Shopping Discussion

$150 raises duty-free shopping limits for Canadians under USMCA

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  • Jul 2nd, 2020 11:25 pm
Member
May 8, 2006
274 posts
399 upvotes
Toronto

$150 raises duty-free shopping limits for Canadians under USMCA

Under USMCA, the threshold will be raised to $40 for GST and HST purposes. Cross-border shipments by Canadians will have to be worth at least $150 before duties can be applied. Shipments valued below the de minimis threshold also receive less attention from customs agents, as they require less paperwork, meaning items worth $20 and $150 could arrive at their final destination more quickly than before.

https://www.ctvnews.ca/business/nafta-r ... -1.4116231
115 replies
Sr. Member
Apr 3, 2010
581 posts
845 upvotes
It's been $20 since 1985. $40 now doesn't even keep up with inflation. There really aren't any duties on most things from the US anyway, so that bit doesn't mean much. Yes, it's good that they're raising it, but it's largely symbolic. Canada Post, at least, really wasn't enforcing that $20 limit in most cases, in any case. I was hoping for more.
Member
Dec 3, 2008
302 posts
99 upvotes
Surrey
Meanwhile Drug Patents extended from the current 8 to 10 years. That means higher prices for the average person until the 10 years is up so that cheaper generics can duplicate the originals.

Taxpayers already pay for the research grants on these drugs so essentially taxpayers get hit twice. Corporations and its government screwing everyone over..
Sr. Member
Mar 20, 2013
800 posts
1018 upvotes
Winnipeg
pat_wobbly wrote: Meanwhile Drug Patents extended from the current 8 to 10 years. That means higher prices for the average person until the 10 years is up so that cheaper generics can duplicate the originals.

Taxpayers already pay for the research grants on these drugs so essentially taxpayers get hit twice. Corporations and its government screwing everyone over..
I believe that this clause was put in to protect American drug companies. So, if their tax dollars paid for the research, then Canadians are benefiting from American taxpayers.
Deal Addict
Feb 26, 2012
2319 posts
620 upvotes
MISSISSAUGA
pat_wobbly wrote: Meanwhile Drug Patents extended from the current 8 to 10 years. That means higher prices for the average person until the 10 years is up so that cheaper generics can duplicate the originals.

Taxpayers already pay for the research grants on these drugs so essentially taxpayers get hit twice. Corporations and its government screwing everyone over..
I could be wrong but I believe the extension only applies to marketing of the drug. We are able to still create generics prior.

https://ustr.gov/sites/default/files/fi ... operty.pdf
Sr. Member
Nov 12, 2012
599 posts
288 upvotes
Port Moody
Hotdiggety wrote: It's been $20 since 1985. $40 now doesn't even keep up with inflation. There really aren't any duties on most things from the US anyway, so that bit doesn't mean much. Yes, it's good that they're raising it, but it's largely symbolic. Canada Post, at least, really wasn't enforcing that $20 limit in most cases, in any case. I was hoping for more.
Totally agree that this is symbolic...it's not useful. Useful would've been at least the "gift" duty/tax free amount of $60CAD we've had for a while. That would have served me much better for online purposes, where spends of at least $35-50 US are sometimes required to get discounts/free shipping.

I do a lot of online shopping, and I rolled the diced a few times, and in over half my shipments, I got dinged. It always seemed to be on the lower end items, too - like they are trying to punish you for going 2 cents over the $20 limit. I ordered some cosmetics for $15 US several years ago - and the exchange rate at the time of purchase worked out to about $19+CAD. When it arrived, it was valued at $20.19 or something like that, and I got dinged $10 for the "handling fee" and $$2.40 in taxes - so almost doubling the cost of the item. It's not a risk I'm willing to take anymore. I pick everything up from a US mailbox now. And I get free shipping every single time, so I don't mind the pick up fees. The person who owns the pick up place is Canadian, so I am supporting a Canadian business that way! HA!
Jr. Member
User avatar
Oct 27, 2016
101 posts
150 upvotes
NB
Well this might make me buy more from Ebay, since most sellers use the Global shipping program enabling the Pitney Bowes-Ebay duties scam. If that is removed for anything under $150 I could start using it again.
Sr. Member
Apr 3, 2010
581 posts
845 upvotes
Freddydood wrote: Well this might make me buy more from Ebay, since most sellers use the Global shipping program enabling the Pitney Bowes-Ebay duties scam. If that is removed for anything under $150 I could start using it again.
It'll be removed for anything under C$40, NOT C$150.
Jr. Member
User avatar
Oct 27, 2016
101 posts
150 upvotes
NB
Hotdiggety wrote: It'll be removed for anything under C$40, NOT C$150.
$40 is not enticing enough to return to Ebay.
Member
Sep 13, 2016
313 posts
309 upvotes
Im confused. Is it $40 or $150? Why are two different numbers being mentioned?
Sr. Member
Jul 20, 2014
902 posts
213 upvotes
Hamilton, ON
winnipeger1 wrote: Im confused. Is it $40 or $150? Why are two different numbers being mentioned?
Me too, don't really get this.
Deal Addict
Oct 17, 2002
1342 posts
390 upvotes
Oakville
bruenor9 wrote: Me too, don't really get this.
$40 is tax free and duty free
$150 is duty free only.

