Duty?? - UPDATE

[EllasMum]

Rotten FedEx. About 2 weeks after receiving my stroller, I got a FedEx invoice for "customs clearance charges". I paid $15.00 in "brokerage fees", $3.09 in GST, and $0 duty. Unbelievable - a brokerage fee for a zero duty purchase. Nice. x(

Does anyone have any experience with duty on international orders? I received a "you have a parcel" notice today and marked on it is an amount owing. I am guessing this would be duty? I think it is a shipment I ordered from hannaandersson.com, but I am sure that when the total on their invoice came up it included duty. Any idea what this additional charge could be?? The order was roughly $65 and the amount owing on the notice was $30... that can't be right, can it? 50% duty charge??? Please help!


Thanks!
Susan

[NewfieNat]

It shouldn't be from Hanna - they include duty when they charge you as you mentioned. But, unfortunately, duty can be that nearly that much. Last month I ordered a shirt for Ryan from Janie & Jack, it was $20 US. When the package came I had to pay $11 duty. Eeek! I have ordered from there before and NEVER paid that much. In 2004, for $20 US I used to pay $7.XX (5 of that being the fee charged by Canada Post). Now I have to be really careful about what I order, and I try my best to find the same item (or an ok substitute) in Canada.

OT, but wasn't it you that was looking for the FP hedgehog? Did you find one? They are back in stock at TRU Market Mall now.

Natalie

[bubbaray]

Hanna charges you duty on your invoice. Perhaps its something else?

Or, if you ordered it express, $50 of that $65 will be the FedEx/UPS "brokerage" fee.

Some items are 50% duty. Duty is charged on the type of item and the country of origin. Plus, you pay GST on the amount of the goods.

HTH

Melissa

http://b3.lilypie.com/rppJm7/.png[/img][/url]

[EllasMum]

Nope I ordered it regular (not express) and the invoice showed the total, with shipping, duty and taxes to be $77. I am wondering if this mysterious $30 might be duty on a Zooper Salsa umbrella stroller I got from eBay - although the stroller is coming by Fed-Ex and their tracking website shows it to be in Richmond BC - so why would Canada Post here have the duty charge??! I will be really curious to see what the parcel is there tomorrow. $30. Ouch. I'm at a loss. :(

[EllasMum]

Hi Natalie - yep, that was me looking for the hedgehog. I went to MM TRU after I read your post back when I was searching for one, but it was gone. :( I did end up getting one on eBay, though! I'm sure I paid way too much but it has turned out to be DD's favourite toy! She loves it! I'll have to pop in to MM TRU and see just how much extra I paid!

How are you feeling these days? How's #2 coming along??

Susan

[pampamz]

I just got some Bobux via Canada Post and the mailman charged me $10 -- $5.00 was their Handling Fee and the rest was GST & PST.
It urkes me -- sometimes I have no fee and other times get dinged pretty heavily. It seems to be no rhyme or reason...

I really didn't want to spend $36 USD on baby shoes but that is what ended up happening...$30.00 though on a $50 order -- that sucks!

[Piglet]

Just a bit of an FYI on duty and such. The duty amount is charged based on what the SENDER states as the value of the good. There can be a BIG difference between what you actually think an item is worth and what the sender thinks it is worth (because they sometimes think that if they put a large value they cover any losses if the package is insured). As far as I can tell, there is no connection between thte stated value of the good on the package and the insurance.

SO... senders that are familiar with shipping to Canada often will understate or not state the value of the goods. That is why sometimes you get dinged and sometimes you do not. I order from It's a Pag Dolls Life (SKR shoes) and she just omits the amount from the shipping label and I don't pay duty somehow. Other times, I have paid duty because the amount was stated as $30 or whatever.

The rule from Canada Customs is that duty is payable for anything over $25 CDN unless it is labeled "gift" on the shipping label (the green one on your package). If it is a gift, the amount is $75 CDN. In the future, you would be better off asking a private sender to mark the item, "gift" because the exclusion is higher.

Oh, and avoid couriers like the plague (unless you want Express shipping). For ground shipping, their brokerage fee is exorbitant. I once had to pay UPS $25 brokerage + $25 duty for a stroller that I paid $100 plus shipping. My bargain stroller turned into a nightmare. I fought the brokerage charge (by trying to argue that it was a used, beat up stroller that the shipper overstated the value on). Once I was burned by the charges, I never made the mistake again and that is true for far too many of us on this board. Now I only order items that are shipped by the postal service (USPS). Canada Post only charges $5, regardless of the value of the item.

