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Do I Have to Pay Duty on a Taobao Order to Canada?

By the DirectFromChina.ca team · Published

The short answer

Usually yes. For goods shipped to Canada from China, the low-value exemption is CAD$20 — well below the CAD$40 and CAD$150 thresholds that apply only to courier shipments from the United States and Mexico under CUSMA. Above CAD$20 you can expect GST/HST at your province’s rate and, depending on the product category, duty. As the importer of record, you are legally responsible for whatever CBSA assesses.

This is the question that catches out most first-time buyers, usually because they have read advice written for shoppers importing from the United States. The thresholds are not the same, and the difference is large.

The thresholds, and why the American numbers do not apply

Shipped fromFree of tax belowFree of duty below
United States or Mexico, by courier (CUSMA)CAD$40CAD$150
China and most other countriesCAD$20CAD$20
Genuine person-to-person giftsCAD$60CAD$60
Low-value shipment thresholds for goods arriving in Canada

The higher figures come from CUSMA and apply to courier shipments originating in the United States or Mexico. A parcel from China does not qualify, so the general CAD$20 low-value threshold applies. In practice this means most Taobao orders of any real size are assessable.

Thresholds, rates and product classifications change. These figures reflect the rules as of writing — confirm the current position with the Canada Border Services Agency before relying on them for a large order.

What you actually get charged

  1. GST, or HST in participating provinces, calculated on the declared value of the goods. Your province determines the rate.
  2. Provincial sales tax where it is collected separately rather than as part of HST.
  3. Duty, which depends on what the product is and where it was made. Many categories carry no duty; textiles, footwear and apparel are among the categories that commonly do.
  4. A carrier handling or brokerage fee for processing the customs entry. This is charged by the carrier, not by CBSA, and it can be a surprisingly large share of a small assessment.

Who is responsible

You are. When goods are imported for your personal use, you are the importer of record, which means CBSA looks to you for any duties or taxes it assesses — including any amount above what your agent estimated. A good agent builds an estimate into the quote so there is normally nothing to settle at the door, but no agent can bind CBSA to that estimate.

A word on under-declaring

You will find people online suggesting that a low declared value or a "gift" label avoids assessment. Misdeclaring the value or nature of a commercial import is a false statement to CBSA. It exposes you to penalties, seizure of the goods and loss of any insurance claim if the parcel is lost — and the gift exemption applies only to genuine gifts sent between individuals, not to something you bought for yourself. We declare accurately, and we would rather quote you a realistic landed cost than a pleasant one.

Reducing what you legitimately pay

  • Consolidate. One assessment on one parcel beats several separate crossings.
  • Know the category. Apparel and footwear commonly attract duty; many electronics accessories do not.
  • Ask for the landed cost up front, so the tax is part of the decision rather than a surprise.

If you want the tax included in the number before you commit, send your links through the product picker and the quote will come back with estimated duties already in it.

Frequently asked questions

What is the duty-free limit for parcels from China to Canada?+

CAD$20 as of writing. The higher CAD$40 and CAD$150 thresholds apply only to courier shipments from the United States and Mexico under CUSMA, so they do not cover goods from China. Verify the current figure with CBSA.

Do I pay GST on a Taobao order?+

Above the low-value threshold, yes — GST, or HST at your province’s rate where it applies, calculated on the declared value of the goods.

Who pays if CBSA charges more than the agent estimated?+

You do. As the importer of record you are legally responsible for the final assessment. A quoted estimate reduces surprises but does not transfer that liability.

Can I mark my order as a gift to avoid duty?+

No. The gift exemption applies only to genuine gifts sent between individuals. Declaring a commercial purchase as a gift is a false declaration and risks penalties and seizure.

Are there extra fees beyond duty and tax?+

Usually a carrier handling or brokerage fee for processing the customs entry. It is charged by the carrier rather than CBSA and can be a large proportion of a small assessment.

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Taobao, Tmall, 1688 and AliExpress are trademarks of Alibaba Group. DirectFromChina.ca is an independent buying agent and is not affiliated with or endorsed by Alibaba Group. Customs thresholds, duty rates and shipping times change — figures here reflect the rules as of the date above, and CBSA is the authority on Canadian imports.