Canadian Customs Glossary

Over 60 customs, tariff, and international trade terms explained clearly. Your quick reference for navigating Canadian imports.

62 terms sorted alphabetically

Ad Valorem Duty(Droit ad valorem)

A customs duty calculated as a percentage of the value for duty (VFD) of imported goods. Most Canadian tariff items use ad valorem rates (e.g., 6.5%).

Advance Ruling(Décision anticipée)

A binding tariff classification decision issued by CBSA before goods are imported. Valid for three years, it provides certainty on the applicable tariff item and duty rate.

Anti-Dumping Duty(Droit antidumping)

A special duty imposed under SIMA on imported goods sold in Canada at prices below their normal value in the exporting country, to protect Canadian industry from unfair pricing.

ATA Carnet(Carnet ATA)

An international customs document that allows the temporary importation of goods duty-free and tax-free for up to one year. Commonly used for trade show samples, professional equipment, and exhibition goods.

B3 Declaration(Déclaration B3)

The Canada Customs Coding Form (B3-3) used to account for commercial goods imported into Canada. It captures the tariff classification, value for duty, origin, duties, and taxes payable.

Bonded Warehouse(Entrepôt de stockage)

A secure facility licensed by CBSA where imported goods may be stored without payment of duties and taxes until they are released into the Canadian market or re-exported.

CARM(GCRA)

CBSA Assessment and Revenue Management — the new self-service portal replacing legacy CBSA import systems. CARM allows importers and brokers to manage accounts, submit declarations, and pay duties online.

CBSA(ASFC)

Canada Border Services Agency — the federal agency responsible for border security, customs enforcement, tariff administration, and trade compliance in Canada.

CCFTA(ALÉCC)

Canada-Chile Free Trade Agreement — a bilateral trade agreement providing preferential tariff rates on qualifying goods traded between Canada and Chile.

CETA(AÉCG)

Canada-EU Comprehensive Economic and Trade Agreement — a major trade deal eliminating most tariffs between Canada and the European Union.

CKFTA(ALÉCC)

Canada-Korea Free Trade Agreement — Canada’s first free trade agreement with an Asia-Pacific country, providing preferential duty rates on goods from South Korea.

Classification(Classement tarifaire)

The process of determining the correct tariff item number for imported goods under the Harmonized System, following the General Rules of Interpretation (GRI 1–6). Browse our HS Code Directory

Compliance Verification(Vérification de la conformité)

A CBSA audit or review of an importer’s records and declarations to ensure trade laws, tariff classifications, valuations, and origin claims are accurate.

Compound Duty(Droit composé)

A duty that combines both an ad valorem component (percentage of value) and a specific component (fixed amount per unit). Example: 5% + $0.10/kg.

Countervailing Duty(Droit compensateur)

A special duty imposed under SIMA to offset subsidies granted by a foreign government to exporters, when those subsidized imports cause or threaten injury to Canadian industry.

CPTPP(PTPGP)

Comprehensive and Progressive Agreement for Trans-Pacific Partnership — a multilateral trade agreement among 11 Pacific Rim countries offering reduced tariffs on a wide range of goods.

CUSMA(ACEUM)

Canada-United States-Mexico Agreement — the trilateral trade agreement that replaced NAFTA in 2020, governing tariff-free trade for qualifying goods among the three North American countries.

Customs Broker(Courtier en douane)

A licensed professional authorized by CBSA to act as an agent for importers, handling tariff classification, customs declarations, duty payments, and regulatory compliance on their behalf.

Customs Tariff(Tarif des douanes)

The Customs Tariff Act (and its schedules) establishing the tariff item numbers, duty rates, and tariff treatments applicable to all goods imported into Canada.

Customs Value(Valeur en douane)

See Value for Duty (VFD). The monetary amount on which customs duties are calculated, determined according to the Customs Act’s valuation methods.

De Minimis(De minimis)

A threshold below which imported goods are exempt from duties and/or taxes. In Canada, casual imports under $20 CAD are duty-free; under $40 CAD are tax-free. CUSMA provides higher commercial thresholds.

Declared Value(Valeur déclarée)

The value of imported goods as stated by the importer on the customs declaration (B3). CBSA may adjust this value if it does not reflect the true transaction value.

