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!!!
outlier

Showing 3 responses by rgd

This is a sticky wicket indeed. As a Canuck who has done a few cross-border deals (both ways) I can advise that indeed since NAFTA that any audio gear manufactured within the US and Canada is entitled to traverse our border without duty. But its just duty thats involved not taxes. As the unit was destined for Ontario, Canada Customs would have take the $2500 US converted it to Canadian funds at a ratio of 1.6 and then tacked on about 15.5% taxes (7% GST which is Federal and 8% cumulative Provincial). Doing the math the buyer should be looking at $2500 X 1.6 X 15.5% = $620 Canadian funds. So the $700 seems somewhat high but is in the ball park. Can't get away from taxes irregardless where the unit was manufactured or even originally purchased!!!
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.
It doesn't matter where the unit was made as it pertains to tax. Be it a Thor preamp from the US or a Sonic Frontiers from Canada your buyer was going to pay the taxes because the unit was coming into Canada. The Governments "pretend" like you were buying it locally where you would have paid the tax anyways. Now European and I assume Australian stuff as well would be subject to I believe 6% duties which are factored into the cost of the unit prior to administering the tax rates!

As I pointed out earlier - if you reside on the northern side of the border you should try all avenues before purchasing from outside the country. This negates all applicable taxes, duties and brokerage fees. All you'll have to pay is the freight assuming you are buying from a private individual as opposed to a dealer of used gear.

Gear availability is tied into demographics - there are 10 Americans for every Canadian and it only stands to reason that the greatest supply of used gear will be available from the USA.