If you’re shipping your US orders into Canada, understanding how to pay customs duty in Canada is important. While it may seem like a complicated process, we’ve got you covered in this article!
So, let’s dive into this handy guide and look at the ins and outs of customs duty payment.
Here are the necessary steps you need to remember when paying customs fees:
The first thing you need to do when paying your customs duty is to know how much you owe. This means calculating your total payable amount based on the following:
Knowing how much you owe helps avoid surprises and makes the payment process easier. This is a crucial step to ensure everything goes smoothly when crossing the border.
Here’s a summary of the applicable tax and duties imposed by the Canada Border Services Agency (CBSA) based on the total import value:
| Total Import Value | CBSA Tax | CBSA Duty |
| Less than 40 CAD | Not applicable | Not applicable |
| 40 CAD to 150 CAD | 13% for Personal Import5% for Business Import | Not applicable |
| More than 150 CAD | 13% for Personal Import5% for Business Import | 0% – 25% depending on the product category |
(Note: CBSA Tax and Duty are assessed based on the imported item’s value per day.)
Now, here’s an example of how you can calculate your fees:
Retail Value: Personal Import worth 75 CAD
75 CAD x 0% = 0 Duty Applicable
(No duty incurred in this calculation since the item value is less than 150 CAD)
75 CAD x 13% = 9.75 CAD
CBSA Duty amount: 0 CAD
CBSA Tax amount: 9.75 CAD
You can also use Shippsy’s Canada Customs Fee Calculator to access your estimated fees easily.
There are mainly three types of Customs duties that apply when shipping goods to Canada:
The Goods and Services Tax (GST) is a tax added to the price of most things you buy in Canada, like goods and services.
Provincial Sales Tax (PST) is a tax that each province in Canada charges on items you buy or services you use within that province.
The Harmonized Sales Tax (HST) is a single tax that combines the federal Goods and Services Tax (GST) with the Provincial Sales Tax (PST) in some Canadian provinces. Instead of having two separate taxes, these provinces have combined them to simplify things.
Below are the current Tax rates for the following provinces in Canada:
| Canadian Province | GST | HST | PST |
| British Columbia | 5% | 5% | 7% |
| Manitoba | 5% | 5% | 7% |
| Quebec | 5% | 5% | 9.975% |
| Saskatchewan | 5% | 5% | 6% |
| New Brunswick | 15% | 15% | N/A |
| Newfoundland and Labrador | 15% | 15% | N/A |
| Nova Scotia | 15% | 15% | N/A |
| Ontario | 13% | 13% | N/A |
| Prince Edward Island | 15% | 15% | N/A |
| Alberta | 5% | 5% | 0% |
| Northwest Territories | 5% | 5% | 0% |
| Nunavut | 5% | 5% | 0% |
| Yukon | 5% | 5% | 0% |
Getting all the right paperwork is one of the basic rules when shipping to Canada. These documents include invoices, receipts, and import forms that provide detailed information about the shipment contents.
Organizing these papers helps you determine exactly how much customs duty you must pay. It also allows for a smoother shipping process, reducing the chances of shipping issues, like customs delays and errors.
So, if you’re ready to ship your US orders and pay customs duties, ensure you have all the necessary paperwork. Doing so makes things a whole lot easier as it makes you ready to back up your items whenever needed.
Once you’ve determined your duties and taxes owed, the next step is to choose a suitable payment method. You have several options to choose from to pay your fees conveniently. Here are the following:
Regardless of the chosen payment method, it’s essential to ensure timely payment to avoid any penalties or delays in customs clearance services.
Always remember to keep proof of payment once you’ve paid your customs duty. This could be a receipt, a transaction reference, or any other document that shows you’ve paid the required customs fees for your imported goods.
It’s important to follow this practice because:
Overall, keeping proof of payment is necessary to ensure compliance with customs regulations and facilitate a smooth process for your goods purchased online.
It’s also important to keep an eye on the customs clearance process along the way. This includes checking on the status of your shipment as it goes through the customs checks and gets approval.
Here are some of the reasons why it’s important to monitor your clearance process after paying your duties:
By staying informed and checking in on the process, you can work with customs authorities or your customs broker better to ensure your goods are released smoothly and on time.
Here’s a pro tip you should keep in mind: check if you’re eligible for personal exemptions when paying customs duties in Canada. This is super helpful, especially for Canadian online shoppers who are ordering items from the US.
Personal exemptions allow you to bring in certain goods without paying customs duty or taxes. If you qualify for these exemptions, you can save money by not paying extra fees on your online orders.
Knowing your eligibility also helps you plan your purchases better and avoid unexpected costs at the border. By understanding the personal exemption rules, you can make informed decisions. Plus, you can stay within your budget and enjoy a hassle-free shopping experience when importing goods from the US.
Instead of calculating and paying for your fees when you ship your online purchase from the US, better ship with Shippsy’s package forwarding services.
Why? Because with Shippsy, you don’t have to figure out the numbers yourself. We designed our system to show you the total applicable tax and duty upfront as you process your shipment. You will only pay an all-inclusive amount with a transparent price breakdown.
Speaking of price, Shippsy offers the lowest shipping rates for cross-border shipments. For as low as 6.99 CAD*, you can now get your hands on your online purchases from the US to Canada!
So, switch to Shippsy today and say goodbye to getting lost in numbers. Join thousands of Canadian online shoppers who have experienced real wonders in shipping with us from the US to Canada.
Are you hyped to start shipping with only the best package forwarder in Canada? Then, create your Shippsy account now!
*Rate applies to Ontario shipments only. Shipping fee starts at 7.99 CAD for British Columbia and Quebec.
Calculate Your Customs Fees Here
Paying your Canadian customs duties doesn’t have to be complicated. Following the steps above can surely help you go through the process with ease.
Or, for a more hassle-free experience in paying your customs fees and shipping your US items, ship with a reliable package forwarder like Shippsy.
Aman looks after the content marketing department at Stallion Express. He is passionate about helping businesses grow by providing informative and up-to-date trends in the eCommerce industry. Outside the office, you can find him on the soccer field cheering on Real Madrid.
Read all posts written by Aman Chopra
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