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Import duties in Canada depend on what the goods are and where they were made, and you pay 5% GST on top of the goods plus any duty. The duty rate isn’t one number. It comes from the tariff classification and the country of origin, and we didn’t confirm any rates for this page, so we can’t quote them.
What charges can land on an import?
The Canada Border Services Agency (CBSA) lists several, and most shipments meet only one or two of them. A parcel of running shoes from abroad might see duty and GST. A case of wine adds excise duty to the pile.
| Charge | What it’s based on |
|---|---|
| Customs duty | Tariff classification and country of origin |
| Excise duty | Certain goods such as alcohol and tobacco |
| Excise tax | Specific items, for example some fuels |
| GST | Value of the goods plus duty and excise tax |
| Surtax | Set by order for specific goods |
| Safeguard | Temporary measures when imports surge |
On 30 September 2026 the CBSA’s import page noted counter tariffs on certain US products, in place since 8 September 2026. If you buy from the US, read that notice before you order, because it can change what lands on your doorstep.
How is GST worked out on imported goods?
The tax is charged on the value of the goods in Canadian dollars, plus duty and excise. That order matters, because duty raises the base the GST applies to.
The CBSA gives an example. Goods worth $137.00 with 4% duty carry $5.48 of duty. GST at 5% is charged on $142.48, which is $7.12. We ran the same figures through the GST/HST calculator for a GST-only province and got $7.12, so the tool agrees. The 4% is the CBSA’s illustration, not a rate for any product.
What about HST provinces? The CRA says the federal part is charged on imports, and the provincial part follows separate rules, especially for businesses. Don’t rely on a simple 13% or 15% at the border. The reverse HST calculator is handy later, when you have a total and need to split out the tax.
What does the exchange rate do to the bill?
A lot more than people expect. Say a supplier invoices you US$100 and, for the sake of the example, the rate that day is C$1.40 to the US dollar. The goods are then worth C$140. Using the CBSA’s 4% illustration, duty is $5.60 and the GST base is $145.60, so GST at 5% comes to $7.28. Total taxes: $12.88 on a $140 shipment.
The rate and the duty here are made up to show the order of the sums. Your real numbers depend on your goods and the actual rate, but the pattern holds: convert first, add duty, then charge GST on the total.
What does a business have to set up before importing?
You need a business number and an import-export program account, known as an RM account. The CBSA also expects you to deal with classification, origin and valuation, and to arrange financial security under its new system, CARM.
Many importers hire a licensed customs broker. It costs money, and we couldn’t verify broker fees. The gain is that someone else knows the tariff codes. Ask what the broker charges per shipment before you agree.
Registered businesses can often get the GST back. The CRA says an importer of record who is registered can claim input tax credits for GST/HST paid on imports, if the usual conditions are met. So the GST is often a cash-flow cost, not a lasting one, while duty is a true cost and belongs in your price. Put both into your margin. The profit margin calculator shows what selling price you need once landed cost is known.
Is there a small-parcel exemption?
The CRA lists goods under $20 sent by mail as non-taxable imports. Courier shipments are a different matter, and we didn’t confirm their rules, so check the CBSA before you count on it. Don’t split an order into small parcels to dodge tax. It’s the sort of thing that gets noticed, and it isn’t worth a few bucks.
What mistakes cost importers money?
Wrong classification is the big one.
A code that doesn’t match the goods can mean the wrong duty, a bill months later when the CBSA reviews the entry, and a shipment held at the border while you sort it out, so get the code from your supplier or broker and check it against the CBSA tariff before the first order goes out.
Another is ignoring the exchange rate. Value is taken in Canadian dollars, so a supplier invoice in US dollars must be converted before duty and GST are calculated.
A third is forgetting the freight. Whether shipping and insurance count toward duty or GST depends on the rules for your shipment, and we haven’t confirmed them, so ask the CBSA or your broker before you set a budget.
Then there’s the income side. Duty and freight are business costs, and the profit that’s left is taxed. If you’re incorporated, see the corporate tax calculator for what stays after tax. For more tools, use the sales tax hub.
Our sources
The list of charges, the GST method and the $137 example come from the Canada Border Services Agency’s importing guide. The GST/HST treatment and the $20 mail rule come from the Canada Revenue Agency. We read them on 30 September 2026. This website has no connection with the CRA, the CBSA or any other government body.
Frequently asked questions
What are the import duty rates in Canada?
They depend on the tariff classification and country of origin. We couldn't confirm rates here, so look up your goods on the CBSA tariff.
Do I pay GST on imported goods?
Yes, unless the goods are exempt. It is charged on the value of the goods plus duty and excise tax.
Can I get the GST back?
A registered importer of record can claim input tax credits for GST/HST paid on imports, if eligibility conditions are met.
Do I need a customs broker?
Not required by the pages we read, but the CBSA suggests you consider one. Ask about fees first.
What do I need to start importing?
A business number and an RM account. Then classification, origin, valuation and financial security under CARM.
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