Tax Exemption for Mailed Goods

(4 votes, average: 4.75 out of 5)

Goods entering Canada through mail may be subject to duties and taxes (GST, HST or PST) depending on the value of the item and whether it is a gift.

You don’t have to pay duties and taxes if your mail order 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.

For more details, please check out the RC4051 form.

Comments

149 responses so far. Leave a comment

149 Responses to “Tax Exemption for Mailed Goods”

# Grahamon 08 Sep 2009 at 3:13 pm

Thanks for this extremely useful website.

I downloaded the entire 7mb 2009 Customs Tariff PDF and looked through chapters 61 and 62 (apparel) prior to finding your site, but I’d still value your opinion.

I was about to order some swimwear and underwear as a gift for my wife from the Victoria’s Secret website, when I noticed they were charging me approximately 26.6% in sales taxes and duties, calculated on the order plus shipping. I live in Ontario and VS ships from the USA.

No single item costs more than $60 (C$ or US$), but instead there are a few items, all gifts for my wife, totalling US$88 before shipping. (US$109 with shipping.) Approximately US$29 of tax/duty was assessed on the order, which as I said, is about 26.6% of $109.

Under the preferential tariff for the US (UST in the 2009 Customs Tariff), much if not all of what I was planning on buying should be duty free (besides GST/PST) – the underwear definitely, not sure about the swimsuit. However, I’m guessing the UST preferential tariff rate applies only to goods manufactured in the US? Is that correct? Probably none of the articles are actually manufactured in the US.

And finally, when it comes to sales taxes, I’ll be billed for both GST and PST, or GST only?

With an overall duty/tax rate of 26.6% it seems that perhaps duty is being applied to some items in the order and not to others. E.g. 31% (=18% duty + 5% GST + 8% PST) on part of the order and a lower rate (maybe just 5% GST + 8% PST) on the rest, or just on the shipping? Actually that calculates about right: 31% on the apparel, 13% on the shipping.

Regards, and thanks for any insight you can offer to this neophyte in the bewildering world of import tariffs,
Graham

[Reply]
BoB Reply:
September 8th, 2009 at 3:44 pm
Graham,

You must have done extensive research on this. Yes, your’e right. When the cloth are not made in US/Mexico, duty will be applied.

I can see that Chapter 61/62 with the highest duty rate is 18% and different items get different. It’s hard to calculate the total. And there’s no reason assuming that they did it right. I’d think the best way is to request a print out of how the duty/tax is calculated.

Did Victoria’s Secret handle the duty/tax? If it’s the courier, there’d be brokerage fee.

If the total shipment is under $60, you may go back to argue on the ground of gift exemption.

I’d love to hear more if you get to the bottom of this.

[Reply]
John Reply:
September 28th, 2009 at 2:24 pm
Question: although a software item I am shipping from the US is under $20 CAD, the shipping fee on top makes the total cost in excess of $20. What would the duty be, and would there be additional fees as well?

Thanks,

John

[Reply]
BoB Reply:
September 28th, 2009 at 2:38 pm
Duty only applies to the value of the goods. GST/PST applies to the goods value and shipping.

There’ll be a brokerage fee for dealing with the duty, etc. varying widely between USPS and couriers. See http://betterdollar.com/mailorder/brokerage-fee/
# Johnon 28 Sep 2009 at 3:43 pm

Bob,

Thanks for your timely reply. So, in other words, I will not face a duty given that I fall below the sub-$20 CAD threshold, but IFF the package is “randomly assessed/processed” via USPS/CP then I face a minimum $5 surcharge plus GST/PST as well?

Thanks again

John

[Reply]
BoB Reply:
September 28th, 2009 at 3:47 pm
That’s right.

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# Johnon 28 Sep 2009 at 4:11 pm

The (randomly) assessed brokerage fees and GST/PST would apply even if the package falls below the sib-$20 threshold?

[Reply]
BoB Reply:
September 28th, 2009 at 4:34 pm
No. The brokerage fee will only be applied if there’s a charge of duty or GST/PST.

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# Johnon 28 Sep 2009 at 4:57 pm

Thanks…another twist: is it also possible to bypass the duty threshold (per my sub-$20 example) but still get assessed for GST/PST, and therefore also the brokerage fee?

[Reply]
BoB Reply:
September 28th, 2009 at 5:33 pm
Yes, assuming the goods has 0% duty, you’ll still need to pay PST/GST, and then brokerage fee.

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# amandaon 09 Oct 2009 at 1:00 pm

Hello,
I ordered a jacket from I think its china maybe Hongkong, It cost 40.00 u.s so 43.00 canadian. Will there be duties on this? or tax?

[Reply]
BoB Reply:
October 9th, 2009 at 1:13 pm
If it’s marked as gift, it’s duty and tax free. Otherwise, you’ll need to pay both duty and tax.
See http://betterdollar.com/mailorder/tax-exemption-for-mailed-goods/

[Reply]
# amandaon 09 Oct 2009 at 1:32 pm

How do I calculate duties? Is it 18% + taxes?

[Reply]
BoB Reply:
October 10th, 2009 at 1:22 pm
Yes, tax on the amount after adding duty.