Drawback(Drawback (remboursement))

A refund of customs duties paid on imported goods that are subsequently exported or used in the manufacture of goods for export. Governed by the Customs Tariff Duty Drawback regulations.

Dumping

The practice of exporting goods to Canada at a price lower than their normal value (typically the domestic selling price) in the country of origin. When dumping causes injury to Canadian industry, anti-dumping duties may be imposed under SIMA.

Duty Deferral(Report de droits)

A program allowing importers to defer payment of customs duties on goods that will be processed and re-exported, such as goods held in bonded warehouses or under duty relief provisions.

Duty Relief(Exonération de droits)

A program under which customs duties are forgiven on imported goods used in the production of goods that are subsequently exported. Importers must apply and qualify with CBSA.

End-Use Provision(Disposition d’utilisation finale)

A tariff provision granting a reduced or zero duty rate when imported goods are used for a specific purpose (e.g., machinery for manufacturing). The importer must declare the intended end-use and may be subject to verification.

Excise Duty(Droit d’accise)

A domestic tax on specific goods such as alcohol, tobacco, cannabis, and vaping products. Excise duties are calculated separately from customs duties and are added to the tax base before GST/HST.

Export Controls(Contrôles à l’exportation)

Canadian regulations restricting the export of certain goods, technologies, and information listed on the Export Control List (ECL). Controlled items require an export permit from Global Affairs Canada.

FOB

Free On Board — an Incoterm where the seller’s responsibility ends when goods are loaded onto the vessel at the port of shipment. For Canadian customs valuation, the value for duty is typically based on the price at the point of direct shipment to Canada.

Free Trade Agreement(Accord de libre-échange)

A treaty between two or more countries to reduce or eliminate tariffs and trade barriers on qualifying goods. Canada has 15 FTAs in force, including CUSMA, CETA, and CPTPP.

Freight(Fret)

The cost of transporting goods from the point of origin to the destination. In Canadian customs valuation, freight costs to the point of direct shipment to Canada are included in the value for duty.

GRI (General Rules of Interpretation)(RGI (Règles générales d’interprétation))

Six sequential rules used worldwide to classify goods under the Harmonized System. GRI 1 (section/chapter notes) must be applied first; subsequent rules (GRI 2–6) are used only when the prior rule does not resolve classification.

GST(TPS)

Goods and Services Tax — a 5% federal value-added tax applied to most goods imported into Canada. The GST is calculated on the aggregate of the value for duty, customs duties, excise duties, and any surtaxes.

Harmonized System (HS)(Système harmonisé (SH))

An international nomenclature developed by the World Customs Organization (WCO) for classifying traded goods. Over 200 countries use the HS, with the first 6 digits standardized internationally.

HS Code(Code SH)

A numerical code from the Harmonized System used to classify goods for customs purposes. In Canada, tariff item numbers extend to 10 digits for maximum specificity. Search our HS Code Directory

HST(TVH)

Harmonized Sales Tax — a combined federal-provincial tax in Ontario (13%), New Brunswick, Newfoundland & Labrador, Nova Scotia, and PEI (15%). On imports, HST replaces GST for goods destined to participating provinces.

Import Permit(Licence d’importation)

A government authorization required to import certain controlled goods into Canada, such as firearms, steel (under safeguard measures), dairy, poultry, or goods from sanctioned countries.

Incoterms

International Commercial Terms published by the ICC that define the responsibilities of buyers and sellers in international transactions, including delivery, risk, and cost allocation (e.g., EXW, FOB, CIF, DDP).

Landed Cost(Coût rendu)

The total cost of getting goods to their final Canadian destination, including the product price, freight, insurance, customs duties, surtaxes, excise duties, GST/HST, and provincial taxes. Calculate your landed cost

LDCT(TPG-PPMD)

Least Developed Country Tariff — a preferential tariff treatment granting duty-free or reduced rates to imports from the world’s least developed countries, as designated by the UN.

MFN (Most Favoured Nation)(NPF (Nation la plus favorisée))

The default tariff rate applied to goods from any WTO member country that does not benefit from a preferential trade agreement with Canada. MFN rates are the baseline against which FTA savings are measured.

