GST/HST & Cross Border Exemptions

[August1991]

Starting 1 June, when you return to Canada, the duty-free exemptions will change:

What are your personal exemptions?

After each absence of 24 hours or more

You can claim up to CAN$200 worth of goods without paying any duties. This is your personal exemption. You must have the goods with you when you arrive in Canada and you cannot include tobacco products or alcoholic beverages in this exemption. If the goods you bring in are worth more than CAN$200 in total, you cannot claim this exemption. Instead, you have to pay full duties on all goods you bring in.

After each absence of 48 hours or more

You can claim up to CAN$800 worth of goods without paying any duties. You must have the goods with you when you arrive in Canada. Although you can include some tobacco products and alcoholic beverages, a partial exemption may apply to cigarettes, tobacco products and manufactured tobacco. See the sections called "Alcoholic beverages" and "Tobacco products" for more details.

Link

(As far as I can see, the 48 hour exemption and the 7 day exemption are now the same ($800) except that for the 48 hour rule, goods must accompany you.)

But what of GST (or HST)?

Imported goods

Goods you import into Canada are subject to the GST or the federal part of the HST except for items specified as non-taxable importations. The GST/HST is calculated on the Canadian dollar value of the goods, including duty and excise tax, and is collected at the border at the same time as these duties and taxes.

Link

BTW, the term "non-taxable importations" is a bizarre but very limited list of items.

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It seems to me that the GST/HST should apply to all imported goods that would be subject to GST/HST in Canada. IOW, the cross-border exemptions should only mean the removal of duties/customs.

Does anyone here know?

Edited June 1, 2012 by August1991

[bush_cheney2004]

Gee, I haven't the faintest idea, but your post has me wondering if I am missing out on very exciting experiences in cross border trafficking and worldly commerce in booze and tobacco.

Specifically, and never missing an opportunity to learn new things here at MLW, what is a "tobacco stick" ?

[guyser]

what is a "tobacco stick" ?

What one hangs tobacco on.

[Topaz]

Wouldn't be better for the feds to change the laws so there no difference in prices or very little? Apparently the senate is looking into why there such a differences in prices, even things made here.