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Importing into Canada from U.S.
Are you new to online shopping? If you're on the Canadian side of the border and thinking of shopping on U.S. sites, hidden costs may catch you by surprise. There are things you should check before you give out your credit card number.
First, check that the site offers international shipping or at least shipping to Canada. There is nothing more irritating than going through an e-commerce site, filling your shopping cart and then discovering that the vendor does not ship outside the continental United States. Colonial Patterns Inc. ships worldwide, including Canada.
Shipping Charges to Canada
Good sites will list their shipping policies and procedures up front, usually under the customer service section or the help section. Shipping charges are determined by weight, size, distance, speed and number of items. Be sure to read the details carefully. Don't forget to factor in the exchange rate for the shipping charges as well as for the cost of the merchandise. Your credit card company may also add a charge for currency conversion. Our shipping charges are based upon the total dollar amount purchased. Shipping table can be found under the Shipping and Returns section.
The shipping charges and methods of shipment (usually either mail or courier) aren't the total of the costs you'll have to pay to get that package across the Canadian border though. If goods are coming across the border, you will also have to consider, and be ready to pay, Canada customs duties, taxes and custom brokerage fees. Colonial Patterns, Inc. is NOT responsible for paying your duties, taxes, or brokerage fees. See Below.
Canada Customs Duties
Because of the North American Free Trade Agreement (NAFTA), Canadians do not have to pay duty on most American and Mexican manufactured items. But be careful. Just because you buy an item from a U.S. store does not mean it was made in the United States. It's quite possible it was imported into the United States first and, if so, you may be charged duty when it comes into Canada. So check before you buy and if possible get something in writing from the e-store in case the Canada Customs people decide to be particular. Everything Colonial Patterns, Inc. exports is made in the United States except Flour Sack Towels, Vintage Stripe Towels, and Aprons.
Duties on goods vary widely, depending on the product and the country in which it was manufactured. Other charges and duties may also apply depending on the item, for example excise duty and excise tax on luxury items such as jewelry. In general, on goods ordered from a foreign retailer there is no assessment unless Canada Customs can collect at least $1.00 in duties and taxes. If you have specific questions about Canada customs and duties, please contact a Canada Border Services Agency office or the Border Information Service.
Canadian Taxes
Just about everything individuals import into Canada is subject to the Goods and Services Tax (GST) of 5%. The GST is calculated after customs duties have been applied.
You will also have to pay the applicable Canadian Provincial Sales Tax (PST) or Quebec Sales Tax (QST). The provincial retail sales tax rates vary from province to province (5%-9%), as do the goods and services to which the tax is applied and the way the tax is applied.
In Canadian provinces with a Harmonized Sales Tax (New Brunswick, Nova Scotia, and Newfoundland and Labrador), you'll be charged a flat 13 percent, rather than separate GST and PST.
Customs Brokers Fees
Fees for customs brokers services are the charges that can really catch you by surprise. Courier companies and postal services use customs brokers to get packages processed through Canada Customs at the Canadian border. Fees for that service will be passed along to you.
Canada Post automatically applies a $5.00 processing fee ($8.00 for Priority Post) for each package to clear Canada Customs.
Customs brokers fees for courier companies vary, but are usually a good deal higher than the Canada Post fee. Some courier companies may absorb the custom brokers fees (including them in the courier service price), depending on the level of courier service you have selected. Others will add the customs brokers fees on top and you will have to pay those before you can get your parcel. If you select a courier service for shipping to Canada, check whether the level of service provided includes customs brokers fees. If it is not mentioned on the shopping site you are using, you can check the service guide on the individual courier company site or call the local number of the courier company to find out their policies.
What items are duty and/or tax free?
Gifts Worth $60 or Less. A gift valued at C$60 or less is exempt from duties and taxes, as long as the gift is worth C$60 or less. For gifts worth more than C$60, you have to pay duties and taxes on the amount over the C$60 exemption.
• The Customs declaration form should clearly identify the good as a gift and should include a gift card to avoid any misunderstanding
Items Worth $20 or Less. Any good valued at C$20 or less is exempt from duties and taxes. For goods worth more than C$20, you have to pay duties and taxes on the entire value.
NAFTA-eligible Goods. Qualifying goods with a valid NAFTA Certificate of Origin will enter Canada duty free. However, if the value is over C$20.00 the recipient will still have to pay GST and PST plus brokerage fees (Canada Post charges either $5.00 or $8.00, UPS and/or FedEx charge more). If the value is under $20.00, it should pass through customs without being taxed.
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