The only thing I need to look up is are the amounts based on CAD or USD?
Deal Addict
User avatar
Jul 4, 2009
1685 posts
1122 upvotes
Windsor, ON area
As far as I understand it, anything under $40 will not be taxed (ie HST/GST/PST). The $150 is the duty limit, anything under $150 you don't have to pay duty. For me, I think the $150 duty doesn't do anything. I don't ever remember paying duty when crossing the border. It was either just taxes or nothing.
Member
Mar 9, 2009
389 posts
756 upvotes
Winnipeg
winnipeger1 wrote: Im confused. Is it $40 or $150? Why are two different numbers being mentioned?
Essentially, it removes the tether between taxes and duties. They have different limits now, but it won't really make much difference. Anything under $40 should be smooth sailing to get in the mail. Over $40 will look more or less what over $20 looks like now. There won't be duties charged on items between $40 and $150, but taxes will be charged. In most cases, duties are a small percentage anyways. The biggest issue is generally the fees charged by shipping companies to act as your import broker, and that will look the same when hitting the >$40 point. This is currently why you get a bill from DHL for $20 on a $22 item. They can charge any fee they like. You are welcome to self declare and pay your own fees, but it's generally a hassle that you have to physically do yourself, generally near an airport.

Ultimately, the government can now try to promote that they've helped the Canadian consumer without anything really changing at all. It's political spin at it's best. Canadian retailers feel pretty ok with it, so that alone will tell you that it's not a great deal for consumers.
Deal Guru
User avatar
Jan 30, 2006
14641 posts
3365 upvotes
Vancouver
So taxes inbetween $40-$150 Canadian? No duties.
Deal Guru
User avatar
Apr 23, 2004
14972 posts
213943 upvotes
Montreal
Hi there,

That's good news... It should be higher...

Ju Leon...
Deal Addict
Feb 6, 2008
1331 posts
1060 upvotes
Hamilton
trellaine201 wrote: So taxes inbetween $40-$150 Canadian? No duties.
$40 is taxes.
$150 is Duty.
Member
Mar 9, 2009
389 posts
756 upvotes
Winnipeg
trellaine201 wrote: So taxes inbetween $40-$150 Canadian? No duties.
Yes, but that's enough for shippers to change import fees, resulting in a high expense. Conceivably, a $100 item would face $14 taxes and $20 brokerage fees, driving the cost up by 1/3. The duties on that item night only currently be about $6 depending on what it is. This really doesn't change much except for the $20-$40 range. Also, the value is based on CDN rates, so that must be factored as well. Considering it's been $20 since the 80's, this isn't a win for Canadian consumers at all. This is really just spin.
Deal Addict
Feb 6, 2008
1331 posts
1060 upvotes
Hamilton
Winnipegian wrote: Yes, but that's enough for shippers to change import fees, resulting in a high expense. Conceivably, a $100 item would face $14 taxes and $20 brokerage fees, driving the cost up by 1/3. The duties on that item night only currently be about $6 depending on what it is. This really doesn't change much except for the $20-$40 range. Also, the value is based on CDN rates, so that must be factored as well. Considering it's been $20 since the 80's, this isn't a win for Canadian consumers at all. This is really just spin.
There has been no news that Canada Post is raising it's handling fee, currently at $10, or Fed EX is doing away with it's online account that charges no brokerage fee.

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