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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 tobias

tobias
1,534 posts
 
Just to underline the point: Canadians pay taxes, not duty, on audio gear made in North America. These can vary but the 14% mentioned is typical. On gear from outside North America, taxes are charged and duty is also charged; the maximum duty is just under 7%. Finally, the carrier will charge fees for taking the package through Customs, and these vary. The cheapest is Canada Post.

I have never asked a U.S. shipper to declare any other value than the one I paid. For small uninsured packages--tubes, perhaps--it is convenient to have the shipper drop the total a bit, deducting the shipping charges for example. Some do this without being asked, but as far as I'm concerned it is entirely up to him. A good deal is built on mutual understanding and respect of each other's limits.
tobias
1,534 posts
 
Fees on goods going to Canada:

N.A.-manufactured:
GST (Goods & Services Tax) + PST (Provincial Sales Tax) + brokerage + shipping

Made outside North America:
Duty + GST + PST + brokerage + shipping

Duty, if any, and taxes are charged on the declared value of the goods. It doesn't matter if the goods are used or new.

The sale price of the item will be verified if an insurance claim is made. Transaction records such as auction postings and bills of sale will be required to prove the amount paid. Besides being illegal to falsify a customs declaration, it is a foolish risk.
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