All shipments from the U.S. coming into Canada are subject to review by the Canada Border Services Agency (CBSA). The CBSA determines whether the goods may enter Canada and if any duty and/or taxes apply.
How is CBSA Tax & Duty Calculated?
Duty is a tariff payable on an item imported to Canada. Rates of duty are established by the Department of Finance Canada and can vary significantly from one trade agreement to another. This tariff is then applied to the value of the goods which is a percentage based on the commodity.
Shippsy handling fee
$6.99
HST
13%
CBSA TAX/VAT
13%(ON) or 12% (BC)
What else can affect costs?
Duty can vary widely depending on what you are bringing into Canada. Typical duty rates range between 0% to 25%, with the average being somewhere in between. Items manufactured in the USA, Canada, and Mexico are often covered under the treaty and cross the border-free of duty.
Shippsy handling fee & taxes depend on your region
Verified business accounts will be charged 5% for CBSA Tax/VAT
CBSA Tax and Duties will be assessed based on the value of items imported pay per day.
Calculation Examples:
Let’s say you have 3 shipments on your Shippsy dashboard waiting to be requested for import to Canada.
Shipment 1
Retail value: $30.00
1x Men’s Tshirt with a declared value of $30.00 CAD
No CBSA Tax and Duty will be applied, because the declared value is below $150.00
Shipment 1 + Shipment 2 on same day: CBSA Tax will be applied but there will be no CBSA Duty since the value is still below $150.00 CAD
Shipment 2
Retail value: $50.00
1x Ladies shoulder bag with a declared value of $50.00 CAD
CBSA Tax will apply because the value is over $40 and Duty will not be applied, because the declared value is below $150.00
Shipment 1 + Shipment 2 on same day: CBSA Tax will be applied but there will be no CBSA Duty since the value is still below $150.00 CAD
Shipment 3
Retail value: $200.00
1x Nike Shoes for men with a declared value of $200.00 CAD
CBSA Tax and Duty will be applied, because the declared value is above $150.00
Shipment 1 + Shipment 2 + Shipment 3 on same day: CBSA Tax & CBSA Duty will be applied since the value is above $150.00 CAD
Still have questions about CBSA?
For additional questions or concerns regarding how CBSA Tax and Duties are calculated, you can send an email to [email protected] or call 888 - 744 - 7779.
To access CBSA’s online calculator, click here
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