshold are not considered alcoholic beverages.
Tobacco
The amount of tobacco you can bring into Canada duty-free also depends on the length of your absence. If you've been away from Canada for at least 48 hours, you can bring in a limited quantity of tobacco products without paying duty or taxes. This includes up to 200 cigarettes, 50 cigars, 200 grams of manufactured tobacco, and 200 tobacco sticks. However, tobacco products are not included in the 7-day exemption, and they must be in your possession when you enter Canada.
If you bring in more than the allowed quantity or exceed your personal exemption, you will have to pay regular assessments on the excess amount, including duty and taxes, as well as provincial or territorial fees. Additionally, if your tobacco products do not have an excise stamp "DUTY PAID CANADA DROIT ACQUITTÉ," the amount you can import for personal use is limited to five units of tobacco products.
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Online purchases
When making online purchases from outside Canada, you may need to pay duty and taxes on these items when they arrive in the country. The Canada Border Services Agency (CBSA) assesses and collects these fees on behalf of the Government of Canada.
The duty and taxes you pay are based on the type of goods, their value, and the length of time you have been outside Canada. You can use the duty and tax estimator to help determine the amount you will need to pay. In general, goods for personal or household use are eligible for a personal exemption, meaning you can bring them into the country without paying regular duty and taxes. This includes souvenirs, gifts, and prizes. However, goods for commercial use or for another person do not qualify for this exemption.
If you are receiving an international package in Canada, you may be able to pay the duty and taxes online. Canada Post collects these fees on behalf of the government, and you can pay online for any package that has a tracking number, has been assessed for duty and taxes by the CBSA, and is in transit with Canada Post but not yet out for delivery. You can track your item on the Canada Post website or mobile app and follow the instructions to complete a secure online payment using a credit card or mobile payment service.
If you do not pay the duty and taxes online in advance, the delivery agent can collect these fees at the time of delivery or when you pick up your package from the post office. The shipping company may also pay any duties due at the border and then collect these fees from you before delivering your item.
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Payment methods
When it comes to payment methods for duties at Canadian airports, various options are available. At the Canadian customs checkpoint in Terminal 3 of Toronto Pearson International Airport, travellers can pay by cash, traveller's cheque, Visa, American Express, or MasterCard. The CBSA also accepts debit cards at most offices. Notably, the CBSA accepts both Canadian dollars and US dollars as valid currencies for payment.
For those who use FedEx for shipping services, there are different options for paying duties and taxes. If you have a FedEx account, you can conveniently manage and pay your invoices online using a credit card or PayPal through FedEx Billing Online. Alternatively, you can use the Payment Wizard to select the appropriate payment tool if you don't have a FedEx account or have a poor payment history.
Additionally, FedEx offers the Disbursement Fee service, where FedEx Express pays the duties and taxes on your behalf to the Canada Border Services Agency (CBSA). The fee for this service is based on the total amount of duties and taxes advanced and will be billed to the designated party.
When importing goods into Canada, it's important to remember that duties and taxes are generally based on the item's value in Canadian dollars. The duty rate varies depending on the product type and country of manufacture. Certain exemptions may apply, such as for gifts worth up to CAD$60 or personal exemptions for Canadian residents returning to Canada after a certain period.
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Border services
Personal Exemptions:
Personal exemptions allow travellers to bring goods for personal or household use into Canada without paying duties and taxes. The eligibility for personal exemptions depends on the length of time spent outside Canada. Canadian residents, former residents, and temporary residents returning to Canada are eligible for personal exemptions. Children are also entitled to personal exemptions for goods intended for their use. The exemption limit is CAN$200 for a 24-hour absence and CAN$800 for a 48-hour absence. Tobacco products and alcoholic beverages are not included in these exemptions.
Duty and Tax Calculation:
The Canada Border Services Agency (CBSA) collects duties and taxes on imported goods. The duty rate varies based on the product type, country of manufacture, and value in Canadian dollars. Duties and taxes may include GST, PST, QST, and HST. The CBSA provides a duty and tax estimator tool to help travellers calculate their potential costs. Organising paperwork, such as invoices and import forms, is crucial for determining the correct amount of duties payable.
Payment Methods:
Travellers can pay duties and taxes at CBSA areas in major airports while waiting for their baggage. Online payment options are also available through the CBSA's online portal, where individuals can use credit or debit cards. Additionally, FedEx offers customs clearance services and facilitates duty and tax payments for its customers.
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Frequently asked questions
It depends on the type of goods and the length of time you've been outside of Canada. You can claim goods worth up to CAN$200 without paying duty, but this does not include tobacco products or alcoholic beverages. If the value of the goods exceeds CAN$200, you must pay duty on the entire amount.
The amount of duty you need to pay depends on the value of the goods in Canadian dollars. You can use the Canada Border Services Agency Duty and Taxes Estimator to estimate the amount of duty and taxes you will need to pay.
The CBSA has areas at most major airports where you can pay any duty or taxes you owe while waiting for your baggage.
