Import tax on high dollar cards purchased from Canada

[mikedenero]

Has anyone purchased a $3,000+ item from Canada, had it shipped via UPS, FedEx, or Canada Post, etc. to the USA AND also been charged import duty/tax?

If so, were you also charged a broker's fee?

Again, if so, what was the import duty percentage and what was the broker's fee percentage?

My apologies, in advance, if this issue has been discussed previously.

[Bosox Blair]

Hello Mike,

I don't have the exact answer you are looking for, but I am on the Canadian side of the border, and can share my experience with you.

Choice of Shipper: For me, always USPS (which operates in conjunction with Canada Post on our side of the border). The worst is UPS - they charge outrageous hidden "brokerage" fees. FedEx charges them too, but a lot less money. Deliveries to me from USPS/Canada Post have never had any such fee.

Duties: Canada and the US have certain free trade provisions designed to eliminate most "duty" charges on items made (note that it is where the item is made) in either the US or Canada. Other countries of origin for products can cause problems. With sports cards, I have not been charged any "duty" in many years.

Taxes: This is where it can get complicated. On items coming into Canada, our governments (both Federal and Provincial) are rabid about getting their slice. On items we receive from the US, they treat it as though you bought it in your home province (thus the tax I owe on delivery is 5% of the assessed value of the item as Federal tax PLUS 7% of the value of the item as Provincial tax...total 12%). I cannot advise you as to how much - if any - tax you have to pay on an imported item.

Hope some of this helps!

All the best,

Blair

[PEEK enterprises]

Average duty is 2.5% of the value of the goods imported into the United States. Some items are different, many are duty free (sports cards or any memorabilia/collectible are absolutely not duty free). A flat brokerage charge will typically range from $5.00 to $65.00 depending on the # of items on the invoice. US customs also charges (collected via the broker) a processing fee of 0.21% of the value of the goods. Everything but duty is normally avoidable if shipped via Canadian or US Mail.

[baseballart]

I'd be very interested in knowing the US customs provision that provides for a duty on sports items and memorabilia. Under the provisions of NAFTA, Canadian and US origin goods are free from duty on import into Canada from the United States, and into the United States from Canada. Can you please provide the specific legislative reference?

State use taxes (sales taxes) are not collected at the border, but a consumer typically has an obligation to report when such goods are brought into a state for own use.

In Canada, the consumption taxes (the goods and services tax of 5% and the provincial sales taxes in some provinces, in BC 7%) are collected on importation into Canada, either physically at the border, or by the importing agent, such as Canada Post or UPS. As all good tax policy people will tell you, the charging of these taxes on importation creates a level economic playing field for Canadian vendors, as they are obliged to collect and remit these taxes when they sell products in Canada.

Max

(in the office at 6:35 am working on customs and tax issues, when I should be enjoying the weekend sunshine)

[FrankWakefield]

Good post, Max.