Declaring Importation: Personal vs Commercial

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One of the most frequently asked questions about imports is if it is for commercial or for casual purposes. The administrative procedures require different protocols that might affect the outcome if not minutely looked into. Below are listed a few important aspects that will clear your questions about tagging your vehicle.

  • Commercial imports get freed of the extra taxes but every detail gets recorded with the CBSA. On the contrary, personal imports are levied with all applicable sales taxes, both provincial and federal. These vehicles are also entitled to witness an examination since they are not registered under the Canadian Customs database.
  • There are a few factors that will make the CBSA suspect your import to be commercial. Firstly, the quantity. If imported in larger quantities, the department will ask you to re-sell or use them for occupational purposes. Imports of machines or industrial items will likely call for a commercial entry. Items of very high monetary value will tag it as a business article. Even items like televisions or computers will be considered commercial, despite it being used for personal purposes.
  • Commercial imports might be cheaper, quicker, or even simpler, but it gets exposed to the Customs examinations. The government likes to encourage the emergence of new businesses, keeping in mind that the Draconian regulation is not overblown. If the sales are under $30,000, there is no fear to get stopped at the border or the capital.
  • Any import article having a business, industrial, office or commercial tag should be straightway declared commercial, even if the machines are for personal use.
  • Importing a machine for business and later using it for personal use refers to as tax diversion. To avoid the humongous paperwork, it is advisable to sell off the machine from the business at the fair value to yourself. The papers will be prepared likewise and the correct amount of taxes will also get levied.
  • If you are importing any sample sets for selling in the future, and if the cost and the quantity of the same are low enough, the shipment is likely to go through the customs getting tagged as personal. If in any case, it gets commercially tagged, it is wise to get an importer number that will save you from all the troubles.

Clearit Canada team works diligently to let your import get through the customs without unforeseen hindrances. Through great experience, they pioneer at serving you the best.

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