Duty & Tax Information for  Recipients and Shippers

Duty & Tax Information for Recipients and Shippers

Duty & Tax Information for Recipients and Shippers

We’ll help you understand the world of tax and tariffs.

 

 

We’ll help you understand the world of tax and tariffs.

 

 

Resources & Frequently Asked Questions (FAQs)

You may not be expecting to pay duties and taxes, or you may have questions about the customs clearance process for your shipment, so here's some information and a few FAQs to help you.


Duties and Taxes for Recipients

 

All shipments that are imported into Canada are subject to duties and taxes assessment by the Canada Border Services Agency (CBSA). The duty rate varies depending on the type of product and the country where it was manufactured. The amount of duties and taxes for an item primarily depends on the item's value in Canadian dollars and the purpose for the shipment such as a gift. In addition to the duty, tax may also apply (e.g., GST, PST, QST, and HST).




 

Goods purchased online and shipped to you from outside your country of residence are subject to duties and taxes. If you are making an online purchase, please clarify with the sender who is responsible for the payment of any duties and taxes as they may not be included in the purchase price.




 

For eligible gifts imported into Canada it is CAD$60 or less, per gift, even if a single gift has more than one recipient (e.g., gift to a family). Each gift in the shipment must be clearly identified as one gift. If the gift is worth more than CAD$60, the amount over CAD$60 is subject to duties and taxes (e.g., if a relative sends you a gift worth CAD$200, you must pay any applicable duty plus the GST, PST, QST, and HST on CAD$140).




 

The ROD fee applies to recipients with no FedEx Express account number or poor payment history. This fee is collected from the recipient at the time of delivery, in addition to any duties and taxes that may be applicable. If the item is duty-free and tax-exempt, then this fee will not be charged. For more information on this fee, please visit fedex.ca/ancillary.




 

The Advancement fee applies when a duty/tax invoice is issued by FedEx Express. FedEx Express pays the duties and taxes owed to the Canada Border Services Agency on your behalf and charges the Advancement Fee for this service. The fee is based on the total amount of the duties and taxes advanced, and will be billed to the party designated to pay the duties and taxes. For more information on this fee, please visit fedex.ca/ancillary.




 

If you are the recipient or designated party for payment of duties and taxes and do not have a FedEx account, or your FedEx account has a poor payment history, then the following options are available to you.

  • Pre-pay by credit card: Call FedEx Customer Service at 1.800.GoFedEx 1.800.463.3339 with your tracking number.
  • Pay by cash, cheque or credit card at the time of delivery.

If a shipper or third-party is responsible for the payment of duties and taxes, but does not have a FedEx account, or has a FedEx account with poor payment history, then the shipment will be held at the FedEx destination station until payment arrangements are made.


 

There are several reasons why the rate of duty and amount could vary, such as:

  • The value of the shipment.
  • The country of manufacture.
  • The description of the goods on the air waybill or customs documents.




 

Below are some examples when the NAFTA rate of duty would not be applicable on a shipment from the U.S.

  • The item was not manufactured in a NAFTA country (i.e., Canada, Mexico, and the U.S.).
  • A valid NAFTA Certificate of Origin was not provided for a commercial shipment valued at CAD$2500 or greater.
  • A signed statement was not provided on the commercial invoice for a commercial shipment valued at less than CAD$2500.




Agency Agreement for Canadian Importers

 

An Agency Agreement authorizes FedEx Express to transact business with the Canada Border Services Agency on your behalf.




Temporary Imports

 

Special procedures and documentation are often necessary to properly process a shipment that is to be imported temporarily. The procedures vary depending upon a number of factors including:

  • The origin and destination of the shipment
  • The classification of goods
  • The value of goods
  • The purpose/end use of the goods (e.g., tradeshow material)

Please note, the two most common errors concerning temporary shipments are:

  • Failing to indicate on the shipping documentation that the shipment is a temporary import.
  • Failing to properly document and re-export or destroy the articles. When this happens, the bond or security deposit is forfeited and the importer bears the duty and tax expense.




 

If a shipment has been transported to Canada via FedEx Express and it is identified as a temporary import shipment prior to customs release, FedEx Express will contact the importer advising them of the clearance options.



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