Duty Charges on Imported Goods

[something]

I am planning on ordering a snowboard through the US, although I am concerned about potential duty costs.

The item will be shipped via USPS priority mail international - there will be no brokerage fees.

Still, does anyone here know how to estimate duty costs? The seller is willing to mark the package as I instruct them to, if I ask that it be marked as "gift", will this waive duty?

I appreciate any expertise on this

[Dion]

If it's send by USPS mail there shoudn't be any brokerage fees. As for duties, i never paid any when I bought some Taylormade irons from Phoenix.

[DownhillGoat]

IIRC the limit for the 'gift' designation is $50. I've never had to pay extra tax or duties when shipping goods to/from the US via usps, and always marked them as what they actually were at a proper value.

I assume this is a private sale, not from a store?

[Northendzone]

Last time we were in the us we spend over our limit and we wound up paying gst on the overage

[squiggs96]

Just look at the CBSA site.

http://www.cbsa.gc.ca/import/postal-...roits-eng.html

Protip: If the goods are made in USA or Mexico, they are part of NAFTA and thus, may be free of duty charges. GST likely will still apply.

Putting 'gift' on the snowboard in this case would be mail fraud. Do you really want to be stopped at the border every time you go across it, or worse be denied entry, for a few bucks?

Snowboards are under category 4, as they are sports and exercise equipment and would have duty assessed at 8% of the item value plus 5% GST, assuming you are importing it into Alberta. You'd be paying GST anyways in Alberta, so as long as the shipping and 8% duty are less than the savings, it's a good deal.

[chemgear]

I would avoid UPS (not to be confused with USPS). Their brokerage fees are brutal. If you have to - use air UPS, I believe the brokerage fees are included.

If it is valuable enough via USPS, I have had customs open up a package. They'll charge you GST on the value plus $5. Not as bad as UPS.

[squiggs96]

Originally Posted by chemgear

I would avoid UPS (not to be confused with USPS). Their brokerage fees are brutal. If you have to - use air UPS, I believe the brokerage fees are included.

If it is valuable enough via USPS, I have had customs open up a package. They'll charge you GST on the value plus $5. Not as bad as UPS.

Second the negative vote for UPS. I will never use them to bring anything across the border. I also won't use DHL.

[something]

I found some more information, although it has already been stated in this thread.

In summary: It will be of no benefit to declare the item as a gift since it is above the duty-exempt value of $60 (per item). Furthermore, it may be eligible for duty free status as it was made in the USA(per NAFTA). Additionally, if the item is exempted from duty, there will be no $5 handling charge for it.

Unfortunately, I cannot find the criteria to determine that the "may" is, in fact, a certainty with this item in particular. It would suck to have to get the board and then pay an additional 8% on $600.

I appreciate all the help!

[blankall]

Brokerage and duty fees ate very hard to predict. Usps will normally transfer the package straight to Canada post, thus avoiding all brokerage and duty fees.

[zamler]

2nd'd on the unpredictability part. I've had things shipped via USPS with a value of $200, and ended up paying nothing. Other things I paid the GST, value was around $70. Sometimes I had to pay a handling fee. I don't know exactly why. But if you do have it shipped as a gift, that is your best chance to avoid unnecessary charges. Just make sure you have them put down a reasonable amount, saying a $500 computer is worth $10 may raise some flags.

And never ever use UPS ground, or Fedex, or DHL.

[bc-chris]

3rd'd on the unpredictability part

i find it really hard to know if i'll be charged.... sometimes yes, sometimes no - it's weird

as others have mentioned - i wouldn't risk lying about the snowboard as a 'gift' - if you get caught it's just not worth it.

[Ironhorse]

Originally Posted by chemgear

If it is valuable enough via USPS, I have had customs open up a package. They'll charge you GST on the value plus $5. Not as bad as UPS.

It has gone up to $8 now.

[Pacem]

I work at store and we import leather goods all the time.

UPS sucks and don't use them. Their brokerage fees are ridiculous, and they go over every item ensuring you pay the proper duty on every item. Some things we bring in our leather, some are clothing and the duties are different so they go over it with a fine tooth comb.

We get our supplier to use USPS. Its hit and miss if we get hit with duty or not. Keep in mind we import stuff all the time and we've found away to avoid duty most of the time.

We get our supplier to break up our order into smaller orders under $500. We have found that when the orders are smaller like that, they don't charge us duty and there are times we don't even pay GST. I have found it really rare to get charged duty when our orders are under $500. It is very hit and miss, just use USPS and cross your fingers that Canada post doens't make you pay.

