Immigration | Moving to Canada? Don’t make this costly mistake

Dear Miss Powell,

Could you explain Canada’s settlers’ effects rules? I wish I had known I could bring valuable belongings to Canada later. By the time I found out, it was too late because I had not declared them when I arrived.

Please help readers avoid giving away possessions they may struggle to replace in Canada. What can we bring, and is there a maximum value?

P.F.

Dear P.F.,

You do not have to give away valuable belongings before moving to Canada. Many personal and household items can arrive later without customs duties or taxes. You must declare them when you arrive to settle, even if you have not arranged shipping.

WHAT CAN YOU BRING?

Canada’s settlers’ effects exemption, under the Customs Tariff, covers qualifying belongings for personal or household use. Generally, you must have owned, possessed and used them abroad before moving.

Furniture, appliances, clothing, jewellery, artwork, family heirlooms, musical instruments and hobby tools may qualify. Goods intended for sale or business use do not qualify under this exemption.

Office equipment, farm machinery and working tools intended for business use fall outside this exemption, even if you owned and used them for years.

Alcohol and tobacco cannot qualify as goods to follow. They must accompany you on arrival, within the applicable allowances. Age restrictions and special duty rules also apply.

If you marry within three months before or after arriving, qualifying wedding gifts and household goods set aside for your new home need not have been used abroad. However, you must have owned and possessed them before arrival.

There is no overall dollar limit for qualifying settlers’ effects. A personal vehicle may qualify, but must also meet Transport Canada’s import requirements. Check before you pay to ship it.

DECLARE WHAT WILL ARRIVE LATER

Before travelling, prepare two copies of an inventory. Divide it into belongings accompanying you and “goods to follow”, meaning items you will bring or ship later.

Include descriptions and approximate values in Canadian dollars, with makes, models and serial numbers where applicable. You can group ordinary items, such as kitchen utensils. List valuables separately. Jewellery descriptions, appraisals and photographs help identify each piece.

Give your inventory to the Canada Border Services Agency (CBSA) officer. The officer will use it to complete Form BSF186, the Personal Effects Accounting Document. You can prepare the form before travelling.

Keep the stamped form and your inventory for when your goods arrive. Items omitted from the original declaration are subject to regular import assessments and may attract duties and taxes.

WHEN MUST YOU DECLARE THEM?

You must declare your belongings when you arrive to establish residence. This may differ from an earlier visit to complete permanent residence formalities before returning abroad to live.

If you are landing briefly and moving later, explain your plans to the border officer and confirm when to complete your declaration.

IS THERE A DEADLINE TO SHIP?

There is no time limit for importing qualifying goods properly declared as goods to follow. You do not have to ship them within one year.

KEEP WHAT YOU BRING

If you sell, give away or put these belongings to commercial use within 12 months after they arrive in Canada, they no longer qualify for the exemption. You must notify CBSA and pay the applicable duties and taxes.

BEFORE YOU BOOK THE MOVERS

List qualifying belongings you intend to bring, even if you have not booked a mover. Listing an item costs you nothing. Once you are settled, compare shipping and insurance costs with replacement costs in Canada before deciding what to ship.

PF, before you assume you have lost the exemption, I suggest asking CBSA to review when you arrived to settle and what you declared. Seek legal advice if you remain unsure.

Deidre S. Powell is a lawyer, mediator and author in Canada. Contact her via www.deidrepowell.com or WhatsApp 613-695-8777.