FAQ About Cross Border Shopping / CBSA

[cwb27]

You did not answer my question except highlight how insecure your job is.

My question is completely legitimate and not illegal in any away; there is nothing secret about the border crossing except if you are a wanna-be super spy who failed to get into CSIS.

And your avatar pic may not have been a simple coincidence; your acting like that office hero...

It's fascinating to me the joy you take in making something out of nothing...

[Howlader]

I hope this hasn't been asked already, if it has I've missed it in one of the various threads, I apologize.

Here's a situation: An individual travels to the United States for 48 hours and therefore is entitled to the $400 exemption. Say this person buys 400 dollars worth of goods that would not otherwise be subject NAFTA (such as clothes), and also maxed out the personal liquor exemption.

Then say the individual also bought an $1100 dollar camera. Obviously provincial and federal sales tax would apply, but (now I could be mistaken here) since the CBSA website lists that type of item with a 0% tariff, only the taxes would apply.

My question is this: Would the items that (if not for a 48 hour or 7-day exemption) would otherwise have a tariff associated with them be considered the "duty free" items, or would a portion of the $1100 camera?

Thanks.

[Ebola]

I hope this hasn't been asked already, if it has I've missed it in one of the various threads, I apologize.

Here's a situation: An individual travels to the United States for 48 hours and therefore is entitled to the $400 exemption. Say this person buys 400 dollars worth of goods that would not otherwise be subject NAFTA (such as clothes), and also maxed out the personal liquor exemption.

Then say the individual also bought an $1100 dollar camera. Obviously provincial and federal sales tax would apply, but (now I could be mistaken here) since the CBSA website lists that type of item with a 0% tariff, only the taxes would apply.

My question is this: Would the items that (if not for a 48 hour or 7-day exemption) would otherwise have a tariff associated with them be considered the "duty free" items, or would a portion of the $1100 camera?

Thanks.

It has been my experience that we will apply to the $400 dollar exemption to whatever will end up being to your greatest benefit.

If applying the $400 exemption to the $1100 camera saves you more taxes than applying the $400 to the other goods, then that's what we would do.

So basically, we just apply the exemption to items that duty would be charged on first, then NAFTA items second.

If they are all NAFTA items, then we will look at if any of the items are assessed PST(if applicable)+ GST or just GST, and apply it to the PST +GST items first.

If the items all fall under the exact same tax structure, then it doesn't mattter what we apply it to.

[Howlader]

It has been my experience that we will apply to the $400 dollar exemption to whatever will end up being to your greatest benefit.

With a caveat, that as always, your mileage may vary?

[Ebola]

With a caveat, that as always, your mileage may vary?

No that is national policy.

[Howlader]

Fantastic. Thanks Ebola.

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Another tidbit for Manitobans looks for potential cross-border deals on buying alcohol. I contacted the Manitoba Liquor Control Commission, and right now (until who knows when?) there is currently no markup assessed on liquor. So the only thing that is assessed is the $0.40 per ounce of spirits and GST/PST.

[Ebola]

Fantastic. Thanks Ebola.

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Another tidbit for Manitobans looks for potential cross-border deals on buying alcohol. I contacted the Manitoba Liquor Control Commission, and right now (until who knows when?) there is currently no markup assessed on liquor. So the only thing that is assessed is the $0.40 per ounce of spirits and GST/PST.

When paying your taxes, by all means go ahead and ask what your exemption is being put towards. Ask any questions you have at that point as well.

That's one of the reasons we are there, to give people answers, to ensure they have ever oppurtunity to be compliant with the regulations.

[brunes]

When paying your taxes, by all means go ahead and ask what your exemption is being put towards. Ask any questions you have at that point as well.

That's one of the reasons we are there, to give people answers, to ensure they have ever oppurtunity to be compliant with the regulations.

Is there any way to get more info on the alcohol charges than what has been posted? Isn't there some kind of rate table or document somewhere? If not, then how do you guys calculate it?

It is not simple to ask this before you go across because of the way the border crossing here is laid out, you don't really have access to CBSA unless you're on your way back unless you park aside the road and look suspicious and get all these American officers running over to see what you are doing.

[live wire]

If I bought a boat or personal watercraft in the USA and brought it back to Canada. I heard that there is difficulty / alot more paper work to bring back the trailer. Thus, I have heard that it is recommended to bring your own trailer across the boarder to pick up a boat/ personal water craft. can you comment on this. Thanks.

[Ebola]

If I bought a boat or personal watercraft in the USA and brought it back to Canada. I heard that there is difficulty / alot more paper work to bring back the trailer. Thus, I have heard that it is recommended to bring your own trailer across the boarder to pick up a boat/ personal water craft. can you comment on this. Thanks.

