Customs fee for items shipped from the US to Canada?

[katbadness]

Hi guys,

I'm hoping the Canadian consumers would chime in.
I'm in Indonesia, but I'm considering having the pearls I'm purchasing (from the US) sent to my friend's address in Canada.

My question is regarding customs fee.
Is there one? And if so, how much is it (I'm assuming it's a percentage of the stated value of the item)?
Is it payable upon purchase of the items of upon arrival at destination address?

I would hate to have my friend be surprised by a customs fee upon receiving a package intended for me!

Thanks in advance.

 

[Elenayak]

Hello, I had some experience with Canadian customs. First of all, the fee is paid upon delivery. It is always 15% sales tax + other things, and it is not simple. It depends on the item, and stated country of origin, and the way it is sent. I know that UPS would charge about 50% as a brokerage fee for clearing customs. So do not use UPS. They are great in the US but in Canada very expensive. The best way to send it is regular mail (no brokerage fee) or FedEx is more reasonable than UPS. In any case, I think the best way to go about it is to call Canada Customs and Border Protection, I believe they have an 800 number, and ask them specifically. I know that sending things to Canada could be expensive for the receiver.

 

[jshepherd]

That is spot on!

 

[GemGeek]

Great advice!

 

[Katbran]

Damn...we are lucky here..we don't get charged duty on any package under 1,000 $ AUD . Does it make a difference if the pearls are finished as a necklace etc or a loose strand?

 

[pearlescence]

Loose pearls (unfinished strands or singles etc) have a different customs code to finished articles so will usually have a different rate. The codes are the same around the world, but the rates charged are up to the country.
There are two taxes possible. Duty - which is a special sort of import tax imposed on some items such as booze and purchase tax which is the tax which a country imposes on all purchases
They are due and payable as the item comes into the country - technically as it crosses the border. So it will be due at the arrival shipping depot or airport.(I bring back my pearls with me and the paperwork to bring them into Europe takes about half an hour to process and I pay the 20%VAT then and there -ouch-but loose pearls attract no duty. Finished jewellery does. I understand from Jeremy that the USA customs is much more difficult and so he gets everything shipped and leaves it to a broker to sort out. The rate of duty is much less ouch too!)
UPS is known as useless parcel service in the UK. They are terrible at customs clearing - take ages, usually impose the wrong rate of duty and their brokerage fee is huge. DHL is very good for importing to the UK. very fast and efficient. Fedex is so-so.
No idea what the duty and tax rates are for into Canada, which is what you really need to know.

 

[Lagoon Island Pearls]

Gifts or samples with no declared value are exempt.

UPS delivery is not available outside of major centers. FedEx uses DHL as an interline courier and charge about 25% in brokerage fees, that is paid upon delivery. It's quite fast. I've ordered items from China and had them delivered in as little as 48 hours, even to a remote location like mine.

Delivery by Canada Post will often be delayed for Customs Inspection, but duty fees vary according to the tariffs and the country of origin. They deliver the package as normal and bill the consignee later. The percentages are rarely as high as brokerage fees from couriers. Pearls are no threat to the Canadian economy, so the duty is small or non-existent. Finished jewelry though can be quite high, depending on the declared value or the components it's made from. Canada Customs is not motivated to gouge or assess unreasonable values and trust the shipper's declaration. They are more concerned about hazardous materials, pharmaceuticals, products from endangered species, plant or seed products that are a threat to agriculture or any form of weapons.

We have a free trade agreement with the USA and Mexico (NAFTA) and only a handful of wholesale commercial goods are taxed. Most general items are exempt.

GST (Goods and Services Tax) is applied to all things shipped to Canada with a declared value at 6%. PST (Provincial Sales Tax) is not applied to products shipped from out of province.

 

[Amrita]

A real case scenario that I thought would be relevant to this discussion.

Here is what a lovely Canadian customer had to pay on a finished pearl item shipped to her from China via Fedex:

"The pearls with the conversion to CAD were valued for duty at $458.26. Based on that amount I paid $38.95 in customs/duties, $24.86 in tax which is our provincial tax and then a $11.30 Fedex fee (10.00 plus tax). So in total it was $75.11."

Hope this helps, katbadness!

 

[pearlescence]

canada and the EU have just signed a trade deal which should simplify and make a lot cheaper trade between us. Hurrah

 

[Nerida]

Damn...we are lucky here..we don't get charged duty on any package under 1,000 $ AUD . Does it make a difference if the pearls are finished as a necklace etc or a loose strand?

Oh but we do if it is for commercial purposes and declared as it should be... certainly personal purchases under 1000 AUD have no tax (GST) or duty.