What counts as duty free?

[cutchemist42]

Related to my other thread slightly. If an autopart is rebuilt in America (part failed so it was rebuilt), would that count as a NAFTA good and would I have to pay duty even if I'm in the USA less then 24 hours?

[woof]

The cost of the rebuild would be NAFTA qualified and there would be no duty. HOWEVER you might still have to pay PST and GST on the value of the work done less whatever exemption you might have for whatever time you were in the US..

[cutchemist42]

Hmmm, now how do I go about knowing the price of that labour because its kinda built into the price I'm paying. The price of the good, a rebuilt steering rack for my car, altogether will be $140 if that helps.

[nwilliams]

If there's no duty you will pay tax on the full 140$

edit: you'll get taxed regardless of duty - original wording makes it sound like one or the other.

[cutchemist42]

So it will be the regular PST/GST but no duty tax? How much is duty tax?

[nwilliams]

Duty is dependent on the classification of the product/service being charged duty, you'd have to look it up on the CBSA website, or give them a call. In any case, outside of the big stuff (Alcohol, Tobacco), duty won't break the bank on 140$.

Side note:
#1 - I've NEVER been charged duty in 50+ visits across the border, only taxes (but I never cross border shop Alcohol & Tobacco)
#2 - I don't think I've ever been charged tax on purchases under 150$, and am sure I've never been on purchases under 100$.

Of course, YMMV.