Cross-Border shopping - hidden duty, fees at border?

Question

I'm a Canadian, who is going to be shopping for 1 day in Buffalo, New York.

I'm wondering what kind of duty/taxes or other fees I will have to pay when returning back into Canada. Are they very picky about what you're bringing back? I plan to buy only clothing and am looking to spend AT MOST five hundred dollars. Can I expect to pay a lot more on top of that at the border coming back into Canada?

Answer 1

You may not pay duty but you will pay GST on anything over the daily spending limit, which is $50/person if I recall correctly (if you go over, the exemption does not count at all...you don't get $50 off the total)...over 48 hours is $400 CDN and a week + is $750.  

If the items are made in the US they may be exempt from taxation (things like books, etc are), but double check on the Canada Customs website.  Grocery items are tax free at the border.  (and they are typically much cheaper in the US)

"Regular duty rate

If you do not qualify for a personal exemption, or if you exceed your exemption limit, you will have to pay GST/HST, as well as any duty or other tax or assessment that applies on the excess amount. Duty rates vary according to the goods you are importing, the country where the goods were made and the country from which you are importing them. You may also have to pay PST if you live in a province where we have an agreement to collect the tax and you return back to Canada through that province."

"How goods qualify under NAFTA

Your goods qualify for the U.S. duty-free rate under NAFTA if the following applies:

    * the goods are for your personal use; and

    * they are marked as made in the United States or Canada or not marked or labeled to indicate they were made anywhere other than in the United States or Canada.

If you would like more information on goods eligible under NAFTA, refer to Memorandum D11-4-13, Rules of Origin for Casual Goods Regulations, which is available on the CBSA's Web site at www.cbsa.gc.ca under "Publications," or you can call BIS at one of the telephone numbers listed in the section called "Additional information.""

On our recent trip south, we did not have to pay any additional duty above and beyond the GST on our non-grocery purchases.

Answer 2

Hi.

I live in Windsor, and cross the Windsor - Detroit border frequently for shopping.

With the implementation of NAFTA (North American free trade agreement) duty has almost been completely eliminated.  For clothes I believe they are mostly duty-free (depending on materials they are made from, cotton, etc.), and I don't believe they are going to break down your $500.00 clothing bill into categories to determine duty.  They might ask you the most expensive item you purchased (maybe you bought a coat for $200.00 for example) but generally speaking they do not bother much about clothes.

You will have to pay tax.  I believe it's just the PST that they charge, not GST.  It's one or the other but not both.  In Ontario, PST is 8%, GST 5%, so you can figure that into what you spend.

There are certain things you cannot bring back on a one-day trip.  Alcohol, cigarettes, etc. require a stay of at least 48 hours.  Actually, I shouldn't say you can't bring them back; you can, but you will pay duty on these kind of items for a 1 day crossing.  Not sure what the duty would be, so it may not be worth it for those kind of things.

Have fun.  Just keep your receipts, be honest, answer their questions, and you shouldn't have any problems.

Answer 3

See site below and scroll down to section on "personal exemptions" and the following paragraphs too.