Many popular goods duty-free across the border

Jennifer Ditchburn, THE CANADIAN PRESS

OTTAWA - Golf bags, microwave ovens, plastic toys, cellphones, video games.

Guess what? You don't have to pay duty on any of these items when you return from a shopping trip to the United States, or anywhere abroad for that matter.

Even if you go for only a few hours, or you blow your personal exemption of $50 for a 24-hour trip or $400 for 48-hours or more, you're only required to pay Canadian taxes on many common items.

Few Canadians are well briefed on the extensive list of items that are considered "free" under the Customs Tariff Act, and it's no surprise. Even officials at the Canadian Border Services Agency can't easily rhyme off a list of top duty-free items without first doing some research.

It's all based on complex international tariff agreements, as well as specific free-trade deals between Canada and others. Tariffs on goods from some developing countries are also low or non-existent.

When a shopper drives back to Canada and declares his or her loot at customs, agents must go through hundreds of pages of minutely detailed descriptions of what percentage duty is owed on a particular item.

For example, downhill skis and boots are considered duty-free, as long as they're made in a country that is considered a "most favoured nation," which includes most of the world. China, Japan, and other key manufacturing centres are among them. Curiously, cross-country skis are slapped with a 7.5 per cent tax - that is, unless they're made in the United States, Mexico or other free-trade partner countries.

That's when it pays to pay attention to the label.

Products that are made in the United States, Mexico, Chile and Costa Rica - countries we have a free-trade agreement with - are generally duty-free. That means the silver jewelry from Taxco, or those New Balance runners made in American factories, can be purchased without fear of a big bill at the border or airport.

David McCaffery, CEO of Ottawa-based wedding dress manufacturers Justina McCaffery Haute Couture, says the business has been taking advantage of duty-free for years. There is no duty on silk.

"One of the best things about the silks is that they come in from different parts of the world. We're able to take the product and make the dresses and . . . there's absolutely no duty because it's 100 per cent silk that we're using," said McCaffery, married to dress designer Justina.

But even though the McCafferys spend much time shuttling between top U.S. cities and the nation's capital, they had no idea about how many personal items they could bring back without duty.

Officials suggest shoppers keen to save money do a little research before they leave home.

"If they know the item they're specially looking to purchase, and they want to know what duty they'll face, they should call the line," says Chris Williams, of the Canadian Border Services Agency.

That line is the Border Information Service - 1-800-461-9999. The more patient shopper can take a gander at the Customs Tariff descriptions, on the Canadian Border Services Website. (http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/tariff2007/01-99/tblmod-1-e.html)

Shopping expert Sandra Phillips, author of Smart S hopping Montreal, says hopping across the border will become a Canadian way of life again with the dollar at par. Phillips is currently researching the shopping opportunities at every exit along the I-87 interstate highway that takes travellers from Quebec all the way into New York City.

"There are many, many brands, house brands, store brands, that they're going to look for and they're going to go back to those wonderful coupon deals and grocery specials that we used to love."

A list of just a few of the items that can be brought across the Canada-U.S. border without paying duty. (Canadian taxes always apply):

-Almost anything made in the United States or Mexico
-Toys, including puzzles, trains, dolls, action figures
-Video games
-Cellphones
-Antiques
-Most kinds of original art
-Downhill skis and boots
-Toasters
-Breadmakers
-Electric irons
-Artificial Christmas trees
-Billiard tables
-Chess sets
-Office furniture
-SLR and instant cameras
-Unset diamonds, pearls and precious stones
-Golf bags made mostly of synthetics.
-Books
-Glassware (including crystal)

(Source: Canadian Border Services Agency)

© The Canadian Press, 2007