Customs Duties and Tax Regulations – Is Expert Advice Necessary?

Even though the USA and Canada share very close relations and many bilateral and multilateral trade agreements, the transactions of goods across the border qualify as commercial transactions and are subject to taxes and customs duties. This holds both ways and is good for the economy of both countries. Thanks to policies like the North American Free Trade Agreement (NAFTA), the brunt of taxes on business owners is minimal and sometimes nil.

There is an array of different taxes and duties applicable to the export-import of goods. Figuring it out and applying the best route to benefit from policies require experience and insight into the custom laws and regulations along with provincial and federal tax laws. That is why taking service from well-known companies like Clearit Canada can be beneficial in the long run.

Another major problem with the plethora of tax regulations is their ever-changing nature. Tax regulations and customs duties change according to variations in national policies and global economic conditions. It is difficult for an ordinary business person to cope up with these complicated calculations. This is where the usage of tools like Clearit import calculator comes into play. This tool can be used to calculate the up-to-date rates of taxes and duties imposed on various items like clothes, medicines, processed food, auto parts, etc.

Some of the taxes involved in the import of goods are:

  • Goods and service tax
  • Provincial sales tax
  • Federal tax
  • Harmonized tax

These taxes are imposed according to the Canada Customs Act and enforced by the Canada Border Services Agency (CBSA). A combination of the above taxes makes a complicated web of custom duties that have to be cleared before your goods enter Canada. If not calculated or applied properly, your business can suffer from major financial setbacks.

For example, the provincial sales tax on goods depends on the destination of the goods, but GST and other federal taxes can be the same. However, if you are returning to Canada after 72 hours, then some personal exemptions are allowed. Add on top of this the harmonized tax of the province! All these calculations on a large number of different goods can mean serious calculations.

It is better to leave the estimation of taxes and duties at the hands of expert brokers from companies like Clearit Canada since they have decades of experience in dealing with customs numbers. Helping businesses save colossal sums of money in taxes and duties is their role. So, be pragmatic with decisions and entrust the tough calculations of taxes with the experts.