Atlantic Xpat

That's useful info, but it's also important to distinguish between dutiesand taxes i.e GST/HST. Duty rates can be zero rated for many commoditities and are often in the <10% range. GST/HST is say 13% and will be applied on shipments even where the duty rate might be zero. For the average person receiving goods from abroad, GST/HST is going to be the greater cost as opposed to duty. (Aside from UPS handling fees if they are foolish enough to ship via UPS).

Bowing to your superior knowledge - in the event that an import satisfies the tariff code requirements above and no duty is payable, what about GST?

HGerchikov

In this case the duty was 18% and the HST 13% - so duty was the greater portion.

HGerchikov

Thank you.

Former Lancastrian

I will try to keep it simple for all readers.

If you have relatives sending gifts for xmas or at any other time then they
should mark the package as gifts. There can be many gifts inside the package but no single gift should exceed the $60 Cad limit.

If you have ordered items from the UK then if the total value of the package contents are more than $20 Cad then the goods become subject to duties and PST, GST or HST. Even if there are no duties on the item if over $20 they become subject to the other taxes.


7. In order for courier shipments valued at CAN$20 or less to receive the benefit of the Courier Imports Remission Order, or the benefit of non-taxable status under Section 7 of Schedule VII of the Excise Tax Act, the total shipment must be subject to a single transaction. It is not acceptable to divide an order into several packages so that each individual shipment has a value of under CAN$20.
8. Where the value for duty of the shipment exceeds CAN$20, the entire value of the goods is subject to the regular provisions of the Customs Tariff.

Also remember B.S.O's do not have super powers or ESP if the package isnt marked as a gift then how do they know if it is lol. I have seen lots of special occasions marred by packages being marked incorrectly or misdescribed goods or values.
Personally if Auntie Doris or somebody else wants to send little Johnny a PS3
for xmas then get them to send the money instead and buy it here that way you dont end up paying any taxes or risk it being damaged being shipped.

Jo&Alex

The other thing is, and I don't know if it applies in this case, that children's clothing is taxed at a lower rate. It has happened to us MANY times that even though the package is clearly marked as "gift-girl dress" or so, the customs people fill their forms as "women clothing" and collect big taxes. I have never bothered to fill the forms, but since you are doing it anyway it may be worth double checking if they substituted children's clothes for adult at the border... That is if your package had any children clothing in it....
By the way, NEXT direct now covers import duties and taxes when shipping to Canada, they all should do that!!

Former Lancastrian

You are correct childrens clothing is taxed at a lower rate but ONLY on the
HST or PST portion. Most clothing not of US origin attracts approx 18% duty.
It doesnt matter if it for a child or not the duty portion remains the same.
So the little girls dress valued at $100 will cost you $18 duty if not marked
as a gift plus whatever percentage the GST portion is i.e. 5% in most areas.
If sent by regular mail also the $5 handling fee by Canada Post so you can see that dress can end up costing just under $30 in all taxes.
Canada does not have a free trade agreement with the UK or European Union so if the dress is made in the UK then it attracts whatever the duty rate for the clothing regardless of if it is for a woman or a child.

Aviator

Canada Post charge $8.50. Taxes vary across the country, in BC, all clothing is taxable at 12%. Duties depend on commodity tariff code and on the MFN ruling. The same product may be treated differently depending on it's country of manufacture.

Former Lancastrian

Handling Fee
42. When goods are imported by mail, Canada Post is authorized to charge the recipient a $5 handling fee for collecting and remitting duties and taxes that are owed to the government. Canada Post charges an $8 fee for items mailed by priority post. If the mail item is duty- and tax-free, there is no fee to pay.

Currently Canada has the following free trade agreements
NAFTA = US & Mexico
Chile
Costa Rica
Israel
Panama
Peru
Iceland
Liechtenstein
Norway
Switzerland

BTW childrens clothing is determined by the size of the clothing not the age for taxable purposes.

Jo&Alex

And the current mood of the customs agent that reviews it. If there is something I have learned, is that there is no way of knowing what you will be charged in taxes when that mailman knocks on your door.

Aviator

Country of manufacture is the all important factor. If a product is made in Korea and shipped out of the US, NAFTA has nothing to do with it, it will get duty applied.

Canada post is $8.50

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

Aviator

Important to know the commodity code of the goods coming in and what duty and taxes apply. We import frequently and most shipments go through our broker, however small shipments we often pick up in the US and do our own importation. When the business office is closed we go through the same as personal imports and on more than one occasion I have had to ask for a supervisor (which really pisses off the customs officer) to sort it out.

Minor differences in description can be the difference between duty and no duty. It is also important to have receipts and is necessary certificate of origin if duty does not apply.

Former Lancastrian

Obviously D5-1-1 on the CBSA public website has not been updated lol.
The free trade agreements were signed to allow those countries to eventually eliminate any duties on goods manufactured in those countries.
The D11 series deals with origin of goods. Without getting too technical goods that originate in a MFN country and are then sent to one of these countries for further processing etc could be afforded the duty rate of that particular country. That determination is left to people above a Customs Officer pay grade lol.
Luckily I have been out of the Postal Operations side for quite some time so I apologize for my $3.50 cent error in handling fees.

JonboyE

While I agree with the idea of sending money to avoid paying UK VAT if you buy the PS3 in Canada you will still pay customs duty (if applicable) but it will be built into the retail price, and you will pay Canadian taxes at the point of sale.

Former Lancastrian

Yes you are correct.
What is the price of a PS3 in the UK excluding VAT. What are the shipping and insurance costs to Canada. If it doesnt work when opened where are you going to be taking it to get fixed. What happens if its damaged on arrival and little Johnny is screaming that he wants to play on his PS3.

Is there that much difference in price?????

Monique_in_Canada

right, and I think most of us know this, or should know as its talked about plenty enough on this board.....but depending on the value the border crossing doods are pretty good at letting people go!!