Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.
Personal Duty Exemption
Canada’s personal duty exemption for residents who bring back goods from trips outside of its borders is considerably more limited than the U.S. personal duty exemption. U.S. residents returning from abroad are entitled to an $800 duty-free exemption after 48 hours abroad and $200 for trips under 48 hours. Canadians who spend more than 24 hours outside of Canada can bring back C$200 (approximately $153) worth of goods duty free, or C$800 (approximately $613) for trips over 48 hours. U.S. retailers have raised concerns about the effect of this policy on purchases by Canadians on trips under 24 hours to the United States.
De Minimis Threshold
De minimis refers to the maximum threshold below which no duty or tax is charged on imported items. U.S. companies shipping to Canada should be aware that Canada’s de minimis threshold is C$40 for taxes and C$150 for duties. By comparison, in March 2016, the United States raised its de minimis threshold from $200 to $800. Some stakeholders, particularly shipping companies and online retailers, maintain that Canada’s low de minimis threshold creates an unnecessary trade barrier.