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# Alexon 29 Oct 2009 at 7:06 pm

hi,
I was wondering how the per item $60 gift rule applies.
I have a friend in the US, and he’s sending me 3 things, two worth more then $60 (100 each), one less.
If he sends them all in one parcel, what happens?
Do I pay the amount over the $60 for the two items over $60 (i.e. pay duties on the 40+40 extras) and taxes on the $200?
Or can i only have only one $60 exemption in the parcel of three items? If so, it’s better to ship seperatelyto get the most $60 gift exemptions? That = higher shipping costs though.
Also, one item is a softshell jacket from Arc’teryx, which is should be canadian made, would i not have to pay anything on that anyways as it would be covered by NAFTA?
What if the softshell was made in China eventhough Arc’teryx is a BC company?
Thanks a lot for your help!

[Reply]
BoB Reply:
October 29th, 2009 at 8:37 pm
If all 3 are sent in one parcel, duty and tax are paid on the amount exceeding the $60. If sent individually, each will have the $60 exemption. You have to balance the shipping cost and the tax+duty.

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# taniaon 09 Dec 2009 at 1:44 pm

Hi Bob,

I am planning on sending some small gifts (shirts, toys) to family in Canada. Each gift is less than $20 each. However, I’d like to save on postage and send all ten gifts (each one to a different person) in one box, addressed to one person. Would this be a problem for duty exemption?

I would appreciate your feedback. Thank you.

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# Non 19 Apr 2010 at 10:49 am

I’m looking at buying some diapers (some cloth, some disposable liners from the US. Would diapers be exempt duty?

[Reply]
ashie Reply:
May 11th, 2010 at 10:45 pm
Good question. I ordered some this week. Will let you know, but I’m assuming I’ll get jipped and charged duty. Although, I have a friend who ordered from babyhalfoff.com and wasn’t charged (order was no more than $30).

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# Andyon 31 May 2010 at 4:57 pm

This is strange. I’ve ordered countless things on ebay and even things from online cigar retailers that ship internationally and have never had to pay duty or tax on any of those things. Most of the time when I get the package, I notice the seller’s marked the package as Gift or other so how would the customs agents possibly know what’s inside the package without opening it?

[Reply]
John R Reply:
November 18th, 2010 at 11:25 pm
Its called “fraud”. Its a lottery basically. Customs gets millions of packages a day, and some are selected. If you get caught, the fines are as high as 250,000. customs has a right to open any package, the same way that they will wave some cars through, and have others go over.

You have to remember that they are more concerned with high dollar importations (commercial), then they are about a personal package.

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# Johnon 01 Jun 2010 at 8:48 am

They won’t. Its all about volume. Customs target certain things, sizes, etc. The rest is random. The wrongful declaration on the packaging also makes customs look over the package, and onto the next one.

You may want to read up on AMPS though….

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# Amyon 01 Jul 2010 at 11:16 am

hi, i live in ladner, british columbia, and ordered from victorias secret for myself, total cost being $280.00. I got it delivered to point roberts, washington and am wondering if i am going to be charged taxes at all coming back and how much?

[Reply]
John R Reply:
November 18th, 2010 at 11:22 pm
Depends on the officer if they will let you pass, or call you in.
And it depends on what you ordered. Minimum will be HST.

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# Isabellaon 02 Jul 2010 at 4:39 am

Hi, im looking at ordering a cosmetic product thats going to cost $ 144 US, shipping is going to be about $20 US to canada via USPS Priority mail international and i was wondering what the customs fee’s, brokerage, taxes ect would be on it to determine wether i’ll have it shipped to my aunties in alberta or have it shipped to the UK ( cause i know roughly what it will cost to ship it here ,where I am for the next month) Thanks

[Reply]
John R Reply:
November 18th, 2010 at 11:23 pm
It depends on what the cosmetic product is exactly, where it is made, and who your broker you chose will be. More details please.

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# Tammyon 20 Aug 2010 at 5:02 pm

I forgot to mention in my last comment that the package will be labeled as “Craft Supplies” and is coming from the US.

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# Paton 05 Oct 2010 at 6:22 pm

Hi

I am looking to purchase some shoes and tees for my kids from Disneystore. Total value around US 40.

Will there be tax and duty applied on this. If so, how much % I am looking at.

Thanks

[Reply]
John R Reply:
November 18th, 2010 at 10:05 pm
13%

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# Andreaon 15 Nov 2010 at 8:53 pm

Hi There,

I’m thinking about ordering cloth diapers from China. 50 of them value $150. I’m in Canada. Will I have to pay taxes and duties on them. Thank you for your help

[Reply]
John R Reply:
November 18th, 2010 at 10:05 pm
I picked mine up from a mothers exchange site for cheaper, from the US.

expect to pay 13% minimum. find out what they are made of, and let me know.

[Reply]
Andrea Reply:
November 19th, 2010 at 10:18 am
Thanks, Would you give me the mother exchange site? If I could get them cheaper the better. All the best :0)

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John R Reply:
December 11th, 2010 at 10:08 am
Sorry for the delay – it was ivillage.com
# John Ron 18 Nov 2010 at 11:26 pm

Things to remember – to find out what you’re going to pay, you need to know *exactly* what the goods are “clothing” or “appliance” is way to generic to find a proper duty rate, and knowing the country of origin helps to.

[Reply]
# Jean-Marc Corriveauon 26 Nov 2010 at 6:57 pm

I wish to import to Canada, Quebec and from USA, Kitchen pots and pans that were manufactured in USA. Any Duties? IMPORTANT: They are used (about 60 years old Copper tinned, high quality) Does the fact they are used make any difference on Taxes or Duties?

