Canada Country Guide — Import and Landed Cost Reference

TAX | DE MINIMIS | ADMISSIBILITY | PROHIBITED/RESTRICTED | CUSTOMS VALUATION | SURCHARGES

De Minimis Thresholds, Tax Rates, Customs Valuation Methods & Calculation, Customs & Carrier Surcharges, Admissibility, and Prohibited Restricted Commodities.

Please note that import tax rates, de minimis thresholds, admissibility requirements, customs valuation methods, prohibited & restricted commodity regulations, customs, and carrier surcharges are dynamic and may change without advance notice. Current regulations and rates for each topic must be queried and confirmed prior to shipment using the indicated official sources.

FlavorCloud recommends that our merchants use these tools as a reference and then verify at the national/provincial level and/or with your commodity- and country-specific expert before shipping.

DE MINIMIS

See CA notes below for tiering

† FOB — “Free on Board” – Incoterm and basis method for Customs Valuation 
§ CAD$ — Canadian Dollar

Caution — Commodities subject to excise duty/tax are generally not eligible for de minimis treatment. See notes below for further details on excise duty and tax.

TAX
(GST, PST, HST)

Canadian Import Tax amount depends on the destination province. There are three levels:

1. GST — Goods and Services Tax (Federal only)
2. Separate GST and PST (Provincial Sales Tax)- both taxes apply
3. HST — (Harmonized Sales Tax) Federal GST is blended with the PST to create a single, harmonized rate in participating provinces.

CUSTOMS SURCHARGES***

***Customs and Carrier Surcharges are carrier, destination, and time specific. Items in orange apply to all consignments, and other items applied ad hoc, if applicable. Surcharges are dynamic and subject to frequent change by carriers without prior notice.

CARRIER SURCHARGES***

***Customs and Carrier Surcharges are carrier, destination, and time specific. Items in orange apply to all consignments, and other items applied ad hoc, if applicable. Surcharges are dynamic and subject to frequent change by carriers without prior notice.

Customs Valuation Method

Duty

FOB x Duty Rate

(See FOB note below)

FOB Customs Valuation Calculation Method Note

Unlike CIF, the customs valuation process does not include freight or insurance costs in transporting goods from the place of export to the destination when calculating customs value. However, any inland freight or insurance costs incurred by the purchaser/importer before the goods leave the place of export must be included in the customs value.

Tax

FOB + Duty Amount x Tax Rate

Excise Duty and Excise Tax

Commodities subject to excise duty and/or excise tax do not qualify for de minimis duty-/tax- free importation. Please consult current regulations to confirm if your goods are subject to excise duty/tax prior to shipping.

Excise Duty https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/edrates.html
Excise Tax https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/currate.html

Customs and Carrier Surcharges

***Customs and Carrier Surcharges are carrier, destination, and time specific. Items in orange apply to all consignments, and other items applied ad hoc, if applicable. Surcharges are dynamic and subject to frequent change by carriers without prior notice.

Admissibility (OGA/OGD/PGA) Background

Many products are subject to specific import requirements such as import licenses, permits, certifications, inspections, product/business, and other labeling requirements. These requirements are generally referred to as admissibility or OGA/OGD/PGA requirements (“Other Governmental Agency” / (“Other Governmental Departments” / “Partner Governmental Agency”). In Canada, these are referred to as OGD (“Other Governmental Departments”) requirements.

These admissibility requirements are subject to frequent change without advance notice and are entirely dependent on the commodity (HTS code), country of origin, country of import, and time of import. It is advised to regularly verify and validate admissibility requirements to ensure there are no import delays and to ensure the proper administrative steps are adhered to prior to shipment. Certain products are prohibited from being imported unless the relevant requirements/obligations are met. Significant fines, fees, delays, and storage charges can be assessed when these regulations are not followed. FlavorCloud always recommends that our merchants verify import requirements at the national and provincial levels and/or with your commodity- and country-specific expert before shipping.

