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Government: Customs Duties

Regulatory - Trade: Customs Duties NAFTA - Intro Features of NAFTA

Manitoba is a trading province. In fact, foreign merchandise exports represent about 30% of Manitoba’s GDP.  Trade is regulated by the federal government, through the Canadian Border Services Agency.

Customs Duties
Customs duties represent the principal tax levied on goods imported into Canada.  Duties are calculated by determining the classification of imported goods (which then provides the rate of duty) and their value.  Canada's system of customs valuation is based upon the WTO’s Customs Valuation Code and has been implemented into Canada's Customs Act.  The primary valuation method for imported goods is the transaction value of the imported goods, subject to adjustments for additional cost items (e.g. transportation costs).

Anti-dumping and Countervailing Duties
Canada does not impose anti-dumping or countervailing duties on dumped or subsidized goods unless the Canadian International Trade Tribunal determines that the dumping or subsidies have caused or are threatening to cause material injury to an established Canadian industry that produces similar goods. If the Tribunal finds material injury or threat of material injury, anti-dumping duties equal to the margin of dumping, or countervailing duties equal to the amount of the subsidy, may be imposed under the Special Import Measures Act.

Sales Taxation
In addition to customs duties, imported goods are subject to the 5% Federal Goods and Services Tax (“GST”) and the 7% Manitoba Retail Sales Tax. The GST and Retail Sales Tax are discussed in the taxation pages of the Manitoba Business Facts.

Quantitative and Strategic Trade Restrictions
The federal government may restrict the import or export of certain goods under the authority of the Export and Import Permits Act. Restricted goods require a permit before they can be imported or exported. The importation of some items, such as certain weapons, explosives, oil and gas is either heavily regulated or prohibited entirely.  The export of high technology and military products is controlled, although most of these goods can be exported to the U.S.