[Reply]
John R Reply:
November 26th, 2010 at 11:36 pm
Provincial QST and GST applies on the canadian value of the goods.
Duty Free (made in USA)

(the pots sound amazing!)

[Reply]
John R Reply:
November 26th, 2010 at 11:37 pm
(The fact they are used won’t have an effect, as the price would be adjusted to represent that, and you would pay the taxes on that price)

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Jean-Marc Corriveau Reply:
November 27th, 2010 at 4:19 pm
Thanks a lot John. Very Helpful!

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# Kel0350on 29 Nov 2010 at 9:11 pm

Hi there,
I just ordered a set of beer mugs from a specialty store in the states and paid 15.00 for standard ground shipping. The glasses themselves cost 40$ canadian. I am just wondering what, if any, taxes there could be on this…just so I have the money ready for delivery.

[Reply]
John R Reply:
November 29th, 2010 at 11:20 pm
it wont be the duty / taxes – but the brokerage will kill you. contact the carrier and see what their charges will be. Expect to pay pst/gst (or HST, you didn’t specify your province), and where are they made? if US/Can/MX – duty free.

what are they made of?

[Reply]
Kel0350 Reply:
November 30th, 2010 at 12:17 am
I live in Ontario so I am assuming there will be HST then.
They are made in the US and are made of glass at a wedding/party favors store.

Brokerage…how much would that typically cost?
thanks for your help by the way!

[Reply]
John R Reply:
November 30th, 2010 at 12:20 am
Who’s the carrier?
ups – http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html

Kel0350 Reply:
December 5th, 2010 at 12:27 am
Hi so I am currently tracking my package.
It is supposed to arrive on Monday.
It weighs 4lbs and is marked as “gift” UPS is delivering it.
How much do you think I will have to pay in additional fees? I dont really understand the UPS chart link you sent me.
Your advice would be greatly appreciated.
# John Ron 06 Dec 2010 at 12:00 am

Other then the fraud at claiming ‘gift’ when they are a purchase,
ups could charge you

Brokerage $7.00

Bond Fee $5.85 – If you told UPS to bill Duty / Tax to your CC ahead of time, you would have avoided this.

COD Fee $4.25 – again, see above

Invoice Integrity Fee – $4.00. As its coming from a commercial company, marking it as ‘gift’ would flag UPs system to call attention to it. They would probably call the vendor to ask what the goods are. You could save this by having the vendor just state what is actually in the package.

(Disclaimer – I do not work for any carrier, let alone UPS)

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# Nancyon 06 Dec 2010 at 6:28 am

Hey there!

I wanted to order some cosmetics and the total comes to exactly $20 but plus shipping it is $5.99 USPS making the total above $20. I’m new to this and was wondering if this means I will be paying any additional fees/taxes/costs or is $26 the amount I will pay when it comes to my door?

Thanks so much!

[Reply]
John R Reply:
December 11th, 2010 at 10:07 am
$20 = about $21 CAD, so you may have to pay the 13%.
Remember – Mail is hit or miss though, they don’t tag every package for customs processing, so it could just show up too.

[Reply]
Nancy Reply:
December 12th, 2010 at 9:20 am
Ahhh I see, I completely neglected the currency conversion! D’oh and needless to say, I ordered and it came to over $20 haha I hope they don’t tag my package!

Anywho, thanks so much for letting me know! Now I can avoid this in the future!

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# Lorraineon 07 Dec 2010 at 5:14 pm

I recently purchased and received some 100% wool yarn from Germany. The Canadian total is $70 but I am sure that wool is duty free- however I was charged $4.21 for duty. Can you confirm that wool yarn is duty free? #5107109010- this was the number CBSA assigned.
Thanks.

[Reply]
John R Reply:
December 7th, 2010 at 5:45 pm
6% duty – you could disagree and say they used a wrong tariff item, but whats your time worth?
http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2010/01-99/ch51-t2010-03-eng.pdf

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# Katerinaon 10 Dec 2010 at 8:11 pm

I thought that goods made in Canada are duty-free. However, I cannot find anything about this on the CSBA’s site. Am I mis-informed?
(Note, the item is worth 100CAD and I was charged $18 in duties and taxes).
Thanks!

[Reply]
BoB Reply:
December 10th, 2010 at 8:36 pm
Goods made in Canada/US/Mexico are all duty free. But you cannot get away from HST/GST/PST.

[Reply]
John R Reply:
December 11th, 2010 at 10:04 am
$100 value of goods, + 13% HST + $5 processing = $18.00

[Reply]
Katerina Reply:
December 11th, 2010 at 10:44 pm
Thank you both for your replies! After posting, I reviewed the invoice again and realized that I paid taxes + the $5 processing fee. At least, I will get a lot of use out of my boots!

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# Heidion 15 Dec 2010 at 11:14 am

I recently bought an item for $85 from the US…they also charged me states tax and shipping on top of that. It was shipped FedEx and I was charged the HST at the border. Was I supposed to be charged the state tax too?

[Reply]
John R Reply:
December 20th, 2010 at 12:41 am
Im assuming you shipped it to a US address, and brought it over yourself.

One of the problems with shipping it inside the US, is that if its in the same state as the vendor, you will be charged state sales tax, as they see it the transaction occured within the state, so state sales tax applies. You could save on that by shipping it directly to you – so you always have to weigh the cost of sales tax, and the amount you save on shipping. Next time, drop a note to the seller, stating that you can provide proof of export into canada, some will omit charging state tax (michigan won’t).

