How to Calculate Duty in Canada

The duty payable on an item imported into Canada will depend on a number of factors.

A duty is a tax that is placed on goods purchased in one country and shipped to another. In Canada, determining the duty on an item depends on a number of factors, including the country of origin of the item or items, the cost and any personal exemptions that might apply. Importing personal items is different than importing items for the purposes of selling them, so you must be sure that you know why you're importing an item in order to determine the duty payable on it.

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Instructions

- 1
  
  Determine your reason for importing an item. Items imported for personal use may be treated differently than items intended for sale. You must know why you are importing an item or items before you will be able to determine the duty payable.
- 2
  
  Determine the item's country of origin. Items coming from countries with whom Canada has a free trade agreement (such as the United States, Mexico, or Chile) may not incur any duty at all, and may only be subject to general and/or provincial sales taxes. Other "most favored nation" countries -- of which Canada has many -- may offer low or no duty on items being imported into Canada.
- 3
  
  Determine if any personal exemptions apply. If you've been traveling abroad for a period of time, you may be entitled to a personal exemption on duty for items purchased abroad, up to a certain dollar limit. This limit will vary depending on how long you've been away from the country. Check with the Canada Border Services Agency (CBSA) to see the current exemption amounts and travel time minimums.
- 4
  
  Determine the total value of the item or items. Duty will vary on an item or items, since it is based on a number of factors, including value. Knowing the precise value of the item or items in Canadian dollars is necessary for calculating duty.
- 5
  
  Classify the item's applicable taxes based on origin and destination. Different origins (i.e., different countries) and destinations (i.e., different provinces) will have different tax rates. Visit the CBSA website for a guide to calculating duty based on the origin and destination of the item.

Tips & Warnings

When in doubt about applicable duty, contact the CBSA through their website at www.cbsa-asfc.gc.ca. The CBSA is the final and definitive source of information for import duty.

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How to Calculate Duty in Canada

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