ezbordercrossing

Guide to Crossing the US Canada Border

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NEXUS Residency Requirements Relaxed

The U.S. and Canada have lifted the NEXUS requirement that citizens must have resided in one of the countries for at least 3 years.  This will benefit citizens who  may currently be residing abroad, or who have recently returned to Canada or the United States.

NEXUS is a form of “trusted traveler” program that is designed to speed your drive across either the U.S. or Canadian border. It can also be used for flying into certain airports and for marine travel. This card is very useful to commuters who must cross the border on a frequent basis.  NEXUS members frequently avoid long wait times at border crossings by using dedicated lanes.   We have seen reports claiming NEXUS members saved an average of 30 minutes at land crossings.

We have additional information on NEXUS including how to apply to the program on our page describing “Types of Border Crossing Documentation”.

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New Canadian Duty Exemption Limits

Personal exemption limits have been raised for Canadians returning to the country with goods purchased in the United States.  This allows Canadians to avoid duties and taxes on more purchases when they return to Canada after a U.S. shopping trip.

The changes are an attempt to reduce border congestion by allowing border guards to waive more cars through without checking their purchases.  In addition, the new import ceilings will harmonize the Canadian levels with U.S. limits.

As of Friday, June 1, 2012, exemption limits have been changed to the following:

New Personal Exemption Limits for Canadians Returning From the U.S.

Old Exemption Amount New Exemption Amount
After 24 Hours in the U.S. $50 $200
After 48 Hours in the U.S. $400 $800
After 7 days in the U.S. $750 $800

Note that under the new law there is no longer any specified seven-day limit on duty-free purchases as it is the same as the 48 hour limit.

Exemption Limits That Are Not Changing

  • You will continue to pay full taxes and duties on all purchases if your visit is for less than 24 hours
  • Personal Exemptions for alcohol and tobacco

Why Do Canadians Want to Shop in the United States?

As of May 2012, goods in the United States are roughly 14% cheaper than prices for the same item in Canada.   This changes constantly with currency fluctuations and general economic conditions.  This price difference can be even greater on specific items.  For example, one study found that running shoes that cost $146 in Canada would sell for $107 in the U.S.  It also found that a lawn mower that sells for $480 in Canada retails for $360 in the United States.

More information on Canadian Duties and Taxes

For more information on Duties and Taxes for both Canadian and American citizens see our page titled “What Will It Cost?“

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New Rental Car Rules

Canadians Can Now Bring U.S. Rental Cars into Canada

As of June 1, 2012, Canadians will be able to drive a U.S. rental car across the border into Canada without paying GST, HST, or Green Levy taxes.  This will be very helpful if you fly into the U.S. for a visit and then decide to drive back home to Canada.  However, to qualify for this exemption you must satisfy each of the following requirements:

  • You must have been out of Canada for more than 48 hours
  • The vehicle must be for non-commercial use
  • You have to return the vehicle to the U.S. in no more than 30 days

If you meet these requirements, you will not pay any taxes, and the vehicle will not need to conform to Canada’s vehicle importation safety laws.

These changes were made through revisions to the Canadian Motor Vehicle Safety Act (MVSA).

For more detailed information you should view our dedicated page on driving a rental car across the U.S. Canadian border.