Playing Customs Games with Our Northern Neighbors


Lately, i have been confronted with buyers from Canada who have insisted that i declare an artificially low value for an item that i am selling so that they can avoid the heft customs duties in Canada. In one case, this request was made AFTER the buyer had already paid me. In a subsequent case, i told the prospective buyer up front that i would not mis-state/under-insure the the item and this put an end to our discussions (presumably, the customs fees would have been so significant that we couldn't resolve this by simply "pricing it into the deal.")

I have no problem selling to buyers from Canada, but i do have a problem providing false statements on a Customs Declaration. Am I over-reacting?
jeffreybowman2k

Showing 2 responses by tms0425

Great thread. I had two buyers, one in Canada and another in Europe, in the last two weeks, back out of deals on a $7k+ purchase because of this. One suggested I use UPS and declare it "repair" or "sample" so he could get it through customs without taxes/duty. If it's seized, I lose the gear (though I would have his money) and I am also probably subject to some form of fraud prosecution. Since he doesn't actually receive it, he'd probably expect his money back as he never took delivery. The buyer has nothing at risk at least in terms of criminal act. Of course I said no way.

The other guy bangs me up on low offers for a week, which I finally move up enough to accept, then he wakes up and figures out he doesn't have enough money to cover GST/PST's and shipping/brokerage fees to go across the border. Seems like you'd know that before making an offer, right?

Lately it seems to be much more common to encounter these guys. Both had very low or non-existent feedback numbers so I was wary to begin with. Unfortunately there's really no way to warn others about them. I guess they're just wasting our time to see if we'll weaken and go for it.
Selling into Canada there is no duty either way. My understanding is there is sales tax on transactions used or new. It is a General Sales Tax (GST) and possibly Provincial Sales Tax (PST) levied after it clears customs, which adds up to as much as 14%.