# Duty free allowances.



## Spidey (May 11, 2009)

Canada has now increased duty-free allowances.



> Starting June 1, travelers returning from a 24-hour trip can spend $200 at the duty-free shop, four times the current $50 limit. Anyone coming home from a 48-hour absence can legally cross the border with $800 worth of goods, double the current limit. The seven-day exemption was bumped, too, but only by $50 to $800.


I think the seven-day increase is fine but I have mixed feelings on whether we should have doubled the 48-hour limit. I have concerns regarding the impact of weekend shopping trips on Canadian merchants. 

At the risk of sounding like an alcy, I think if they were playing with duty-free limits, one place that should be changed, especially for longer trips, are the alcohol limits. These currently sit at a piddly 1.5 litres of wine or 1.14 litres of liquor regardless of the time away. For example, I know of several people who have visited wine-country and were disappointed not to be able to bring back a couple more bottles. Personally, it would have been nice to have brought back at least 2 bottles of rum on a recent trip to Cuba. 

Any thoughts?


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## Sampson (Apr 3, 2009)

"Cross-border shopping" disease?
How will this affect Canadian manufacturers and retailers?

I welcome the change because I do quite a bit of cross-border shopping, but like you, would like to see alcohol limits increased. This will be a tough one for the Government to swallow since they would be directly losing out on tax revenues.


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## praire_guy (Sep 8, 2011)

You are concerned about the effect on Canadian merchants, but you recently took a trip to Cuba? 

What about Canadian tourist spots?

"hello kettle, my your black today"


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## carverman (Nov 8, 2010)

You can always bring back more than 1.5 litres of wine or 1.14Lspirits per person (over the legal drinking age), but the extra declaration will not be part of your personal exemption.
By the time they charge excise tax and HST, at the border, there isn't much savings, you will be paying as much (if not more) than if you bought the wine or liquor
at the LCBO.


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## Spidey (May 11, 2009)

praire_guy said:


> You are concerned about the effect on Canadian merchants, but you recently took a trip to Cuba?
> 
> What about Canadian tourist spots?
> 
> "hello kettle, my your black today"


But, but . . . I'll freeze my butt off at Canada beaches in February. I do think there is a difference. A trip abroad is probably a once a year thing. However there are some (eg. those with a trailer across the border) who can travel to the US almost every weekend during nice weather. But as I say, I have mixed feelings - I have concerns but haven't made up my mind.


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## praire_guy (Sep 8, 2011)

I was just poking fun. 

Mu experience is that people with strong beliefs, are often radical, I.e vegetarians, "shop local" etc, and that they are quick to lash out at you and preach their beliefs, but they are the first to throw everything under the bus if it is to their advantage.


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## CanadianCapitalist (Mar 31, 2009)

A report by BMO released recently is useful for this discussion. 

Canada/U.S. Price Gap & Cross-Border Shopping



> And you thought the line-ups to get into the United States were long before. A culmination of factors is likely to lead to a notable
> upswing of Canadians cross-border shopping this summer, in numbers not seen in two decades.


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## Spidey (May 11, 2009)

praire_guy said:


> I was just poking fun.
> 
> Mu experience is that people with strong beliefs, are often radical, I.e vegetarians, "shop local" etc, and that they are quick to lash out at you and preach their beliefs, but they are the first to throw everything under the bus if it is to their advantage.


I didn't take any offense. Actually, I've noticed much the same tendency among many groups. One that kills me, are movie stars such as Brad Pitt preaching environmentalism while at the same time owning something like 4 energy consuming mansions at different locations around the world which require air-travel. But he drives a Prius so I guess that makes up for it. On a smaller scale, I've noticed that many of those worried about oil-sands production are the same ones who live out in the boonies and commute long distances into the city to work. But I'm getting way off topic and better close my mouth, er stop my fingers from typing before I make too many enemies.

Interesting report Canadian Capitalist.


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## Sampson (Apr 3, 2009)

Nice link CC. It summarizes my trips completely. I go for the 10% discount on Hallmark cards and stock up.

Kidding aside, construction materials, booze, cars, some electronics, clothes, kids/baby stuff all make our list of items with significant difference in pricing.


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## praire_guy (Sep 8, 2011)

Spidey said:


> Canada has now increased duty-free allowances.
> 
> 
> 
> ...


Perfect examples. I work with one of those "Eco save the world, recycle, plant a tree" guys, and he hammers it home every single day at work, and yes he moved an hour out of town , thus increasing his carbon foot print. 

Personally I welcome increased limits. I live an hour from the border. I can order just about anything and have it shipped for free and I can pick it up. 

I pay gst/pst on a lower amount I would at home. 

We have been paying more when the dollar was lower (that was always the reason). Now we have been getting screwed with a par dollar. Kinda like with mad cow, and farmers got nothing for cattle except the price of beef went down. Where does the money go. 

Adjust your prices and I will shop at home. Otherwise screw you.


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## the-royal-mail (Dec 11, 2009)

With the price of gas so high, Target coming here and the typical long summer lineups I honestly don't expect much of a surge in cross border shopping. When you calculate out all the costs of hotels and gas and time etc I'm not sure there's much of an advantage unless you spend a LOT of money.


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## Spidey (May 11, 2009)

the-royal-mail said:


> With the price of gas so high, Target coming here and the typical long summer lineups I honestly don't expect much of a surge in cross border shopping. When you calculate out all the costs of hotels and gas and time etc I'm not sure there's much of an advantage unless you spend a LOT of money.


