Kara Sears
Canada's duty-free laws govern the import and sale of goods in the country, including at duty-free shops near border crossings and airports. These laws outline the conditions under which individuals can bring goods into Canada without paying duties and taxes, known as personal exemptions. The eligibility for these exemptions depends on factors such as the length of absence from Canada, the type and value of goods, and provincial regulations. Tobacco and alcohol often have special considerations, with partial exemptions and specific quantity limits. Duty-free shops are regulated, and the sale of intoxicating liquor requires written approval from the relevant provincial authorities.
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What You'll Learn
Personal exemptions for goods worth up to CA$200
If you are absent from Canada for more than 24 hours, you can claim goods worth up to CA$200 without paying any duty and taxes. This exemption is only applicable if you have the goods with you when you enter Canada. It is important to note that tobacco products and alcoholic beverages are not included in this exemption. If the goods you bring in are worth more than CA$200 in total, you cannot claim this exemption, and you will have to pay full duties on all goods you bring in.
If you include cigarettes, tobacco sticks, or manufactured tobacco in your personal exemption, you may only receive a partial exemption. You will have to pay a special duty on these products unless they have an excise stamp "DUTY PAID CANADA DROIT ACQUITTE." Canadian-made products with this mark are sold at duty-free shops.
While you are outside Canada, you can send gifts worth no more than CA$60 to someone in Canada free of duty and taxes. These goods do not count as part of your personal exemption, but they cannot be tobacco products or alcoholic beverages.
In addition, duty on items you mail to yourself will be waived if the value is CA$200 or less.
If you bring back more than CA$200 worth of dutiable items, or if any item is subject to duty or tax, the entire amount will be dutiable. For example, if you bring back a CA$300 piece of pottery, you would have to pay duty on the full value of CA$300 rather than just the amount exceeding CA$200. It is important to note that family members may not combine their individual CA$200 exemptions.
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Tobacco and alcohol restrictions
If you are a Canadian citizen or a permanent resident of Canada, you must declare any goods you bring back from outside Canada. Tobacco and alcohol are subject to duty and tax exemptions.
If you have been outside Canada for 48 hours or more, you are allowed to import one of the following amounts of alcohol duty-free:
- 1.5 litres of wine or 1.14 litres of alcoholic beverages, or
- 8.5 litres of beer.
The quantity of alcoholic beverages you can import must be within the limit set by the province or territory where you enter Canada. The minimum age for importing alcohol is 18 years in Alberta, Manitoba, and Quebec, and 19 years in all other provinces and territories.
You can claim goods worth up to CAN$800 without paying any duty and taxes. Tobacco products and alcoholic beverages may be included in your personal exemption. You can bring back the following amounts of tobacco duty-free:
- 200 cigarettes
- 50 cigars
- 200 grams of manufactured tobacco
- 200 tobacco sticks
If you bring in more than your personal exemption, you will have to pay regular assessments on the excess amount, which can include duty and taxes, as well as provincial or territorial fees.
If you include cigarettes, tobacco sticks, or manufactured tobacco in your personal exemption, you may only receive a partial exemption. You will have to pay a special duty on these products unless they have an excise stamp "DUTY PAID CANADA DROIT ACQUITTE". Canadian-made products with this mark are sold at duty-free shops.
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Importing valuable items from outside Canada
When importing valuable items from outside Canada, you must meet all import requirements and pay all applicable duties and taxes. It is important to note that there are no personal exemptions for cross-border shoppers.
You can claim goods worth up to CAN$200 without paying any duty and taxes. However, tobacco products and alcoholic beverages are not included in this exemption. If the goods you bring in are worth more than CAN$200 in total, you must pay full duties on all items.
You can also claim goods worth up to CAN$800 without paying any duty and taxes. This includes up to 1.5 litres of wine or 1.14 litres of alcoholic beverages, or up to 8.5 litres of beer. You can also bring in 200 cigarettes, 50 cigars, 200 grams of manufactured tobacco, and 200 tobacco sticks. However, if you bring in more than your personal exemption, you will have to pay regular assessments on the excess amount, which can include duties, taxes, and provincial or territorial fees.