Normal Value(Valeur normale)

In anti-dumping investigations, the price at which goods are sold in the domestic market of the exporting country, or a constructed cost. If imports are priced below normal value, CBSA may impose anti-dumping duties.

Origin Declaration(Déclaration d’origine)

A statement by the exporter, producer, or importer certifying that goods qualify for preferential tariff treatment under a specific trade agreement. The format varies by agreement (e.g., CUSMA uses a certification of origin on any commercial document).

PIPEDA(LPRPDE)

Personal Information Protection and Electronic Documents Act — Canada’s federal privacy law governing how private-sector organizations collect, use, and disclose personal information in the course of commercial activities, including cross-border data transfers.

Preferential Tariff(Tarif préférentiel)

A reduced duty rate available under a free trade agreement or preferential program (e.g., GPT, LDCT) for goods that meet the applicable rules of origin.

PST(TVP)

Provincial Sales Tax — a retail sales tax levied by British Columbia (7%), Saskatchewan (6%), and Manitoba (7% RST). On imports, PST is collected at the border in addition to GST.

QST(TVQ)

Quebec Sales Tax — a 9.975% provincial tax applied in Quebec. On imports destined for Quebec, QST is collected by Revenu Québec (not at the border) in addition to the federal GST.

Remission Order(Décret de remise)

A Governor in Council order granting relief from customs duties, excise taxes, or GST on specific goods or for specific purposes, published in the Canada Gazette.

Rules of Origin(Règles d’origine)

Criteria in each trade agreement that determine whether goods qualify as originating in an FTA partner country. Rules may require a tariff shift, regional value content, or specific processing requirements.

Sanctions

Trade restrictions imposed by Canada under SEMA (Special Economic Measures Act) or the United Nations Act, prohibiting or limiting trade with certain countries, entities, or individuals.

SIMA(LMSI)

Special Import Measures Act — Canadian legislation providing the framework for anti-dumping and countervailing duty investigations and orders, administered by CBSA with injury determinations by the CITT.

Specific Duty(Droit spécifique)

A customs duty calculated as a fixed amount per unit of quantity (e.g., $0.05 per kilogram or $2.00 per liter), rather than as a percentage of value.

Surtax(Surtaxe)

An additional tariff imposed on top of regular customs duties, typically for retaliatory or safeguard purposes. Canada currently maintains surtaxes on certain goods from the US and China, including steel, aluminum, and electric vehicles.

Tariff Classification(Classement tarifaire)

The systematic process of assigning the correct tariff item number to imported goods using the Canadian Customs Tariff and the GRI rules. Accurate classification determines the applicable duty rate.

Tariff Item(Numéro tarifaire)

The 10-digit number in the Canadian Customs Tariff that uniquely identifies a product for duty purposes (e.g., 8471.30.00.00). The first 6 digits follow the international HS; digits 7–10 are Canada-specific.

Tariff Rate Quota (TRQ)(Contingent tarifaire (CT))

A two-tier tariff system where a lower duty rate applies to imports within a specified quantity (the quota), and a higher rate applies to imports exceeding that quantity. Common for agricultural products like dairy, poultry, and eggs.

Trade Agreement(Accord commercial)

A bilateral or multilateral treaty between countries that establishes the terms of trade, including tariff reductions, rules of origin, and dispute resolution mechanisms.

Transaction Value(Valeur transactionnelle)

The primary method for determining value for duty under the Customs Act: the price actually paid or payable for goods when sold for export to Canada, adjusted for certain additions (e.g., assists, royalties) and deductions.

Value for Duty (VFD)(Valeur en douane (VED))

The value of imported goods as determined under the Customs Act, used as the base for calculating ad valorem duties and taxes. Determined using one of six prescribed valuation methods, with transaction value being the most common. Try our duty calculator

Verification of Origin(Vérification de l’origine)

A CBSA process to confirm that goods claimed under a preferential tariff genuinely meet the rules of origin of the applicable trade agreement. May involve questionnaires, document requests, or on-site visits to the exporter or producer.

WTO(OMC)

World Trade Organization — the international body governing global trade rules, including the agreement on customs valuation, tariff bindings, and dispute settlement. Canada’s MFN rates are set in accordance with its WTO commitments.

Ready to Calculate Your Duties?

Use our calculator to get a complete landed cost in seconds.

Try the Calculator for Free