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BRINGING GOLD TO CANADA?

COMPLICATED

Many newcomers to Canada arrive with valuable assets such as jewellery, gold bullion, or financial instruments.  A question we often receive is how to bring these items legally into Canada.  The answer is not always straightforward.  Canada has complex customs and financial regulations, and navigating them properly usually requires planning ahead and proper understanding of the rules.

Gold Jewellery

Under the Customs Act and its regulations, all goods brought into Canada must generally be reported at the nearest customs office.  This requirement applies no matter how the goods were acquired, whether purchased, received as a gift, or awarded as a prize.

For people bringing gold jewellery from abroad, this means the items must be declared, even if they are family gifts or personal belongings.  Once declared, they are generally subject to tariffs that can be as high as 6.5%, in addition to GST/HST or any applicable provincial sales tax. 

Gold Bullion

Gold bullion could be subject to even closer scrutiny because of Canada’s robust framework against money laundering.

Anyone entering or leaving Canada with  cash or certain other monetary instruments worth CAD $10,000 or more must declare this at the border to a CBSA officer, pursuant to Subsection 12(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “PCTFA”).

The definition of “monetary instruments” is broad.  Under Section 1(1) of the Cross-border Currency and Monetary Instruments Reporting Regulations, it can include negotiable instruments.  In practice, this mean gold bullion that is refined, stamped, and tradeable on recognized markets may be treated as a monetary instrument.  In that case, if the value of the bullion exceeds CAD $10,000, it must be reported when crossing the border.

Seizure – An Uphill Battle

The consequences of failing to declare goods, or of giving incomplete or incorrect information, can be severe.  Goods may be seized and fines imposed.  While the requirements to declare may sound straightforward, in our experience, many cases arise from simple lapses in attention.  For example, giving an incorrect response to a CBSA officer’s question, even without any intent to mislead, can still be treated as a false declaration, leading to seizure.

When goods are seized under the Customs Act, they become property of the Government.  While terms of release are sometimes offered, formal appeals are required to effectively deal with them.  If nothing is done, automatic referrals to secondary inspection at the border will continue for years, not to mention the loss of related frequent traveller cards and privileges.

For gold bullion, the consequences can be more severe, and can lead to complete forfeiture (i.e., seizure with no opportunity for return) and/or criminal action.

Takeaways

Bringing goods into Canada requires full and truthful declarations.  Even small misstatements can result in seizure and penalties.  Because the requirements are detailed and the consequences of mistakes can be severe, careful planning is strongly advised.  Working with an experienced International Trade Counsel can help – whether with planning to avoid issues or dealing with seizures that occasionally happen.

For help with a customs issue, click here.

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