Jewellery Import Duty Calc 🇨🇦

The Ultimate Guide to Importing Jewellery into Canada: Duties, Taxes, and Fees Explained

Buying jewellery from online retailers in the USA, India, Europe, or Asia can often save you money compared to Canadian retail prices. However, many Canadians are blindsided by the "surprise" invoice from FedEx, DHL, or UPS upon delivery. This comprehensive guide will explain every cost involved in importing jewellery, how to calculate it, and legally avoid unnecessary fees.

1. The Three Layers of Import Costs

When you import goods into Canada, the "Sticker Price" is just the beginning. The total landed cost is composed of three distinct layers:

• Customs Duty: A federal tax based on the type of item (HS Code) and its country of manufacture.
• Sales Tax (GST/HST/PST): Provincial and federal taxes calculated on the duty-paid value.
• Carrier Brokerage Fees: Service fees charged by the shipping company to clear customs on your behalf.

2. Understanding Customs Duty

Customs Duty is designed to protect Canadian industries. For jewellery, the rates are specific to the material and detailed in the Canadian Customs Tariff under Chapter 71.

Gold & Platinum Jewellery (HS Code 7113.19)

The standard Most-Favoured-Nation (MFN) duty rate for gold, platinum, and other precious metal jewellery is 6.5% to 8%. This applies to items made in countries like India, China, Italy, Turkey, and the UK.

Silver Jewellery (HS Code 7113.11)

Silver jewellery typically attracts a slightly lower or similar duty rate, usually around 5% to 6.5%, depending on the specific classification (e.g., filigree work vs. standard casting).

Costume / Imitation Jewellery (HS Code 7117)

Base metal or "fashion" jewellery often has a higher duty rate, sometimes up to 8.5% or 10%, as it competes directly with domestic manufacturing.

3. The CUSMA Advantage (Tax-Free from USA/Mexico?)

The Canada-United States-Mexico Agreement (CUSMA), formerly NAFTA, allows for Duty-Free (0%) importation of goods manufactured in the USA or Mexico. This is a crucial distinction:

• Manufactured In vs. Shipped From: Buying a ring from a New York seller does not automatically make it duty-free. If that ring was made in India and merely imported to the US before being sold to you, you still pay the 6.5% duty.
• Proof of Origin: The seller must provide a certification of origin or state "Made in USA" on the commercial invoice for CBSA to apply the 0% rate.

4. Provincial Sales Tax (GST, HST, PST)

Unlike Duty, which is a tariff, Sales Tax is mandatory for almost all imports. You pay the tax rate of your destination province, not the port of entry. For example, if your package clears customs in Vancouver (5% GST) but gets delivered to you in Toronto, you pay Ontario’s 13% HST.

5. The Hidden Cost: Carrier Brokerage Fees

This is where most complaints come from. When items are shipped via private couriers (FedEx, UPS, DHL), the courier company acts as your "Customs Broker" to clear the package with the CBSA. They charge a fee for this service.

Standard Ground Shipping (The "Trap")

If you choose "Standard Brokerage" or "Ground Shipping" from the USA, the brokerage fees can be exorbitant—sometimes $30 to $100+ on a $200 item. These fees often include:

• Entry Preparation Fee
• Disbursement Fee (usually 2.5% of the taxes paid)
• COD Fee (if you pay at the door)

Express / Air Shipping

Usually, Express or "Air" shipping services include the brokerage fee in the shipping cost. While the upfront shipping price is higher, you normally only pay the Duty and Taxes upon arrival, avoiding the surprise brokerage bill. Always check the carrier's terms.

Canada Post / USPS

Shipping via the postal system is often the most economical for low-value items. Canada Post charges a flat handling fee of just $9.95 CAD per taxable package, regardless of the value. However, tracking and insurance options may be more limited compared to couriers.

6. Personal Exemptions for Travellers

If you are buying jewellery while travelling physically and bringing it back in your luggage, you have personal exemptions based on your time away:

• Less than 24 hours: No exemption. You pay duty and tax on the full value.
• 24 to 48 hours: $200 CAD exemption. If the item costs $250, you cannot claim the exemption; you pay tax on the full $250.
• Over 48 hours: $800 CAD exemption. If the item costs $1000, you only pay duty and tax on the excess amount ($200).

7. How to Avoid Brokerage Fees: Self-Clearing

Did you know you legally have the right to clear your own package with CBSA? If a courier tries to charge you a high brokerage fee:

1. Refuse the delivery (or call them before delivery) and tell them you want to "Self-Clear" or "Self-Account" for the goods.
2. Ask them to email you the Manifest or Waybill and the Commercial Invoice.
3. Take these documents to your nearest CBSA Inland Office.
4. Pay the Duty and Tax directly to the CBSA officer. They will stamp your manifest as "Duty Paid".
5. Email the stamped manifest back to the courier (or go pick up your package at their depot). They must release it to you without charging the brokerage fee.

*Note: This requires you to physically visit a CBSA office, which may cost more in gas/time than the fee itself for cheaper items.

8. Investment Gold vs. Jewellery

It is important to note that Investment Grade Gold (bars, coins, wafers with purity 99.5% or higher) is generally Zero-Rated (Tax-Free) in Canada. However, gold jewellery is considered a "consumer good" regardless of its purity (22K or 24K) and is fully taxable.

Conclusion

Importing jewellery can grant you access to unique designs and better gold prices, but the margins are tight. A 6.5% duty plus 13% tax adds nearly 20% to your cost. Use our calculator above to ensure the "deal" you found online is still a deal after the government takes its share.

Frequently Asked Questions