Calling all Cdns – a Q re: duty
Jul 16, 2004 at 6:51 AM Thread Starter Post #1 of 9

Newman

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I’m thinking about ordering some headphones from the States, but I believe I’m getting conflicting information on what extra costs there will be to doing this. I thought I read on this board that duty has to be paid on any product not manufactured in the US and that there will be about a 10% brokerage fee if the product is shipped by FedEx. But, I just called Canada Customs and was told that there is no duty on headphones manufactured anywhere!? I’ve also been told that if something is shipped by USPS the brokerage fee is only a flat $5. Looking at the extremes there is a huge variance in what one might have to pay, so I’m wondering if anyone can shed some light on this for me. Has anybody actually ordered something from the US recently and what was your experience and expense?
 
Jul 16, 2004 at 11:49 AM Post #2 of 9
It's a question of terminology I believe the no DUTY they refer to are extra taxes in addition of the normal taxes you pay to the government. So there is no duty it doesn't mean there is no normal taxes. Now you legally need to pay the normal taxes TPS and provincial or the combine or whatever you have in your province.

So someone has to fill the taxes report. Post Canada they charge you 5$ fee. Which is why it is recommended to go with USPS (United State Postal Service) Because the taxes it handle by a subcontractor for Post Canada that charge you usually 5$ (unless you have a very large $$$+ then it a small % I don't remember which but not much)


Now UPS If it's below 20$ value. There is no charge because there is no taxes. Above 20$ now it get nasty. I had 2-3 package in 50$-100$ range shipped trough UPS. They have brokage fee + advance money fee + surcharge fee or whatever their scheme is which amount to around 30% +the 15% normal Taxes that make a nice 45% charge when you receive your package.

Now My last package I receive by UPS it was worst because I guess I hit the nail in their charging scheme

[copied from a previous post by me]

Total value for duty in $30USD or $41.53 Can guess how much the UPS charge me.... No guess again. $39.08 Can from that only $6.24 was actual taxes the rest it's all brokage fee. Ok I thought UPS overcharge before but close to 100% of the total value.
[/copied]

EDIT: correct typo it is UPS (I typed USP)
 
Jul 16, 2004 at 1:12 PM Post #3 of 9
Thanks Dan. I had assumed there would be taxes but somehow I didn’t connect that with the brokerage fee, but your explanation makes perfect sense. In Alberta we still have no provincial sales tax so the TPS/GST at 7% is the only tax, but if there are significant brokerage+ fees then that drives the extra cost way up. Headroom has some good prices on Sennheisers especially and if I get them shipped USPS it should still end up being significantly cheaper than if I order them through a Canadian supplier. And thanks for the warning about UPS! It’s outrageous what they charged you.

(Montreal is one of my favourite North American cites by the way, especially Vieux Montreal. That is a truly beautiful place.)
 
Jul 16, 2004 at 4:02 PM Post #4 of 9
and i thought ups screwed me.

I just bought a 500.00 dollar amp (usd) and they charged me another 160.00 canadian in duty and tax and what not.. The real kicker is that ihad to pay tax on their proccesing fee, and their brokerage fee. Adding salt to the wounds boys.
 
Jul 16, 2004 at 4:06 PM Post #5 of 9
Heres how it works for USPS -> Canada Post

If the item is shipped USPS, and it gets delivered to your house:
You pay nothing.

If the item is shipped USPS, and you miss it, and its brought back to the post office:
You pay sales tax.

There are no duties with USPS for headphones.
 
Jul 16, 2004 at 4:43 PM Post #6 of 9
I really really try and find a Canadian source for anything I buy/order. If I can't do that, I try and use USPS (United States Postal Service) because it has been my experience that I end up paying less hidden costs (Handling/Taxes/Duties) than I would through FedEx and UPS. For the most part, once a USPS parcel hits our border it gets handed to Canadian Post who deliver it. One advantage to this is 90% of the parcels delivered this way are delivered by my local postal guy who knows the house and has seen packages with my address on them before.

I can't emphasize enough the need to support Canadian suppliers tho'. Perhaps the Canadian sellers of things that make sounds or make sounds nicer should speak up or start a thread for us Canadian consumers.
 
Jul 17, 2004 at 2:17 AM Post #7 of 9
United postal service is the least expensive way to go but many retailer don't ship it that way; if item is under $20 cdn., there's no fee, if over $20, a $5 processing fee apply plus applicable gst and pst.
Ups/Fedex don't charge a brokerage fee if shipped by air, but taxes still apply; if shipped via ground, brokerage fee apply as a percentage of price indicated on form. Ups is getting nasty on the fee. The best way is to ship 3rd day (or slowest) air if item is not too heavy.
if shopping for high end earphones in canada, try www.marcopolo.ca
 

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