If on the other hand, you shipped it directly, then call them up and complain, they should refund you the state sales tax.

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# Audryon 06 Jan 2011 at 9:57 pm

I am looking at purchasing a large bunch of used / new children’s clothes off someone on line. It would require cross border shipping. I am aware that taxes and duties would need to be paid, but would I pay it only on the price that I paid, or on the total amount of all the items included? Wouldn’t the total value be what I paid? Could I have them include a receipt inside the package for what I paid for the items? Thanks.

[Reply]
John R Reply:
January 7th, 2011 at 12:51 am
You would pay duty/tax just on what you paid for the goods.

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# Tracy Fehron 09 Jan 2011 at 1:55 am

Hi! I live in BC, Canada and was thinking about ordering some $50 perfume online as a gift for my girlfriend. Would I be subject to duty fees? If so, what would they be? Thanks for your input.

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# Dwighton 12 Jan 2011 at 4:50 pm

I am a farmer in Ontario. I want to order some parts for my tractor from Illinois. The total is $430 US and the shipping was quoted at $105. I assume I will have to pay HST but is there duty etc. on farm related items? What else can I expect to pay?

[Reply]
# John Ron 12 Jan 2011 at 10:28 pm

Because its farm related, there are exemptions in place to omit any duty. You can also claim back the HST.

If you are using a broker, make sure that they understand that it is for agricultural end use.

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# Sandraon 26 Jan 2011 at 4:11 pm

Hi I am looking at ordering beading supplies from the US. I understand they will be marked craft supplies will I be paying duty on those items? and how much?

[Reply]
John R Reply:
February 19th, 2011 at 1:56 am
Yes, and it depends. What are they, and where are they made?
Craft supplies (generically) vary from 0% to 16%, plus HST

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# Jacquelynon 26 Jan 2011 at 11:13 pm

I am considering buying some “vintage” accessories off the Etsy site e.g. second hand (previously worn) bracelets and scarves, some are several decades old.These items would be mailed to me from the USA. Are second hand clothing items subject to the regular duties/taxes if the purchase is over $20 Canadian? Thanks.

[Reply]
John R Reply:
February 18th, 2011 at 8:49 pm
Yes

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# Arthuron 18 Feb 2011 at 1:12 pm

Hi, I am from Vancouver BC, and i just bought a $460 (shipping fee =$40) cellphone from ebay, i wonder about how much do i need to pay the duty and tax?
Thanks

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# Arthuron 18 Feb 2011 at 1:14 pm

Forget to mention, the cellphone is from USA

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John R Reply:
February 18th, 2011 at 8:49 pm
Cell phones aren’t made in the USA though.

What kind of cell phone is it?

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Arthur Reply:
February 19th, 2011 at 6:31 pm
It’s a Nokia N8, GSM cellphone. I’ve read some webpages saying Nokia N8 is either made in China or Finland. Does it matter where the cellphone is made in? I thought it only matters where the goods is mailed from.

[Reply]
John R Reply:
February 20th, 2011 at 12:40 am
No, it matters where it’s made. I’ll have to check on tuesday for the rate.
# wayneon 04 Mar 2011 at 7:04 pm

Hi, a friend wants to send over 5 Bronze sculptures, wall mounted Stag heads, approx weight is 15kg each and 80cm high, all are gifts for friends.Value is approx $400 each.
will import tax be applied?

[Reply]
# wayneon 04 Mar 2011 at 7:06 pm

oh, forgot, they are made in china although there is no documents to prove they were! and the bronzes are being sent from the UK.

[Reply]
John R Reply:
March 4th, 2011 at 10:31 pm
I think by default customs assumes things are made in China 🙂

Unfortunately, customs sees a gift as being under $60. You are going to be hit with HST (13% if ontario) on them when they come in.

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# Jeremyon 25 Mar 2011 at 12:14 pm

Are there Tax and Duty exceptions for children’s bikes sent from the USA to Canada via US Mail? The bikes are made in China.

[Reply]
John R Reply:
March 25th, 2011 at 12:46 pm
No.

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Jeremy Reply:
March 25th, 2011 at 1:26 pm
I thought I was told this by someone because the products intended consumer is a child.

[Reply]
John R Reply:
March 25th, 2011 at 1:31 pm
Before there was HST, you could get children’s bikes PST exempt. Exemptions like that are provincially based, and Customs is federally regulated so it gets to be a grey area.
(example – customs does not collect HST, they collect PST and GST)
# Mariaon 29 Mar 2011 at 7:14 pm

Hi, I am new buying online, and I’m willing to order a pair of shoes, an scarf and a pair of pants from the US to Vancouver, BC. my order total goes upto 52 us dollars; How much taxes I would have to pay for it or that’d be my final total?

Thank You

[Reply]
# Ulaon 31 Mar 2011 at 8:37 am

Hi, I am planning to order a hoover from US (Hoover FH40030 FloorMate) . Its about $180. I live in Ontario. How much duties and taxes will I have to pay?

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# Breon 03 Apr 2011 at 5:01 pm

Hi. I found a deal on ebay for a blemished Excalibur Dehydrator being shipped from Sacramento, California to Winnipeg, Manitoba and the cost is US $184.95 (178.38CAD) with a $75 USPS shipping fee. What could I expect to pay for duties?? I want to know if it would make more sense to buy from a Canadian supplier.

