Most of the traditional press are stating that US travel to Canada is up significantly “because of the low loonie” yes that is a fact but here are some other facts that you may have not known…
A US Citizen returning from Canada anytime in a period of less than 48 hours are entitled to a $200 duty-free exemption and the next $1,000 worth of the goods they purchased is subject to a flat rate of 3%. Any purchases of goods “Made in The USA” are not taxed regardless as to value. Goods Made In Canada or Mexico are also not taxed. After 48 Hours the allowance increases to $800. Purchases may include 1 liter of alcohol (must be 21 years of age or older). 200 cigarettes (1 carton), and 100 cigars, tax and duty free.
If they exceed duty free allowances and exemptions entering the U.S., the following approximate U.S. duty and tax rates MAY apply:
- U.S. $2.00 – $3.00 per bottle of liquor
- U.S. $1.30 per case of beer
- U.S. $3.90 per carton of cigarettes
A Canadian Citizen returning from the U.S. and were not there for a total of 24 hours or more are entitled to $0.00 – ($200. less than our U.S. cousins) Over 24 hours $200 and over 48 hours they are entitled to a $800 duty-free exemption. Purchases (over 48 hrs) may include 1.14 liters (40 ounces) of liquor or 1 case of beer (24x355ml cans/bottles) or 1.5 liters of wine plus 200 cigarettes (1 carton), 50 cigars or cigarillos, 200 tobacco sticks, and 200 grams of manufactured tobacco. The value is included in the $800. limit.
IF WE EXCEED our duty free allowances and exemptions entering CANADA, the following approximate CANADIAN duty and tax rates MAY apply:
- CA Funds approximately $1.00 per OUNCE ($31.00 per bottle more than U.S. cousin)
- CA Funds approximately $9.00 per case of beer ($7.70 per case more than U.S. cousin)
- CA Funds approximately $25.00 per carton of cigarettes ($21.10 per carton more than U.S. cousin)
Now some of these numbers may surprise you and make you wonder why more americans don’t cross the border to shop? Well first off even with the loonie where it is:
Gas is still $0.30 more a ltr in Canada, A 24 case of beer is $18.00 more in Canada, a hotel room in three star hotel will cost them a minimum of $40.00 more, it’s twice as expensive to dine out. etc. etc.
Does the lower loonie attract more U.S. tourists? Probably. Are they spending anything when they are here? Love to see those numbers!