Tax and Duty in 2022

What are duty and tax and who pays them?

When a business is involved in importing goods for commercial use from another country, they are responsible for paying duty and/or taxes on imported goods. Taxes are self-explanatory and typically involve GST/HST. While a customs broker can best help you to estimate duty and taxes, it is helpful to understand the ins and outs of duty.

What are import duty and tariffs?

An import duty is a tax that is imposed on goods that are imported from another country. As part of government policy, an increased price is imposed for goods that are imported from other countries to make these items less desirable. This is commonly practiced in order to encourage consumers to purchase goods manufactured nationally or locally. You may sometimes see the words duty and tariff used interchangeably, but there are some differences.

In general, a tariff is a percentage of the value of an item that is taxed. Import duty is actually the amount paid on the imported product and its value completely depends on the value of the item or items.

The importance of import duties for online purchases

As an eCommerce global trade participant, it is imperative that you are aware of the duties and tariffs that apply to your merchandise. In terms of the final price of the products being imported, duties do have a huge impact on your online business. In an age where online shopping is growing internationally, it is important to know how import duties and taxes are affecting business transactions overall.

It is always important to keep your customers up to date on the import duties and tariffs in order to prevent them from being caught off guard. Import costs can be effectively communicated on your checkout page, product pages, or in email confirmations to increase customer confidence.

Calculating import duties

Our team has developed online software to help estimate tax and duty in 2022 for imports within a few minutes and with a few clicks of a mouse. The Canadian duty calculator is a useful tool that can be utilized when planning to import goods to Canada.

Paying duty and/or taxes on imported goods

Paying duty and taxes are just one aspect of importing goods that must be considered. The importation of goods also requires forms to be filled in as well as communication with several government agencies. Importing and exporting is a highly regulated activity in Canada. To be sure that everything is done correctly and accurately, and to know that you will be able to avail yourself of the best rates, you will want to employ the services of a customs broker.

Argo Customs Brokers can make the process easier for you. They have the knowledge and experience required to ensure that all activities that relate to importing your goods are attended to. They regularly communicate with government agencies and know which ones would be required and what information will satisfy their requirements.

We tailor our brokerage services according to clients’ specific needs and requirements. We want to offer the best possible services to our customers to ensure they get exactly what they need from us. We even have a 24-hour support line. Customer service Is our priority!
We welcome your inquiries about customs clearance of all types. For more information, to arrange an assessment, or for a quote on specific shipments, feel free to contact us at any time.

Canada, United States agree on protocol to guide the cross-border transit of animals in emergency situations.

The Chief Veterinary Officer (CVO) of Canada, Dr. Mary Jane Ireland and the United States CVO, Dr. Rosemary Sifford, issued the following statement:

“We are pleased to announce that the Canadian Food Inspection Agency (CFIA) and the United States Department of Agriculture’s Animal and Plant Health Inspection Service (USDA APHIS), have officially agreed to implement an Emergency Transit Policy for Regulated Animals.

The policy makes it easier and faster to evacuate regulated animals, such as livestock, birds, pets and companion animals, across the border during emergencies such as flooding, forest fires, extreme weather conditions or disasters, or when routine transportation routes are impaired without feasible alternatives. Animals transiting through the other country during an emergency will be instructed when and where they will have to re-enter their country of origin.

Under the joint policy, the country declaring an emergency will inspect animals, apply official seals to transport conveyances, and issue a simplified export health certificate either at the port(s) of exit by an official veterinarian or at the premises of origin by an accredited veterinarian or official veterinarian.

This joint policy is another example of Canada and United States’ commitment to protect their animal population and it also shows the continued cooperation in supporting producers in both countries. This policy was developed by the CFIA and USDA under the umbrella of the Canada-US Regulatory Cooperation Council (RCC) which is intended, amongst others, to maintain and enhance the health, safety and security of Canadians and the environment.”

Canada imposes additional economic measures on Russian energy sector.

