Does a 50% surtax mean the store price rises 50%?
No. The customs rate attaches to value for duty, not automatically to the final shelf price. Business decisions, margins, freight and market conditions determine how much cost—if any—is passed through.
Direct answer: In a fixed teaching example, CAD 1,000 value for duty multiplied by a 50% Schedule 3 surtax equals CAD 500 additional import surtax. Goods value plus that isolated surtax is CAD 1,500. This does not predict a 50% retail-price rise, and it excludes other duties, GST/HST, brokerage, freight and fees.
The customs arithmetic
Goods value + this surtax only: CAD 1,500. This subtotal is not a landed cost, customs quote or shelf-price forecast.
| Component | Calculation basis | CAD amount |
|---|---|---|
| Value for duty | Fixed hypothetical input | 1,000 |
| Additional surtax | 1,000 × 50% | 500 |
| Goods plus this surtax only | 1,000 + 500 | 1,500 |
Why shelf prices can differ
An importer or retailer may absorb cost, negotiate with suppliers, change margin, alter sourcing, adjust freight choices or pass through some amount. A full-pass-through, half-pass-through or zero-pass-through calculation can illustrate sensitivity, but none is an observed outcome or forecast without evidence.
Read which goods have listed rates, why origin differs from shipping route, and the monthly trade-value tracker.
Questions about the example
What is value for duty?
It is the customs value determined under sections 47–55 of the Customs Act. It should not be casually replaced by shelf price.
Who pays customs?
The importer accounts for the surtax. That alone does not establish how economic cost is shared among exporter, importer, retailer and customer.
Does 50% mean the shopper pays 50% more?
No. It means this surtax equals 50% of value for duty for a covered Schedule 3 import.
Are GST and ordinary duties in the CAD 500?
No. The example isolates this surtax. GST/HST, ordinary duty, trade-remedy duty and fees are excluded, not assumed to be zero.
Does the same arithmetic work at 15% and 25%?
Yes, for the isolated layer: CAD 1,000 × 15% is CAD 150 and CAD 1,000 × 25% is CAD 250. Coverage still depends on the legal facts.
Official sources and limitations
- P.C. 2026-0785 · schedule rates and value-for-duty base
- CBSA Customs Notice 26-23 · calculation and GST treatment
- CBSA customs valuation guidance
Checked September 13, 2026 · hypothetical additional-surtax layer only.