{"id":4457,"date":"2019-05-02T11:11:41","date_gmt":"2019-05-02T15:11:41","guid":{"rendered":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/?p=4457"},"modified":"2024-12-01T16:55:26","modified_gmt":"2024-12-01T21:55:26","slug":"duties-and-taxes","status":"publish","type":"post","link":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/duties-and-taxes\/","title":{"rendered":"Saving Money on your Imports: Duties and Taxes"},"content":{"rendered":"

Duties and taxes can quickly eat into your wallet if you\u2019re not careful. Passing on the costs to the consumer can burn bridges in the public eye, but taking on the costs yourself isn\u2019t ideal either. If you\u2019re importing for personal reasons, high duty costs are even more onerous \u2014 you have no choice but to pay them alone.<\/p>\n

Thankfully, by being smart, you can avoid being hit too hard by duties and other fees!<\/p>\n

Avoiding Duty Altogether: Duty Free Goods<\/h2>\n

The most straightforward way to avoid paying high duty costs is to avoid importing anything that would incur a high duty charge in the first place. This may seem <\/i>like a very simple piece of advice, but it does require keeping up with Canada\u2019s Custom Tariffs<\/a> \u2014 they update regularly. You also need to keep an eye on any extra tariffs that may be in effect, such as the 2018 Surtax Order<\/a> on steel from the United States.<\/p>\n

If you\u2019re only importing something once, this just means checking on whatever it is you\u2019ll be importing before you pay for it. Many goods from the European Union enter Canada duty free because of the Canada-EU Comprehensive Trade and Economic Agreement, so if you\u2019re in the mood to import yourself some Spanish chocolate, you\u2019ll probably be fine when it comes to avoiding unexpected duties.<\/p>\n

However, if you import goods regularly, you\u2019ll want to be more diligent about keeping up with those changes. You may need to sometimes switch suppliers to keep a steady supply for your customers and clients without unwanted duty costs.<\/p>\n

Duty Free or Tax Free: Importing Costs<\/h2>\n

Beyond just duty, though, are sales taxes. Because every province has their own tax system, there is no single flat tax rate for importing into Canada.<\/p>\n

In addition the federal GST<\/a> \u2014 5% of the duty-paid value of the shipment \u2014 you\u2019ll pay the province\u2019s tax, as well. The exceptions to this rule are Alberta \u2014 which has no PST \u2014 and the territories, which aren\u2019t provinces and so don\u2019t have PST laws.<\/p>\n

In New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island, a single harmonized sales tax replaces PST and GST and must be paid in full. In British Columbia, Manitoba, Quebec, and Saskatchewan, PST and GST are separate.<\/p>\n

When importing to a province that uses a PST system, you will have to pay PST \u2014 usually, whether you\u2019re a resident of that province or not. Some exceptions exist, though; they vary from province to province, so talk to a customs broker if you\u2019re unsure. (We\u2019re on hand whenever you need us!)<\/a><\/p>\n

Refunds and Deferrals<\/h2>\n

Sometimes, the answer can\u2019t be to just import your goods from another supplier (or not import at all). Some goods have duty fees<\/a> you can\u2019t get around, but you don\u2019t always have to absorb the cost or the taxes. The Canadian government has a number of trade incentive programs<\/a> that can help you recover some or all of your import fees.<\/p>\n

If you\u2019re importing supplies for a government contract<\/a>, you can apply for tax relief or duty drawbacks, for example. The rules are strict, but if you qualify, talk to your customs broker.<\/p>\n

More broadly, the Duty Deferral Program has three options for recovering or deferring duty costs:<\/p>\n