The Honourable Mélanie Joly, Minister of Foreign Affairs, today announced new sanctions under the Special Economic Measures (Russia) Regulations in response to Russia’s unprovoked and unjustifiable invasion of Ukraine.

These new measures impose restrictions on 10 key individuals from 2 important companies in Russia’s energy sector, Rosneft and Gazprom. These measures are intended to put further pressure on Russia’s leadership to cease its violations of Ukraine’s sovereignty and territorial integrity.

The sanctions are expected to be in effect in the coming days through orders made.

Canada Slaps Hefty Tariff On Russian Trade

In addition to other economic measures, Deputy Prime Minister and Finance Minister Chrystia Freeland has announced the removal of MFN status for Russia and Belarus. The following is an excerpt from CTV news.

Canada is also revoking Russia and Belarus’ “most-favoured nation status” as trading partners, meaning they will be subjected to a 35 per cent tariff on their exports to Canada.

Canada is the first country to take this step, Deputy Prime Minister and Finance Minister Chrystia Freeland said Thursday, adding that the only other nation that Canada subjects to this high tariff and deprives of other associated benefits is North Korea.

Hand Carried Goods Release for driven Canadian-registered vehicles.

When Canadian registered vehicles and goods contained therein are driven to Canada by a service provider, the registrant (who is considered the importer/owner of the vehicle/goods), may utilize the services of a licensed customs broker to account for / request release of the goods. A driver arranged by a service provider, e.g. drive-away company, may not (verbally) account / request release.

Action Required

If the importer/owner of the vehicle/goods is not present to verbally account, they may appoint a broker to act on their behalf. In this case:

An EDI PARS (SO125) will be transmitted to the CBSA in advance of arrival;
The hand carried goods release process (HCGH carrier code) will be used;
No eManifest data or lead sheet is required;
Transport Canada requirements do not apply to Canadian registered vehicles;
One invoice line will be used for the vehicle (Canadian goods returning);
Additional invoice lines will be used for any other goods in the vehicle;
The driver and any personal goods they own will be processed separately.
A carrier code is not required when the vehicle is driven by a driver arranged through a commercial drive-away company. A carrier code is only required when vehicles are transported on or in a commercial transport company’s conveyance and therefore requiring the carrier to submit electronic cargo and conveyance data.

New food & animal export mandates for EU.

January 15, 2022: New food & animal export mandates for EU.
Reminder: Effective January 15, 2022, exporters of commercial food and animal commodities destined for the European Union (EU) where certification is required under the new EU Animal Health Law (AHL), will be required to use updated export certificates. Export certificates will be accessed through the Trade Control and Expert System New Technology (TRACES NT), which serves as the EU’s e-certification system. The updated export certificates are the result of the EU Animal Health Law (AHL) that came into force in spring 2021. Using the TRACES NT system for export certificates will provide a secure, convenient, and streamlined process for doing business with the EU.

Tariff classification of goods using Bluetooth® technology.

Devices for which the principal function is the exchange of data between two or more Bluetooth® enabled devices within a wired or wireless network are classified under tariff item 8517.62.00 as “Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus”.
Separately presented Bluetooth® adapters, sometimes known as Bluetooth® antennas, are also classified under tariff item 8517.62.00. For example, the device that may be inserted into a USB port on a personal computer to accept signals from a Bluetooth® enabled keyboard and/or mouse.
Bluetooth® enabled cellular telephones are classified under tariff item 8517.13.00, or 8517.14.00 as their principal function remains that of a telephone for cellular networks or for other wireless networks.

Imported gift baskets containing food.

Imported gift baskets containing CFIA-regulated commodities such as foods, plants, animal products and by-products are subject to CFIA requirements, and must meet commercial shipment requirements as found in the Automated Import Reference System (AIRS), such as Safe Food for Canadians licences for importers and applicable import documentation and/or certification.

Goods imported for personal or commercial use may not be admissible for importation by mail or the Courier Low Value Shipment (CLVS) Program. Goods that do not qualify for the CLVS Program must be imported through the Canadian Border Services Agency’s (CBSA) regular commercial stream.