Discussion - Member to Member Sales - Research Center
Discussion - Member to Member Sales - Research Center
Do all packages sent to Canada from the US incur a tax of some sort? If so, is the tax based on the value of the contents? For example if the declared value is $100 US, is there a custom duty or tariff charge? If the declared value is 0 dollars, same question?
I know that the contents make a difference, but can find nothing regarding used postage stamps. I recently mailed a 7 lb box of used postage stamps with a declared value of $100 through UPS. Went that route because UPS was $20 cheaper than USPS. There was a $47 Canadian Customs Duty tax required to be paid by the recipient. I have mailed large packages to the Holocaust project through USPS with a declared value of $100 and never had a problem. Is the problem with UPS or what?
What happens if I mail a 20 lb box to the Holocaust Project? Do I declare a value or not?
Can someone please enlighten me?
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Here's my limited understanding - it's like a crap shoot!! I used to be an antique dealer and quite often ordered lots on E-Bay, the only things that were pretty well always going to have duty charged were jewelry lots. Antiques (over 100 years) were usually duty free and now I believe they are supposed to be. But every once in a while the person checking out the item gets a bit weird. About a year ago I bought a very old piece of glass from a dealer in The States, customs looked at this 150 year old piece of pressed glass and charged duty calling it "cut crystal". Quite often the people sending the items don't give proper values or descriptions to discourage theft. Now I believe everything over 50 years old is duty free, but they will usually charge GST - but not always, it's still very much a crap shoot since nothing appears to be consistent. So, the stamps would probably qualify for duty ( under 50 years old ) if they decide to charge it. Also GST or HST could be charged. Again, don't expect consistency! The best way to find out for sure is to find the regulations on line and try to figure them out - good luck. By the way, the Canadian Post Office no longer does money orders in foreign funds, so now we have to pay for bank drafts!
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From USPS regs;
123.633 Customs Forms Required
The following are examples of items that are required to bear a customs declaration form and for which the mailer must declare a value:
CDs, DVDs, flash drives, video and cassette tapes, and other digital and electronic storage media — regardless of whether they are blank or contain electronic documents or other prerecorded media.
Artwork.
Collector or antique document items.
Books.
Periodicals.
Printed music.
Printed educational or test material.
Player piano rolls.
Commercial engineering drawings.
Commercial blueprints.
Film.
Negatives.
X-rays.
Separation negatives.
Commercial photographs
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Couple of additional websites that apply as regards Canada, assume similar applies throughout the UPU.
https://www.cbsa-asfc.gc.ca/import/postal-postale/dtytx-drttx-eng.html
https://www.cbsa-asfc.gc.ca/publications/dm-md/d5/d5-1-1-eng.html
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12:51:09pm
Mel,
I saw your earlier post about shipping the box to Canada and was going to post a warning, but I thought "Nah, don't be a know-it-all armchair quarterback", especially since you reported it as already done. Unfortunately, you experienced exactly the circumstances that I would have warned about.
I am in Canada, and I import a great deal of material from the US, in both small and large shipments. I currently have two multi-box shipments on the way consisting of 7 boxes and 10 boxes from different sources. The typical box is around 20-25lbs. These are coming via UPS. I also get many smaller lots via USPS. Import clearance and duty/tax is something I know about.
Here is the skinny:
1) There is no "duty" on stamps, however Canada does have Federal Sales Tax. Depending on the province, it is called GST (Goods and Services Tax) or HST (Harmonized Sales Tax). HST is for the provinces that rolled their provincial sales taxes into the Federal tax and allow the Feds to collect it for them. Depending on the province of delivery and whether that particular province subscribes to HST, the rate is from 5% to 15%. It applies to (almost) everything, but is not always collected. Read on.
2) The bulk of the charge you experienced is not the HST. It would be the brokerage charge for clearing the package through customs by UPS. Typically, all courier companies will charge extra for clearance for ground shipments, but include it in their Express Air shipments (whatever they call their service). That includes UPS, Fedex etc. Regardless of any brokerage charge, they still have to collect the tax on the declared value for the government. The "de minimus" value where they are not required to clear is only C$20.
3)Canada Post also hands packages off to Canada Customs for clearance, however Customs exercise a great deal more discretion in what they stop and assess. I have often received parcels with several hundred dollars value declared that were not stopped. If Canada Customs does stop and assess it, there is a flat clearance fee of C$10 plus the appropriate sales tax for the province. It is always a toss-up whether they will stop and charge a particular package. The odds are that your parcel would not have been stopped and assessed if sent by USPS/Canada Post.
