Tampon tax on its way out, but tariff remains

The tampon tax may be gone, but the tampon tariff lives on, reports Canadian Business, and its existence illustrates the red tape all importers face.

After a high-profile public push, Canada scrapped its tampon tax – the 5% GST on feminine hygiene products – effective July 1. The move saves women a total $36 million a year, but the tariff will still generate as much as $4 million more for the government.

Read: Feds scrap tampon tax

As CB reports, even finding out whether tariffs apply to these products is a convoluted process. An importer has to sort through the 1,577-page customs tariff manual to find the correct tariff code and rate.

A tariff of as much as 12% applies on the goods, but an importer can apply for preferential tariff treatment. To do that, the importer must again wade through hundreds of pages of rules and applications.

Read more here.

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