Tax & Trade Blog

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TEMU & ALIEXPRESS PLEDGE TO HEALTH CANADA

MARKETPLACES JOINING PLEDGE IS GOOD NEWS FOR DIRECT SELLERS

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Health Canada’s Canadian Product Safety Pledge (the “Safety Pledge”), which we have previously discussed here, continues to expand, with online marketplaces Temu Canada and AliExpress now joining Amazon Canada and eBay Canada as signatories.

The Safety Pledge is a voluntary compliance initiative aimed at increasing product safety for consumer products and cosmetics available to Canadians online. By signing the Safety Pledge, Temu Canada and AliExpress have committed to taking 14 preventative and corrective actions intended to strengthen the safety of products sold through their platforms.

The federal government has announced that there will be a tax break from December 14th, 2024 to February 15th, 2025 on a broad range of consumer products, which is estimated will provide $1.6 billion in federal tax relief. 

In addition to relieving the 5% GST, the HST component will be also fully removed in Ontario, Newfoundland & Labrador, Nova Scotia, New Brunswick, and Prince Edward Island.