Part of the attraction to cross-border shopping is often filling up with gas. And it's not always a long distance. For example, in much of the Vancouver lower mainland the border is 20 minutes or less away. And many own vacation trailers in Washington state where they go almost every weekend in the summer and often even in the winter to ski at Mount Baker. 

Even if one doesn't own accommodation, I would wager filling up a larger vehicle with cheaper American gas and buying $800 worth of goods, including a couple of bottles of booze and perhaps cigarettes could well compensate the cost of 2 nights at a hotel/motel. And then if one throws the "get-away" aspect into the mix, it could be a slam-dunk for many Canadians. 

My suspicion is that this may be a way for Harper and Flaherty to instill some controls on provincial Premiers who may be inclined to increase sales tax revenues. Which may or may not be a noble cause depending on one's perspective. Personally, I'm still sitting on the fence on this one.


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## Sampson (Apr 3, 2009)

We ALWAYS combine our shopping trips with getaways. So two nights in a Rocky Mountain park, 1 day shopping to appease the wife. As Spidey points out, gas is much cheaper, accomodations are merely a tent or a respectively priced 3-star hotel for $50. Often we make up that difference just in the booze 

The question is whether you buy frivolously or buy items than you need and would have bought in Canada regardless.

When we stocked up on baby gear, we saved easily $400-$500 on about $1200 spent in total. And the outlets, not big busy ones, but buying $75 shoes for $10, what can I say, I'm addicted.


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## Plugging Along (Jan 3, 2011)

the-royal-mail said:


> With the price of gas so high, Target coming here and the typical long summer lineups I honestly don't expect much of a surge in cross border shopping. When you calculate out all the costs of hotels and gas and time etc I'm not sure there's much of an advantage unless you spend a LOT of money.



I live pretty far from the border but half to say that I try to do the majority of my shopping in the US. They have a much better selection and their regular prices for the items I buy are at least 20% less, usually much more. I used to say my trips for when I could get the week off so I could get a larger exemption and we generally made it our family trip. With the new limits, I will be able to go for a much shorter time and possibly more frequently. I do think this will hurt can retailers and tourism.

I am now thinking of instead of just going to my cabin for little get always, to figure out how I hcan incorporate a trip to the states. If people are planning vacations anyways, I do think this limit increase will influence the decision. The arrival of Target may not have much of an impact. Walmart in Canada is still higher in costs and has less things than the US. The cost of gas and hotel will be easily offset by a well planned trip. For back to school and the things I buy for my girl guides unit, I saved over $300 in just the supplies, it was on average cheaper by 75% there. Then add in the shoes and school clothes which I get on sale and cheaper, I save another $500. I also would buy my xmas and birthday Gia for the year, so another $500 in savings. Two nights hotel and gas was about $400, but I did have to add more hotel nights before, so we made it a family vacation for a week, which we do normally anyways. also, my spouse used to contract in the states a lot, and those 4 day business trips now look a lot more exciting shopping wise. I actually accepted a two day assignment there because I knew of this limit increase.

My point is that it is so much cheaper in the US and if the can retailers don't do something, they will be in trouble. Though I am personally happy with the limit increases, i think this was a bad thing for our economy in e sense we will lose the taxes collected, and the speninding in Canada.


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## Daniel A. (Mar 20, 2011)

Spidey said:


> Part of the attraction to cross-border shopping is often filling up with gas. And it's not always a long distance. For example, in much of the Vancouver lower mainland the border is 20 minutes or less away. And many own vacation trailers in Washington state where they go almost every weekend in the summer and often even in the winter to ski at Mount Baker.
> 
> Even if one doesn't own accommodation, I would wager filling up a larger vehicle with cheaper American gas and buying $800 worth of goods, including a couple of bottles of booze and perhaps cigarettes could well compensate the cost of 2 nights at a hotel/motel. And then if one throws the "get-away" aspect into the mix, it could be a slam-dunk for many Canadians.
> 
> My suspicion is that this may be a way for Harper and Flaherty to instill some controls on provincial Premiers who may be inclined to increase sales tax revenues. Which may or may not be a noble cause depending on one's perspective. Personally, I'm still sitting on the fence on this one.



Some do all their grocery shopping in Bellingham, cost of gas one third less than the lowermainland per tank. It is far cheaper to ski in BC than the US though.
Now for the down side 3-4 hour line ups at the boarder sure not my thing.


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## carverman (Nov 8, 2010)

Daniel A. said:


> Some do all their grocery shopping in Bellingham, cost of gas one third less than the lowermainland per tank. It is far cheaper to ski in BC than the US though.
> Now for the down side *3-4 hour line ups at the border *sure not my thing.


And that is you are not one of the cars they mark to pull over for a more thorough check. Then you will be there a lot longer than 3-4 hrs.
I used to do trips to Watertown or Massena NY..stay in a trailer park for a few bucks, put up with the skunks and raccoons at night coming around to investigate what you have in your coolers or garbage pails. Had a skunk let go when it brushed against the trailer safety chain at 2am in the morning. 
It was a sleepless night afterwards with the skunk smell and you didn't want to go out of the trailer in case mama skunk and her brood were still around the site.:chuncky:

I remember those 3-4 hour waits in line at the border crossings. Burn up quite a bit of that gas, you just bought cheaper from the car idling..idling..idling..
and you and the kids are stuck in the hot car..they start fighting and get out and walk next to the lineup...but you can't
join them because you can't shut it off..because the guy behind you will lean on his horn if you don't move at least a few inches every 10 to 15 minutes or so..idle idle idle..car is overheating...yep lots of fun.:rolleyes2:


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## Spidey (May 11, 2009)

Regular border-crossers can get a Pace card and avoid much of the lineups.


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