Are you shopping and shipping from the US to Canada? You may be wondering how to calculate duties for Canadian shipments. After reading this blog, you don’t have to wonder about it! Depending on the value of the goods you are bringing into the country, you may be required to pay duty and/or taxes. However, we'll give you a brief overview of the fees and duties and also calculate the taxes and duties before shipping!
Duties and taxes are assessed by Canadian Customs based on several factors, including the type of goods being imported, their value, and the country where they were manufactured. In most cases, duty rates are based on a percentage of the value of the goods being imported. Taxes, on the other hand, are generally based on the value of the goods as well as any applicable provincial or federal taxes.
Duty is a tariff charged on goods imported into Canada. The amount of import duty charged depends on the type of goods being imported and the country they are coming from. Most goods entering Canada are subject to a duty rate of 5% or less.
Taxes on imported goods are also collected by the Canada Border Services Agency (CBSA). The two main types of taxes imposed on imported goods are the federal Goods and Services Tax (GST) and provincial sales taxes (PST). The GST is a 5% tax that is applied to most goods and services purchased in Canada. PST is imposed by the provinces and ranges from 0% to 10%.
To calculate the duties and taxes you will be required to pay, you can use the tool on the Canada Border Services Agency website. Just enter a few details about the goods you're importing and where they're coming from, and it will give you an estimate of the fees you'll need to pay. Keep in mind that this is only an estimate; actual charges may vary.
After the package left the United States with the correct shipping option, shipping rate, and shipping service, customs officers calculated your customs and duty fee, if any, with the tariff rate on their website apart from the shipping cost.
They will contact the courier company, and the courier company will reach out to you. In order to pay the taxes and duty fee, you might want to wait until the courier company reaches out to you. After they reach you, you will have approximately 3–5 business days to pay the fee.
Customs and import fees can be a significant cost when shipping goods internationally to Canada from the US. However, by doing your research ahead of time and knowing what fees apply to your shipment, you can avoid any surprises at customs. Depending on the value of the goods you are shipping or bringing into Canada, you may be required to pay duties and/or taxes.
It is stated on the Canadian Customs website that if you are an individual importing goods for personal use, you may be eligible for an exemption if the total value of your goods is less than $200 CAD. Certain goods are exempt from duty and/or taxes altogether, such as gifts worth less than 60 CAD, certain medical devices, sports equipment, etc. You can check out the website by clicking here. By doing your research and knowing your options, you can save yourself a lot of money on import and customs fees when it comes to shipments to Canada from the United States.