The importation process is as follows:

Boat:
-Declare value of boat
-Present bill of sale
-Pay taxes
-Leave CBSA port of entry. (Assuming boat is relatively clean, no obvious plant or crustacean life on it/in it that would present a CFIA or Environmental threat)

Trailer:
-Declare value of trailer
-Present bill of sale and title for trailer if that state issues titles.
-Fill out RIV form and pay RIV fee.
-Pay taxes
-Leave CBSA port of entry.

What's important to note with trailers, is that unlike cars/trucks, they are not self propelled, and thus do not have to have their titles export stamped by US customs prior to your importing them into Canada, so there is no wait period.

It is my personal opinion that it's not that much more work at all, as long as you have your paperwork together, it's pretty quick, no more than 20-30 mins at most.

Of course if someone shows up with a trailer with no bill of sale or registration/title, then it's going to be a problem, because they haven't met the importation requirements. Same thing with a boat. If you don't have any paperwork to support your declaration, it's going to take longer than if you had stuff together.


The second part of your question, if you trailer a boat or watercraft yourself, on a Canadian trailer, well then all that has to happen is the above mentioned steps for the boat import. So if you already have a trailer, by all means do it, you won't have to import another.

[CADman]

Ouch!! According to Ebola's PDF regarding alcohol, that $45 US bottle of tequila I enjoy will cost me $113 in BC, or $49 in Alberta. Thanks for the heads up.

[brunes]

The duty and tax rates for everything are found inside our TEPS computer. It is obviously easier to have them all at the touch of a finger, and the tax rates are spread out through various documents, so they have been consolidated for practical use.


Here's one such document, shows the markup taxes or fee depending on your province. See Appendix A for Tobacco, Appendix B for Alcohol.

http://cbsa-asfc.gc.ca/publications/...d2-3-6-eng.pdf

To find the excise/duty calculations, you need to use a different document, I'll try and track that down. The duty is the variable, as it changes frequently.

Thanks a lot for this document Ebola.

So in NB, beer looks like a 64% markup plus GST on beer - OUCH! But strangely in NS it is only a penny / oz - MUCH less!

Might be worth making a round robin trip from here through Maine to the NS ferry up to the Digby ferry... Well not WORTH IT but if I ever did that for fun I will pick up some beer on the way

[brunes]

Here's another kinda complex question for you Ebola

Lets say (hypothetically) I was to buy a projector on eBay using my US mailing address and US paypal account so as to qualify for the 20% cxash back live.com rebate. The price I pay on eBay is $550, and that's what my paypal receipt shows. But really, I did not pay $500 for that projector, because I got 20% back, which means I only really ended up paying out $400. The thing is that 20% back comes from a different company (Microsoft) and would be a different receipt to show.

Now, when I came back into Canada - do I have to declare $400 or $500? If I declare only $400 and they ask for the receipt and I show them 1 receipt with the full price and another with the rebate, will that be OK?

This hypothetical situation is actually quite pertinent to me If I can indeed deduct the rebate and legally declare the $400 then it would be worth staying over the weekend to save that tax ( $115 )

EDIT: Actually now that I think about it it would probably be worth staying anyway as I woudl still save that money since I get the original $400 decudction regardless... would still liek to know though if I would pay tax on $400 or $500 in that situation.

[Octavius]

Question:

Heading to the states tomorrow morning and I'll be gone for over 48 hours. I plan to use my 400.00 exemption to the absolute fullest, and then some.

Anyway, you had stated in the FAQ that I can bring back either 1 24 pack of beer or 1.14 L of alcohol as part of my personal exemption if I am gone longer than 48 hours.

Would that be ON TOP of my allowed 400 dollar exemption? As in, if the liquor was worth...let's say 45 bucks US...would that value be deducted from the 400 that I am permitted to bring back scott-free, or is it completely separate on it's own (as in, I could still use the full 400 dollar exemption towards other stuff that I bought and the liquor would not count towards that at all).

I live in Ontario by the way.

Thanks!

[phrozenn.heat]

Question:

Heading to the states tomorrow morning and I'll be gone for over 48 hours. I plan to use my 400.00 exemption to the absolute fullest, and then some.

Anyway, you had stated in the FAQ that I can bring back either 1 24 pack of beer or 1.14 L of alcohol as part of my personal exemption if I am gone longer than 48 hours.

Would that be ON TOP of my allowed 400 dollar exemption? As in, if the liquor was worth...let's say 45 bucks US...would that value be deducted from the 400 that I am permitted to bring back scott-free, or is it completely separate on it's own (as in, I could still use the full 400 dollar exemption towards other stuff that I bought and the liquor would not count towards that at all).

I live in Ontario by the way.

Thanks!

From experience, it is completely separate on it own. I wen to Michigan over one weekend and when I was crossing, I declared my full $400 plus a 24. Didn't get taxed for anything.