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# Ashleyon 24 Apr 2011 at 9:05 am

HI – I’m from Newfoundland, Canada – and am looking to buy some birthday party supplies from a website in the US – I was wondering how much duty & taxes will be ? My total order in US funds will be approximatelyy $300 .

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# Maryon 31 May 2011 at 12:57 pm

Hello, I am looking into importing some products from the U.S , an antioxidant supplement made in U.S.A and an antiaging cream made in Croatia, but sold only in the U.S. What taxes will these products pay? and also, will made a difference if my business partner in the U.S mail them directly to the customers in Canada, so they are not ship by a commercial store?
Thank you.

[Reply]
John R Reply:
May 31st, 2011 at 5:55 pm
You’d be better to talk to a broker, as you’re outside the scope of personal goods. The importer (you or your clients) would foot the bill for HST. I would have to know the chemical components to determine a tariff item to find out if there is applicable duty.

Makes no difference if its shipped personally or by a store.

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# Annaon 27 Jun 2011 at 5:59 pm

Hi,

I’d like some advice.

I’m in England and have just bought two T-shirts from Black Diamond in the States, but i am having them posted to my cousin in Canada because BD don’t ship to the UK. Together they cost less than $60 but with estimated tax ($6) and shipping and a discount it all up comes to $66.

Will my cousin have to pay anything when she receives the package? It is being posted with Priority International Mail USPS If this means anything to you?

any advice would be great.

[Reply]
John R Reply:
August 17th, 2011 at 9:42 am
Maybe. USPS shipments aren’t always assed duty/tax. Worse caase they are looking at about $10-12.

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# R.Oon 12 Aug 2011 at 10:57 pm

hi i just bought some perfume from wholesale china .it is for $48.00 i got free shipping from the seller.but i am wondering if i have to pay duty and tax .if yes how much? i live in vancouver
thanks

[Reply]
John R Reply:
August 17th, 2011 at 9:43 am
how is it shipping?

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R.O Reply:
August 23rd, 2011 at 4:57 pm
the shipping was free and it shipped by canada post.

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# R.Oon 12 Aug 2011 at 11:04 pm

forgot to say canada vancouver

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# gemson 19 Aug 2011 at 10:18 pm

I am also ordering some wholesale dog collars from china, total comes to $151 value of good and $106 shipping charges. do i have to pay duty? i probably HAVE to right? so what is the %? is it 26% like grahram says? and it would be taxed on the value of goods only, right?

[Reply]
John R Reply:
August 24th, 2011 at 8:37 am
What are they made of?
Shipping charges, from the direct point at which it ships out of the country, are not taxable.

[Reply]
Gems Reply:
August 24th, 2011 at 8:57 am
They are like leather and rhinestone

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# Karen Hon 22 Aug 2011 at 2:59 pm

I just bid on and won $ 95 dollars worth of crafters stamps from a seller located in Florida. The stamps are manufactured in the USA. There is a $12.95 shipping charge. (USPS Priority Mail International Flat Rate EnvelopeTM) Are there charges charged on shipping? What will be the extra charges: duty, taxes etc charged on this shipment. should I ask the seller to
write anything on the package that might help. ie. made in the USA?

[Reply]
Karen H Reply:
August 22nd, 2011 at 3:00 pm
Forgot to mention that I live in NS.

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John R Reply:
August 24th, 2011 at 8:39 am
HST on the $95. Ask to mark them “Made in the USA”
She will attach a ‘green sticker’ that she gets from the post office to the envelope, and she can mark it on there, along with the value of the goods.

Customs will go off that value to assess the HST + $5 fee

So if the value says $95, then your looking at approx $18

[Reply]
Karen H Reply:
August 25th, 2011 at 8:11 pm
Thanks John. Can you tell me what brokerage fees are? I’ve not heard of them before. Thanks.

[Reply]
John R Reply:
August 25th, 2011 at 8:33 pm
Brokerage fees are what a company charges, to do up the paperwork to have your package clear customs.
You always have the oppertunity to do the paperwork yourself (much the same way you can paint your own house, or wash your own car).

Companies charge a varied range of amounts for brokerage. Canada Post has an agreement with a broker, whereby they limit the amount to $5.00 for the fee.

You could still opt to clear it, and save yourself $5, but it become opportunity cost.

Most times if people ship via bigger carrier – UPS/Fedex/DHL they opt to clear themselves as their rates are much higher.

Karen H Reply:
September 2nd, 2011 at 12:39 pm
How do you know if there are brokerage fees and also how can you you do the paper work yourself to clear customs and avoid paying the extra fees?
You used the phrase “but it become opportunity cost” in the third paragraph of your response to my previous question. Can you tell me what you meant by this?
Thanks again.
Karen

John R Reply:
September 2nd, 2011 at 1:08 pm
Brokerage charges are listed by the carrier that handles the package, if you google UPS CANADA BROKERAGE, you’ll get a list of what they charge.

Basically, when you get the tracking number, call UPS and let them know that you want to clear it yourself. They will tell you the CARGO CONTROL NUMBER for the package. Just take that, and your receipt to your local customs, pay the duty /tax on it, and then they will give you a form, you fax that back to the carrier, and you’re all set.

Oppertunity cost = I have 4 acres of grass to cut. My kid will charge me $10 to cut the grass. Sure I could cut the grass and save myself $10, but for the 3 hours it will take him to do it, I could be doing something else.. to me, its worth paying him the $10, and me having 3 hours of my life back.

