Upvote:3
Does this mean that I must consume all of the alcohol I purchase at duty free before crossing the border?
No. It means that if you're planning to drink alcohol in Canada, it could be a good idea to buy some at the DF store.
will the bottle be labeled in a way that a border officer would even be able to distinguish it from another bottle purchased in Canada?
Yes, but more accurately, it will not be labeled like a bottle bought in Canada -- it will miss the tax sticker and importer's info. But that doesn't matter. If the alcohol you are carrying is within the limits, you don't need to declare it.