Tariffs and duties when importing goods from Mexico to Canada

If you import products into Canada from Mexico, you do not need to pay tariffs for most products because of provisions established in the Canada-United States-Mexico Agreement (CUSMA).

This guide explains customs duties and tariffs from the perspective of Canadian companies importing products from Mexico into Canada. We also explain what the CUSMA is, how you can find the rates for your products, and more.

Methodology

We referred to a number of official Canadian sources regarding tariffs and duties on products imported to Canada from Mexico. We also prioritise the Canada-United States-Mexico Agreement (CUSMA).

1. The Canada-United States-Mexico Agreement (CUSMA)

2. Customs Tariff 2024

3. Importing commercial goods into Canada – 3. Determining duties and taxes

4. Tariff information by country

5. Origin of goods

Canada-United States-Mexico Agreement (CUSMA)

The Canada-United States-Mexico Agreement (CUSMA) applies to the three countries mentioned in the said agreement and serves to reinforce the world’s largest free trade region, as well as bolster Canada’s economic relationships with Mexico and the United States.

The CUSMA replaces the replace the North American Free Trade Agreement (NAFTA) and maintains one of its main benefits, that is the elimination of tariffs between Canada, Mexico and the US for most products.

Do tariffs or customs duties apply to imports from Mexico to Canada?

According to Chapter 2 of the CUSMA, the tariff for most goods imported from Mexico to Canada is zero. However, for some goods that are marked with an asterisk (*) in the “Tariff schedule of Canada”, the tariffs indicated in “Appendix 1: Tariff Schedule of Canada” apply:

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ANNEX 2-B TARIFF COMMITMENTS

1. The rate of customs duty for an originating good under this Agreement is indicated in each Party’s Schedule to this Annex.

2. Except as otherwise provided in a Party’s Schedule to this Annex, and in accordance with Article 2.4 (Treatment of Customs Duties), the rate of customs duty on originating goods is designated with “0,” and these goods shall be duty-free on the date of entry into force of this Agreement.

3. For originating goods provided for in the items marked with an asterisk (*) in a Party’s Schedule to this Annex, the tariff treatment set forth in Appendix 1 to that Party’s Schedule applies.

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Here are some examples of products that are duty-free:

• Cotton piece goods
• Furniture designed to receive clothes-dryers
• Coffee makers
• Printed circuit assemblies

Here are some examples of products for which tariffs apply, and the corresponding tariff:

• Beverages containing milk: Other, containing 50% or more by weight of dairy content, not put up for retail sale, within access commitment – 7.5%
• Chocolate ice cream mix or ice milk mix: Within access commitment – 5%
• Substitutes for butter: Within access commitment – 7.5%

We could only find examples of tariffs for food products, even though there may also exist tariffs for some different types of products.

Can Canadian companies import products duty-free from Mexico?

As mentioned above, Canadian companies can import most products into Canada from Mexico without paying customs duty.

However, there are some exceptions, especially when it comes down to food products.

How do I know which rate applies to a product?

If you are importing from Mexico or the United States, you can check the “Tariff schedule of Canada” of the CUSMA.

You will find that most products are duty-free. If, however, you see an asterisk (*) for the product you want to import, then you should check “Appendix 1: Tariff Schedule of Canada” to find out what tariff applies (e.g. 7.5%).

If you are importing from another country, you can use the Canadian government’s Customs Tariff 2024 page to find the tariff for a given product.

1. In the “T2024” box, click “PDF format [40.1 MB]” under the “Customs Tariff complete” bullet point.

2. Use the search function to find your product.

For instance, if you search for “finishing ceramics (unglazed)”, you find that the tariff is 8% when importing from most countries, and 0% when importing from countries that have a trade agreement with Canada, which includes Mexico.

How do I calculate the payable tariffs or customs duties?

According to the Canada Border Services Agency, the formula for calculating the duty on imported products is as follows:

Value for duty x Customs duty rate = Customs duty

Note that the “value for duty” is the amount of money the vendor receives for the products.

Case study

• Product: Finishing ceramics (unglazed)
• Value for duty : CAD 80,000
• Tariff item: 6907.40.10 00
• Country of origin: Mexico
• Customs duty rate: 0%

Calculation:

Customs duties: CAD 80,000 x 0 = CAD 0

Note, however, that if you are importing from a country that has no trade agreement with Canada, the Customs duty rate would in this example be 8%.

Thus, the calculation would be:

Customs duties: CAD 80,000 x 8% = CAD 6,400

Tariff line (or HS codes)

What are tariff lines (or HS codes)?

HS codes are internationally harmonized codes of 6 digits. Canada uses the 6-digit HS code and also adds extra digits for more precise classification, as most countries do. In Canada, HS codes are called “Tariff lines”.

According to the Canadian government, you must provide a 10-digit tariff classification number when importing products into Canada.

For example, tariff item 9607.11.10.00 indicates that the product is a “slide fastener” that is “fitted with chain scoops of base metal” and “air-tight and watertight”.

How do I know which HS code applies to my product?

To find which HS code applies to your product, go to the Canadian government’s Customs Tariff 2024 page, and click on “PDF format [42.2 MB]” to access the complete customs tariff.

Mexico is considered a “Most Favoured Nation”, due to the CUSMA, and is designated “MXT”. The Customs Tariff schedule begins on Page 27 of the document.

Here are three examples of products and their tariff item number (or HS code):

• Tufted textile fabrics – 5802.30.00 00
• Electric rotary converters – 8502.40.00 00
• Wooden furniture of a kind used in the bedroom (cribs) – 9403.50.00.10

Rules of origin

In this section, we provide a reply for some common questions concerning the rules of origin.

What are the rules of origin?

The rules of origin establish how much of a product is made in another country for the product to be regarded as “originating in” that country and, as such, entitled to a special tariff treatment.

These rules make sure that there are no, or low, applicable duty rates for products from countries that have a trade agreement with Canada, such as Mexico.

For instance, according to Article 4.11 of the CUSMA, a material of one country is regarded to be “originating in” another country when that material is used to manufacture a product in another country.

As part of those rules, Article 5.9 of the CUSMA also states that if the importer does not provide enough information regarding the originating good (e.g., not enough to prove that the material comes from Mexico), the importing party – that is, Canada – might deny the exporting party (Mexico) a claim for preferential tariff treatment.

Do I need a certification of origin?

The Canada Border Services Agency states that you need a certification of origin in order to support a claim for preferential tariff treatment.

This certification does not need to follow a prescribed format, but according to Annex 5-A of Chapter 5 of the CUSMA, you – as an importer, exporter, or producer – must provide at least the following:

a. A Certification of Origin indicating whether the certifier is an importer, exporter, or producer

b. The certifier’s:

• Name
• Title
• Address (including country)
• Phone number
• Email address

c. The product’s description and HS Tariff Classification, at the 6-digit level, as well as the invoice number (if known).

d. The product’s origin criteria under which it qualifies

e. Blanket period – if the certificate covers multiple shipments

f. Authorized signature and date

g. Certification statement

How can I prove that the products are actually made in Mexico?

You can support a case that the products are made in Mexico by providing a certificate of origin that contains the required information, as per Annex 5-A of Chapter 5 of the CUSMA.

However, the zero tariff rate does not apply to goods that are manufactured elsewhere and only pass through Mexico on the way to Canada.