Personal Duty Exemption

Canada’s personal duty exemption for residents who bring back goods from trips outside of its borders is considerably more limited than the U.S. personal duty exemption. U.S. residents returning from abroad are entitled to a US$800 duty-free exemption after 48 hours abroad and US$200 for trips under 48 hours. Canadians who spend more than 24 hours outside of Canada can bring back C$200 (approximately US$160) worth of goods duty free, or C$800 (approximately US$640) for trips over 48 hours. U.S. retailers have raised concerns about the effect of this policy on purchases by Canadians on short trips to the United States.

De Minimis Threshold

De minimis refers to the maximum threshold below which no duty or tax is charged on imported items. U.S. companies shipping to Canada should be aware that Canada’s de minimis threshold is C$40 (approximately US$31) for taxes and C$150 (approximately US$116.50) for duties. By comparison, in March 2016, the United States raised its de minimis threshold from US$200 to US$800. Some stakeholders, particularly shipping companies and online retailers, maintain that Canada’s low de minimis threshold creates an unnecessary trade barrier.

To look up duties and tariffs use, use the Customs Info Database tariff look-up tool, available on trade.gov (free registration required), to estimate duties and taxes.