4) If you want to look like an expert when filling out the Customs Forms, the Tariff codes applicable to stamps are the following:
Stamps and covers : 9704.00.00.00
Unused stamps that may still be used for postage: 4907.00.00
I love UPS. All my large shipments come via my UPS account. I typically pay about C$80 customs brokerage fee to them to clear a $2000 shipment, plus the sales tax.
Small lots, I always ask to have shipped via USPS because the bulk of them come through without charge, and if stopped the clearance fee is only $10 (probably C$30-40 for a small shipment through UPS). I do not worry about the sales tax component because as a registered seller, it all washes out on my sales tax return at the end of the year (it is a value added tax - one remits the difference between what one collects and the tax that one has paid on allowable expenses).
Roy
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All too familiar story. CBSA will do everything possible to collect fees on whatever goes through its hands.
What is paid is the following:
Canada Post Processing Fee : $9.95 (flat rate)
GST on goods: 5% on the declared value. (US values are converted into Canadian dollars and then taxed)
Custom Duties if the item is not made in North America (can't remember the tax %)
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First, let me thank everyone for your responses. Roy, I would never think of you as an know-it-all armchair quarterback. I respect your wealth of knowledge and I should have asked you before I went off the deep end.
So, let me see if I understand. Regardless of how I shipped the item (USP or USPS), the chances are the recipient would still have to pay some sort of tax, fee or custom duty. This is all surprising to me since I have shipped to the Canadian Holocaust project before via USPS and as far as I know, they did not have to pay any kind of fee. I filled out the required custom form indicating used postage stamps and a declared value of $25.
I was planning to ship a 20 lb box to an individual to sort and sell on SOR to raise money for the Holocaust Project. However, I do not want the individual to have to pay any kind of tax, fee or custom duty.
I guess my real question is, what is the cheapest way to send an item to someone in Canada?
And I think my answer will be depends on the time of day and which province I am sending to.
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03:19:00pm
"20 lb box to an individual to sort and sell on SOR to raise money for the Holocaust Project. However, I do not want the individual to have to pay any kind of tax, fee or custom duty."
Definitely use USPS / Canada Post.
For a 20 lb box, the odds of it getting through Customs with no charges go down significantly relative to a smaller parcel. If it is kiloware, you could declare it at $1/lb or $20 and you would probably be ok. If it included albums etc, that might create some questions about the declared value unless it was accompanied by an actual commercial invoice, in which case a $50 valuation could pass.
In your case, you should also address it to the "Holocaust Stamps Project" and check the "gift" box on the declaration, and also clearly indicate that it is a donation. Odds are very high that it would get through without charges. If you declared C$50 (US$37.50) and it got stopped, the charges would be $10 + $50 x 13% (Ontario), or $10 + $50 x 5% (Alberta and other GST only provinces). There is no way to be sure to completely avoid "any kind of tax or fee ..".
"I have shipped to the Canadian Holocaust project before via USPS and as far as I know, they did not have to pay any kind of fee. I filled out the required custom form indicating used postage stamps and a declared value of $25."
That's the "under the radar" type of package that they don't stop.
Roy
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Thanks Roy,
I will ask individual if he wants to take the risk. Will address to his address, but use Holocaust Stamps Project and indicate that it is a gift and make clear that it is a donation.
Again, thanks for your time and help.
Regards, Mel
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In my experience the most important thing is to declare the value as zero or gift or minimal declared value as already pointed out. After that its a crap shoot ... spent many years on both sides of the border and there is no rhyme or reason to the application ... its either the regulations are vague or the folks applying them are vague as to the application or its just random luck as to whether anyone even looks at the package
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I was reading the posts after the one I made. The one thing I always try to remember to tell people is "Do not use UPS!". They charge a brokerage fee at the border that is sometimes more than the worth of the item - I know, it happened to me a few years ago! I assumed you were using the regular postal service. Again, DO NOT USE U.P.S.!!
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12:28:40pm
"DO NOT USE U.P.S."
For single parcels, you are correct. When I get shipments of anywhere from 5 to 25 1.5 cu. ft. boxes, each weighing 25-30 lbs, they are the ONLY way to go!
Roy
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Sorry Roy, didn't know that since I've only had experience with single parcels.
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OK, I admit that I am totally lost.
Do all packages sent to Canada from the US incur a tax of some sort? If so, is the tax based on the value of the contents? For example if the declared value is $100 US, is there a custom duty or tariff charge? If the declared value is 0 dollars, same question?
I know that the contents make a difference, but can find nothing regarding used postage stamps. I recently mailed a 7 lb box of used postage stamps with a declared value of $100 through UPS. Went that route because UPS was $20 cheaper than USPS. There was a $47 Canadian Customs Duty tax required to be paid by the recipient. I have mailed large packages to the Holocaust project through USPS with a declared value of $100 and never had a problem. Is the problem with UPS or what?
