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Cross-border shopping Canada / U.S. border crossing

Long weekend and dollar spurs U.S. shopping trips

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Canada AM: Travel expert Loren Christie with what you need to know about cross-border shopping
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Date: Thu. Oct. 4 2007 1:10 PM ET

The combination of a strong Canadian dollar and the Thanksgiving holiday long weekend means that many Canadians are considering a trip into the United States to do some cross-border shopping.

As a result, shoppers should be aware of information about taxes, duty free charges and border crossing delays, according to travel expert Loren Christie.

"The dollars are almost at par, but it hasn't changed any of the rules, so it's important to remember those rules if you're planning a big shopping bonanza," Christie told CTV's Canada AM.

The rules for trips to the United States differ depending on how much time and money you spend south of the border:

  • 24 hours: $50 tax-free before paying the applicable taxes (GST, PST or HST). Alcohol and tobacco are not included.
  • 48 hours: $400 allowance tax-free (Alcohol and tobacco are included)
  • 7 days: $750 allowance tax-free (Alcohol and tobacco are included)

Anything that is over and above these amounts for the times specified could be subject to applicable taxes and duty fees, according to Christie.

But there are a number of items that are not subject to any duty fees under the Customs Tariff Act. But Canadian taxes still apply.

These products include items such as cell phones, toys, video games, golf bags and microwave ovens. A full list of these items can be found on the Canadian Border Services website.

The items that are not subject to any duty fees include products made in most nations including important manufacturing countries such as China and Japan. Almost any product made in the United States or Mexico is exempt from duty fees.

But bargain seekers are advised to be vigilant and observant when buying items such as clothes to ensure they do not get hit with unexpected charges.

"You have to be a label checker, because if it's made in the U.S, you're OK, but if you go to a U.S. company like Banana Republic, but the label says 'Made in Italy' or 'Made in the Philippines' or wherever they may get their clothes made, you will have to pay duty on those clothes," Christie said.

If duty charges are applicable to a product, the duty can range from 5 to 18 per cent. The variation in the duty is dependent on the fabric the product is made from and whether it is made for children or adults.

The favourable exchange rate has border guards bracing for an influx of Canadians for the upcoming Thanksgiving weekend.

Border crossings

But this means that Canadians may have to endure long lineups in their efforts to get in and out of the United States.

Ronald Smith, a spokesman for U.S. Customs and Border protection for the State of Michigan, told The Globe and Mail that wait times at bridges and tunnels going into the United States could average over an hour.

Smith also advised Ontarians not to try to head for the border until 11 a.m. Saturday when the initial rush would have passed.

Smith also advised travellers to head for less popular crossings in Buffalo and Sarnia.

Meanwhile in Quebec, travellers are also being advised to avoid more popular routes and to use staffed backwoods crossings.

"These crossings aren't used frequently except by local people, so they're never going to see long backups," area port director James McMillan told The Globe and Mail.

People crossing into the United States in British Columbia should also avoid using the popular Peace Arch and Pacific Highway border crossings.

The timing of the border crossing could also determine how long you wait in line.

"If you're in a border crossing...where there are a lot of hotels and motels nearby, avoid going across the border near in and around check-in and check out times," Christie said.

Overall, Christie advised that if you are going to do some cross-border shopping, make sure it is worth it.

"I think if you're going down for a shopping holiday, the main thing to remember is you're not going to go down unless you're buying a big ticket item and you're not going to go down unless you're going to save a whole lot of money," Christie said.

Christie said that expenses for hotels, gas and food may cut into any price advantage you may gain by shopping south of the border.

With files from The Canadian Press

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