If the package comes up Canada Post, they only charge $5. It costs more then 5$ to drive to customs let alone the hassle to clear customs, so when its Canada Post, rarely would you do it on your own. UPS charges alot more, so if you call UPS and ask what the charges will be, gauge it against your time. Also with most carriers, if you put your Credit Card number on file, they will give you a discount.

Good Luck.

[Reply]
Karen H Reply:
September 3rd, 2011 at 2:32 pm
Thanks so much for all your help. Have a great long weekend.

[Reply]
# davidon 24 Aug 2011 at 12:56 am

hi I just bought a lego starwars vehicle from ebay, I paid $130 for it. it is used and I was charged GST/HST. I searched the CBSA database and finds that my item falls under “reduced size model” which is duty free, however I’m not sure if it is tax free, were they right to charge me GST/HST on my lego?

[Reply]
# Alexon 04 Sep 2011 at 5:41 pm

Hello,

I’m just wondering if it makes a difference if I’m not a Canadian citizen/resident at all? I’m an Australian who recently moved to Ontario for a few months and wanting to get a few things, mostly clothes sent over from Australia. It seems odd that I would have to pay taxes and duties on my own things sent by my family to me.

Thanks for your time.

[Reply]
# Katarina Z.on 14 Sep 2011 at 4:28 am

Hi,
i need help with sending a package of a personal nature.
There are used things such an old tent, a jacket, a sleeper, etc.
Everything is used and belongs to my brother who is in Canada for 6 months now. I want to send it to him, and he didn’t take these things when he was leaving. I would like to send him 3 boxes of cigarettes (cca 60 cigarettes) and 1 liter of alcohol. My question is, if he will have to pay the customs duty even if these things are his own and used for few years and if the customs and duty free allowances and restrictions (Tobacco*…200 cigarettes, Liquor*…1.14L of spirits) valid when entering the country personally refers also to sending it via mail. So… one more time 🙂 : If he has to pay customs duty even on his own and used things and if it is possible to send 1 liter of alcohol ane 60 cigarettes free of tax and customs duty. Thank you very much for your help!!!

[Reply]
# Annieon 12 Oct 2011 at 12:51 am

Hi,
I am going to buy a bag pack online and it will be shipped from an UK address. The company/store that I am going to order from is located in UK but the bag pack is made in Sweden. Also, the real price of the bag is 79.99 GBP but will be 63.99 pound with the 20 percent off for non-EU customers and gives free shipping. I live in Vancouver and I was wondering how much will I be taxed?

Thanks for your help!

[Reply]
# johnon 12 Nov 2011 at 10:05 pm

hi john. i just started my own business in Canada. its a clothing company with goods made in china but our brand. we do E BUSINESS. basically, when we get order we will have them made in china and send them back to Canada. normally, one customers goods will be 1-5 shirts. for example, we sell one shirt for 80 dollars. is Canadian customer gonna pay import duty on the cost of the shirt or selling price of the shirts? and tax on selling price of the shirt? because we are Canada based company, does government have good policy for our type of business? for example lower duty and tax?

[Reply]
John R Reply:
November 12th, 2011 at 10:45 pm
You sell 1 shirt for $80, and you charge your client HST for that shirt. When the shirt ships from china, you should be the importer of record, and be responsible for the duty/tax (Duty + GST). The amount you pay is based on your cost of the time. The duty you will eat, the GST you get back as an input tax credit.

What are the shirts made of?

[Reply]
# Corinne Watsonon 20 Nov 2011 at 3:13 pm

I ordered an item from Canada to be shipped from the US to a US address. I was charged Canadian taxes from the mail order compan on my purchase. I understood that if and when the item comes to Canada taxes would be assessed then. Has anyone heard of this?

[Reply]
# Corinne Watsonon 20 Nov 2011 at 3:22 pm

Hi
I ordered 2 Go Pro camera’s from Go Pro.com. I am having them mail the items to my folks in Arizona where they will bring them home for me at Christmas. They will claim them through customs however Go Pro has taxed the items with what they are saying is a Canadian tax. I thought that was handled when and if the items come to Canada? Anyone know anything about this?

[Reply]
John R Reply:
November 21st, 2011 at 9:32 am
It sounds like since the BILLTO was canadian, they just assumed that they were being shipped to canada as well. Give them a call, or an email, and let them know that this is being shipped to your parents, and should not be subject to canadian taxes. Good luck.

[Reply]
# Arion 20 Nov 2011 at 9:47 pm

Hi, I’m confused about the per item basis thing. I am planning on buying some makeup products from the US. One of them is 14 dollars the other is 10 dollars, which makes a total of 24 dollars, which means it is over 20 bucks. Shipping is 9 bucks. Would I get charged taxes since the order is over 20 bucks or would it be exempt from taxes since each ITEM is under 20?

[Reply]
John R Reply:
November 21st, 2011 at 2:36 pm
If your ORDER is less then $20, it will be duty free/ tax exempt.
Your order is $25, so you may be charged duty/tax on $24.00

(otherwise a container full of rubber duckies would in theory be free).

[Reply]
# Arion 20 Nov 2011 at 9:49 pm

I am from Canada !

[Reply]
# Allyon 03 Dec 2011 at 3:05 am

Hi,
I ordered a pair of Doc Martens worth $140 from ebay. Shipping will be from the UK to Calgary, AB. How much might I have to pay for duties and taxes?

