When importing used mobile phones into Canada, the calculation of tariffs and taxes is as follows

When importing used mobile phones into Canada, the calculation of tariffs and taxes is as follows:

Tariffs

1. Determine the HS Code
   First, identify the HS code for used mobile phones, which is typically 90219090. This code is used to look up the corresponding tariff rate.
2. Identify the Tariff Rate
   • The most-favored-nation (MFN) tariff rate for used mobile phones is generally 2%.
   • If the phones originate from countries with free trade agreements with Canada (e.g., the U.S., Mexico), they may qualify for a 0% preferential tariff rate.
3. Calculate the Tariff
   Tariffs are typically levied ad valorem (based on the goods’ value), using the formula:Tariff=Goods Value×Tariff Rate
   • The goods value is generally based on the CIF (Cost, Insurance, and Freight) price.
   • Example: If a batch of used phones has a CIF value of CAD 10,000 and a tariff rate of 2%, the tariff payable is:10,000×2%=CAD 200

Other Taxes and Fees

In addition to tariffs, the Goods and Services Tax (GST) must be paid, which is typically 5% of the goods’ value:GST=Goods Value×5%

• Example: For goods valued at CAD 10,000, the GST payable is:10,000×5%=CAD 500
• In Quebec, the Quebec Sales Tax (QST) is also applicable, with rates determined by local regulations.

Special Cases

• Personal Mail Imports: If the value of used mobile phones imported via personal mail is below CAD 20, both tariffs and GST are exempt.
• Commercial Imports: Regardless of value, commercial imports must pay tariffs and related taxes in accordance with regulations.