Canada customs and duty information - venting

Shane Presley

Shane Presley

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Jan 12, 2011
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Ottawa, Ontario, Canada
www.bssproductions.com
So i've spent the morning arguing with my customs broker, and enquiring at CBSA ( Canadian Border Security Agency). It would seem that someone in this country decided it would be perfectly ok to charge someone duty on items that were defective, and then charge them again for the warranty replacement items. Yes folks I paid duty ( not tax) on a broken item that wasn't in this country longer than 48 hours, and I have now paid duty on the "working replacement". I've now been shown the verse and chapter Memorandum D8-2-10.
Replacement Goods

23. Where a replacement good is provided to a customer rather than repairing the original good, the replacement good is classified under Chapters 1 to 97 of the Customs Tariff and full customs duties are owing. The importation of the replacement good is generally subject to GST/HST, unless the conditions of section 5 of Schedule VII to the Excise Tax Act are met.

24. GST/HST relief under section 5 is available whether the warranty relates to tangible personal property or to property that has been incorporated into real property. 25. Where the conditions of section 5 are met, GST/HST Tax Status Code 55 is entered in field 35. The invoice or written statement from the non-resident supplier must provide the value of the replacement good even where there is no charge to the importer.

So to make a point, US re-sellers please ensure you ship working items otherwise Canadian buyers... be ready with the lube.

This makes me want to move south... seriously
 
Re: Canada customs and duty information - venting

Yep, been there, done that, really sucks! :(

This is why I steer clients to buying products that are well represented in Canada by a local rep firm that has their own service department, or will handle all the hassles of managing warranty service across the border.

Memo to USA manufacturers: don't treat Canada like a 51st state if you really want your products to sell here (or want me to specify them). A "local" rep that doesn't even live in our country is equally as shortsighted.
 
Re: Canada customs and duty information - venting

Arthur Skudra said:
Yep, been there, done that, really sucks! :(

This is why I steer clients to buying products that are well represented in Canada by a local rep firm that has their own service department, or will handle all the hassles of managing warranty service across the border.
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Click to expand...

I try to buy from local Canadian sources for that reason, but the price difference often out wieghs these obstacles... In this case the item I purchased (albeit a chinese clone) was one third of canadian dealer of the "real deal"... I got an eye opener this morning though, and I'll be a little more hesitant in purchasing across the boarder (or at least estabilsh some retrun policy before pulling the trigger).
 
Re: Canada customs and duty information - venting

So this sucks, eh?

Seriously, is there a way to get the import duties refunded when the defective device is returned?

It would be interesting to get the take from your elected representative.

Good luck, Shane.
 
Re: Canada customs and duty information - venting

Tim McCulloch said:
So this sucks, eh?

Seriously, is there a way to get the import duties refunded when the defective device is returned?

It would be interesting to get the take from your elected representative.

Good luck, Shane.
Click to expand...

I went through something similar where the paperwork didn't spell out clearly enough that the shipment was being returned to the manufacturer for repair, so it looked like I was selling it (their own product) to them..

the flat rate for "re-stating" paperwork with US customs... $90!

Jason
 
Re: Canada customs and duty information - venting

Jason Lavoie said:
I went through something similar where the paperwork didn't spell out clearly enough that the shipment was being returned to the manufacturer for repair, so it looked like I was selling it (their own product) to them..

the flat rate for "re-stating" paperwork with US customs... $90!

Jason
Click to expand...

It's good to see that silliness exists on both side of the border...
 
Re: Canada customs and duty information - venting

<rant on shipping to Canada>

I sold my 01v96 a few days ago on eBay to a buyer in Ontario. USPS makes shipping with them as painful as possible. First, I had to show up at a post office in person because I wanted to insure the package for over a few hundred dollars. (You cannot do this online) Then the weight of the package was a pound or two over my estimation. (I estimated 35 lb. for a 33 lb. console + packaging).

The USPS worker told me I had to go home, cancel the shipment, and create a new one. For some reason they couldn't just charge me the difference there. So after canceling the first label, USPS told me that I have to wait 14 days to hear if my refund request is even approved! If I don't get the refund, I'm out that money! Granted, I'm sure it'll be approved.

USPS also didn't offer a service that I could find to estimate the insurance cost on the item. I charged the buyer and inflated amount for shipping, estimating on my own. (I don't intent to screw him on the shipping cost- I told him I'll refund him the difference, pass along the receipt, and charge him what USPS charges me.)

