Step-by-step guide to importing commercial goods into Canada - Step 3: Determine duties and taxes

1. [Canada.ca](https://www.canada.ca/en.html)

2. [CBSA](/menu-eng.html)

3. [Import commercial goods](/import/menu-eng.html)

4. [Guide to importing commercial goods into Canada](/import/guide-eng.html) # Select the duties and taxes that apply # Sections - [Who should use this guide](/import/guide-1-eng.html) - [Gather information about the goods you want to import](/import/guide-2-eng.html) - [Select the duties and taxes that apply](/import/guide-3-eng.html) - [Set up your business to import](/import/guide-4-eng.html) - [Ship and report goods](/import/guide-5-eng.html) - [Release, account and pay duties and taxes](/import/guide-6-eng.html) - [Make changes after accounting for goods](/import/guide-7-eng.html) - [Checklist](/import/guide-8-eng.html) - [Compliance matters](/import/guide-9-eng.html) Once you are sure your goods are allowed into Canada (admissible), you will need to determine the correct duties and taxes you must pay to import them. Start by finding your product’s tariff classification number, as explained below. This number, along with the country of origin, is used to find the tariff treatment. Tariff treatments define the duty rates Canada applies to goods. The duty rate and the value of your goods will help you figure out how much you owe in duties and taxes. ## On this page - [What is a tariff classification number](#s01) - [How to find your goods’ tariff classification number](#s02) - [Check the applicable tariff treatment and duty rate](#s03) - [Types of duties and taxes](#s04) - [Calculate the value of the goods you are importing](#s05) - [Estimate duty and tax amounts in advance](#s06) - [Advance rulings and national customs rulings](#s07) - [Learn how to defer duties and taxes](#s08) ## What is a tariff classification number A tariff classification number is a standardized code used to identify goods for customs purposes. Most trading countries, including Canada, the United States, China and India, use the Harmonized System (HS) as the basis of their classifications systems. The tariff classification number is also known as an HS Code. The first six digits of the tariff classification number are a common identifier for a particular good across all countries using the Harmonized System. The next four digits are unique to Canada to establish the duty rates and gather statistics. ### Breakdown of a tariff classification number Example: 9507.90.10.00 Heading (International): **9507** Sub-heading (International): 9507.**90** Tariff item (Canadian): 9507.90.**10** Statistical suffix (Canadian): 9507.90.10.**00** ## How to find your goods’ tariff classification number You may use the classification tool available in the CARM Client Portal, which recommends tariff classification numbers based on the goods’ description you provide. You will find the classification tool within the “Duties and Taxes Calculator” by selecting “Declarations” from the main menu. Next, select the “Duties and Taxes Calculator” and click on the “Help me classify” button to start the classification process. If you are not yet registered in CARM, you can look up tariff classifications: - [Guide to tariff classification for Canadian imports](https://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/guide/menu-eng.html) - [Canadian Customs Tariff](https://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/menu-eng.html) - or request an advance ruling for tariff classification <span class="label label-info">Note:</span> Advance rulings can be requested through the CARM Client Portal. ### More information - [Memorandum D10-13-1: Tariff Classification of Goods](https://www.cbsa-asfc.gc.ca/publications/dm-md/d10/d10-13-1-eng.html) - [Memorandum D11-11-3: Advance Rulings for Tariff Classification](https://www.cbsa-asfc.gc.ca/publications/dm-md/d11/d11-11-3-eng.html) - [Request an advance ruling or national customs ruling](https://www.cbsa-asfc.gc.ca/import/ar-da/menu-eng.html) - [CARM Client Portal user guides:](https://ccp-pcc.cbsa-asfc.cloud-nuage.canada.ca/en/onboarding-documentation) Financial information, payment processing and tariff tools in the CARM Client Portal ## Check the applicable tariff treatment and duty rate Once you have the correct tariff classification number, check which tariff treatment applies to your goods. The rate of duty depends on the tariff treatment. In every chapter of the Canadian Customs Tariff Schedule, the last two columns indicate the Most-Favoured-Nation (MFN) Tariff rate of duty and applicable preferential tariffs. ### Most-Favoured-Nation (MFN) Tariff For goods originating from all countries, except Belarus, North Korea and Russia, you may use the rate of duty indicated in this column. #### More Information [Memorandum D11-4-3: Rules of Origin Respecting the Most-Favoured-Nation Tariff](https://www.cbsa-asfc.gc.ca/publications/dm-md/d11/d11-4-3-eng.html) ### Preferential tariffs Reduced rates of duty apply when goods