Canada Import Tax

[Doug Rose]

I got this message from a Canadian eBayer. Terry or Dave can you help me on this? I have never heard of an import tax when sending to Canada and we ship the USPS medium Priority flat box rate. Is this new?...thanks....Doug

Dear jflowres,

Import charges !.. its stupid...we pay for the phone and the shipping, so its enough.  this phone cost about maximum $50 shipping about $25 -$30. This phone is interesting but I won't buy from you..sorry for the comment.

Dear jflowres,

Import charges !.. its stupid...we pay for the phone and the shipping, so its enough.  this phone cost about maximum $50 shipping about $25 -$30. This phone is interesting but I won't buy from you..sorry for the comment.

[DavePEI]

I got this message from a Canadian eBayer. Terry or Dave can you help me on this? I have never heard of an import tax when sending to Canada and we ship the USPS medium Priority flat box rate. Is this new?...thanks....Doug

Hi Doug:

Was this by any chance a shipment sent via UPS? Then he might have something to complain about.

There are no import duties on phone items coming from the U.S. There haven't been for many years, since Free Trade began. However, as is with all items bought, there is a federal and provincial blended GST tax owed in the amount of 15%. This same tax is charged on items purchased in Canada. A portion of this goes to the Canadian Federal government, and a portion to your customer's local  Provincial government.

Ask your customer if he thinks it is fair for Canadians to have to pay GST on purchases made here, but not to have to pay GST on items imported? Well, whether I or anyone else feels it is fair, it is reasonable to have to pay it under both situations. [I confess, I hate it too, but understand why it works that way.]

Now, why did I ask about UPS? They are notorious for tacking onto the already high cost of shipments from the U.S. to Canada, a "Customs Clearance" fee in addition to cost of the shipping and GST. Their charge for customs clearance is in excess of $35 base rate and goes up from there depending on the cost of the item. This same charge also exists for items going from Canada to the US. So the moral is avoid UPS unless local taxes are paid at the source if a shipment is going across a border - any border. If taxes are paid directly to the retailer, (as is what happens when you use a major retailer, i.e. Best Buy, etc.), there is no additional tax or clearance fee to be paid.

If an item is caught by Customs when going USPS, the charge for the same service is a flat, more reasonable $5.00, plus the applicable tax. What will happen when the item arrives, is it will come COD, and you will have to pay the blended GST plus the $5 clearance fee.

Fedex is somewhere between, charging a more reasonable clearance charge than UPS, but still IMHO, too much. That is why, though it is slower, I prefer to receive all items via USPS/Canada Post.

I must point out that the tax paid isn't an import tax. It is the same tax everyone pays even on items made and sold in Canada. It is a blend of the old Federal Sales tax and Provincial Sales taxes. Even if you receive an item via post which doesn't get caught by Customs, there is still a tax liability - you are supposed to report the purchase and pay tax on it.

However, when bumped up via UPS's "clearance" fees, it can make a buyer reach the breaking point. Even when not, postage/shipping is very expensive to Canada, which results in my having difficulty why people complain about the cost of shipping from Canada. It is because we are used to it. Yes, it hurts, but no, it won't make me stop buying from the States. But when one thinks about it, a one dollar shipping charge, plus tax on a one dollar item, is a pretty darn hard pill to swallow.

What drives me crazy are all the Northern Electric, or Made in Canada GTE items available in the US that we can't get here, and which we have to pay much more if we want them in our collections because they are all in the States now. It sucks to be a Canadian Collector

But that is collecting, though. But the main point is THERE IS NO IMPORT TAX, only added customs clearance fees and taxes you would have to pay anyway if bought in Canada (blended GST).

So it looks as though your customer doesn't understand the tax he pays is simply the blended GST tax he would owe even on an item bought here. It isn't a special import tax or a duty charge.

Dave

[GTE Rick]

Dave

So what are the Canadian made GTE/NE items of which you speak...

Just Curious,  Rick

What drives me crazy are all the Northern Electric, or Made in Canada GTE items available in the US that we can't get here, and which we have to pay much more if we want them in our collections because they are all in the States now.   

[DavePEI]

Hi Rick:

No specific items. If you look at NE or Canadian GTE listings on eBay, you will note 90% of them are from sellers in the U.S. wheras you would expect the majority to have been from Canadian sellers. This puts us at a distinct disadvantage,  as to return them to Canada, it costs us not only the exchange on the dollar, higher postage, etc. Even more frustrating is when sellers refuse to ship items back to Canada even if you out-bid other buyers. I have had exactly that happen recently with the sellers of two Phillips Electrical Works phones (Brockville, Ont pre 1954 AE), which I collect as I am originally from Brockville, and grew up with both the Phillips plant and the newer GTE/AE plant on Strowger Blvd. Too much trouble to make out the simple customs declaration is their excuse.

It reminds me of years ago here on PEI, where when you left the Island at the ferries, you would see line-ups of US pickers trucks filled to the gills carrying the Island's history off the Island. I remember back then, an average of at least once a week a picker would drive in the driveway and ask to go through the house. We always sent them packing.

So, it is a frustration, but like I said, that is collecting these days.

Dave

Dave

So what are the Canadian made GTE/NE items of which you speak...

Just Curious,  Rick

What drives me crazy are all the Northern Electric, or Made in Canada GTE items available in the US that we can't get here, and which we have to pay much more if we want them in our collections because they are all in the States now.

[Doug Rose]

Dave....not even a sale, not even a question...just a rant. We always ship USPS medium priority to Canada and I have never had a problem.  thanks...Doug

[Contempra]

I have also found that a seller from the USA, it should charge an import tax depending on the amount of the sale ( Import charge ) . Its a non-sens we live in america.