But the buyer told me that he will only have a $5 flat fee on his end if I ship through USPS, or potentially hundreds in fees with UPS.

I have never had a problem shipping via FedEx, DHL, or UPS. I've shipped internationally with UPS and DHL. I guess this is why USPS is broke.

</rant>
 
Re: Canada customs and duty information - venting

Indeed, whenever I buy stuff on eBay from outside of Canada, my preferred method of shipping is the postal service if I'm not in a hurry. If it's a small enough item in value (less than $50), I don't get charged any fees or taxes! With the other couriers, I almost always get dinged with outrageous fees, even for a $10 item!! Most of the stuff I buy from the USA I have shipped to a receiver just across the border from me, then I import the stuff myself, which reminds me, need to pick up some stuff next week! :)
 
Re: Canada customs and duty information - venting

That is pretty crazy! I have not run into any of these problems shipping to Canada but usually ship UPS. I have been amazed sometimes at the shipping cost though. Even headed to Montreal which is only an hour and a half away.
 
Re: Canada customs and duty information - venting

David Karol said:
<rant on shipping to Canada>

I sold my 01v96 a few days ago on eBay to a buyer in Ontario. USPS makes shipping with them as painful as possible. First, I had to show up at a post office in person because I wanted to insure the package for over a few hundred dollars. (You cannot do this online) Then the weight of the package was a pound or two over my estimation. (I estimated 35 lb. for a 33 lb. console + packaging).

The USPS worker told me I had to go home, cancel the shipment, and create a new one. For some reason they couldn't just charge me the difference there. So after canceling the first label, USPS told me that I have to wait 14 days to hear if my refund request is even approved! If I don't get the refund, I'm out that money! Granted, I'm sure it'll be approved.

USPS also didn't offer a service that I could find to estimate the insurance cost on the item. I charged the buyer and inflated amount for shipping, estimating on my own. (I don't intent to screw him on the shipping cost- I told him I'll refund him the difference, pass along the receipt, and charge him what USPS charges me.)

But the buyer told me that he will only have a $5 flat fee on his end if I ship through USPS, or potentially hundreds in fees with UPS.

I have never had a problem shipping via FedEx, DHL, or UPS. I've shipped internationally with UPS and DHL. I guess this is why USPS is broke.

</rant>
Click to expand...

I think I can speak for most Canadians when i say that I loath UPS, Fedex, etc.
 
I used to ship A LOT of vintage guitars in a former line of work, all over the world on a daily basis... Canadian shipments are a bit tricky as they seem to always find a fee or hang-up to throw at you, when using the post office (USPS) on this end.

Italy takes the prize though... The amount of guitars that "went missing" in their customs offices was just silly. After a suggested fee was paid, they generally were able to find the missing items... Not always though
 
Re: Canada customs and duty information - venting

Tim McCulloch said:
Seriously, is there a way to get the import duties refunded when the defective device is returned?
Click to expand...

Tim, we've tried recovering duty on items returned from Canada by our distributor, where said duty would be a few hundred bucks. We've also tried it when returning items to Italy, where duty would be a few grand. In both cases it is not worth the hassle. Unbelievable, I know.
 
Re: Canada customs and duty information - venting

From what I understand with UPS to Canada, if you ship by air they handle the customs and brokerage for you but if you ship UPS ground you get nailed. often the extra cost of air is less than the cost of brokerage and you get your stuff way faster.

Jason
 
Re: Canada customs and duty information - venting

David Karol said:
But the buyer told me that he will only have a $5 flat fee on his end if I ship through USPS, or potentially hundreds in fees with UPS.
Click to expand...

Your buyer was right. $5 plus the sales tax.
I live close to the border so for large items I have them shipped (I use Kinek service) to the US and drive over to get them. For everything else, I avoid buying unless the seller can ship USPS for this very reason.

On one occasion with UPS (item shipped to me from US seller), the customs fee was almost double the item's value. That was an expensive lesson. The other time I shipped UPS into the USA, UPS damaged the item (completely annihilated is a better description), did not deliver it, returned it to me broken, and would not honor the insurance or even refund the shipping fee because there were some components that contained glass, and that apparently voided the insurance. I was out about $450 when it was all said and done when you consider the shipping fees plus the value of the destroyed item. I made many calls and complaints to UPS but got nowhere.

Needless to say, I don't use UPS cross border anymore. USPS and their equivalent Canada Post are slow but I have never had a problem with them.
 
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