qualify under one or more of Canada’s trade agreements. To benefit from a preferential tariff, you must have proof of origin on hand as you may be asked to provide documents to support the tariff treatment you are claiming. A claim for a preferential tariff must also meet the shipping requirements (such as direct shipment) for that tariff treatment. For example: You must have a valid [CUSMA Certification of Origin](https://www.tradecommissioner.gc.ca/en/market-industry-info/search-country-region/country/canada-united-states-export/us-tariffs/guide-cusma-compliance.html#step-4) and the goods must be shipped directly from the United States to Canada to claim the United States Tariff. #### More information - [Origin of goods](https://www.cbsa-asfc.gc.ca/import/origin-origine-eng.html) (includes proof of origin requirements) - [Customs Tariff 2026: List of countries and applicable tariff treatments](https://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2026/html/countries-pays-eng.html) - [Memorandum series D11: General Tariff Information](https://www.cbsa-asfc.gc.ca/publications/dm-md/d11-eng.html) ### Applicable preferential tariff - Canada-United States-Mexico Agreement (CUSMA): United States Tariff (UST) and Mexico Tariff (MXT) - Canada-Chile Free Trade Agreement: Chile Tariff (CT) - Canada-Israel Free Trade Agreement: Canada-Israel Agreement Tariff (CIAT) - Canada-Costa Rica Free Trade Agreement: Costa Rica Tariff (CRT) - Canada-European Free Trade Association Free Trade Agreement: Iceland Tariff (IT), Norway Tariff (NT), Switzerland-Liechtenstein Tariff (SLT) - Canada-Peru Free Trade Agreement: Peru Tariff (PT) - Canada-Colombia Free Trade Agreement: Colombia Tariff (COLT) - Canada-Jordan Free Trade Agreement: Jordan Tariff (JT) - Canada-Panama Free Trade Agreement: Panama Tariff (PAT) - Canada-Honduras Free Trade Agreement: Honduras Tariff (HNT) - Canada-Korea Free Trade Agreement: Korea Tariff (KRT) - Canada-European Union Free Trade Agreement: Canada-European Union Tariff (CEUT) - Canada-Ukraine Free Trade Agreement: Ukraine Tariff (UAT) - Comprehensive and Progressive Trans-Pacific Partnership Tariff (CPTPT) - Canada-UK Trade Continuity Agreement (UKT) Rates of duty based on Canada’s unilateral tariff provisions apply under preference programs: - General Preferential Tariff (GPT) - Least Developed Country Tariff (LDCT) - Commonwealth Caribbean Countries Tariff (CCCT) - Australia Tariff (AUT) - New Zealand Tariff (NZT) ## Types of duties and taxes When goods are imported into Canada for commercial use, they may be subject to a series of costs in duties and taxes. Duties and taxes help ensure that imported goods are treated fairly in the Canadian market and that they meet the federal revenue requirements. An importer—whether a small business or a large corporation—must understand how these costs are calculated and when they apply. The amount you owe depends on things like the type of goods, their country of origin, and their classification under the Canadian Customs Tariff. In many cases, commercial imports may be subject to: **Customs duties:** taxes charged by the federal government on certain goods imported into Canada. The rate of duty depends on the tariff classification of the goods and the applicable tariff treatment based on the goods’ country of origin. **Excise duties:** taxes charged on the production, manufacture or import of certain goods, most commonly alcohol and tobacco products. **Excise tax:** a federal tax applied to specific goods, usually at the time they are made, produced or imported rather than when they are sold. Examples include automobile air conditioners, some passenger vehicles, and certain types of fuel. **Goods and Services Tax (GST):** a federal tax on most products and services imported into Canada or sold in Canada, except those exempt under the Excise Tax Act (Schedule VII). GST is calculated on the total value of the goods and applicable duties. **Surtax:** an additional tax set out by an Order in Council (surtax order). A surtax can be charged on top of customs duties under the Customs Tariff. It is usually a temporary emergency measure used when imported goods are causing or may cause serious harm to Canadian producers of similar or competing goods. **Safeguard:** a temporary measure the government can use to protect a Canadian industry from serious harm caused by a sudden increase in imports. It applies when imports rise quickly or in large volumes and threaten Canadian producers. Together, these charges form the financial foundation of Canada’s import system. Understanding them helps you estimate costs, avoid border delays, and follow Canadian law. Some goods—such as prescription drugs, medical and assistive devices, basic groceries and agriculture and fishing products—are exempt from taxes altogether. If your goods are tax exempt, you must include the correct tax exemption code on your commercial accounting declaration (CAD) in the CARM system. <span class="label label-info">Information:</span> Have