CBSA Issues Note of Warning to Online Shoppers

Canada Border Services Agency (CBSA) is cautioning online shoppers to be aware that they may be liable for duties, taxes, and brokerage fees when purchasing foreign goods. Online shopping has become more prevalent during the pandemic and is expected to peak further this holiday season. Even with Black Friday and Cyber Monday behind us, more shoppers are likely to make online purchases in the lead up to Christmas.

According to CBSA Postal Operations Superintendent, Sean Morrison, many are experiencing sticker shock when goods they ordered cross the border arrive with extra charges attached. He advised shoppers to verify if the items they were buying were coming from another country and not rely on the seller’s URL being ‘.ca’. Many Canadian based websites do ship their goods from outside Canada, at the buyer’s expense.

For those that find their purchases are being imported, it has been recommended that they use the CBSA duty and tax calculator to get an estimate of how much more they may have to pay for their items. CBSA defines duty as a tariff payable on commodities imported for personal use. The rates are determined by the Department of Finance and can vary depending on trade agreements. Users will need to input such information as their location, the type of product being imported, where it was manufactured, and its cost. Imports may also be subject to the Federal Goods and Services Tax (GST) and Provincial Sales Tax (PST).

Goods made in Canada, the US, and Mexico and imported for personal use do not attract duty. Also, items with a low value of $20 and under can be imported duty and tax-free. Gifts worth $60 and less from a friend or relative may also be exempted. Other goods worth over $20 could have duties and taxes that apply.

CBSA is also advising shoppers to order gifts early. This is to allow for enough time for processing when shipments arrive at the border. More time will be required for shipments that are coming from overseas, with chances of backlog during this peak shopping period.

The CBSA is also reminding Canadians that it is illegal to send or receive cannabis products across the border, through mail or courier. Morrison added that though cannabis is legal to purchase within Canada, it could not be imported to exported, even via online sites that indicated this is possible. Those that are caught shipping such items may face seizures, arrest, prosecution, and penalties for their actions. All shipments that come into Canada are screened.


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