Here’s How CROSS BORDER PICKUPS Can Help You Under the New Trade (USMCA) Agreement

Under the new USMCA (formerly NAFTA) Agreement the de minimis has been proposed* – this is great news for Canadians shopping across the border.

* When does it kick in?

Now that the deal has been negotiated, it needs to head to U.S. Congress for a mandatory 60-day review period. This means the USMCA could be signed before Dec. 1.

  1. When finalized, you may be able to buy up to $40 CAD worth of goods from the USA. DUTY and TAX FREE.
  2. When finalized, you may be able to buy up to $150 CAD worth of goods from the USA. DUTY FREE only. Taxes are still applicable.

So how are DUTY and TAXES calculated? Glad you asked.

Let’s say you’re buying apparel and the total value is $200.00 CAD. Typically apparel duties are 18%. Ontario tax is 13%. Duties are added on the total value, then taxes are added on the sum of both duties and total value. Here’s the calculation:

$200.00 Total Value

+ 18% Duties on $200 which is $36.00

+ 13% Taxes on $236 which is $30.68

Total duties and taxes to be paid: $66.68

 

CROSS BORDER PICKUPS can save Canadians $$$ compared to traditional shipping costs and makes it easy to bring your purchases over. That means no dealing with Customs, clearing paperwork, and brokerage fees; CROSS BORDER PICKUPS takes care of all that for you!

SIGN UP is quick and easy, and we’ll even provide you with your own FREE US address. Click here to find out more.

Please note that CROSS BORDER PICKUPS only collects duties and taxes on behalf of the CANADA BORDER SERVICES AGENCY (CBSA) and all values provided are only estimates and are subject to change based on actual duties and taxes provided by CBSA.

*Will only come into effect when ratified.



Leave a Reply