Tag Archive 'canadians'

Nov 13 2007

FAQ

Published by Bob under Uncategorized

Cross-border Shopping Guide / FAQ for Canadians

What’s the personal tax exemption when I come back to Canada from shopping?

In the most concise form, the personal exemption limits are:

Time out of country Exemption Limits
Out of country within 24 hours CA$0
More than 24 hours, but less than 48 hours CA$50
More than 48 hours, but less than 7 days CA$400
More than 7 days CA$750

There are many details and exceptions to the personal exemption limits. Please read our article for more details.

How many bottles of wine/liquor can I bring back to Canada?

None, if you’re out of the country for less than 48 hours. But if you’re willing to pay duty and tax, there’s no limit.

If you have been outside Canada for at least 48 hours and are of legal age, you can bring back only one the following free of duty and tax as part of your personal exemption:

  • 1.14 L (40 oz.) of liquor; or
  • 1.5 L of wine; or
  • 24 X 355 ml (12 oz.) containers of beer.

How many cigars/cigarettes can I bring back to Canada?

If you’re out of country less then 48 hours, you have to pay the applicable duty and sales tax. Otherwise, you can bring back all or any the following if you’re over the legal age.

  • 200 cigarettes;
  • 50 cigars or cigarillos;
  • 200 tobacco sticks; and
  • 200 g (7 oz.) of manufactured tobacco.

What is the tax exemption applied to mail order items?

If you don’t have time making a trip to USA, online shopping is a good alternative. Be sure to read our article on Canadian duty and NAFTA and mail order.

You don’t have to pay duties and taxes if your mail ordered item is:

  • a gift worth $60 or less; or
  • worth $20 or less.

This exemption applies on a per item basis. Items sent to a Canadian as a gift by another person must include a card or notice indicating it is a gift. Clearly identified gifts worth CDN$60 or less are not subject to duties or taxes; however,gifts greater than CDN$60 are subject to duties and taxes. This CDN$60 exemption does not apply to tobacco, alcohol, advertising material, or items sent by a business or association.

Are children’s clothes duty free? How much duty do I pay?

This depends on where the cloth were made. If the children’s clothes are not made in US or Mexico, you will need to pay 17% duty plus taxes. Thankfully, you don’t pay PST for children’s clothes. Please read our article on Canadian duty and NAFTA.

How bad is the wait at the USA-Canada border crossings?

USA shopping is a rewarding pastime to Canadians, as long as it’s not all spent at the border crossing. Canadian Border Services Agency offers an up to the minute estimate of the wait time at all border crossings (Canadian side). Check it out before leaving home.

US Customs & Border Protection has a counterpart wait time estimate at the US side. Check it out when returning.

Where can I find Canadian $ exchange rate in the last few days?

Yahoo Finance has those rates and charts. Find out 3 month CA$ to US$ exchange rate chart here.

What’s the closest US factory outlets to Toronto, Vancouver, Ottawa, Kingston and Montreal?

Please read our article on US factory outlets.

Please read our disclaimers for the use of information presented here.

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Nov 06 2007

Duty & Tax

Published by Bob under Uncategorized

It’s a common misconception that duties are exempted for goods coming from US or Mexico because of NAFTA. The North American Free Trade Agreement (NAFTA) states that most American and Mexican manufactured items are exempted from duty. But what you buy from a US store does not mean the item was made in the United States. If the item was imported into the US, you may be charged duty when it comes into Canada. For duties, please read our article.

Unlike duties, GST and PST are not exempted. But there are exceptions, please read our article on this subject.

Canadians should note that customs officials are entitled to inspect luggage; therefore, receipts from your purchases should be readily available for the officials. If a false declaration is made, goods can be seized and a financial penalty can be imposed.

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