Admissibility (OGA/PGA) Resources

Certain commodities are prohibited or restricted depending on the country of import, country of origin, and the specific point in time at which the goods are imported into Canada. Assessment of import requirements specific to your products can be done in Canada by consulting the Other Government Departments and Agencies Reference List for Importers.

The Automated Import Reference System (AIRS) also offers query functionality to search commodities by HS code, description, and keywords to check for potential import requirements.

A current overview of the impacted commodities, as well as direct links to the government department/agency responsible for ensuring that prohibited and controlled goods are not illegally imported into Canada, is indicated in this resource:

These tools are published at the national level, are non-exhaustive, and are subject to a detailed legal notice. FlavorCloud recommends that our merchants use these tools as a reference and then verify at the national/provincial level and/or with your commodity- and country-specific expert before shipping.

Canada Notes

Import Duty/Tax De Minimis

https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn20-18-eng.html

*De minimis value based on FOB in CAD$ for goods provided directly to the buyer. Does not apply to perfumes/colognes, tobacco/tobacco products, alcoholic products, or other commodities subject to excise duty/tax.

As stated by the CBSA https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn20-18-eng.html

“Upon entry into force of the CUSMA, the following provisions will apply to imported goods that are transported by courier into Canada:

• Goods with a value for duty of CAD$20.00 or less will have any applicable customs duties and taxes waived when imported from any country;
• Goods with a value for duty CAD$20.01 or greater that are imported from any country other than the United States or Mexico will continue to be subject to any applicable duties and taxes;
• Goods with a value for duty of CAD$40.00 or less will have any applicable customs duties and taxes waived when imported from the United States or Mexico only;
• Goods with a value for duty of CAD$40.01 or greater, up to and including CAD$150.00, will be free of customs duties (however, taxes will remain applicable) when imported from the United States or Mexico only; and
• Goods with a value for duty CAD$150.01 or greater will be subject to any applicable duties and taxes when imported from any country, including the United States or Mexico.”

As defined in the Courier Imports Remission Order (CIRO), “courier means a commercial carrier that is engaged in scheduled international transportation of shipments of goods other than goods imported by mail.”

Notes/Exceptions

To qualify for the CAD$40.00 or CAD$150.00 de minimis thresholds set out in the CUSMA, the goods do not need to originate according to the CUSMA Chapter 4, Rules of Origin, but rather be imported from the United States or Mexico. If the goods were not produced in the United States or Mexico, they must have entered into the commerce of either the United States or Mexico prior to being imported into Canada to benefit from the CUSMA de minimis relief. For greater certainty, goods that are shipped from a non-CUSMA country and transit or are trans-shipped through the United States or Mexico without having entered the commerce of the CUSMA partners would not be entitled to the CAD$40.00 or CAD$150.00 de minimis thresholds.

Tax (GST, PST, HST)

The official overview of tax is shown in Memorandum D2-3-6 Appendix A – Provincial sales tax, Harmonized sales tax, Tobacco tax on non-commercial importations

Some casual goods regulated under the Non-Taxable Imported Goods Regulations, are exempt from GST. Goods exempt from GST are also exempt from the HST, PST, provincial tobacco tax, and/or alcohol markup/fee.

A list of these GST-exempt commodities & circumstances is overviewed in SOR/91-31 Non-Taxable Imported Goods (GST/HST) Regulations. Among others, exempt commodities include:

• Precious metals imported under any circumstances;
• Unwrought silver, gold or platinum, waste and scrap of precious metal or of metal clad with precious metal, and concentrates of silver, gold or platinum, where imported for the purpose of being refined into precious metals
• Goods imported for the sole purpose of public exhibit by a public sector body, where, while the goods are in Canada,
• Goods imported for the sole purpose of maintenance, overhaul or repair of those goods in Canada
  • The title will not pass/transfer, and the goods are exported as soon after the maintenance, overhaul, or repair is completed as is reasonable under normal business practices.
• Crude oil
• Print, an etching, a drawing, a painting, a sculpture, or other similar works of art where:
  • The work is part of a shipment of imported art on consignment and the total value of the shipment, determined in accordance with section 215 of the Act, is at least $250,000.
  • Goods imported after having been exported for warranty repair work.