A relative in the U.S. would like to send me a gift. Will duties and taxes be payable?

There is a gift allowance of $60 Canadian per person. If a gift exceeds this dollar amount, duties and taxes will apply to the value in excess of $60 Canadian.

How is excise tax calculated?

Excise tax rates vary and are determined by the commodity. In order to determine current rates of excise tax, contact PBB or your local excise tax office.

We imported some goods from a U.S. supplier and were not aware of NAFTA. We have contacted our supplier and found that the goods in fact qualify for NAFTA. Is there a way for us to recover the duty paid on this importation?

The regulations outlined in the customs act allow for filing of a refund within one year of the date of importation. A copy of the NAFTA certificate and original documentation is required to support the claim.

We sent a shipment to one of our U.S. customers, which was not according to order. Do we need to pay duty and GST when the customer returns it to us?

Providing that the goods are in the same condition as when they were received these can be imported into Canada as "Canadian goods returning". In order to make this claim, the shipper should indicate on the paperwork that the goods are returning, as not according to order. To support this claim, copies of the export documents (from Canada to the USA) should accompany the shipment as 'proof of export'.

We received a shipment from the United States. The paperwork used for the customs clearance was incorrect. The value shown was actually lower than it should have been. Is there anything that we should do or shouldn't we bother since we have overpaid duty & GST?

Even though you have overpaid customs charges, the customs entry should still be amended. In the event of a periodic verification audit, your records would reflect what was actually received.

I received an invoice from PBB Global Logistics for a package that I sent to my address while I was on vacation. When I returned home, I declared the goods on my personal exemption. How does this work?

The duties and taxes billed to you will need to be paid. Since you did declare these on your personal exemption, and you have a copy of your documentation from customs, you can file a B2G
(informal adjustment request) to recover the duties and taxes from the Canada Customs and Revenue Agency.

How is GST calculated on imported goods?

GST is calculated at 7% of the duty paid value of the imported goods.

What does "duty paid value" mean?

The duty paid value is the value of the imported goods in Canadian funds, plus any duty that may be payable.

I have placed an order from a supplier in the United States. Who is responsible for preparing the paperwork for the shipment?

The shipper (your supplier) should provide the customs paperwork however it is acceptable for you to complete the Canada Customs invoice using the information from the supplier’s commercial invoice.

We imported a shipment from a supplier who provided us with a NAFTA certificate. We have just found out that the goods do not qualify for NAFTA. What should we do?

You should definitely file an amendment to the customs entry. A letter from the supplier should be obtained to explain the incorrect use of NAFTA.

My company imports goods from China and we seem to pay very high rates of duty on these importations. Is there a way to reduce or eliminate the duty?

The General Preferential Tariff rate applies to goods that are shipped directly from China to Canada on a through Bill of Lading. GPT allows for reduced rates of duty on certain commodities only. In order to claim GPT, either the original Form A Certificate or an Exporter’s Statement of Origin is required.

How can I determine if the goods that I am ordering from the United States will qualify for NAFTA?

Only the supplier or manufacturer can make that determination.

We had a shipment delivered the other day and the carrier advised us that there was a delay at the border. Why?

As a broker, we would not always be aware of a delay at the border. If there was a problem with paperwork, or the information submitted to customs for the release of the shipment, the carrier would be sent back to our office. Sometimes the delay could be due to a backlog of commercial shipments, or random checks being performed by customs. If the driver were delayed at a PBB office, we would be happy to research this if you can provide us with more information.

What is excise tax?

Excise tax is a tax levied on luxury items such as jewelry, tobacco, and alcohol.

We received a shipment from a U.S. supplier that was short two items. These items were shown on the customs paperwork and duties and taxes were paid on the goods. What is the proper procedure to follow to receive or cancel the balance of the shipment?

If the supplier intends to send you the two pieces that they missed, the original customs entry can be marked "short". You should notify the service provider that handled the customs entry and advise them of the estimated time of arrival for the balance of your shipment. If the supplier will not be sending you the two pieces, the original customs entry should be amended. Corrected paperwork will be required in order to do this.

Can I prepare a NAFTA certificate for a shipment that I am expecting from the United States?

No, the supplier should complete the NAFTA Certificate as only they, or the Manufacturer can determine if the goods qualify for NAFTA.

What is NAFTA?

The acronym N.A.F.T.A. stands for "North American Free Trade Agreement". This is an agreement between Canada, the United States and Mexico and allows for reduced or duty free rates on goods imported from these countries.

What is G.S.T. (a/k/a GST)?

The acronym G.S.T. stands for the Goods and Services Tax.

What is C.F.I.A.?

This is an acronym for Canadian Food Inspection Agency.

How will I know when external affairs have become involved with my shipment?

External Affairs will require an import permit for controlled goods meeting specific criteria, if they have become involved you will have had to obtain an import permit through your service provider.

How do I know if external affairs will become involved in the importation of my shipment?

 If you import a controlled product such as dairy products, fabric, clothing, steel, external affairs will be involved with the importation of your shipment.

What, or who is external affairs?

External Affairs is a government department responsible for controlling the importation of certain products into Canada.

When may the Canadian Food Inspection Agency (CFIA) become involved with a shipment being imported?

The CFIA are interested in certain agricultural goods being imported such as potted plants, meat and poultry.