Canadian Border Security (CBSA) Practice Exam

What is likely to happen if a traveler exceeds the personal exemption limit?

1. They will be allowed to pass without penalties

2. They will have to pay the full applicable duties and taxes

3. They will receive a warning and be free to proceed

4. All goods will be confiscated

The correct answer is: They will have to pay the full applicable duties and taxes

When a traveler exceeds the personal exemption limit, they are generally required to pay the full applicable duties and taxes on the excess amount. Personal exemptions allow travelers to bring in a certain value of goods without incurring tax; once this limit is surpassed, the goods above that threshold become subject to the standard duties and taxes set by the Canadian Border Services Agency. This policy is designed to ensure that all travelers contribute fairly to customs revenues when they exceed the allowances provided. The enforcement of duties and taxes is not arbitrary; it reflects an established guideline for fair trade practices and revenue collection. Therefore, the correct outcome when a traveler exceeds the personal exemption limit is the obligation to pay duties and taxes on any additional goods beyond the exemption. The other options suggest scenarios such as passing through without penalties or receiving a warning, which do not align with the regulatory framework that mandates customs duties for excess amounts. Goods being confiscated is also an extreme measure and typically not applied solely for exceeding exemption limits; rather, it occurs in more severe cases involving prohibited items or failure to declare goods.