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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

Showing 1 response by avphile

avphile
15 posts
 
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.
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