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CSA TRAVEL INFORMATION GUIDE
brokers to prepare customs forms. Some travellers have found these commercial brokerage fees to be
higher than they expected. The fees have increased the cost of a gift to a price at which the gift was
no longer worth its purchase abroad.
Gifts mailed by you, while out-of-country, to a person back in Canada are exempt from duties and
taxes as long as the gift is worth $60 CAD or less (converted value) and not otherwise restricted for
importation. Alcoholic beverages, tobacco products, and advertising material do not qualify for the
gift exemption. Alcoholic beverages cannot be mailed to Canada. They must accompany you when
crossing the border.
To help qualify for the gift exemption, the customs declaration form must clearly identify the goods
as an “unsolicited gift”, and should include a gift card or tag. For gifts worth more than $60 CAD, the
recipient will pay duties and taxes solely on the amount over the $60 exemption.
Any goods mailed to Canada worth $20 CAD or less are exempt of duties and taxes. Goods worth
more than $20 CAD that do not qualify for a gift exemption are subject to duties and taxes on the
entire value. The following goods do not qualify for the $20 CAD and under exemption:
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alcoholic beverages, cigars, cigarettes, and manufactured tobacco;
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books, periodicals, or magazines, if the publisher should be registered for goods and services
tax but is not; and
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goods you ordered or bought from a Canadian retailer or through a post office box or interme-
diary, but which were mailed directly to you from outside Canada.
The $60 gift exemption and the $20 item exemption cannot be combined for the same items.
What taxes and duty will I pay on goods mailed to Canada?
Duties are based on the value of the goods in Canadian funds. Duty rates vary according to the type
of goods and the country in which they were made or manufactured (which may not be the same
country from which you purchased it). Depending on the goods or their value, some other taxes may
apply, such as excise duty or excise tax on luxury items like jewellery.
Goods and Services Tax (GST) must be paid on most goods imported into Canada. This is to ensure
that imported goods are taxed in the same way as those sold or provided in Canada. The value
is based on the item’s duty-paid value converted to Canadian funds, plus any duties that apply.
Harmonized Sales Tax (HST) or Provincial Sales Tax (PST) must also be paid on most imported goods.
The Canadian government has entered into agreements with provinces to collect the HST or PST
respectively.
A handling fee of $8.50 on imported goods is levied by Canada Post for the service it provides to the
Canada Border Services Agency (CBSA). Canada Post collects the duties and taxes owing and remits it
to the government. To cover Canada Post’s cost for performing these services a handling fee is levied
on all goods except those free of duties and/or taxes. This is a similar system in the United States
with the USPS charging a handling fee once duty and taxes are assessed by U.S. Customs and Border
Protection.
Taxes and Duty When Importing Goods to Canada
Almost all goods imported to Canada are subject to the federal Goods and Services Tax (GST) and the
applicable Canadian Provincial Sales Tax (PST) or Quebec Sales Tax (QST). In Canadian provinces with