Customs Duty Importing from Canada

[bernard_korites]

I recently bought a new slide projector from a company in Canada. The price was

about $300. I received the projector then a few days later got an email from

them saying there had been a mixup with the import duty and they want to charge

my credit card $90 additional for customs duty which would be about 30%. Does

this sound legitimate? Is the customs duty from Canad to the US 30% on

photographic equipment? Sound hard to believe to me.

[danscool]

I would have thought that once the money and goods have changed hands the transaction would be finished. if they wanted to charge you the extra 30% they should have told you before you bought it. if they insist upon this i'd send it back and get a refund.

[inspiration point studio]

I don't think that is how you pay custom duty. I once sent a stereo amplifier from US to Canada via UPS. The Canadian custom determined the tariff and UPS collected it directly from the receiver before delivering the package. I, the sender, was not involved in that transaction at all.

[petemillis]

It's wrong - you should be charged import duties directly by the customs office in your country. But I've had a thought about what may have happened....it could be that the Canadian company were charged import duty when they imported the projector from wherever, and they didn't figure this into the cost that they charged you and are now trying to get this back. I import goods from Australia into the UK for resale and have to pay import duty on the cost the Aussie manufacturer charges me (i.e. goods costs + freight costs), and I have to take account of this when I set my UK retail price otherwise I would end up out of pocket. I wonder is this is the situation the Canadian company you have used have found themselves in? what price were you supposed to pay? Did they bill your card for that or did they undercharge you?

[gordonjb]

I regularly order goods from the US into Canada and UPS or whoever the carrier used is, charges for brokerage and duty on the Canadian side. I would think the same would hold true only of course in reverse in your case. Something is wrong here. I would think Pete's explanation is most likely but I'd contact the company and ask for clarification before putting out another $ 90.

[bernard_korites]

The projector was sent by mail. My credit card was charged the agreed amount plus 5% which I assume is due to the currency differential.

 

Now they say there is an extra $92 customs duty fee they want me to pay. That's 30% of the original price. If you checked this link http://dataweb.usitc.gov/scripts/tariff2001.asp and enter "slide projector" in the search box it appears the duty is only 7%.

 

My understanding is NAFTA (zero duty between the US and Canada) only applies to good manufactured in Canada or the US. This projector was originally made in Germany so I guess an import duty was paid when it entered Canada from Germany, then another would be expected when it goes from Canada to the US, but 30% seems rediculous.

 

Also, why would a Canadian shipper pay a US customs duty?

[Michael R Freeman]

"Also, why would a Canadian shipper pay a US customs duty?"

 

There are some vendors that ship internationally who will collect and pay any taxes and duties due on behalf of the importer via a third party broker when exporting. Cabela's (sporting goods store in NE) for instance, collects the sales taxes and any duties due when shipping into Canada, and then forwards those fees to the Canadian government. Supposedly this speeds up customs clearance, since in essence the shipment is prepaid and pre-cleared.

 

HOWEVER, these costs are all up front and I know what they are BEFORE my order is shipped.

 

Who is the vendor? I suppose it's possible that a Canadian company could have a similar arrangement with US Customs via a 3rd party broker, but again, IF they did, these costs would be up front and if they do that much cross border shipping to have such an arrangement they should have systems in place that prevent any "mixup with the import duty". Something sounds fishy here.

 

As for NAFTA, lots of goods that are not manufactured in North America are duty free when shipped across the border. Most photo gear can be shipped across the USA/Canadian border with no duty. Sales taxes are a separate issue however.

[kelly_flanigan1]

Folks pay the brokerage and customs fees often because the seller was lazy or stupid. If the seller didnt do his homework and use the correct tag of the day; and state the country of origin; state what the product it is; and what its worth one often gets a high fee as a reward. You basically pay a high rate because the seller is ignorant of the laws; too lazy to wait in line and fill out the form of the day. Many times the postal chaps remove info that the customs guys need. <BR><BR>You pay a higher rate to a broker to grease the skids. He cuts thru the BS and delays. <BR><BR>For years we bought a custom linen diazo blueline product that was only made in Canada; after all the USA makers stopped production. No matter what we did the brokeage fees would vary from 30 percent; 10 percent; none; 12 percent. A 550 dollar batch would have a 165 dollar brokerage fee; the box would have 39.5 dollar proper Nafta fee. The brokers are a crafty lot; the extra 100 plus is gravy; pocketed; abit of a racket. After years of major complaining we got the fees down to the 7 percent level most of the time; BUT then the shipment time went from weeks to months. <BR><BR>Its really not "hard to believe" that a high customs fee happens. It happens alot; like the sun coming up. With a flakey seller they can also be earmarked by customs too; with quanantines. To get a WW2 aero ektar at the post office I had to paid a high fee. The lens was made in Rochester NY; and was in England during WW2 and sold by a decent English ebay seller. The country of origin was not mentioned; thus one pays the highest rate. After paying the fees at the USPS counter; and opening the box; the USPS manager didnt give a damn that the lens rings says Rochester; in an attempt to get a refund on the brokerage fees. They say its a customs issue; they are just collecting a bill. <BR><BR>The Brokerage business is like the check cashing business; high profits due to folks being in a fog; unaware of rules; forms; time or markings.<BR><BR>IN selling items to Canada from the USA; shipping with UPS gets the item there in a timely matter; but the buyer whines over brokeage fees. If one uses the USPS and the customs form of the day; there are usually little customs fees but the buyer requires alot of handholding; many emails when there package is lost and delayed in the Canadian postal system; sometimes 3 months. We double the USPS web calculator's time for transit. <BR><BR><i>Also, why would a Canadian shipper pay a US customs duty?</i> The customs fees are to protect business. Your inputs to your elected duffuses sort of steer the rates and zoos of rules; with some lobbying and hush money doing some steering too. You want your employers business to protected from dumping of goods; but the other chaps not so you can have a job and buy stuff cheaply.:)

