Canada - Reducing customs duty on imports of consumer goods 

October 2:  Importers in Canada pay high duty rates on many common consumer household items, creating significant additional costs.

However, many importers do not realize the full duty cost of their imported goods and may not have considered whether they are actually paying more customs duty than necessary. Accordingly, certain strategies—such as a tariff classification analysis, drawbacks, and refunds and remission—may reduce the importer’s customs duty cost and improve cash flow.

Unlike corporate income taxes, the costs associated with customs duties can be difficult to identify and quantify. Customs duties do not stand out on financial statements because they are generally included in the cost of goods manufactured and sold.

Opportunities for significant duty savings may also come from free trade agreements, product recalls, and warranty reimbursements, along with decisions by Canadian and international courts. Further, recent Canada Border Services Agency (CBSA) rulings and Canadian International Trade Tribunal (CITT) decisions on consumer goods can provide duty saving opportunities.

Read an October 2013 report [PDF 202 KB] prepared by the KPMG member firm in Canada: Consumer Goods Importers - Are You Paying Too Much Duty?

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich

(312) 665-1022

Andrew Siciliano

(631) 425-6057

John L. McLoughlin

(267) 256-2614

Todd R. Smith

(949) 885-5617

Luis A. Abad

(212) 954-3094

Amie Ahanchian

(202) 533-3247

Or your local KPMG Trade & Customs professional.

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For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

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