popnrock
|
posted on February 20, 2004 08:32:44 AM
I send a customer in Canada an $85 item. We sent it UPS Ground. It cost us $12.50 and he received it in two days. I received an email from him this morning. He was pleased with the item but had to pay $43/$32 US in taxes.
Why so high? Is it a UPS thing or does the post office collect high taxes too?
|
kiara
|
posted on February 20, 2004 09:11:21 AM
Never send packages by UPS to Canada because of the high brokerage fees which seem to range about $25 and up. The customer may also have to pay 7% taxes on the goods.
This Epinions.com site has some interesting comments on UPS to Canada.
http://www.epinions.com/bsrv-Office_Services-Shipping-All-UPS_Standard_to_Canada/display_~reviews
|
amber
|
posted on February 20, 2004 09:14:45 AM
It is a tax by Canada Customs called GST which is charged on all items coming into the country. We have to pay when bringing items across the border from the U.S. The problem with mail is that a private company is used to collect the taxes, which charges a pretty hefty standard handling fee, I have been caught with that several times. Probably a good thing to warn your Canadian buyers that they will probably be charged taxes on their incoming items, it's not such a shock then when they get the bill!
|
kiara
|
posted on February 20, 2004 09:52:04 AM
The problem with mail is that a private company is used to collect the taxes, which charges a pretty hefty standard handling fee,
No, that's not with mail, packages sent by USPS are okay except recipients should be aware that Canada Post will charge a $5 processing fee.
3. IMPORTING GOODS THROUGH THE POST AND BY COURIER
Parcel post shipments under $20.00 (Cdn) are duty free but subject to duty and GST on the full value if over $20.00 value. Canada Post will collect any duty owing and will charge a $5.00 processing fee. Courier shipments from the USA (UPS, PUROLATOR, FEDEX, etc.) are not much faster and are more expensive. In addition to courier charges, you may have to pay a fee for customs brokerage. Also, you'll probably have to go further to pick up your parcel if you're not home when the courier attempts delivery.
http://www.fourfold.org/LR_FAQ/FAQ.5.parts.customs.canada.html
|
amber
|
posted on February 20, 2004 10:42:17 AM
A friend in Wisconsin recently sent me 2 packages of yarn, I was charged $4.30 GST & $3.82, and 8.99 on each for a handling fee, both were send USPS.When I called and asked about it, I was told it was because I private company had a contract to collect the fees.
|
popnrock
|
posted on February 20, 2004 10:43:57 AM
Thank you for posting the information. My customers know that they have to pay the duties/taxes. I gave the customer his choice of shipping. I feel bad he was charged such a high fee. I wish I had known this before I offered UPS.
Miss J
|
kiara
|
posted on February 20, 2004 11:00:54 AM
Amber, you most likely paid GST and PST on the packages. $5.00 on each package was the Canada Post processing fee and the rest was a duty cost on the yarn. So far I am not aware that CP uses a private company to collect the fees.
|
amber
|
posted on February 20, 2004 11:22:49 AM
kiara On the form it had the GST and the rest was under handling, and that was what they told me on the phone when I called Canada customs.
|
kiara
|
posted on February 20, 2004 06:31:02 PM
Amber, yarn would most likely fall under Textiles and you would probably have to pay a duty on it. It should have been marked separately on the Customs invoice so maybe someone filled it out wrong.
You could always ask them for another explanation because it wouldn't be an added handling fee by a private company if the package was mailed to you. This info is from the Canada Post site.
Canada Post has taken over many of the material-handling and revenue-collection functions previously performed by Canada Customs. A handling fee of $5CDN per dutiable or taxable mail item is applied. This fee is in line with the government's efforts to help recover costs from those who benefit from services, and is similar to arrangements in the United States and other countries.
Parcels entering Canada through Canada Post screening centres will be inspected by Canada Customs and Revenue Agency officers and assessed for applicable Customs duties, taxes and charges. Items will be delivered along with the E14 Customs Invoice affixed indicating the assessed taxes, duties and charges that must be paid by the addressee before the package can be released to them.
http://www.canadapost.ca/tools/pg/manual/b06-e.asp#c004
|
amber
|
posted on February 20, 2004 07:13:08 PM
kiara, I think you are right about the textile thing. I once sent some sweaters to the U.S. and got a phone call from customs wanting to know all kinds of things like origin of fiber, number of threads to the inch, fiber content etc. etc. They charged me $12 for the phone call!
|
kiara
|
posted on February 20, 2004 07:20:04 PM
Which Customs? Canada or US?
|
OhMsLucy
|
posted on February 20, 2004 07:28:37 PM
I sent a box of yarn to a Canada bidder. When I got to the PO the postage was about $4-5 higher than the quote I'd taken from the USPS website. I figured maybe the box was oversize or some nonsense like that.
Now, after reading this thread, I suspect it's because it was yarn in the box. Which just shows to go you maybe oughta check those restrictions thingies at the bottom of the USPS International rate page.
Me
|
kiara
|
posted on February 20, 2004 07:34:40 PM
Lucy, the price of postage had nothing to do with the yarn that happened to be in the box. Your postage was charged by weight or size of the package, not for it being yarn.
If any duties or taxes are applied that's on the recipient's end when it reaches Canada Customs, not on your end.
|
OhMsLucy
|
posted on February 20, 2004 07:49:54 PM
Thanks, Kiara, I'm glad to know that. Guess I just messed up on the size of the box.
Oh well, can't win 'em all, right?
Lucy
|
ehansen
|
posted on February 20, 2004 09:24:35 PM
UPS shipments to Canada are horrible. I bought a giant Pez dispenser lot from a seller in South Dakota. The shipment came in 7 enormous boxes. UPS tried to charge a $30.00 brokerage fee on each box, lol. It took a week to straighten that out. With toys, at least, there isn't any duty but there is provincial sales tax and GST which adds up to 14% (in my province anyways). I'm always ready for the tax bill when I buy from the US but that brokerage fee that UPS charges is really a rip-off. Purolator charges it too but not up front (They send a bill for it after delivery). I haven't explored it yet, but one of the UPS drivers told me that I can do the paperwork myself and save the brokerage fee. I'd rather wait a little longer and have things shipped via USPS. It gets to me fine and I only have the tax to worry about.
|
nickstar
|
posted on February 22, 2004 09:15:12 AM
USPS/CanadaPost deliveries will be charged taxes/duties + $5.00 handling fee (fixed fee) (charged by Canada Customs)
UPS deliveries are charged taxes/duties (Canada Customs)
+ UPS Entry Preparation Fees ($6.70-$91.85)
(depending on value of item)
+ UPS Disbursement Fees (2.7%, $5.85 minimum)
+ UPS C.O.D. Fee (4.25)
Taxes and duties should not be a surprise to Canadian buyers/importers, but first-time buyers/importers should be notified of these additional fees when/if given different shipping options.
|