[OldDutch]

Originally Posted by Ironhorse

It has gone up to $8 now.

Ya the $8 is the fee for the import application form. UPS, DHL and the like charge a fee to fill this out for you. Sometimes it is a percentage of the value, sometimes it is a flat fee. On top of that, shipping method sometimes will negate a brokerage fee (air I think).

I bought speakers a few years back and got the $100 brokerage fee from UPS. Never again. However, I think if you have to use these jerks, then I think you can request that you clear customs for them. Ie: Drive to the airport, fill out a super simple form, and pick up you package from the warehouse.

I was going to do this with a ring for my wife, but FedEx ended up waving the fee when I told them what I was going to do.

[geos]

Originally Posted by zamler

But if you do have it shipped as a gift, that is your best chance to avoid unnecessary charges.

It will also help you avoid seamless future border crossings in the case you get caught. Nothing quite like getting red flagged for mail fraud by US customs to make your life that much more enjoyable. You get a complementary full body pat down at every crossing and a nice thirty minute chat with the border officer! What a fantastic deal. Especially if you get booted back to Canada, it's nicer here anyway.

I'm often surprised at the risks some take to save a few bucks. I had a friend at work telling me about he brought an extra bottle of rum back from Cuba. All sneaky and that. Wow. Saved, what, $5 in duty? For what risk? That's one bad ass smuggler. But if he got caught? Red flagged for life. Sheesh. The guy travels four or five times a year and he's going to roll the dice on a $5 duty charge on some rum?

If the goods are manufactured in NA, they should be duty exempt. You'll still have to pay GST in all likelihood. Sometimes you end up paying nothing, it's kind of enigmatic that way. But declare it properly and pay the few dollars duty. I'm guessing you saved a bunch anyway.

Or support the local economy and buy it locally where it's unlikely they have some illegal working for $1.50 an hour packing your kit for shipment. Your freedom to chose of course.

[kdogg]

Originally Posted by squiggs96

Protip: If the goods are made in USA or Mexico, they are part of NAFTA and thus, may be free of duty charges. GST likely will still apply.

When travelling back from the US / Mexico, does that mean you still have to claim it on the Canada Customs form?

[DownhillGoat]

Originally Posted by kdogg

When travelling back from the US / Mexico, does that mean you still have to claim it on the Canada Customs form?

You still claim your total dollar amount of goods purchased on the customs form, regardless of where it's manufactured. If they decide to go through it to charge you duty, if it's made in US/Mexico they won't total it with the charges. It has to be stamped/tagged on the product that it is in fact made in NA/Mexico though.

And it only applies to duty, not GST.

[chemgear]

Originally Posted by Ironhorse

It has gone up to $8 now.

Really? Damn . . .

[squiggs96]

Originally Posted by kunkstyle

You still claim your total dollar amount of goods purchased on the customs form, regardless of where it's manufactured. If they decide to go through it to charge you duty, if it's made in US/Mexico they won't total it with the charges. It has to be stamped/tagged on the product that it is in fact made in NA/Mexico though.

And it only applies to duty, not GST.

This is pretty much what I'd reply. The only minor difference is that in addition to showing the goods are marked as made in NA, it is also fine if the goods are not marked or labelled that they were made anywhere other than NA. This is not to say just rip off all the tags and say you can't prove it was made elsewhere. If the product doesn't come with tags or a made in label, the onus is on the border guard to prove it was made outside of North America. This is mainly for trinkets and small goods sold on the street, not for shirts, cars, golf clubs, booze, etc. Also, remember that it is where the goods are from, not assembled. If all of the parts are from China, but assembled in Wisconsin, that does not mean it was made in America.

[zamler]

Originally Posted by geos

It will also help you avoid seamless future border crossings in the case you get caught. Nothing quite like getting red flagged for mail fraud by US customs to make your life that much more enjoyable. You get a complementary full body pat down at every crossing and a nice thirty minute chat with the border officer!

Has this happened to you? Enlighten me as to how I can be stopped at a U.S. border crossing because someone sent me a package labeled as a gift? Heck, I've purchased a few things on Ebay and the shipper sent it as a gift, I never requested they do this either, it was their choice. How is that my fault?

Strange post. BTW, I have no trouble crossing into the U.S. at all, at least not more than anyone else, the usual questions.