Question 1

What is the import duty rate for Passenger Cars in Canada?

Accepted Answer

The MFN (Most Favoured Nation) import duty rate for Passenger Cars (HS 8703) in Canada is 6.1% on the FOB value. MFN rate. 0% under CUSMA (US/Mexico origin), CETA (EU origin), and CPTPP parties. Most imported cars qualify.

Question 2

Is GST/HST charged on Passenger Cars imports to Canada?

Accepted Answer

Yes. Canada charges GST/HST at 5% on the FOB value plus any import duty. This applies to virtually all commercial imports.

Question 3

Are there FTA rates available for Passenger Cars in Canada?

Accepted Answer

Yes. CUSMA/CETA/CPTPP: 0%. CUSMA/USMCA (US, Mexico), CETA (EU), CPTPP, Canada–Korea FTA, Canada–Chile FTA are the key agreements — verify origin requirements with your customs broker.

Question 4

How is import duty calculated for Passenger Cars entering Canada?

Accepted Answer

Duty is calculated on the FOB value of the goods. FOB value is the transaction value at the port of export. The MFN duty of 6.1% is applied to this value. GST/HST (5%) is then applied on the FOB value plus duty.

Canada Import Duty Rate for Passenger Cars

How duty is calculated

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Passenger Cars duty rates in other markets