Tax by Canadian customs ... how to compute

[slowkitty]

Hiya,

Seems like a long shot to ask here, but .....

A mate of mine in Vancouver is thinking of getting some parts from the US. However, he is wary of Canadian customs taxes.  How much do you guys reckon will be taxed on used motoparts with a value of say US300?

Cheers

[Ontario_Monster]

Everything I've had shipped from the US to Toronto has been a flat 10%.  That includes rotors, shields, and wheels.

[numbskull]

It depends on the origin of the parts. If they are manufactured in the US, then there is no import duty (tax) on the product.
I've been hit with 5% to 15% tax for foreign manufactured items shipped from the US to Vancouver. Depends on whatever mood the customs agents are in apparently. 

[redeng]

Slowkitty,
There shouldn't be any customs taxes other than GST, as long as you use US Postal Service (which goes through Canada Post).  I've ordered lots of parts from the states from catalogues and ebay, and I learned after I got burnt the first time when UPS was used for shipping.  They charged about $70 brokerage fee on a $150 part!  Definitely have your friend request "nothing but US Postal Service!" for shipping and all they should have to pay once it gets here is GST on the declared value.

[numbskull]

FYI, the GST is currently 5%.
+1 on NOT using UPS. Their brokerage fees are ridiculous.

[slowkitty]

Guys,

My friend said that he is concerned with not only GST, but also EXCISE DUTY.  For example, when he drives to Seattle for a short trip, there is no exemption from excise duty.  Canadians get their vehicles inspected on a case by case basis.

[wheezer]

Many people - including some Customs officers - assume that car/truck parts and motorcycle parts are treated the same way. This is not the case - car/truck parts will incur a duty of about 6% (in addition to the GST/PST) if they are made outside of North America.

Canada does not charge excise duty on motorcycles, or motorcycle parts regardless of where they are made, as there is no major motorcycle industry in this country. You may have to politely ask the officer to double check their facts if they try to charge you duty on a bike or bike parts. You will have to pay the GST and most likely the PST however. As noted above, if you have them sent by mail/courier into Canada you could also run into additional fees for the customs brokerage service.

Brokerage fees can be avoided if you live near the border by getting a US mailbox, having the parts sent there, and bringing them "over the line" yourself. In fact, I have often avoided paying any GST/PST this way as, depending on the Customs officer - and the mood they are in that day - most do not bother you for under $50 and many will let $200 through to keep people moving avoid paperwork.

[ian48th]

I've never encountered an excise duty and wouldn't worry about that.  Has your friend been hit with that before for something?  What's he planning on ordering?

I'm in Victoria and usually buy parts when visiting family or friends in the States so I can take advantage of the customs exemption and save a bunch on shipping.  Only duty I ever paid was for importing my Monster.

And I'll repeat the AVOID UPS message.  Make sure stuff is sent via USPS or Fedex.  To make it worse, UPS now requires payment upon delivery.  Used to be they'd send you a bill a month later, which could easily just not be paid.

[krolik]

And I'll repeat the AVOID UPS message.  Make sure stuff is sent via USPS or Fedex.  To make it worse, UPS now requires payment upon delivery.  Used to be they'd send you a bill a month later, which could easily just not be paid.

Probably why UPS requires payment on delivery.

[Ohmic]

Yes!!!!... avoid FedEX, UPS and god forbid DHL like the plague when shipping into Canada!!!!!

All of these private Co. will ding you ~$45-50 "processing fees" + the real GST + shipping of course. All this just so they can collect GST for the Govnment so they say; Even if GST is only... say $5.  They really know how to F**K you in the drive thru up there. I speak from personal experience!  One of the reasons why i moved back to California!  Well the weather also had something to do with it. 

Having said that. Use regular USPS. If the person or company you're buying from in the US don't ship via USPS. Have them ship it to a friend in the US and have them repackage and send it via USPS. Maybe even put a "new" receipt inside the package with a lesser amount. If i remember correctly Canada Post don't collect anything under $65??? Not quote me on this value. Or just mark it as "gift". Maybe even put a fake birthday card inside...haha

[ducatiz]

If you report the items as "returned for refund" then they don't charge duty...   

[ducatiz]

Or just mark it as "gift". Maybe even put a fake birthday card inside...haha

gifts still have import duty.

[Ohmic]

gifts still have import duty.

Yes. Import duty maybe, but not GST. Because you're declaring that you didn't spend money to get this product. So no GST. They can't tax you on money you didn't spend. But they will go after the import duty if they are not too busy.

Nonetheless i've never been charged Import Duty for anything coming from the US into Canada. I've ordered items worth $1000's from US and have only got ding GST. (via USPS/Canada Post of course). At the same time ordered items from China worth $100 and had to pay Duty + GST. Case and point, i've ordered $1000's worth of ICs made in China from US company. They ship me them and i only pay GST. Now i order same ICs directly from China factory for $100. When they get into Canada. I have to pay Duty and GST. Go figure.

I think this may have something to do with our North American Free Trade Act(NAFTA). We know that there are no duty on mc/atv's. I also know that in this Act there are no duty on all(certain?) products made in the US/Canada, or if the original Co. who imported the products already paid duty. You need to prove this of course. Most ppl don't border and just pay the duty.

[desmoeast]

Hey all,

New here, but not new to ordering parts from outside Canada.  I can only echo that USPS is the way to go, had great results with this for motorcycle and many other items ordered from the US and elsewhere. 

However, I have noticed that parts will often be labelled (inexplicably) "auto parts"  or just "used parts,"  etc., so I end up paying duty.  It's worth a dialog with your vendor to ensure they mark the items "motorcycle parts,"  and then the exemption will apply, as the Customs folks will know what they're looking at. 

Personally, I avoid the "gift" or "sample" approach, not worth it and not credible in many cases...

[DuciD03]

Hey all,

New here, but not new to ordering parts from outside Canada.  I can only echo that USPS is the way to go, had great results with this for motorcycle and many other items ordered from the US and elsewhere.  

Sorry to say but you are Incorrect.  I have had alot ot experience importing bikes and parts. Be forwarned. Do not use couriers; especially UPS.  This is the bad press they get for being so greedy.. . and this is my time to call them out for being ripped off so many times and being delayed.

UPS Couriers (not to be confused wuth USPS)... I have HAD NOTHING BUT PROBLEMS AND THE 50 DOLLAR RIP OFF "brokerage processing fees" and long  delays when doing the customs paperwork, since I now refuse to be ripped off with there processing fees.  I have never been so frustrated by a companys charges as from UPS; avoid UPS at all times when improting.  Most perople import occcasionall and must role over think they can F*** me up the a** this time but after this happens again most are wiser.

If I recall correctly 6% duty is correct on foreign motorcycle parts if you do it yourself or use Canada post they charge a flat fee that's reasonable (5$?).