Duties and Taxes

My company is in British Columbia, Canada and I import from China. How is the duty and GST calculated?

Duty and GST are calculated on the vendor's selling price minus the actual freight and insurance amount (if applicable) converted into Canadian dollars, this is the value for duty. Then the duty is applied to t...

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If my vendor gives my company a 5% freight allowance can I deduct this to reduce my duty payable?

Customs is very clear on this issue, only the actual freight amount can be deducted for duty purposes. Unfortunately 5% freight allowance is not the actual amount. Therefore, no deduction is allowed.

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Do I pay GST on food products?

The supply of basic groceries which includes most supplies of food and beverages marketed for human consumption (including sweetening agents, seasonings and other ingredients to be mixed with or used in the pre...

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Can cash discounts be deducted from the value for duty for customs purposes?

Yes, as long as the payment is made within the terms indicated. If ever in a valuation audit situation Canada Border Services Agency may want to see proof.

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My company pays duty on umbrellas when they import them into Canada from China, then we sell many of them to the USA; can we get our duty back?

If your umbrellas are exported (sold) to the USA in the same condition as your company imported them into Canada, you can apply for a duty drawback (refund). Basically, you have up to four years to file the dra...

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I was contacted by a Distributor in the USA who wants to sell me new metal furniture he purchased from a correctional facility in his state. How much duty would I pay?

Before we can properly answer that question, we would need to know who made the furniture? If the furniture was made wholly or partially in the correctional facility by the incarcerated the goods would be prohi...

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I've bought a large packaging machine from the USA and the vendor is charging $5000 to install it in my plant here in Richmond, BC. I know the machine is duty free, but do I have to pay any duty or GST on the installation charge?

Installation charges in Canada are normally not included in the value for duty calculation providing they are itemized separately on the documents and the charge for the installation is reasonable.

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What are some products with the highest duty rates?

Dairy and Poultry products can attract duty rates over 200%.

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Which provinces in Canada have HST?

New Brunswick, Newfoundland & Labrador, Nova Scotia, Ontario and Prince Edward Island.

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Can a US Company register for the GST/HST?

Yes, please contact Canada Revenue Agency (CRA) to register.

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