[Reply]
# Andrejon 09 Dec 2011 at 5:11 pm

Hi, i ordered from US to MB, Canada some hockey equipment. Price was USD $130, shipping was $30. I used USPS Priority International post service.
My questions are :
1. how much i have to pay additionally (taxes, fees …)
2. will be package delivered ti shipping address or to post office where i have to go ?
Thanks a lot !

[Reply]
# Scarletton 11 Dec 2011 at 6:59 pm

Hi there,
I would really appreciate some advice before I make a purchase.
I would like to get some handmade bath salts, soaps and lotions from a store on etsy.com, but this particular seller is located in the States. Shipping costs are low, but I am worried about any additional fees

[Reply]
John R Reply:
December 11th, 2011 at 8:42 pm
If your order will be less then $20 cdn, expect to pay nothing.
If your order is over $20, then expect to pay
$5 (brokerage) + HST (applicable to your province).

If sent via USPS / Canada Post.

And even then its hit or miss if you will be charged. (as not all postal entries are assessed duties/taxes.

[Reply]
# jimon 14 Dec 2011 at 10:21 pm

i bought some american made items from a us seller and had them sent to my son in school(south dakota). he is coming home (calgary) for xmas and bringing them with him.
do i have to declare them? i assume they are duty free as they are american made but what other obligations may i have

[Reply]
John R Reply:
December 15th, 2011 at 9:48 am
GST.. 5%. He’ll declare that hes bringing home xmas presents, and if he gets hauled in to pay, he’ll pay 5%.

[Reply]
# jimon 14 Dec 2011 at 10:26 pm

i should mention that the goods were valued at 175 us and there are 3 items only 1 worth more than 60 dollars and they are gifts.

[Reply]
# jimon 14 Dec 2011 at 10:50 pm

i should mention there are 3 items and only 1 is worth more $60 and they are all gifts

[Reply]
# Lauraon 14 Dec 2011 at 10:58 pm

Hi there! I just received a groupon order for a pair of pants that I paid $40 for – they were originally $80/hence the Groupon half price purchase. However, after shipping and handling, I was chargeds $32 duty! How can this be and is it something I can/should argue? That’s almost what I paid for the item itself. The value the sender put on the item’s package was $71.00. This is confusing on so many levels, but basically, I really just want to know if the duty is right and if not, if I can fight it for my money back.

[Reply]
# Lauraon 14 Dec 2011 at 10:59 pm

I should add (if applicable) that they came from the UK

[Reply]
John R Reply:
December 15th, 2011 at 9:53 am
Ok.. when you say ‘duty’ do you mean ‘duty, hst and brokerage’?

Clothing can hit 18% duty, 13% HST (in ontario) and brokerage can range in price, lets say $7 if DHL.
So.. on a $40 pair of pants, (assuming thats canadian)
7.20 Duty
6.14 HST
7.91 Brokerage
—-
21.25 total.

Can you post the breakdown of charges, the courier?
Yes you can fight it, and I would suggest it, after you post more info on here for us, google ‘casual import b2 cbsa’ and you’ll see the form.

[Reply]
Laura Reply:
December 15th, 2011 at 12:52 pm
Thank you so much for your reply…OK, the breakdown is as follows (as it reads on my CBSA Postal Import Form that came with the package:
Value for duty – $71.80 Rate 18.00000 Amount $12.92 GST/HST/TVH – $10.17 and a handling fee of $8.50 for a total of $31.59 to claim my package.
The pants may have been of that value, but I paid $40CDN for them….plus another shipping and handling fee on their end (in the UK). So when all is said and done – I’ll have paid almost $100CDN for a pair of pants delivered to British Columbia. Any help would be of great value.

[Reply]
John R Reply:
December 15th, 2011 at 2:55 pm
Fight 🙂
The value they went on, was probably the value and shipping, so I would complete the B2 form, and just recalculate it using the amount you paid for it, less the shipping/handling.
Let me know how you make out.
# Bon 15 Dec 2011 at 11:50 am

I bought several items on sale from the US, coming to a total of around $200. My friend will be shipping them to me. I was wondering what can go wrong if she declares them as a gift of value $60?

[Reply]
John R Reply:
December 20th, 2011 at 10:56 pm
What could go wrong? Lets see.. Jail time, $25,000 in fines.. that could go wrong.. but chances are nothing.. but there is a chance… on $200 your looking at about $26…
You;’d have a better chance if it was presents to you, your mom, your dad.. not saying to do that.. I’d roll the dice.

[Reply]
# Rick Lewison 21 Dec 2011 at 10:21 am

I’ve ordered skoal longcut 30 cans for $ 116, shipping $44 total is $160. How much will this cost me in extra taxes I live in Alberta,Canada

[Reply]
John R Reply:
December 22nd, 2011 at 1:07 pm
More then the GDP of 3rd world countries.

Tobacco is one of the wierdest items. You’re best to contact your local customs office in your city. THey will be able to tell you as every province has its quirks when it comes to tobacco, and I only have rates for Ontario. IIRC it was over 100% when your taxes and such were calculated.

If you can tell me what city, I can tell you what customs number is.

[Reply]
# Emilyon 24 Dec 2011 at 6:45 pm

Hello, I would love some of your advice before I make a purchase. I am planning on purchasing a scanner from ebay for $600 + $75 shipping. It says here (http://betterdollar.com/?s=scanner) that scanners are exempt from import duties, but I remember being charged for a cell phone a couple years back. Should I expect any fees/ taxes on the scanner? If so, how much?

