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?
the NAFTA question is a good one. Somehow, it must not apply to consumer to consumer sales -- or it does, but it is still expensive.
I had a package come up that caught the custom's officers attention. Had to go out to the airport and get "interviewed" by a large guy with a gun. He also called the seller and checked Ebay and Audiogon for records of the transaction. These guys are serious about collecting their taxes. Needless to say, I learned my lesson. I don't even want to imagine the penalty for fraud.

I still think it's ridiculous to charge taxes on used items but it's the duty charges by couriers that really irks.
GENTLE men, duties (only) apply if it is a product manufactured outside the US & Canada (could be up to 7% or so). Many ask to reduce values due to the provincial & federal taxes (up to 14%). The other issue is that shipping by UPS/Fedex, etc., by Ground/Standard (this does not apply to "air" shipments such as Expedited or Express which is built into the pricing) results in brokerage charges as well. The more valuable (declared) the item the higher the brokerage cost. I am Canadian & have much (terrific in some cases) experience at this & would suggest NOT to undervalue/underinsure, especially if you have been paid by paypal. If lost & only declared for say $100, yet worth $5000, you know what the buyer will do! If you have received an MO or Draft & have instructions in writing & the buyer understands he is responsible.....maybe, if you want to sell....

Regards & Happy New Year to all.
I don't think you're overreacting at all. As a "Northern Neighbor" and a purchaser from both A'Gon & eBay I have never felt comfortable in asking that a vendor lie about the value of the item. The only request I make of US vendors is to clearly mark the item as "Used" if such it is. With many used A'Gon items being almost indistinguisable from new I want to make sure that an over-zealous customs guy/gal doesn't try and charge inflated duties. I concur that the NAFTA question is a good one - I've never been able to figure out exactly what is & isn't dutiable and, more importantly, why.
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.