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Subject: 
Re: DUTY? (was Re: Canadian Online Toy Purchases....)
Newsgroups: 
lugnet.loc.ca
Date: 
Sun, 31 Dec 2000 14:59:33 GMT
Viewed: 
529 times
  
In lugnet.loc.ca, Tim Culberson writes:

I now have another question, however.....

What is the deal with paying "duty" on items and how is it determined?


G'day Tim,

I can help here with things in-bound from the USA.  Because of NAFTA,
most items (including LEGO) can be imported into Canada from
the USA with no duty charges (tariffs).  The condition is that
the item must be "made in the USA".  For LEGO, the boxes in the
states will often say "Components made in DENMARK, SWITZERLAND, and
the USA...Packaged in the USA".  I guess this is sufficient
for Customs requirements.

Now what you need to pay depends on which province you're in.
All of Canada must pay GST, 7%, on the value of the purchase.
NB, NS, PEI, and NF must pay the full HST, 15% (GST+"PST").
The rest I'm not sure about, although I think AB and PQ are
subject to PST as well.  In addition, each province has its
own special rules that in some cases mean you need only
pay the GST.  In the atlantic provinces, for example, books
are GST-only if they fall into the appropriate category.
I know for certain that Ontario is a GST-only province.
Note too that this info is for "casual importations",
meaning "personal and non-commercial".

If you bring the item across the border in person, many time
you won't even have to pay the G/P/HST.  I have declared as high
as $300 in LEGO coming back into Ontario and was not made to
pay the GST.

If you have it shipped to you, it's a different story.  As
Robert mentioned, CanadaPost will ding you $5 to act on
your behalf as the importer.  I have had UPS ding me $25
for the same service.  Most reputable US retailers that have
special shipping rates to Canada will be able to tell you
if the charges you pay to them include these Customs brokerage
fees.  Most of these companies cover it for you.  If they
can't tell you or don't know, expect to get charged extra
at the border.

As for buying used, things are different.  There is no
retailer on the other end to cover the brokerage fees.  So
you get dinged.  I believe (I haven't verified this) that
even used items are subject to GST.  For example in Ontario
if you buy a used car from someone, you are required to pay
GST based on its market value.  So I assume the same applies
for imports.  Either way, you still may have to pay brokerage
fees to the shipping company (UPS, etc.).

Ultimately if you want to be sure, call the CCRA (Canada
Customs and Revenue Agency) and ask them about your specific
case.  They are usually pretty helpful.

KDJ

_______________________________________
LUGNETer #203, Windsor, Ontario, Canada



Message has 1 Reply:
  Re: DUTY? (was Re: Canadian Online Toy Purchases....)
 
Following up my own message here. I had posted in the previous message that in Ontario you should only have to pay GST on imported LEGO from the USA. This was based on information given to me directly by Customs by telephone. As it turns out this (...) (24 years ago, 29-Jan-01, to lugnet.loc.ca)

Message is in Reply To:
  DUTY? (was Re: Canadian Online Toy Purchases....)
 
Hey I haven't actually looked into this as of the time I'm replying but this sounds really cool! I now have another question, however..... What is the deal with paying "duty" on items and how is it determined? I can't seem to find out much info on (...) (24 years ago, 31-Dec-00, to lugnet.loc.ca)

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