Customs

Duties, taxes and brokerage are three different charges

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The bill at your door is often three charges stacked together. Knowing which is which tells you what can be disputed and what cannot.

Import charges arrive as one number, which is why people assume the carrier invented it. In reality, up to three separate charges are bundled together, and only one of them belongs to the carrier.

Duty

A government charge based on the item's tariff classification and its country of origin. Goods manufactured in a country with a trade agreement in force may enter duty-free when the origin is properly documented; the same item made elsewhere may not.

Tax

GST applies to most goods imported into Canada, with provincial tax added in some provinces. This is charged on the value of the goods and is a government charge, not a carrier fee.

Brokerage and handling

This is the carrier's own fee for preparing and submitting the customs entry and advancing the government charges on your behalf. Courier brokerage typically scales with the shipment value; postal handling is usually a flat fee. It is a commercial charge, and it is the one worth comparing between carriers before you ship.

What you can actually dispute

  • An incorrect declared value or a duplicate charge — raise it with the carrier, with documentation.
  • An incorrect tariff classification — this is an adjustment request, and it needs evidence about the goods.
  • Brokerage on a shipment you self-cleared — possible, but self-clearing must be arranged before the shipment is released.

Rates and thresholds change. Check the current figures with the Canada Border Services Agency rather than relying on a number you read last year.

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