Tariff Duties on Imports from China
80% of Major Chinese Imports Enter Canada Duty Free
Oct 15, 2009
Of the US$40 billion worth of goods that China shipped to Canada in 2008, the top 25 Chinese product classifications accounted for $12.3 billion of that total.
This analysis presents rates for customs tariff duties that Canada Border Services Agency imposes on the top 25 product categories imported from China. Comparatively little customs duties are generated from these high-volume imports.
More details on the dollar amounts that Canadian businesses paid to import the top product classifications into Canada were discussed in the article China Exports to Canada.
Highest Tariff Duties on Chinese Imports
Because China and Canada have not signed a preferential tariff agreement, Chinese imports are covered under the generic tariff classification known as Most Favored Nation (spelled Most Favoured Nation in Canada). Below are the 3 top tariff rates from the 25 most popular Chinese imported products in 2008. The 6-digit international tariff classification code is presented within brackets.
- 18% duty on knitted cotton sweaters, sweatshirts and coats (code 611020) … US$357.8 million in 2008 sales
- 17% duty on women’s cotton trousers, overalls and shorts (620462) … $291.4 million
- 8% duty on non-office metal furniture (940320) … $267.7 million.
Import Categories from China Partially Subject to Customs Duties
The following 9 product categories include sub-classifications that are subject to Canadian tariff duties while other sub-classifications are duty free. These product categories are listed starting with those Chinese imports with the highest tariff rates.
- 11% duty on women’s footwear that cost $30 or more, 18% for other footwear including slippers and work shoes, but duty free for corrective footwear (code 640399) ... US$364.7 million in 2008 sales
- 10% duty on tool bags and knapsacks, 7% duty on other plastic and textile cases but duty free for golf bags (420292) … $287.1 million
- 9.5% duty on upholstered seats with wooden frames for domestic purposes but duty free for re-export (940161) ... $393.5 million
- 9.5% duty on other wooden furniture including cabinets for domestic purposes but duty free for re-export (940360) ... $317.7 million
- 8% duty on wheeled toys but duty free on other toys including dolls, tricycles and puzzles (950300) ... $972.4 million
- 6.5% duty on door mats, signs and modular conveyor belts but duty free for other plastic items (392690) … $242.3 million
- 6% duty on non-laser video disc players but duty free for other non-magnetic video tape recorders and players (852190) … $240.8 million
- 5% duty on dictating machines but duty free for other magnetic tape recorders and small-size players (851981) ... $479.4 million
- 5% duty on TV receivers, except Internet set-top boxes that are duty free (852872) ... $426.7 million.
Duty-Free Imports from China into Canada
The 13 product classifications below represent some of the largest and fastest-growing imported products from China in 2008. Yet while these leading imports total about US$10 billion in sales for China, Canada generates no tariff revenues from the People’s Republic on these foreign-made goods.
The list is sorted based on imports with the highest sales in 2008.
- Computer laptops and notebooks (code 847130) ... US$2.2 billion
- Video games (950410) ... $1.2 billion
- Cell phones (851712) ... $708.2 million
- Computer monitors (852851) ... $611.1 million
- Modems, routers and switches (851762) ... $536.1 million
- Computer printer parts (847330) ... $430.5 million
- Digital cameras, TV cameras and video recorders (852580) ... $410.2 million
- Commercial battery chargers, power supplies and controllers (850440) … $270.8 million
- Coke and semi-coke from coal, lignite or peat (270400) … $270.5 million
- Printed circuit assemblies (851770) … $266.1 million
- Other units of computers like adapters (847180) … $264 million
- Computer magnetic storage drives (847170) … $244.6 million
- Computer printers including ink-jet printers (844332) … $243.4 million.
If the government of Canada was to apply modest tariff rates to the above Chinese imports, the resulting revenues would go a long way in reducing Canada’s growing domestic deficits and unemployment rates.
Sources: Industry Canada's Trade Data Online, based on Statistics Canada reports as of October 7, 2009 and Canada Border Services Agency's online customs tariff manual.
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