[Neatfreak]

That's a great summary, Marina!

[pampamz]

Thanks Marina for the info -- that clarifies so much.

As a sidebar, I just received in the mail, no knock at the door from my friendly postman, $100 bucks in jewellery I ordered for DH and no extra $$$ was required. They wrote "jewellery" on the customs form but no value and that slipped through...um,,ok.

[Piglet]

Yeah, that is what I mean when I said they sometimes don't put the value of the item. There have been times when a store has done that for me, but the item was flagged for customs inspection as a result. The item was delayed, but Canada Post never charged me customs. I think that they could have charged me or gotten mad at the seller, but so far it hasn't happened. DH orders things online too and somehow he has never had to pay duty - the stores he deals with seem to know what they are doing.

I generally try to stick with products that are under $20US or are from private sellers. If I go through a store, then I will only buy if they can ship USPS. I don't gripe about paying duty or taxes, but I HATE paying brokerage fees (they are pretty much made up charges for "negotiating" your sale at the border).

[EllasMum]

Good news! I got both my shipments today (HA and the Zooper) and NEITHER had duty charged on it! The FedEx guy simply came in, dropped off the stroller, and left. At the post office, the clerk gave me my package and that was that. I asked if I needed to sign anything or "anything else"... and she said no! So I guess either I don't know how to read Canada Post notices, or else CP just missed out on $30 due to a clerical error. Either way, lucky me! :P

Thanks, Marina for clearing up the duty issue though - in the future I will be more careful with duty! I did end up paying about $9 duty on my HA shipment of roughly $65. Oh well!

[Piglet]

Hanna always charges duty, but the nice thing is that you won't have any surprises when the package arrives. They have an arrangement with Canada Post. I just ordered $250 worth of Hanna (blush)... damn sale!

[Piglet]

Oh, one more thing - watch out for that FedEx one. The UPS invoice I received for brokerage and duty was stuck inside the shipping label (inside the clear plastic pocket). I didn't even notice until they sent me a Past-Due notice, with a threat of a collections agency. They definitely got my attention, but mostly it ticked me off and made me angrier and then I fought the charges. The "collections agency" was a subsidiary of UPS and they have no legal status, I also learned.

I really hope you don't have to pay,

[EllasMum]

Yikes. Thanks for the headsup - I just pulled out the plastic envelope and all it had was the shipping label. Curiously, there was a sticker on the box that says "International paperwork OK" or something similar. I'm wondering if maybe the shipping/handling I paid included the duty?? I paid $20 for the shipping so maybe that was it...

Hanna Hanna Hanna... I'm trying to resist! I just got a box of stuff today but I think I'm going to have to order more. Their stuff is just so gorgeous! At least they refund duty/taxes if a return is necessary.

[mizzum]

Hi,

I just returned a pair of primigi shoes to the US that i had ordered for ds- how do i get the duty etc returned to me? I had to pay $11 in charges. Like most of you, sometimes i have to pay and sometimes not.

Thanks,

Lynn

[EllasMum]

HA has a specific Canadian address that you send the returns to and they deal with the duty/taxes part of the refund. Here's the link to their website with the information:

http://www.hannaandersson.com/static.asp?pg=75

[Piglet]

I have filled in a form on the government's website and faxed it in for a duty re-assessment, but I am not sure what to do for a return. I don't have the website address, because it was a long time ago. Do a google search for government of canada duty refund or something like that.

[tg_canada]

I've seen a few people here mention that Canada Post's charge is $5 for their fee for collecting duty/taxes. That is the old fee. I believe it is $8 (or is it $9?) now. Still a heck of a lot better than UPS brokerage fees. NEVER get a U.S. package delivered UPS!

[Piglet]

Oooh, that kinda hurts - well at least the dollar is strong and it seems a bit easier to take a bit of a hit on handing. On a more interesting import note - I just bought a Toyota Sienna in Montana and am driving down to pick it up July 3(after the GST goes down). I saved about $8K on an LE! Easiest car purchase I ever made; no duty; full warranty!

[EllasMum]

That's great! My uncle recently bought a Porsche (might be a mid-life-crisis-mobile, not too sure) in the States, drove it up to a friend's condo in Montana and parked it there for 2 (3?) weeks, and then was able to drive it across the border without duty! Sweet deal!

