New NAFTA raises duty-free limits for private couriers, but not Canada Post
Canadians who buy online from stores in the United States or Mexico will get a bit of reprieve from taxes and duties next week but only if their packages are delivered by a private courier.
If Canada Post is the one tapped to drop the package in the mailbox or on the doorstep, the old rules will still apply, leaving a two-tiered tax system for the same goods.
The change is part of the new Canada-U.S.-Mexico Free Trade Agreement, which comes into effect on Canada Day. Within the trade deal, Canada agreed to lift the very low limit it had applied for duty and tax-free consumer imports, known as the de minimis threshold.
It used to be that any goods purchased and imported by mail or courier would be subject to duty and GST if the total value was anything over $20. On July 1, that threshold is rising to $40 before GST gets applied and $150 before customs duties are added, for all packages delivered by couriers such as FedEx or UPS.
https://business.financialpost.com/news ... 1593188384
If Canada Post is the one tapped to drop the package in the mailbox or on the doorstep, the old rules will still apply, leaving a two-tiered tax system for the same goods.
The change is part of the new Canada-U.S.-Mexico Free Trade Agreement, which comes into effect on Canada Day. Within the trade deal, Canada agreed to lift the very low limit it had applied for duty and tax-free consumer imports, known as the de minimis threshold.
It used to be that any goods purchased and imported by mail or courier would be subject to duty and GST if the total value was anything over $20. On July 1, that threshold is rising to $40 before GST gets applied and $150 before customs duties are added, for all packages delivered by couriers such as FedEx or UPS.
https://business.financialpost.com/news ... 1593188384