you seen “tariff” in the news? A tariff (also known as an import duty or customs duty) is a tax imposed by a country on imported products. Tariffs are usually imposed and collected by a country's customs authority or agency when goods cross the border. In the current environment, when the media uses the term "tariff", it usually refers to a surtax. ### More information - Tax exemption codes: [Memorandum D18-5-1: Coding Excise and GST Exemption Codes in the CBSA Assessment and Revenue Management (CARM) System](https://www.cbsa-asfc.gc.ca/publications/dm-md/d18/d18-5-1-eng.html) - Questions on GST, excise tax or excise duty: [Canada Revenue Agency](https://www.canada.ca/en/revenue-agency/corporate/contact-information.html) - Surtax and safeguard measures: [Customs notices](https://www.cbsa-asfc.gc.ca/publications/cn-ad/menu-eng.html) - [Memorandum D16-1-1: Information pertaining to the application, collection, and adjustment of a surtax](https://www.cbsa-asfc.gc.ca/publications/dm-md/d16/d16-1-1-eng.html) - [Excise and specialty taxes](https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies.html) - [Excise Tax Act](http://laws-lois.justice.gc.ca/eng/acts/E-15) - [Excise Act, 2001](https://laws-lois.justice.gc.ca/eng/acts/E-14.1/) ## Calculate the value of the goods you are importing Once you have your tariff classification number and tariff treatment, you need to calculate the value of your goods that are subject to duties and taxes. This is referred to as: value for duty. There are six methods you can use to calculate the value for duty. See the customs valuation handbook for [How to establish the value for duty of imported goods](https://www.cbsa-asfc.gc.ca/import/valuation-valeur/customs-val-douane-eng.html) and [Memoranda Series D13: Valuation](https://www.cbsa-asfc.gc.ca/publications/dm-md/d13-eng.html). Start with the first valuation method listed. If you cannot establish the value for duty using that method, move to the next one, and so on. In most cases, the value for duty is based on the price you paid the seller for the goods under the first method. This amount may need adjustments, such as adding or subtracting certain costs, if applicable. To support the value for duty you declare, you must have a sales receipt or invoice from the seller. The receipt or invoice must include: - a complete description of the goods - the selling price - any conditions and terms of the sale Declare the value for duty in Canadian currency only. You can also request a national customs ruling from the CBSA to help determine the value of your goods. <span class="label label-info">Note:</span> Even when no duty is owed, the value for duty is still important because it is used to calculate any taxes that may apply. ### More information - [Memorandum D1-4-1: CBSA Invoice Requirements](https://www.cbsa-asfc.gc.ca/publications/dm-md/d1/d1-4-1-eng.html) - [Request an advance ruling or national customs ruling](https://www.cbsa-asfc.gc.ca/import/ar-da/menu-eng.html) ## Estimate duty and tax amounts in advance You can use the “Duties and Taxes Calculator” in the CARM Client Portal to estimate how much duties and taxes you may need to pay before importing your goods and how to identify the appropriate tariff classification number. To access the calculator, log into the CARM Client Portal and select “Declarations” from the main menu. From there, you can select the “Duties and Taxes Calculator”. This calculator provides an estimated summary of how duties and taxes are calculated. The exchange rate, which changes daily, is displayed under "Currency Exchange Rate (to Canadian dollars)" before you submit your commercial accounting declaration (CAD) in the CARM Client Portal. The estimate assumes the goods are imported on the same day you submit your CAD, which is why the result is only an estimate. The actual exchange rate used will be based on the date your goods are shipped (date of direct shipment). Once you submit your CAD, CARM will use the same calculation method to determine the final amount of duties and taxes owing. The following example shows how customs duty and GST are calculated for imported goods valued at US$100. The example exchange rate is US$1 equals CAN$1.37. The goods are subject to 4% customs duty and 5% GST. **Example:** US$100 x $1.37 (exchange rate) = CAN$137.00 **(value for duty)** $137.00 (value for duty) x 4% (customs duty rate) = $5.48 **(customs duty)** $137.00 (value for duty) + $5.48 (customs duty) = $142.48 **(value for tax)** $142.48 x 5% (GST) = $7.12 **(GST)** **Total customs duty and GST payable** (in Canadian dollars) <span class="nowrap">is $5.48 + $7.12 = $12.60</span> When converting the value on your invoice into Canadian dollars, use the exchange rate from the date the goods began their direct and uninterrupted journey to their destination in Canada. ### More Information - [Memorandum D13-3-4: Place of Direct Shipment](https://www.cbsa-asfc.gc.ca/publications/dm-md/d13/d13-3-4-eng.html) - [CARM Client Portal user