Forum Discussion

Howie3's avatar
Howie3
Explorer
Jul 30, 2013

Paying duty when re-entering Canada

So I'm planning our first RV trip to the U.S. since apparently Alberta isn't getting summer again this year (was 4C or 39F when I got up today...brrrr!). Was going to do some dry camping in the mountains of Idaho where hopefully will be much warmer. We need a generator so thought it would be cheaper in the States (about $1000 vs $1500+ here in Canada) however I see that my duty exemption is $800. Obviously I need to declare this purchase, however I have no idea what duty might amount to. Would it negate the difference in savings? Also, the Canada Customs website indicates that the exemption cannot be 'split' with a fellow traveller. Would this also apply to a single joint purchase since my DW would also be the beneficial owner of this appliance?

If someone has experience in this area I would be appreciative of their comments.

Howie

49 Replies

  • JaxDad's avatar
    JaxDad
    Explorer III
    Two observations.

    First, if you buy in the US and leave with it, there's no tax payable in the US, it's effectively a "foriegn" sale. Even if the retailer insists on collecting the tax, you can file for a refund.

    Secondly, while you can't combine deductions, you can combine a PURCHASE. have the retailer write it up as a sale to Mr. & Mrs., then pay half the cost each, with two credit card or cash receipts, one in each name.
  • If it was manufactured in the USA, doesn't NAFTA cover it?
    BTC
  • I've been asked if I have any firearms going into Canada, and food items on the return, but nobody has asked me about a piece of equipment that's a part of a normally equipped RV. If it has a big red bow on it, I'd probably remove that before attempting a crossing, though.
  • They may also check to see if the item is CSA approved for use in Canada. I was shopping for Honda generators that could be paralleled and when I checked with one Canadian retailer he said that model was not CSA approved and could not be imported. He might have been lying but I would check before I bought anything. Would not be good if you had to leave it at the border.
    Brian
  • It's not duty you pay it's taxes, GST.
    It will be on the total amount on the bill including taxes minus your $800.

    You payed $1000 + 100 tax = 1100 minus 800. You owe tax on $300.

    You cannot combine deductions.
  • How will they know you didn't already have it when you went in to the US? Not that I would advocate cheating or anything, but I recall back in my Air Force days when we bought things like cameras and watches in Japan we'd simply get rid of the original packaging and just bring it back through customs. I can confess that now since the statute of limitations has long since expired.
  • Community Alumni's avatar
    Community Alumni
    The exemption rates are per person and but in many cases the agent will make a decision at the time of entry back into Canada. If traveling with a family, each child is also entitled to the exemptions however the products being declared must be for their use.

    We cross sometimes 2-3 times a week and do the majority of our shopping in the US. As I stated it is really up to the agent as to whether or not they decide to allow a combined exemption. We've bought some expensive products on occasion and have had to pay duty when the agent refused to allow us to combine our exemptions.
  • After you buy it - and use it - it is only worth $800, right? It isn't new anymore. :B
  • Cheers;
    We haven't brought a significant amount back for years. The rule was applied as a family therefore spouses' exemption would combine. Plus children. We used to buy children's back to school clothes etc.