The words “tariff” and “duty” are often used interchangeably, and both are forms of indirect taxation. When discussing governments or economies, the term “tariff” is generally used. Tariffs protect domestic markets while generating revenue. When talking about rates or amounts, the term “duty” is generally used, and commodity-classification codes are applied to determine the amount of duty required.
Shipping duties are taxes charged by a country’s customs authority on imported goods. Duties are different from sales tax: while taxes apply to most purchases, duties only apply when goods cross international borders. Whether you are importing products for resale or sending personal items to family, understanding duties helps you avoid unexpected costs.
A duty is a tax levied by governments on imported and exported goods. The calculation of duties depends on the declared value of the shipment’s contents. For Canada, duties are collected by the Canada Border Services Agency (CBSA) when goods arrive from another country, such as the United States. The rate varies based on the classification code, product value, country of origin, and shipping costs.
The amount of duties and taxes you pay when shipping from the United States to Canada depends on the shipment’s total declared value and the type of goods. Generally, shipments valued under CAD $20 are duty-free, while goods above that threshold may be subject to both import duty and a Goods and Servic.es Tax or Harmonized Sales Tax. The duty rate varies by product category according to the Harmonized System (HS) code. For example, clothing and accessories typically incur higher duty rates than electronics or books. You can estimate these costs in advance using the DHL Duty and Tax Calculator through DHL Express Global Trade Services, which provides an instant breakdown by category.
While most international shipments entering Canada are subject to some form of duty or tax, there are legitimate ways to reduce or avoid these costs:
Look for duty exemptions: Most goods valued at CAD $20 or less, and most gifts valued at CAD $60 are typically exempt from duties and taxes.
Classify goods correctly: Use the right HS code to ensure duties are applied accurately.
Each country establishes its own standards as to whether a shipped item is considered a document (non-dutiable) or non-document (dutiable). In most cases, documents that do not have any commercial value are non-dutiable. However, documents with commercial value are dutiable.
In most cases, the receiver in Canada is responsible for paying any duties or taxes before the shipment is delivered. DHL helps streamline the process by contacting the receiver on behalf of the Canada Border Services Agency and providing a secure online payment link to avoid delays.
Shipping duties are taxes charged by customs authorities on imported goods. In Canada, these are collected by the Canada Border Services Agency (CBSA) and depend on the item’s value, origin, and type. Duties differ from sales tax, which applies to domestic purchases.
Duties and taxes depend on your shipment’s value and product category. Items valued under CAD $20 are typically duty-free, while higher-value goods may be charged import duty plus GST or HST. Rates vary by Harmonized System (HS) code.
In most cases, the receiver in Canada pays duties and taxes before the shipment is delivered. DHL helps by contacting the receiver on behalf of CBSA and providing a secure online payment link to complete the process quickly.
You can reduce or avoid duties by:
Sending gifts valued at CAD $60 or less, or other goods valued at CAD $20 or less
Using the correct HS code for your goods
Declaring values accurately
If duties or taxes are not paid, customs will hold the shipment until payment is made. After a set period, the goods may be returned to the sender or disposed of. Prompt payment ensures your shipment clears customs and is delivered on time.
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