NAFTA and eBay

Hi all,


 


I'm sure someone here can clarify my understanding. I had always understood that if you purchased something from the U.S.A which was made in the U.S.A and brought it into Canada, NAFTA provisions that you do not have to pay import duties and taxes on it. Mind you, I said MADE in the USA; I mean isn't that the whole justification behind the free trade agreement? Please explain as I really wanted to purchase a high end guitar where I would've gotten a great...had it not been for the estimated $500 duties I would've had to pay!


 


Thanks!

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NAFTA and eBay

tobyshitzu
Community Member

Nafta dealt with duties.  No duty for most items manufactured in N America.  


 


Nothing to do with taxes 

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NAFTA and eBay

In order to qualify for a NAFTA exemption the manufacturer or supplier has to fill out a NAFTA certificate to prove proof of origin. Most small companies and/or individual sellers probably don't have the resources to access the information needed. I think that it is used more when large quantities are being imported.

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NAFTA and eBay

" if you purchased something from the U.S.A which was made in the U.S.A and brought it into Canada, NAFTA provisions that you do not have to pay import duties and taxes on it"


 


This is a common misunderstanding about NAFTA and other Free Trade Agreement between Canada and foreign countries.


 


Free Trade Agreements cover quotas and tariffs (duty), never Canadian domestic consumption taxes such as GST/HST and PST provincially.

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