Tariff Classification & Treatment
Understanding HS codes, trade agreements, and customs clearance requirements for cross-border shipments in 2026.
Get Classification HelpTariff Treatment & Trade Agreements
A tariff is a tax imposed on imports and exports from one country to another. Classification is the process of determining the proper 10-digit code for importing and exporting goods to determine the associated cost added to the goods at the border.
Under the USMCA, imported goods that meet specific origin requirements and are accompanied by proper documentation at the time of importation benefit from reduced or eliminated tariff rates, thereby encouraging competitiveness and easing the importing process.
Harmonized System Codes
Understanding HS Codes
The CBSA recognizes the internationally used Harmonized System code (HS code) which consists of 10 digits to help identify each good. The first six digits represent the international part of the classification number and are used by all countries that recognize the HS system.
The last four digits are country-specific and reflect Canadian tariff and statistical requirements. For any goods imported into Canada, using the HS Code is mandatory for classification and important to do properly to ensure correct duty and tax calculation.
- Digits 1-2 Chapter (Product Category)
- Digits 3-4 Heading (Product Group)
- Digits 5-6 Subheading (International)
- Digits 7-8 Tariff Item (Canadian)
- Digits 9-10 Statistical Code (Canadian)
USMCA Benefits
Preferential Treatment
Goods that meet USMCA rules of origin qualify for preferential duty-free treatment when imported between the United States, Mexico, and Canada. Proper certification of origin is required at the time of importation.
Certificate of Origin
Importers must have a valid USMCA certification of origin to claim preferential tariff treatment. The certification can be completed by the exporter, producer, or importer and must include specific data elements.
Rules of Origin
Products must meet regional value content requirements (75% for autos, varying for other goods) and undergo substantial transformation in a USMCA country to qualify for duty-free treatment.
2026 Review Impact
The USMCA joint review scheduled for July 1, 2026 may result in tighter automotive rules of origin, new EV provisions, restrictions on Chinese-affiliated manufacturing, and stronger labor enforcement.
GST & HST for Non-Residents
Goods & Services Tax (GST)
Goods and Services Tax (GST) is a value-added federal tax implemented by the Government of Canada. This tax is imposed on most goods and services that are sold for domestic consumption at a rate of 5%.
For imported goods that are meant for commercial use throughout Canada, GST is applied at Customs and collected by the CBSA on behalf of the CRA.
Harmonized Sales Tax (HST)
Harmonized Sales Tax (HST) combines the federal Canadian Goods and Services Tax (GST) and provincial sales taxes (PST). HST rates vary by province: Ontario (13%), New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island (15%).
HST is collected at the point of importation by CBSA for goods entering HST provinces and remitted to the Canada Revenue Agency.
Classification Tools
Certificate of Origin (PDF)
Download the USMCA Certificate of Origin form to claim preferential duty-free treatment for qualifying goods.
Download PDFCertificate of Origin (Excel)
Excel spreadsheet version of the Certificate of Origin form for easier data entry and record-keeping.
Download ExcelUSMCA 2026 Guide
Complete guide to USMCA rules of origin, the 2026 review, and trade compliance requirements.
View GuideNeed Help with Tariff Classification?
Our licensed customs brokers can help you determine the correct HS code, claim USMCA benefits, and navigate trade compliance requirements.