guides](https://ccp-pcc.cbsa-asfc.cloud-nuage.canada.ca/en/onboarding-documentation): Financial information, payment processing and tariff tools in the CARM Client Portal ## Advance rulings and national customs rulings To give businesses more certainty and make importing clearer, the CBSA issues two types of rulings. These help determine the tariff classification, origin or value for duty of commercial goods coming into Canada. **Advance rulings** can make it easier to release goods during importation. For the tariff classification, the ruling assigns a 10-digit tariff classification number to your imported goods and explains how to use it. For origin of goods, the ruling helps you determine the country of origin and whether they are eligible for preferential tariff treatment under a free trade agreement. They are legally binding between the CBSA and the person who receives the ruling. **National customs rulings** explain which existing customs laws should apply to goods imported into Canada and how to apply them. You can request a ruling on: - valuation, or how to determine the value of your goods - the origin of your goods (non-free trade agreement preferential tariff treatment or Most-Favoured-Nation tariff treatment) - country of origin marking of your goods A request for an advance ruling or a national customs ruling can be made through the CARM Client Portal. You can also send your request by mail or email to a CBSA trade office. ### More information - [Request an advance ruling or national customs ruling](https://www.cbsa-asfc.gc.ca/import/ar-da/menu-eng.html) - [CARM Client Portal user guides](https://ccp-pcc.cbsa-asfc.cloud-nuage.canada.ca/en/onboarding-documentation): Managing Rulings in the CARM Client Portal - [Memorandum D11-4-16: Advance rulings for origin under Free Trade Agreements](https://www.cbsa-asfc.gc.ca/publications/dm-md/d11/d11-4-16-eng.html) - [Memorandum D11-11-3: Advance Rulings for Tariff Classification](https://www.cbsa-asfc.gc.ca/publications/dm-md/d11/d11-11-3-eng.html) - [Memorandum D11-11-1: National Customs Rulings](https://www.cbsa-asfc.gc.ca/publications/dm-md/d11/d11-11-1-eng.html) ## Learn how to defer duties and taxes To help Canadian businesses stay competitive, the CBSA offers programs that allow businesses to defer payment of most duties and taxes on imported goods that will eventually be exported. This applies whether or not the goods are further manufactured in Canada. ### More information - [Duty Deferral Programs](https://www.cbsa-asfc.gc.ca/trade-commerce/tip-pec-eng.html#a4) - [Memoranda D7 Series: Duty Deferral Programs](https://www.cbsa-asfc.gc.ca/publications/dm-md/d7-eng.html) ### Document navigation - [<span class="wb-inv">Next: </span>Set up your business to import](/import/guide-4-eng.html) ## Page details - Date modified: 2026-09-17 ## About this site ### Canada Border Services Agency - [Contact us](/contact/menu-eng.html) - [Publications and forms](/publications/menu-eng.html) - [CBSA Glossary](/sme-pme/glossary-glossaire-eng.html) ### Government of Canada - [All contacts](https://www.canada.ca/en/contact.html) - [Departments and agencies](https://www.canada.ca/en/government/dept.html) - [About government](https://www.canada.ca/en/government/system.html) #### <span class="wb-inv">Themes and topics</span> - [Jobs](https://www.canada.ca/en/services/jobs.html) - [Immigration and citizenship](https://www.canada.ca/en/services/immigration-citizenship.html) - [Travel and tourism](https://travel.gc.ca/) - [Business](https://www.canada.ca/en/services/business.html) - [Benefits](https://www.canada.ca/en/services/benefits.html) - [Health](https://www.canada.ca/en/services/health.html) - [Taxes](https://www.canada.ca/en/services/taxes.html) - [Environment and natural resources](https://www.canada.ca/en/services/environment.html) - [National security and defence](https://www.canada.ca/en/services/defence.html) - [Culture, history and sport](https://www.canada.ca/en/services/culture.html) - [Policing, justice and emergencies](https://www.canada.ca/en/services/policing.html) - [Transport and infrastructure](https://www.canada.ca/en/services/transport.html) - [Canada and the world](https://www.international.gc.ca/world-monde/index.aspx?lang=eng) - [Money and finances](https://www.canada.ca/en/services/finance.html) - [Science and innovation](https://www.canada.ca/en/services/science.html) - [Indigenous Peoples](https://www.canada.ca/en/services/indigenous-peoples.html) - [Veterans and military](https://www.canada.ca/en/services/veterans-military.html) - [Youth](https://www.canada.ca/en/services/youth.html) - [Manage life events](https://www.canada.ca/en/services/life-events.html) ### Government of Canada Corporate - [Social media](https://www.canada.ca/en/social.html) - [Mobile applications](https://www.canada.ca/en/mobile.html) - [About Canada.ca](https://www.canada.ca/en/government/about.html) - [Terms and conditions](/help-aide/in-ai-eng.html) - [Privacy](https://www.canada.ca/en/transparency/privacy.html)