How are Canadian customs duties calculated on imported goods?

For percentage-based duties, customs value is multiplied by the applicable tariff rate. Classification, origin, valuation and trade agreements affect the actual assessment. For taxable Canadian commercial imports, GST is generally 5% of customs value plus applicable duties and other federal taxes, excluding GST itself. CBSA generally collects GST only at import; provincial HST self-assessment may be required separately. This estimator includes estimated ordinary duty in its GST base but excludes surtaxes, excise, special duties and provincial taxes. Unknown or mixed GST status retains a qualified taxable planning scenario; zero GST requires shipper confirmation that their broker reviewed the entire import as non-taxable. Categories do not determine product-specific GST exemptions. OTR is not a customs broker and does not determine eligibility. Confirm with a licensed customs broker.

Does CUSMA/USMCA eliminate import duties between Canada and the United States?

Preferential treatment depends on classification, origin requirements and supporting certification; it does not establish a universal 0% rate for every product. Confirm the ordinary duty rate with a licensed customs broker. For US imports, this tool assumes MPF exemption only when the entire shipment is confirmed USMCA-qualifying or another MPF exemption is confirmed by your broker. Mixed qualifying and non-qualifying entries require separate review.

What is the difference between MFN and CUSMA duty rates in Canada?

MFN (Most Favoured Nation) rates are Canada's standard tariff rates applied to imports from countries without a preferential trade agreement with Canada. CUSMA/USMCA rates apply to qualifying goods from the US and Mexico and are typically 0%. Canada also has other FTAs (CETA with Europe, CPTPP with Pacific nations) that may offer preferential rates lower than MFN depending on the country of origin.

Freight Tool

Customs Duty
Estimator

Plan Canada–US ordinary duties using your broker-confirmed rate, with limited tax and fee estimates. No live tariff lookup.

Direction

Category & Value

Estimate

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Direction of Shipment

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Related Guide

Cross-Border Freight

How Canada-US Customs Duties Are Calculated

6 min read

About this tool

What it calculates

Provides limited planning scenarios for selected ordinary import duty, Canadian import GST, or US merchandise processing fees. It does not classify goods or determine their actual tax or customs treatment.

Who it's for

Importers and shippers budgeting selected cross-border costs before confirming their shipment with an appointed customs broker.

What you'll need

Destination country, selected commodity category, declared value, duty-rate and CUSMA assumptions, plus Canadian GST status or US entry and MPF assumptions as applicable.

How to use the result

Use as a planning estimate for landed cost calculations. Do not rely on this figure for customs entry filing — duty rates vary by HS code specificity, country, and applicable trade agreements.

Key assumptions

Category rates and CUSMA qualification are planning assumptions, not tariff classification or eligibility decisions. Canadian GST uses customs value plus selected ordinary duty; unknown or mixed GST status retains a qualified taxable scenario. Excise, SIMA, anti-dumping and other unmodelled charges are not included.

When to confirm with a specialist

Consult your appointed customs broker or the appropriate authority for classification, valuation, eligibility, duties, taxes and filing. OTR Logistics Solutions is a freight broker, not a customs broker, and coordinates transportation only.

Need help with this shipment?

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