What happens if I mail a 20 lb box to the Holocaust Project? Do I declare a value or not?
Can someone please enlighten me?
Login to Like
this post
12:18:29pm
re: Custom Duties and Tariffs in Canada
Here's my limited understanding - it's like a crap shoot!! I used to be an antique dealer and quite often ordered lots on E-Bay, the only things that were pretty well always going to have duty charged were jewelry lots. Antiques (over 100 years) were usually duty free and now I believe they are supposed to be. But every once in a while the person checking out the item gets a bit weird. About a year ago I bought a very old piece of glass from a dealer in The States, customs looked at this 150 year old piece of pressed glass and charged duty calling it "cut crystal". Quite often the people sending the items don't give proper values or descriptions to discourage theft. Now I believe everything over 50 years old is duty free, but they will usually charge GST - but not always, it's still very much a crap shoot since nothing appears to be consistent. So, the stamps would probably qualify for duty ( under 50 years old ) if they decide to charge it. Also GST or HST could be charged. Again, don't expect consistency! The best way to find out for sure is to find the regulations on line and try to figure them out - good luck. By the way, the Canadian Post Office no longer does money orders in foreign funds, so now we have to pay for bank drafts!
Login to Like
this post
re: Custom Duties and Tariffs in Canada
From USPS regs;
123.633 Customs Forms Required
The following are examples of items that are required to bear a customs declaration form and for which the mailer must declare a value:
CDs, DVDs, flash drives, video and cassette tapes, and other digital and electronic storage media — regardless of whether they are blank or contain electronic documents or other prerecorded media.
Artwork.
Collector or antique document items.
Books.
Periodicals.
Printed music.
Printed educational or test material.
Player piano rolls.
Commercial engineering drawings.
Commercial blueprints.
Film.
Negatives.
X-rays.
Separation negatives.
Commercial photographs
Login to Like
this post
re: Custom Duties and Tariffs in Canada
Couple of additional websites that apply as regards Canada, assume similar applies throughout the UPU.
https://www.cbsa-asfc.gc.ca/import/postal-postale/dtytx-drttx-eng.html
https://www.cbsa-asfc.gc.ca/publications/dm-md/d5/d5-1-1-eng.html
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17 Sep 2019
12:51:09pm
re: Custom Duties and Tariffs in Canada
Mel,
I saw your earlier post about shipping the box to Canada and was going to post a warning, but I thought "Nah, don't be a know-it-all armchair quarterback", especially since you reported it as already done. Unfortunately, you experienced exactly the circumstances that I would have warned about.
I am in Canada, and I import a great deal of material from the US, in both small and large shipments. I currently have two multi-box shipments on the way consisting of 7 boxes and 10 boxes from different sources. The typical box is around 20-25lbs. These are coming via UPS. I also get many smaller lots via USPS. Import clearance and duty/tax is something I know about.
Here is the skinny:
1) There is no "duty" on stamps, however Canada does have Federal Sales Tax. Depending on the province, it is called GST (Goods and Services Tax) or HST (Harmonized Sales Tax). HST is for the provinces that rolled their provincial sales taxes into the Federal tax and allow the Feds to collect it for them. Depending on the province of delivery and whether that particular province subscribes to HST, the rate is from 5% to 15%. It applies to (almost) everything, but is not always collected. Read on.
2) The bulk of the charge you experienced is not the HST. It would be the brokerage charge for clearing the package through customs by UPS. Typically, all courier companies will charge extra for clearance for ground shipments, but include it in their Express Air shipments (whatever they call their service). That includes UPS, Fedex etc. Regardless of any brokerage charge, they still have to collect the tax on the declared value for the government. The "de minimus" value where they are not required to clear is only C$20.
3)Canada Post also hands packages off to Canada Customs for clearance, however Customs exercise a great deal more discretion in what they stop and assess. I have often received parcels with several hundred dollars value declared that were not stopped. If Canada Customs does stop and assess it, there is a flat clearance fee of C$10 plus the appropriate sales tax for the province. It is always a toss-up whether they will stop and charge a particular package. The odds are that your parcel would not have been stopped and assessed if sent by USPS/Canada Post.
4) If you want to look like an expert when filling out the Customs Forms, the Tariff codes applicable to stamps are the following:
Stamps and covers : 9704.00.00.00
Unused stamps that may still be used for postage: 4907.00.00
I love UPS. All my large shipments come via my UPS account. I typically pay about C$80 customs brokerage fee to them to clear a $2000 shipment, plus the sales tax.
