25 customs/tax fee to ship audio to Canada ??


Hi folks:
I sold my Sonic Frontiers Line 3 to a buyer in Canada about three weeks ago. I'm located in California and the buyer is in Ontario, Canada. I find that Canadian customs are holding the preamp, and want about $700CDN in customs/fees/tax before relinquishing the used preamp, which was declared and insured for $2,500USD. To me this excessive charge has been very surprising. Have others had the same experience? Are there ways to contest or overcome this problem? It would seem to make prohibitive any Canadian purchase of gear from the US. The whole problem is particularly disturbing given that one would think that there is such a thing as NAFTA. Also, the Line 3 is manufactured in Canada, and marked clearly as such on the paperwork. FedEx Ground was the shipper in this instance. Anyway, any advice would be welcome. Thanks!!!
128x128outlier
If you declared the value at $2500.00 USD I would say that most of that $700 is made up of tax. At the current rate of exchange $2500.00 USD is about $3967.50 CDN, tax here in Ontario is 15%, this makes the tax portion alone $595.00 CDN. Along with some brokerage fees and the usual processing fees I can see the total hitting $700.00 no problem. In this case duties are most likely not a factor unless the NAFTA forms were not properly filled out. When things are shipped from the US to Canada by courier you are almost certainly going to end up paying your provincial and federal sales tax.

Gene
Your canadian buddy should have known better. You must admit that charging off of the insured rate is fair. However, canadian customs are a bunch of pigs. See if they will ship it back to you and call the deal off? That's why a lot of folks won't ship to canada.
I will get to the tax issue a bit later but first...
Not a big deal if you follow common sense. Chances of UPS or FED EX to LOSE the package is almost nil, with the sophisticated tracking system they have. It's actually fun to see your package on the Net as it's getting closer to it's destination.

The real problem is that there is a chance that they will damage it more than lose it. In the case of a $ 2,500.00 amplifier, a $ 500.00 insured value would be more than enough to repair some damaged part on the amp. Of course, double-boxing makes the chances for damage academic, but it can happen still as we all know, especially with speakers.

Now, if a $ 2,500.00 amlifier is insured for $ 500.00, then any taxes or duties applicable should be on this same amount of $ 500.00 The absence of an invoice in the shipment means that the value will be based on the insured value. If there is an invoice, then this will serve as the basis for establishing the tax. You figure the rest yourself.....

Happy shipping to Canada all....
i buy used AudiogoN from the US and have only paid the GST (7%), how does Ontario get its hands on 7%?

Brokerage is the other component that must be paid.

The math is adding up. Is Ontario is due their % tax? Fortunately I live in Alberta where provincial/state tax doesn't exist as it does in the rest of Canada.

Buyer beware unless the seller ageeded to pay the fees then shame on the seller for accepting without knowing the real cost.
Sayas - like you I am residing in Alberta and we fortunately don't pay any PST but all other provinces do pay more than just the GST...

A costly "error" by the purchaser but hopefully he'll be happy with the unit.

A note to Canuck buyers purchasing Canadian made products from US sellers - really check around within Canada before plunking down US greenbacks as for the most part Canuck audio products typically sell cheaper here at retail (take a new Bryston 4B-SST amp: retails in the US at $2700 US and $3300 in Canada in Canuck bucks - you do the math...) therefore if you can find what you are looking for "locally" you'll end up saving money and reduce the potential for this type of situation to occur.