Entrepreneurship & Small Business

Will my business be charged Duties?

  • Last Updated:
  • Aug 12th, 2014 2:20 am
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[OP]
Newbie
Aug 10, 2014
21 posts
Toronto, ON

Will my business be charged Duties?

I just started a small business, buying mostly children's clothing. I go to Buffalo about every two weeks to pick them up, bring them into Canada and ship them via air cargo to developing countries. I do not sell anything in Canada or US. I only purchase the items in the US and Canada is just a transit point, but each time I am coming back into the border, I get charged duties.

I am confused whether I should be charged duties, because these items are not used here in Canada. Please advise what I need to do.

Thanks
3 replies
Newbie
Nov 18, 2010
9 posts
BC
Are the goods normally dutiable based on the country the clothing was manufactured in? You can bring the clothing into Canada "in-bond" at which point it will not be considered in Canada and so you wouldn't have to pay duties on it even though it is physically in Canada. I believe there should be other options available to you to not pay duties.

If the goods are normally not dutiable based on the country of manufacture, then you could bring them in using the normal customs procedure and you wouldn't have to pay duties.

Keep the documentation showing that the products actually left Canada though; otherwise, if you get audited and you can't provide proof, they will assume it was kept in Canada and you would have to pay duties.
Deal Expert
Oct 6, 2005
16515 posts
2194 upvotes
dani_toronto wrote:
Aug 11th, 2014 9:00 pm
why don't you ship from the USA?
If the OP does this, then they will be doing "work" in the United States and there is a whole another issues with US Immigration...

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