If you are travelling with highly valuable items that you acquired in Canada or imported lawfully, you can visit a Customs and Border Services Agency (CBSA) office before your departure to have them identified on a wallet-sized card. This will confirm that you possessed these valuables before leaving the country. Additionally, when importing food items for personal use, be aware of federal import requirements and restrictions that may vary depending on the item, its origin, and the Canadian province you are entering.
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Repairs and alterations to items outside Canada
If you have repairs, alterations, or additions made to your vehicle, vessel, or aircraft outside of Canada, you must declare the work when you arrive at the border. You may have to pay duty and/or taxes on the work done. In some cases, you may have to pay duty and/or tax on the entire value of the vehicle, vessel, or aircraft when you bring it back, especially if the work is carried out in certain countries outside North America.
If you are outside Canada and you have emergency repairs made to your vehicle, vessel, or aircraft, the repairs are duty and tax-exempt. To be eligible for this special provision, be sure to declare the value of all repairs and replacement parts when you return to Canada with the vehicle and provide any supporting documentation, such as police or insurance reports. If there is any doubt that the repairs were required as a result of an emergency, you will be required to pay the duty and taxes that apply for a non-emergency repair or alteration. If you are later able to provide proof supporting the emergency repairs and eligibility for duty and tax relief, you may appeal the initial decision.
It is a good idea to keep all your receipts for repairs done to, or parts bought for, your vehicle. The border services officer may ask to examine them as evidence of the value of the repairs. If you do not declare goods, or if you falsely declare them, the CBSA can seize the goods. You may permanently lose the goods, or you may have to pay a penalty to get them back. Depending on the type of goods and the circumstances involved, the CBSA may impose a penalty that ranges from 25% to 70% of the value of the seized goods.
If you plan to have repairs, alterations, or additions made to your vehicle, vessel, or aircraft outside of Canada, you should check with the CBSA for information before you leave.
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Duty-free allowances for alcohol
The amount of alcohol that can be brought into Canada duty-free depends on the type of alcohol and the country from which you are travelling. Here are the allowances for alcohol when entering Canada from the United States or other countries.
From the United States
Americans can bring 1 litre of alcohol into Canada duty-free for personal use. This includes 1 litre of spirits, wine, or beer. If the amount of alcohol exceeds 1 litre, you will be required to pay duties and taxes, as well as any provincial or territorial levies that apply. It is important to note that bringing unusual quantities of alcohol may raise suspicions that it is for commercial purposes rather than personal use, and additional permits may be required.
From other countries
When entering Canada from other countries, travellers can bring a certain amount of alcohol duty-free under their personal exemption. The allowance includes up to 1.5 litres of wine or 1.14 litres of alcoholic beverages (spirits) or up to 8.5 litres of beer. However, it is important to note that this exemption only applies to amounts up to CAN$200. If the total value of the goods exceeds CAN$200, full duties must be paid on all items, including alcohol.
In addition, gifts sent to someone in Canada from outside the country are exempt from duty and taxes as long as they are worth no more than CAN$60 and are not tobacco or alcoholic products.
Importing alcohol into the United States
When travelling from Canada to the United States, Americans can bring up to $200 USD worth of goods per person, including 5 ounces of alcohol, on any daily visit to Canada. However, it is important to note that alcoholic beverages purchased in duty-free shops within the United States, such as in New York before entering Canada, will be subject to Customs duty and Internal Revenue Service Tax (IRT) when brought back into the United States.
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Frequently asked questions
Duty-free is a tariff exemption on goods bought for personal use.
If the value of the goods you are bringing back exceeds $200 CAD, you cannot claim this exemption. Instead, duty and taxes are applicable on the entire amount of the imported goods.
If you include cigarettes, tobacco sticks or manufactured tobacco in your personal exemption, you may only receive a partial exemption. You will have to pay a special duty on these products unless they have an excise stamp “DUTY PAID CANADA DROIT ACQUITTÉ”.
If you have been away from Canada for 48 hours or more, you are allowed to import the following amounts of alcohol free of duty and taxes: 1.5 litres of wine or 1.14 litres of alcoholic beverages or up to 8.5 litres of beer.
You can submit your declaration before you enter Canada at a participating airport using the Advance CBSA Declaration feature in the ArriveCAN travel app up to 72 hours before your arrival. Alternatively, you can make an oral declaration to a border services officer when you arrive.
