Tax & Trade Blog

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SETTLER’S EFFECT RULES WHEN MOVING TO CANADA

PERSONAL AND HOUSEHOLD GOODS CAN BE IMPORTED DUTY-FREE WHEN IMMIGRATING

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Canada allows newcomers to Canada to import personal belongings duty-free under the "Settler's Effects" tariff classification, HS Code No. 9807.00.00 (the “Settler’s Effects HS Code”). However, the Canada Border Services Agency (“CBSA”) maintains strict policies with respect to using the Settler’s Effects HS Code.

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SURETY BONDS CAUGHT IN INSURANCE TAX NET

SUPERIOR COURT CONFIRMS SURETY BONDS SUBJECT TO CORPORATE INSURANCE TAX

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Commercial surety bonds ("Surety Bonds") are a vital but frequently misunderstood staple of international trade. Importers and customs brokers rely on Surety Bonds to secure various financial obligations with the Canada Border Services Agency ("CBSA"), including Release Prior to Payment ("RPP") bonds under CARM, bonded warehouses, carrier agreements, and customs appeal bonds.

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CANADA CONSULTS ON FORCED LABOUR BAN

CONSULTATIONS ON BILL C-35 CLOSE ON AUGUST 21, 2026

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We have previously written about Canada's draft forced labour laws in Bill C-35 here . Canada has now launched public consultations with respect to Bill C-35, with the consultation period remaining open from July 27 to August 21, 2026.

In this Customs & Trade Report, we review the key details importers need to know regarding the public consultations on Bill C-35.

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CBSA TARGETING CARPETS AND AREA RUGS?

VERIFICATION AUDITS FOCUSING ON CLASSIFICATION UNDER CHAPTER 57

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A good part of our Tax and Trade practice involves advising Clients in the Textiles industry on matters involving Canadian customs duties and taxation on imported goods.

Recently, we have seen an increase in Canada Border Services Agency (“CBSA”) verification audits and assessments involving carpets and area rugs. One focal point seems to be the application of Tariff Chapter 57 of the Customs Tariff (“CT”), which contains many of the Harmonized System (“HS”) Classification codes for carpets and similar textile floor coverings. Improper tariff classification can lead to significant duty assessments and penalties, even for importers who have “always used” a particular tariff code without issue.

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CUSTOMS VALUATION & STEEL IMPORTS

GETTING VALUE FOR DUTY RIGHT IN THE STEEL INDUSTRY

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The US-Canada trade dispute created a trade environment that makes proper customs valuation a critical issue for businesses in the steel industry. In particular, getting the value for duty correct (and avoiding costly assessments by the CBSA and US CBP) is critically important when one considers that ordinary customs duties, surtaxes, special tariffs, and anti-dumping duties could potentially apply depending on the steel imports in question.