Thank you!

[Reply]
John R Reply:
December 26th, 2011 at 11:46 pm
what kind of scanner is it, and where is it made. If its a computer part, its duty free, but HST applies.

[Reply]
Emily Reply:
December 26th, 2011 at 11:49 pm
It is the epson GT-20000 large format scanner. I’m not sure where it was made.. but I would assume China.

[Reply]
# John Ron 26 Dec 2011 at 11:52 pm

Should be duty free, HST applies.

[Reply]
# cindyon 03 Jan 2012 at 1:01 pm

i ordered from a website in Australia, goods made in Columbia. same thing applies? 13% approximately? it’s a swimsuit.

[Reply]
John R Reply:
January 3rd, 2012 at 1:46 pm
18% duty, plus $13 HST.. if it was sent Post though, its only if they assess duty on your package.

[Reply]
# samon 11 Jan 2012 at 9:09 am

I purchased a guitar from the states, it’s USED and I got the owner to send it as GIFT. it cost 750US and I was charged 108$ in duty upon delivery to my location in Ontario, Canada. Is there a way to recoup this duty?
Thanks

[Reply]
John R Reply:
January 11th, 2012 at 3:46 pm
So customs didn’t accept the whole gift thing?

the 108 was that just duty, or was that more
GST, PST, brokerage and other related fees?

Can you give me a breakdown, and I can tell you where you could try to recoup, but 750 is 97.50 in PST/GST alone (if in ontario) and like a $10 brokerage charge which is pretty cheap.

[Reply]
# Charubon 12 Jan 2012 at 9:21 am

I ordered some items from Adam & Eve.com – It is a US site shipping to a Canadian address. The total of the items after taxes were 52$US. With Shipping it came to 62$ total.

It is shipping with USPS Airmail. Will there be any duty fees on this or did I just steer clear of them?

[Reply]
# Kyleon 06 Feb 2012 at 10:23 am

Hello I am setting up a online retail store. I am using about five or 6 vendors ( dropship) programs. There are 4 vendors in the USA. All with different wharehouse locations. 2 of my vendors are in Ontario. I am located myself in Ontario. I have a registered import/export RM number. I am planning to only sell to the Canadian market. The plan is to get my vendors to use my account for UPS(orders form vendors in the US) or Canada Post (orders from vendors in Canada) that I have setup . I was told that my RM number would speed up the process at the border. Since I m just starting out I have not registered my business for a HST number because I don’t have to charge HST until my sales hit $30000. My question is that because I am being charged the HST at the border and will have to charge the customer that also should I get a HST number?

[Reply]
BoB Reply:
February 8th, 2012 at 3:33 pm
You must collect HST/GST for all online sales. The rate depends on the destination address, see http://betterdollar.com/what-tax-to-charge-for-out-of-province-shipped-goods/

[Reply]
John R Reply:
February 8th, 2012 at 3:40 pm
THeres a customs ruling, that as these are casual goods, you will be charged GST/PST at the border.
If you don’t enroll for the HST, you will be responsible for paying it out, but not being able to recover it.

WHen importing, it always makes sense to get your own importer number, and get registered for the HST.

[Reply]
# barbaraon 10 Feb 2012 at 4:35 pm

My boyfriend is interested in buying an engagement ring. I have read through several posts.. although not all of them (there’s quite a few). It is my understanding that if the item is made in Canada/USA/Mexico he will not be assessed duties but will be charged for PST/GST/HST correct? and the fee to inspect it.

Thanks

[Reply]
John R Reply:
February 10th, 2012 at 8:56 pm
Congrats.. but doesn’t that ruin the surprise?

True – Made in CA, US, MX, it will be duty free, but taxes are still charged.

THe fee varies between courier companies, but you can always clear it yourself, and save the fees.

(Check out bluenile.ca – its where I picked mine up)

[Reply]
# Tammy Mon 10 Apr 2012 at 2:46 pm

Hi John,

I just had a package delivered via Canada Post (I live in BC). It was a shipment of 100% sheep’s wool, valued at just over $60 US. I had to pay duty of approx $12 to get the package. I have ordered wool from various farm shops in the US and have never had to pay duty before, and was always under the impression that wool was exempt from duty. Am I wrong or did they charge me mistakenly? Thanks a bunch for your help 🙂

[Reply]
John R Reply:
April 10th, 2012 at 3:13 pm
Its exempt from duty, but not HST + brokerage fee.

[Reply]
# Tammy Mon 10 Apr 2012 at 3:27 pm

Thanks for the information, John, and the fast reply 🙂

[Reply]
# Anitaon 14 Apr 2012 at 5:02 pm

I just purchased to swim cover ups from
China, the total cost I have to pay is 22.68, that includes the sellers shipping fee from eBay How much will I be charged in other fees, shipped to US?

[Reply]
John R Reply:
April 24th, 2012 at 11:49 pm
No idea. You’d have to check a US importation site to be sure, but their amount for ‘free’ importation is $200, so it should be free going into the US.

[Reply]
# Erinon 17 Apr 2012 at 4:03 pm

Hi,
Im looking to purchase an item of clothing valued at $500 on a US website and have it shipped to Canada.
The item is made in Canada… would I owe duty or is it tax exempt?

[Reply]
John R Reply:
April 24th, 2012 at 11:38 pm
Duty free, but you will have to pay HST (just like you would have if you bought it in canada)

[Reply]

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