Understand Duties, Taxes & GST on Imports in Canada
When goods are imported into Canada, duties and taxes may apply depending on the product’s tariff classification, country of origin, and declared value. These charges are determined under Canada’s Customs Tariff and administered by the Canada Border Services Agency (CBSA).
Understanding how duties and GST are calculated helps importers anticipate landed costs, avoid reassessments, and maintain compliance with Canadian customs reporting requirements.
What are Customs Duties?
Customs duties are tariffs applied to certain imported goods based on their Harmonized System (HS) classification. The duty rate depends on the product category and applicable tariff treatment.
What Is GST on Imports?
Goods and Services Tax (GST) is generally applied to imported goods at the time of customs accounting. GST is calculated based on the value for tax purposes, which includes the declared value of the goods and any applicable duties.
How Duties & Taxes are Calculated
​The total amount payable on an imported shipment typically follows this sequence.
1. Confirm Tariff Classification
Duty rate is determined based on HS code.
2. Determine Value for Duty
Value is generally based on transaction value under Canadian valuation rules.
3. Apply Tariff Treatment
Preferential trade agreements may reduce or eliminate duty if documentation supports eligibility.
4. Calculate Duties
Duty is calculated as a percentage of the value for duty.
5. Calculate GST
GST is calculated after duty is applied, based on the value for tax purposes.
What influences the Duty Rate?
• Product classification
• Country of origin
• Trade agreement eligibility
• Special regulatory programs
• Anti-dumping or countervailing measures
Common Errors in Duty & Tax Reporting
• Incorrect HS classification
• Undervaluation of goods
• Missing trade agreement documentation
• Misreporting freight or insurance costs
• Failing to account for additional charges
Who is Responsible for Paying Duties & Taxes?
The importer of record is responsible for ensuring duties and taxes are accurately reported and paid. Even when a licensed customs broker submits the declaration, responsibility remains with the importer
How a Customs Broker Assists With Duty & Tax Reporting
• Verifies classification
• Reviews valuation
• Applies correct tariff treatment
• Calculates GST
• Reduces reassessment risk
Related Customs Resources
For additional guidance on customs brokerage and declaration procedures in Canada, review the following resources:
Need Assistance With Duty & Tax Calculations?
Garden City Customs Services Inc. provides structured duty and tax review as part of its customs brokerage support for commercial importers across Canada, helping ensure accurate calculation of duties, GST, and applicable import charges while reducing reassessment and compliance risk.