Small lots, I always ask to have shipped via USPS because the bulk of them come through without charge, and if stopped the clearance fee is only $10 (probably C$30-40 for a small shipment through UPS). I do not worry about the sales tax component because as a registered seller, it all washes out on my sales tax return at the end of the year (it is a value added tax - one remits the difference between what one collects and the tax that one has paid on allowable expenses).
Roy
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re: Custom Duties and Tariffs in Canada
All too familiar story. CBSA will do everything possible to collect fees on whatever goes through its hands.
What is paid is the following:
Canada Post Processing Fee : $9.95 (flat rate)
GST on goods: 5% on the declared value. (US values are converted into Canadian dollars and then taxed)
Custom Duties if the item is not made in North America (can't remember the tax %)
Login to Like
this post
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re: Custom Duties and Tariffs in Canada
First, let me thank everyone for your responses. Roy, I would never think of you as an know-it-all armchair quarterback. I respect your wealth of knowledge and I should have asked you before I went off the deep end.
So, let me see if I understand. Regardless of how I shipped the item (USP or USPS), the chances are the recipient would still have to pay some sort of tax, fee or custom duty. This is all surprising to me since I have shipped to the Canadian Holocaust project before via USPS and as far as I know, they did not have to pay any kind of fee. I filled out the required custom form indicating used postage stamps and a declared value of $25.
I was planning to ship a 20 lb box to an individual to sort and sell on SOR to raise money for the Holocaust Project. However, I do not want the individual to have to pay any kind of tax, fee or custom duty.
I guess my real question is, what is the cheapest way to send an item to someone in Canada?
And I think my answer will be depends on the time of day and which province I am sending to.
Login to Like
this post
BuckaCover.com - 80,000 covers priced 60c to $1.50 - Easy browsing 300 categories
17 Sep 2019
03:19:00pm
re: Custom Duties and Tariffs in Canada
"20 lb box to an individual to sort and sell on SOR to raise money for the Holocaust Project. However, I do not want the individual to have to pay any kind of tax, fee or custom duty."
Definitely use USPS / Canada Post.
For a 20 lb box, the odds of it getting through Customs with no charges go down significantly relative to a smaller parcel. If it is kiloware, you could declare it at $1/lb or $20 and you would probably be ok. If it included albums etc, that might create some questions about the declared value unless it was accompanied by an actual commercial invoice, in which case a $50 valuation could pass.
In your case, you should also address it to the "Holocaust Stamps Project" and check the "gift" box on the declaration, and also clearly indicate that it is a donation. Odds are very high that it would get through without charges. If you declared C$50 (US$37.50) and it got stopped, the charges would be $10 + $50 x 13% (Ontario), or $10 + $50 x 5% (Alberta and other GST only provinces). There is no way to be sure to completely avoid "any kind of tax or fee ..".
"I have shipped to the Canadian Holocaust project before via USPS and as far as I know, they did not have to pay any kind of fee. I filled out the required custom form indicating used postage stamps and a declared value of $25."
That's the "under the radar" type of package that they don't stop.
Roy
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re: Custom Duties and Tariffs in Canada
Thanks Roy,
I will ask individual if he wants to take the risk. Will address to his address, but use Holocaust Stamps Project and indicate that it is a gift and make clear that it is a donation.
Again, thanks for your time and help.
Regards, Mel
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this post
12:19:40am
re: Custom Duties and Tariffs in Canada
In my experience the most important thing is to declare the value as zero or gift or minimal declared value as already pointed out. After that its a crap shoot ... spent many years on both sides of the border and there is no rhyme or reason to the application ... its either the regulations are vague or the folks applying them are vague as to the application or its just random luck as to whether anyone even looks at the package
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11:48:28am
re: Custom Duties and Tariffs in Canada
I was reading the posts after the one I made. The one thing I always try to remember to tell people is "Do not use UPS!". They charge a brokerage fee at the border that is sometimes more than the worth of the item - I know, it happened to me a few years ago! I assumed you were using the regular postal service. Again, DO NOT USE U.P.S.!!
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BuckaCover.com - 80,000 covers priced 60c to $1.50 - Easy browsing 300 categories
18 Sep 2019
12:28:40pm
re: Custom Duties and Tariffs in Canada
"DO NOT USE U.P.S."
For single parcels, you are correct. When I get shipments of anywhere from 5 to 25 1.5 cu. ft. boxes, each weighing 25-30 lbs, they are the ONLY way to go!
Roy
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01:19:42pm
re: Custom Duties and Tariffs in Canada
Sorry Roy, didn't know that since I've only had experience with single parcels.
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