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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
audiofeil
4,011 posts
 
National debt and budget deficit are not the same.

The national debt, not the budget deficit, is $8.7 trillion.

The budget deficit for 2006 is $250 billion.
tms0425
67 posts
 
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.
lousyreeds1's avatar
lousyreeds1
286 posts
 
I was always under the impression that there is no duty on used merchandise. Is that not the case? In my experience, when I've written USED MERCHANDISE on the customs label, there no duty has to be paid.
tms0425
67 posts
 
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%.
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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