CBSA Announces New GST/HST Tax Relief for Some Essential and Holiday Imports

This temporary measure supports both consumers and businesses by offering cost-saving opportunities on essential and festive goods. By reducing costs during one of the busiest times of the year, it creates a win-win scenario that encourages economic activity.

In a move to ease financial pressures during the holiday season, the Canada Border Services Agency (CBSA) has announced a temporary Goods and Services Tax/Harmonized Sales Tax (GST/HST) tax relief on specific imported goods.

The tax break, which takes effect from December 14, 2024, to February 15, 2025, covers a range of essential and festive items, including groceries, children’s products, entertainment items, and holiday decorations. 

It applies to goods imported via postal services, Courier Low Value Shipment (CLVS), and commercial channels.

This tax relief is part of a broader effort to support Canadian importers and consumers by reducing costs on high-demand products. It gives importers an opportunity to lower their expenses, pass savings on to customers, and improve their competitiveness during the busy holiday shopping season.

The initiative is supported by the Customs Act and Schedule VII of the Excise Tax Act, which has been temporarily updated to include the exempted goods.

Canadian importers are encouraged to familiarize themselves with the legislative framework, specific requirements, and key steps in claiming tax relief.

They are also encouraged to take proactive steps to ensure compliance with the GST/HST exemption requirements. This includes maintaining detailed records of all declared goods, as the CBSA may request to review them.

Goods eligible for the tax relief

The GST/HST exemption covers a variety of imported goods that Canadians rely on during the holiday season. Eligible items include:

• Food and beverages: Groceries, prepared meals, and restaurant takeout.
• Children’s products: Clothing, footwear, diapers, car seats, and toys.
• Entertainment items: Jigsaw puzzles, video game consoles, controllers, and physical video games.
• Printed materials: Physical books and printed newspapers.
• Holiday decorations: Christmas trees and similar decorative items.

For more details, examples, and restrictions on eligible goods, please visit this GST/HST break web page.

Key requirements to claim the tax relief

To claim the exemption, importers should be aware of the following key requirements: 

• Exemption code: Importers must use the exemption code 24-25-GSTTPS in the Special Auth. OIC field when filing a Commercial Accounting Declaration (CAD).

• Timeframe restrictions: Goods must be both imported and released between December 14, 2024, and February 15, 2025. Goods purchased during the exemption period but released after February 15, 2025, are not eligible.
  
  
• Adjustment requests: If the exemption is not applied at the time of importation, importers can file an adjustment request under Sections 74 and 76 of the Customs Act to recover the overpaid tax. However, CBSA recommends accurate filings from the outset to avoid delays.

Please reach out to one of our trade professionals for guidance on the exemption and to make the most of this tax break on your holiday imports.