The Budget proposes the introduction of three new “basket” tariff items (0%, 8% or 20% baskets depending on the category of goods, for example, apparel) in Chapter 98 of the Schedule to the Customs Tariff to facilitate the processing of low value non-commercial imports arriving by post or by courier. These new tariff items will simplify the Canada Border Service Agency’s (CBSA) tariff classification and release process for postal and courier imports with values less than $500.

Goods classified under the new generic basket tariff items will be subject to the Goods and Services Tax/Harmonized Sales Tax ("GST/HST"). To ensure that certain existing GST/HST relieving provisions are applied to low value shipments imported by post or courier, the new tariff items will not apply where the goods are relieved from GST/HST.