I. Composition of customs legislation
Canada's customs legislation consists of the customs act and the customs duty code. The canadian border service is responsible for the enforcement of both statutes。
The customs act provides for: procedures for the enforcement of duties, taxes and customs duties; and methods for determining the taxation of goods subject to customs duties。
The customs code provides for the application of tariff rates; import tax credits; and the collection and exemption of customs duties。
Ii. Tax classification and tariff treatment]
The tariff rates levied by canada on imported goods are dependent on the classification of customs treatment and tax rules。
Tariff treatment is determined by the origin of goods and by bilateral trade relations, while tax classification is carried out according to the harmonized classification system according to its purpose, function and content。
Nafta allows duty-free entry into canada for products originating in the united states and most in mexico. Domestic products from the united states and mexico must be provided with certificates of origin of nafta agreements in order to enjoy tax exemptions. With effect from 1 july 2020, the cusma agreement entered into force to replace nafta, there is no difference between nafta and cusma rules of origin for most commodities, and no certificate of origin is required to apply for preferential tariff treatment if the value of the goods does not exceed $3,300. It should be noted that cusma requires companies to increase the share of car spare parts from north america from 62. 5 per cent to 75 per cent of the total within five years of the entry into force of the agreement, and that at least 70 per cent of automobile steel is sourced from the united states, the united states, the united states, the united states and the united states. At the same time, 40-45 per cent of the spare parts for cars requiring zero tariffs were produced by workers with an hourly salary of over $16。
The most-favoured-nation (mfn) tariff rate applies to products of wto members; the general preferential rate (below the former) applies to products of certain developing countries of origin among wto members; and the least developed country tariff (ldct) applies to unilateral tariff preferences of least developed countries as identified and committed by canada。
Other tariff preferences are provided for in the international trade agreements signed by canada。
Before they are imported, goods can apply to the cbsa for pre-approval procedures to determine whether their products are eligible for some preferential tariff treatment or eligibility for preferential rates under an international trade agreement。
Iii. Tariff calculations
Canada imposes an ad valorem rate on most imports; that is, a percentage of the value of the product. A volume tax is imposed on a small number of products, and in some cases a mixed tax is imposed on some products. The customs act, which is based on the wto valuation rules, establishes a set of rules for determining the tariff value of imported goods and calculates the tariff amount in accordance with applicable tariff rates。
According to the customs act, the primary basis for the assessment of customs duties is the transactional price of the goods, which, if not adopted, also provides for alternative methods of calculation。
[export and import tariffs]
All canadian exports are not subject to customs duties, and the latest import tariff rates can be found in the 2023 customs tariff。