I, too, am waiting for July 1 to make a big purchase - I'm going to buy a laptop computer and figured why not save a few $$ if I wait 2 weeks?? Love it! Now if we start getting out "beer and popcorn" money on July 1 I'll be even happier! :)

Susan

[pampamz]

Seriously??? I had no idea you can buy cars in the US and bring them back...thought there was all sorts of "red tape" and crazy duty etc.

You just pay GST and that's it -- easy peasy? What about plates? If you finance it how does that work?

I'm intrigued...

[EllasMum]

Perhaps Marina can elaborate on this but my understanding is that you have to be a resident, or 'have a residence' in the States in order to avoid duty. That is how my uncle was able to avoid it - he listed his residence as his friend's condo in Montana. He had to wait a specified period after the purchase to bring it across the border.

[Piglet]

There were a few articles in the Toronto Star this month - I will try to post the links. In any event, the duty is not an issue of the car was made in the US/Canada/Mexico (see... NAFTA works sometimes). Toyotas are made in the US, as are most other mainstream cars. Volvos, Porsches, VWs, Subarus and some Mazdas are not made in the US and you have to pay 6.1% duty, which is still pretty reasonable when you consider the savings. There is no chance for financing, so we spent a lot of our savings and will be paying ourselves back in monthly payments (I have an ING account that does automatic withdrawals 2x a month from our main bank account in the amount of our prior car's payment). The agency that oversees import of cars has a website - www.riv.ca you can go there for further info. I got the hairbrained idea from the Canadian Sienna message board on www.siennaclub.org and there is a ton of info on there both for Toyotas and importing cars in general. I should point out that the reason Toyotas are so popular for import is that they honour their warranty in Canada. Honda doesn't, so we couldn't consider an Oddyssey.

http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Render&c=Page&cid=968867497088

http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1150367949438&call_pageid=968867497088&col=969048871196

Enjoy!

[pampamz]

Thanks! That's awesome info -- I appreciate it.
We like Honda and have been considering upgrading our CRV to a Pilot but ix-nay that if the warranty doesn't work here.

The US prices always seem so much more reasonable, atleast on the commercials...

I'll have to mull this one over.
Thanks again.

[sand82552]

I haven't posted here in a while, but I thought I would share some info on duty, brokerage, and tax.

If you follow this link it will take to a fantastic calculator that will help determine the percentage of duty that is charged on items when you buy from the US.

http://www.aacb.com/tools/dutytax.asp

I use it all the time to determine the duty that I could be charged, just so I am prepared. For example duty on textiles (clothes) is anywhere from 0 - 20%, this calcultor uses 20% (the most charged) - Toys and Books have 0% duty, most examples are listed.

Canada Post charges $6 Brokerage Fee, even if they are only collecting GST or GST&PST and no duty they will charge the Brokerage Fee. [Other shipping companies have different Brokerage rates]

The only way you can not be charged Brokerage, Taxes, and Duty is like some others mentioned if the Value of your items are under $20, or if the item is a gift and under $60.

In addition any item that is manufactured in the US, Canada, or Mexico falls under the NA Free Trade Agreement, and No duty will be charged on the item - no matter what it is - ever. GST, or PST can of course be charged - but never duty. (Always remember that if GST or PST was collected by the shipping company then Brokerage Fees will also be charged)

If you are charged incorrectly, then you can get your money back from Canada Customs. For example, I ordered Toys from Barnes & Noble, who happen to have a GST number (like Hanna Andersson), and they collected GST, Canada Post also charged me GST and of course the Brokerage. I received all of my money back. Or if you ordered some items from a boutique and charged duty, and they were actually manufactured in Canada you can apply to receive your duty back that you may have been charged, but not your Brokerage fee, b/c GST still had to be collected.

Another alternative to ordering from the States is using a postal company. I live very close to Blaine, WA and I have some items shipped to a company there, and then I drive to pick up the items and bring them across the border my self. If I do go into the customs office it is only to collect GST, I have never been charged duty. TO charge me duty they would have to have me bring in all of the clothes to determine the country of manufacturer to assess the appropriate duty which again would be between 0-20%. This also depends on the customs officer you get though, I have heard of people having to drag all their items in, and everything itemized and the duty charged, so it is hit and miss - but pretty unlikely.

The great thing about shipping to a US address and collecting yourself is that you can take advantage of within US free shipping, lower shipping fees, and quicker shipment times. I keep my billing address as Canadian, so I can use my Credit Card.

