Import charges on Canadian imports and how they stack

When you import goods into Canada, several import charges may apply to your shipment, each with its own calculation rules.

Knowing which charges apply, and how they apply, gives you a clearer picture of what you will actually owe at the border.

In this article, we walk you through the types of import charges that may apply, how each is generally calculated, and how they stack when multiple charges apply.

Import charges that may apply to your shipment

One or more types of duties and taxes may apply when you import goods into Canada, such as:

Customs duties

Based on tariff classification and country of origin, customs duties on imported goods are set out in Canada’s Customs Tariff and may be reduced or eliminated under the applicable tariff treatment. They are generally calculated on your goods’ value for duty.

Anti-dumping duties

When goods are dumped into Canada, anti-dumping duties may apply under the Special Import Measures Act (SIMA). These duties are not calculated in the same way as ordinary customs duties. Instead, they are equal to the margin of dumping, which is the amount by which the normal value exceeds the export price of the goods.

Countervailing duties

When imported goods benefit from certain foreign government subsidies, countervailing duties may apply under SIMA. Like anti-dumping duties, they are not calculated like ordinary customs duties. Instead, they are equal to the amount of subsidy on the goods, usually a specific amount per unit.

Surtaxes

Surtaxes are additional duties that may be imposed on imports from specific countries or on specific products. Where applicable, they are usually calculated on the value for duty.

Excise duties

Certain goods, including beer, spirits, wine, tobacco products, cannabis products, and vaping products, may be subject to excise duties. These duties are generally based on quantity rather than on a percentage of value.

Excise taxes

Fuel-inefficient vehicles, automobile air conditioners, and certain fuel products may be subject to excise taxes. Depending on the goods, these taxes may be fixed amounts rather than percentages of value.

Luxury tax

Introduced in 2022, the luxury tax applies to certain new cars priced over $100,000. It is generally calculated as the lesser of 10% of the full taxable amount and 20% of the amount above the $100,000 threshold.

Goods and Services Tax (GST)

GST applies to most commercial imports at a 5% rate. It is generally calculated on the value for tax. Depending on the shipment, that amount can include the value for duty plus applicable customs duties, SIMA duties, surtaxes, excise duties, excise taxes, or luxury tax.

How import charges stack

When multiple charges apply to the same shipment, they are not all calculated on the same base.

Customs duties and many surtaxes are generally calculated on the value for duty. Other charges, including anti-dumping duties, countervailing duties, excise duties, excise taxes, and luxury tax, follow their own calculation rules depending on the goods and the applicable measures in force.

Once the applicable import charges have been determined, they are added to the value for duty to establish the value for tax, which serves as the base for GST calculation.

Example

A shipment has a value for duty of $10,000. The goods are subject to a customs duty rate of 6%, a surtax of 25% and a 5% GST. The import charges are calculated as follows:

In this example, the total amount payable would be $13,755.

At Cole International, we offer trade consulting and customs brokerage services to help Canadian importers understand and manage the charges that apply to their shipments.

Reach out to one of our trade professionals to determine which import charges apply to your goods and how they stack.