[bernard_korites]

To rub more salt into this wound, the projector, which has now cost me about $350US including shipping and the exchange rate differential plus whatever the customs fees end up being, is now being sold by Adorama for $249.99!

 

Fortunately, it does appear to be a good projector even though I'm feeling a bit ripped off at this point.

 

I do thank all of you for your input, it has been very educational. This importing thing sounds like a real mess. Best to buy locally whenever possible.

[Michael R Freeman]

Bernard - what you do is up to you, but I personally would hesitate to pay the additional $90 without raising a major stink. I would contact the vendor that sold this to you, tell them that it was THEIR mistake, and offer them two options.

 

1) Eat the $90 loss. I agreed to purchase at the net price originally charged, and would not have purchased from you had I known about a HIDDEN charge from YOU after delivery. I have no intention of authorizing additional charges.

 

2) If that is not acceptable, I will return the projector to you, and you will refund ALL of my costs, including shipping charges. It was YOUR mistake, not mine.

 

Be polite, but firm. There is no acceptable reason for you to be out additional costs because THEY f***ed up. Good luck. And I am still curious - who was the Canadian seller?

[dan_fromm2]

Bernard Korites wrote "This importing thing sounds like a real mess. Best to buy locally whenever possible."

 

Bernard, this is the wrong conclusion to draw from your misadventure.

 

The right conclusion to draw is that before buying anything expensive, one should explore the options carefully. Impulse buying is a killer.

 

BTW, I started importing items for my own use (sheet music; a car, bought sight unseen, from the UK; car parts; books; live fish; ...) in 1971, long before there was an internet. I communicated by phone, fax, and mail. After the internet arrived and opened up possibilities I've imported a fair amount of photographic equipment, including a number of fair-sized aerial cameras, and books and fish with never a misadventure like yours.

 

I'm all for international trade, especially since casual import/export is now easier and less expensive than ever. Don't give up on it, but do learn to do your homework better.

 

As for your current fix, your dealer in Canada is at best incompetent, at worst a crook. Until proven otherwise you owe them nothing. M. Freeman's advice is sound.

[pbalko]

<p>Essentially all of my customs experience deals with exporting, so my knowledge of importing into the US is a little fuzzy. When I ship into Canada via USPS, the duties and taxes are collected directly from the receiver by Canada Post. When I ship to Canada by any other method, Canada law dictates that the receiver must designate a licensed Canadian customs broker. I don't know if US law is the same.</p>

 

<p>That said, when shipping to Canada through carriers other than USPS, our contracted brokers prepay the duties for us, and then bill us directly. I don't know of any customs agency that grants credit on duties, so, if you didn't pay duties to your mailman, I can't see how your package came into this country without someone being required to pay the duties up front.</p>

 

<p>Also, maximum duty going into Canada is 18% (+6% goods & services tax) but, yes, I believe maximum duty coming into the US is around 30%. Whether or not the max applies to your projector, I cannot say, but you can probably find out at the US Customs website: www.cbp.gov.</p>

 

<p>My best guess is that the person(s) who quoted your price and shipped your package simply forgot to consider duties, and are now trying to recoup what they probably paid on your behalf. You may want to ask them for documentation supporting their claim.</p>

 

<p>If you decide to return the projector, be sure to include all the export documents that came with it, and mark clearly, on the carton and on the paperwork: "For Return to Vendor." That won't guarantee no hassles, but it will minimize them. Personally, as I'm old, tired and lazy (mostly lazy), I'd eat the extra bucks and chalk it up to lesson learned.</p>

[steve_lantz]

If the projector was sent to you through the mail (delivered by USPS in this country) then any customs due would have been collected by USPS at delivery. US Customs determines if and how much is due and USPS collects it.

 

I'm sorry I didn't respond sooner, I've been off a couple of days.