FRENCH: j'ai aussi constaté qu'un vendeur à partir des USA, il doit charger une taxe d'importation selon le montant de la vente ( taxe d'importation ). C'est un non-sens étant donné qu'on vit en Amérique.


This is my opinion

[DavePEI]

I have also found that a seller from the USA, it should charge an import tax depending on the amount of the sale ( Import charge ) . Its a non-sens we live in america.


FRENCH: j'ai aussi constaté qu'un vendeur à partir des USA, il doit charger une taxe d'importation selon le montant de la vente ( taxe d'importation ). C'est un non-sens étant donné qu'on vit en Amérique.


This is my opinion

That seller is trying to defraud you. Call Customs and they will tell you - there is no such thing as an import tax, only blended GST as on any item you buy in Canada. He may be referring to a customs clearance charge if he uses a courier, but that has nothing to do with a tax. A customs clearance charge is a charge for doing the psperwork and for forwarding collected blended GST tax to Revenue Canada.

The only exceptions are large companies who collect at the source (Target, Amazon, Best Buy, etc.)- they are licensed to collect blended GST for Rev. Canada. If so, no matter how they send, there will be no additional tax or brokerage fees beyond the total of their invoice.

Dave

[Contempra]

Hello Dave. Here is what I want to say: Just an exemple on eBay that I give but it is real.....

Shipping:

US $18.95  (approx. C $20.86)   International Priority Shipping  to Canada help icon for Shipping - opens a layer 


Item location:

Strongsville, Ohio, United States


Ships to:

United States and many other countries |  See details   


Import charges:

US $4.84   (estimated and based on current bid)



As you see, the Import charges raise if the price change and if someone else put a higher bid...May be i'm wrong but....When I see this, I'm not interested to buy something fron USA ... I'm sure that its the samething for the contact that doug received.....

[DavePEI]

Ahh, I see what you are talking about. That isn't a shipping charge or an Import charge. That is the charge from the Global Shipping program to handle the paperwork and to forward the package. It has nothing to do with a tax. See our previous discussion on the Global Shipping Program.

The seller ships the item to them, they make out the paperwork and forward the package on to you. This is their charge for doing that.

This only happens on items bought using eBay's Global Shipping Program. It is the same as with using a courier and paying customs clearance charges...

If you notice, sellers who do ship directly to Canada do not have this charge.

http://www.classicrotaryphones.com/forum/index.php?topic=10625.msg118122#msg118122

Only items bought through the GSP will have this charge. It is not a government charge.

Dave

[Contempra]

Ahh, I see what you are talking about. That isn't a shipping charge or an Import charge. That is the charge from the Global Shipping program to handle the paperwork and to forward the package. It has nothing to do with a tax. See our previous discussion on the Global Shipping Program.

The seller ships the item to them, they make out the paperwork and forward the package on to you. This is their charge for doing that.

This only happens on items bought using eBay's Global Shipping Program. It is the same as with using a courier and paying customs clearance charges...

http://www.classicrotaryphones.com/forum/index.php?topic=10625.msg118122#msg118122

O)nly items bought through the GSP will have this charge. It is not a government charge.

Dave

Oh well !... it's okay but.....can we save money in our wallet cliss ?... we need to be riched to buy from USA or other countries !.... i only buy from Canada that's all lololol... from you if you ever have something to sell..if i'm interested..... lolll.. Anyway, thank you for you explanation Dave.. you're a Buddy or a friend. what ever ...

PS: Dave  if you have an handset  1953 to sell one of these days, let me know....... at a good price hein ! otherwise, I don,t buy hahahaha

[DavePEI]

Oh well !... it's okay but.....can we save money in our wallet cliss ?... we need to be riched to buy from USA or other countries !.... i only buy from Canada that's all lololol... from you if you ever have something to sell..if i'm interested..... lolll.. Anyway, thank you for you explanation Dave.. you're a Buddy or a friend. what ever ...

PS: Dave  if you have an handset  1953 to sell one of these days, let me know....... at a good price hein ! otherwise, I don,t buy hahahaha

I don't right now. However, if you buy through a seller on eBay that doesn't use the GSP, you will save money, as the only charges are shipping -- and GST if Customs winds up with the parcel. Most often I avoid Global Shipping Program items, but occasionally you have to use it on items you really need.

If you think of it, the amount you pay them is basically about what you would pay for GST if they catch the parcel. However, on lower cost articles, Customs normally lets it pass through when an item is coming USPS.

Dave

[DavePEI]

Contempra's message reminds me, Doug..

I wonder if the person who contacted you thought you might send the article via GSP if you sold to him.There seems to be a lot of mis-understanding about the Global Shipping program, and part of that is their wording of shipping charges, which really are clearance/forwarding charges. Ebay needs to be more open about exactly what the GSP is and the Pitney Bowes charges.

Less experienced buyers seem to think that GSP is the only way of shipping.

Dave

[poplar1]

EBay's global shipping program may serve a purpose if that's the only way to get a seller to allow bids from other countries. However, "import charge" is certainly misleading.

[poplar1]

http://www.ebay.ca/itm/181319801237


No additional import charges at delivery!

This item will be shipped through the Global Shipping Program and includes international tracking. Learn more


[Also from the same listing:]

Import charges:
US $7.60   (amount confirmed at checkout)       
This amount includes applicable customs duties, taxes, brokerage and other fees. This amount is subject to change until you make payment. For additional information, see the Global Shipping Program terms and conditions.

[poplar1]

Shipping and "import charges" are separate line items.

Shipping:
US $26.68  (approx. C $29.37)   International Priority Shipping  to Canada   

Import charges:
US $7.60   (amount confirmed at checkout)       

Delivery:
Estimated within 8-20 business days   
Includes international tracking