Canadian and American flags are pictured at Peace Arch Historical State Park at the USA-Canada border. (Photo by JASON REDMOND/AFP via Getty Images)
Canadians who chose to avoid the cold winter months by travelling to the United States may find themselves facing extra expenses when they return home, the federal border agency is warning.
Snowbirds can claim goods worth up to C$800 without paying duties or taxes, including the new surtax, the border agency said. The surtax only applies on the amount of goods that exceeds that value.
Goods that snowbirds can expect to pay extra for include clothing, footwear, jewelry, appliances, ceramics, and wood products, among other items.
The surtax will also be levied on various foods and beverages including certain meats, eggs, and various dairy products like milk, cream, cheese, yogurt, and butter. It will also apply to certain berries and citrus fruits, melons, peaches, beans, tomatoes, honey, chocolate and confections, coffee, tea, oats, pasta, rice, spices, and cooking oils.
Snowbirds who are returning with less than $800 worth of goods can avoid the extra fees.
How to Calculate the Tax
Canadian residents can determine how much they will owe on goods in advance to ensure there are no surprises at the border.
The 25 percent tariffs, collected in the form of a surtax, are calculated as a percentage of a product’s “value for duty” before taxes, referring GST and HST, the border agency said.
For a U.S. product priced at C$50, for example, the cost would rise by 25 percent, or $12.50, due to the surtax, resulting in a total cost of $62.50 plus GST or HST.
In Ontario, where HST is 13 percent, the final cost of the $50 American product would be $70.63.
Canadians returning home must provide proof of origin for any goods that surpass their personal exemption limits, the agency said. Receipts for all items brought into the country must also be readily accessible.