I do still have baby clothes delivered to my house when I am busy and can't make it down to Blaine, especially from Janie and Jack, and it is a gamble, sometimes my package sneaks through, other times I am charges the duty, GST, and brokerage. A lot of JJ's clothes are manufactured in China which is a duty rate of about 18%...YIKES!!!

I hope this helped, and it wasn't too much to read. One more tip is to make sure if you buy on ebay to have the seller list the correct value and description, and if they are comfortable depreciating the value or marking as a gift then that is a bonus to you.

I really think that Canada Customs should increase our allowable limit, $20 is nothing --- it is really frustrating.

[Piglet]

Thanks for the great information! That answered a lot of my questions about the brokerage fees. I have always wondered why the heck they need to charge brokerage when they are calculating GST - it's not like they charge you brokerage to calculate GST if you buy in a retail store.

I wish I lived close enough to the border, but we are 3 hours north of middle-of-nowehere Montana here in Calgary!

[sand82552]

No problem, the crazy thing too - is you also are charges GST on your brokerage fee. LOL....

[torontomom]

deleted...

[sand82552]

I heard of it through word of mouth, there is at least 4 companies where I live that do this. I did a quick search for you for the Buffalo Area, all I could find is some info on a forum that suggested using Mailboxes Etc. in Buffalo. The forum said that this MBE is very familiar with accepting packages for Canadians. I know the place I use I don't phone I just go down when I know my package should be there and pickup, I am charged $2 per package.

Mail Boxes Etc. # 0322
940 HOLT RD WEGMANS PLZ
WEBSTER, NY 14580 - USA
Phone: (585)872-5577

Here is the link to the forum

http://www.redflagdeals.com/forums/showthread.php?t=20166&page=1&pp=15

Good Luck - Hope this helps

[bubbaray]

The PP gave you great info.

I just wanted to add, for those looking for a similar service in WA state, I use Mailboxes International in Blaine, WA. They do a booming business with Canadian customers. They charge $2.00 (I think) per item -- $1.00 for the service, $1.00 to call you when it is in. Also, $10 per year for the service generally. They also have mailboxes, which are a different price. They hold things for a week, after that I think it is $0.50 per day extra charge.


Melissa

http://b3.lilypie.com/rppJm7/.png[/img][/url]

[torontomom]

deleted...

[Laundraholic]

Thanks also for that link!!

I was so excited to tell DH, I know he was looking into ordering some car parts and other stuff and I thought it would also be a good excuse to go across the border and do some cross-border shopping =)

However, he apparently knew all about it already =P
He said that the place that most of his car buddies ship their rims and other big items that would have crazy expensive shipping fees to Canada is called CanAm Mailbox, on Military Road (Niagara Falls).
That other forum talked about a Mailboxes Etc/UPS Store in the Wegmans Plaza on Military Rd (which is just about 2 minutes drive from the Prime Outlets Mall just across the border from the Queenston Lewiston bridge... I wonder if they're talking about the same place?

here's the quote from that link...
--------------------------------------------------------------------------------

There were several mentions of the Mailboxes Etc. on Military Road (Niagara Falls, NY). I couldn't locate them anywhere, but did find a UPS Store with the same address. I e-mailed them about Canadian pickup, and here is their response:


Quote:
yes we are open m-f 9-7 / sat 9-3 / sunday we are closed .
we will need the name the package is coming in and a phone # to contact .
you should have the package addressed to :
your name
care of the ups store
1623 military rd
niagara falls new york 14304
have your phone # put on the label as well .
ITS $5 FOR A SMALL BOX , $10 for MEDIUM, AND $15 FOR A LARGE , WE WILL CALL YOU WHEN IT ARRIVES AND ITS $1 EVERY DAY WE HOLD EACH PACKAGE .

[torontomom]

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[pampamz]

As a sidebar question, I am thinking of trying out some new perfume (maybe Jo Malone) and eBay has it cheap but from UK.
Would the duty/GST issues be the same as if it were coming from USA? I am thinking it would be, regardless of what country I'm ordering from???

HAPPY BELATED CANADA DAY!

[sand82552]

I don't know the answer to this question. I just know the duty coming from the US, but I am very curious if also if it would be the same from the UK, or anywhere else for that matter. I am thinking yes, but I guess you would have to phone Canada Customs to find out for sure.

[daisyandacorn]

Yup, it's the same. Just got my Boden order-cuuuute!
HTH!
Susan