Contour Enthusiasts Group Archives Forums Branches Eastern Canada Duty Question?

If I purchased an item from the U.S. online how is duty calculated. I was looking to make a purchase that is about $1000.00 Canadian in car parts. I know I would have to pay GST and PST, but is duty a percentage of the price (value). Is there anyway around this?

My understanding is that duty is the GST/PST that you pay. On top of that you will have brokerage fees and most likely handling fees. Only way around the taxes is to have it shipped from an individual and not a company and have the package marked as a gift for which taxes do not apply. This however will not always work. There is a customs broker among us so I will let her speak up.

GST / PST and even brokerage fee (eg; UPS) for sure.

There's no way to avoid duty unless you want to smuggle something in; but I seem to recall that the amount of the duty will depend on the country of origin of the part.

Car parts made in the U.S. shouldn't be subject to any duty at all under NAFTA; however, parts made in Taiwan which I beleive no longer enjoys 'Most Favoured Nation' status, might have a duty of 6 or 10% (stab in the dark guess).

Check out the CRA website and see if they've got anything on it.

Canada Revenue Agency (they collect duty)

Edit: Duty is in addition to GST / PST brokerage etc. - you just don't see it that often any more, because we import so much that's made in the U.S. which is duty free.

The information might actually be under Canada Border Services Agency

For parts not of US origin, duty is charged, as mentioned, based on some table or formula. There is a customs charge, based on Canada Customs, brokerage fees, which vary according to the shipper and brokerage firm used, then GST/PST. All of this is based on the Canadian value converted from US declared value on the package.

When you bring in a part yourself, expect to pay 30% on top of the converted Canadian value (higher dollar items), and that's a general ball park of your final cost. The ratio increases for smaller parts, as there is always a minimum charge for brokerage.

The only way I avoid paying duty and taxes etc. (when I say avoid - I mean doing this legally) is to bring the component through yourself - and this still not a for sure thing.

I travel the US/Canadian border daily and have bought all kinds of Automotive items through without having to pay anything on them, and I always claim everything I bring through (as my job is at stake if I was to ever smuggle something and get caught). It all depends on what the person working at the booth thinks.

You may be pushing the evelope at $1000 dollar though, although I have been with people that have claimed and brought through items with that value through without having to pay anything (they were automotive related parts as well.). The first thing they will ask you is whether they are for personal or business use.

Lucky for you the exchage rate is low so now is the time to buy parts regarless. Good luck!

Isn't there a minimum limit before they charge duty on things you bring through personally? $350 is a figure that sticks in my mind, but I'm not sure where it came from.
You'll find it depends on what they person is like, as you say.
I've been nickle and dimed about this before, but this was by the grumpiest guy I've ever met ... he started hassling me because I had an American packet of smokes ... just one packet in my pocket!

Thanks Michelle, I was hoping you would offer you expert advice. I'm glad to see there is another Corrie junkie in here with me. I hate being 9 months behind the actual show, I'm always reading ahead on Corrie.net.