If you grew up in a border town, there’s a good chance you came to rely on travelling to the US for some gas or diesel savings. With gas prices at more than 2$ a litre for regular in parts of BC this week, you might be going down more than ever these days.
For some, this has led to some confusion, with Canadians saying they were forced to pay duty on fuel when they crossed back into Canada.
The complaints arose on a local Abbotsford Facebook group, where several people suggested they were told they had to pay a tax when they recently crossed the Sumas border.
This fueled many questions about what is and isn’t allowed, and after an absolute journey trying to find answers on the official sites, we eventually gave up and took our queries to the experts directly.
Can you cross the border to get gas?
The Canada Border Services Agency says there is a chance you will have to pay tax if you go to Washington from BC to get gas, but it depends on a few things.
Firstly, you need to tell the CBSA officer what you are bringing back, including if you filled up your tank. Keep the receipts, too, and don’t lie and say you just went for lunch.
“If a traveller fails to declare goods that are beyond personal exemptions, a CBSA officer could apply a monetary penalty of 25%, 40% or 55% of the value for duty of the undeclared goods as per the Customs Act,” the CBSA told Daily Hive. If you fail to declare, you could end up paying way more than you would if you just filled up in Vancouver.
“In general, goods imported by Canadian residents returning are subject to full duty and taxes unless the good (in this case gasoline) is imported within the traveller’s personal exemption limit,” they explained.
While the CBSA does share the rules on wine and cigarettes, for example, within that personal exemption document, it doesn’t mention gasoline. The personal exemption limit also only applies after someone has been stateside (or just out of the country) for at least 24 hours. If you go for the night, you can bring back $200 worth of goods, but what if you only went for an hour? What happens then?
Basically, it comes down to one important thing.
RenineR/Shutterstock
“Where no personal exemptions are applicable, Canadian residents may only import duty- and taxes-free fuel in their conveyance in the original tank supplied and installed by the conveyance manufacturer. In short, the fuel must be imported within the ‘manufacturer’s normal tank capacity’ based on the original manufacturer’s equipment,” they added.
So, if you want to take advantage of the cheaper gas stateside and ditch the high Metro Vancouver taxes, you will have to make sure you aren’t going beyond your limit.
“Beyond that, importation of gasoline in jerry cans, extra fuel tanks built into the conveyance, etc. by Canadian residents who do not qualify for personal exemptions is subject to full duty and taxes,” the CBSA explained.
A screenshot from the federal website showing the exemptions. (travel.gc.ca)
There is a small exception.
“In the case of non-residents visiting Canada, such as tourists with extra cans of gasoline imported for powering a boat, they may import a quantity of gasoline as long as it is appropriate for their needs and consistent with the purpose, nature, and duration of their intended stay in Canada. Therefore, where fuel is imported within quantities that are consistent with the purpose, nature, and duration of the visit to Canada, it would qualify for free importation,” the spokesperson said.
Have you ever had to pay duty on the gasoline you bought in the US? Let us know by emailing [email protected] or reach out in the comments below.