As the Government has committed to make Canada a duty-free zone for industrial manufacturers, the Budget will eliminate a 5% Most-Favoured-Nation rate of duty on certain imported oils used as production inputs in gas and oil refining and electricity production to improve the competitiveness of manufacturers of gasoline, diesel, electricity and jet fuel.
This amendment to the Customs Tariff Schedule will be effective in respect of goods imported on or after March 30, 2012.
The Budget proposes to increase the travellers’ exemption for returning Canadian residents who are out of the country for 24 hours from $50 to $200 for goods other than alcohol and tobacco and for 48 hours from $400 to $800 for all goods included in accompanying baggage. The current 7-day exemption threshold of $750 for goods, whether included in the baggage accompanying the person or shipped later, as long as the goods are declared, will also be increased to $800.
This measure will be effective in respect of travellers returning to Canada on or after June 1, 2012.