OT: Avoid customs fee to recepient when sending something to Canada
 

Thought of posting this in Travelbuzz, but figured since it was Canada-specific might be better to post here to obtain the information as you're probably more knowledgable with your own country's rules.

I'm going to send a friend a music CD and some photos tomorrow.

In the back of my mind I seem to recall on the FT Santa Clause thread last year shareholder or someone else saying to mark the form in a certain way so that the recipient doesn't get hit w/ customs fee (which happened to me in AMS a couple of weeks ago when client shipped their press kits in CD format to me at my hotel - don't think customs realized they were press releases vs music cds).

I think I'll be ok on tomorrow's mailing since I'm putting the cd/photos in a business folder which lays pretty flat & resembles regular mail/literature/marketing materials.

But same friend's birthday is coming up in November and I'll be sending a gift then (and at Xmas time). So what do I need to know to make sure Brian doesn't get hit w/ customs fee?

Any input appreciated. Cheers.

Sharon

There should not be a problem on small items like those you describe. As long as it does not look like a commercial package, it will get cursory inspection by postal customs authorities. When you fill out the Customs Declaration, just make sure to mark it a "Gift" and indicate it is a CD valued at $20 and it should pass through with no problems. However, from the sounds of what you are sending tomorrow, an ordinary padded envelope should not run into any problems, nor even need the Customs Declaration sticker: a small green form that gets stuck to the front of the envelope.

My problem arose when someone shipped a gift directly from the commercial warehouse. No "Gift" indication was put on the customs papers. And it was sent FedEx. Anything shipped by a courier service will get dinged. Not so with normal postal service. Anything that is sent in a box, or larger than normal mailings, will get a look-see, even through the post office.

Now, I don't know about packages originating in the US, but now when sending packages to the USA, we must fill out a Declaration attesting that it does not contain Explosives!

I just sold some used camera equipment and am going to ship it to Canada. It has a value of something like $400. Will the person who receives this have to pay customs on it, or as used equipment is it exempt? I'll pretty much have to declare the true value as it will have to ship insured.

What SH said. Mark is as Gift.

I buy stuff form the US all the time - and while I'm trying to fing a link to the CCRA guide on postal imports, here's the scoop:

Note: these regualtions are for items coming via the Postal System ~

> Commercial merchandise can be imported Duty/GST/PST(HST) free if valued less than CAD$20

> Non-Commercial merchandise (i.e. gifts) can be imported Duty/GST/PST(HST) if valued less that CAD$60.

So, in a nutshell, if someone is sending you something, and the return address is a personal address (i.e. Bill Jones), they need to mark the customs (green) slip as GIFT with a value less than CAD$60 - Note, if the item is coming from the USA and the Customs inspector will take whatever value has been listed on the slip as USD.

If you are receiving something that is from a commercial address, (i.e., Bill's Collectibles), and even if Bill has agreed to mark the item as a 'GIFT' the customs inspector will disregard that designation and assess Duty/GST/PST(HST) based on a commercial import.

I'll take another look for the link and post it when I find it.

Note: All packages coming in via FedEx, UPS, other courier co. will be assessed as a commercial import and there is NO exception 'duty free' limit. In addition, the company will also charge you a hefty brokerage fee. Avoid this shipping method!

Thanks so much! I think tomorrow will be fine cuz it will look like marketing materials, but I am shipping it USPS (snail mail) so even asked for form it's less than $20.

And the gifties I'm sending in Nov & Dec will be around $50, so I should be fine.

BTW - my client sent it fedex from a corp, so probably why i got dinged in ams - i billed them for it though.

knew i'd get the right answer here.

btw - i'll post sep thread but i'm gonna be in yyz 10/17-20, so hope to see some of you there!

cheers. sharon

I have sent stuff to Canada in the last 6 months from Thailand, France, Dubai and Amstedam ( :D ), I have not had a problem with any of it so long I marked it gift. (Which it all was).

Value was any where from $10.00 to $50.00 . No one bothered it. It would piss me off if saw something that I thought would be a funny gift for someone, and Rev.Can decided to charge them for the tax. It's not like I'm sending gold here........just stuff you pick up on the way in your travels.

I got dinged for ~$45 in duty and fees on a United SWU that was gifted to me by a FTer. Evidently he had bought insurance on the UPS overnight delivery for a couple hundred bucks and Canada Customs assessed that as the value. To make matters worse, my Lufthansa upgrade didn't clear at the airport. :mad:

GST too
 

When there has been no duty collected, they can still opt to collect GST. Then there is a $5 fee for collecting the GST as well. I think there is GST on the $5 fee. The value of the shipment does not seem to be an issue since GST has no lower limit. I ordered something for less than $10 and the GST was around 50 cents. The fee to collect it was $5. I was told that the vendor must collect the GST outside Canada and submit it. If it is a gift then it is not subject to GST but CCRA will make its own decision.

Well I sent it today, so we'll see what happens. It looked like a thick biz envelope.

I actually filled out a US Customs form (as back-up) but USPS said wasn't needed since item was under 16oz & I wasn't insuring it. Can't speak for the Canadian side.

But for bday & holiday gift coming up I'll fill out the form & say gift.

Cheers. Sharon

Also don't forget that UPS and Fedex have very expensive brokers that charge about 20$ +GST even if there is no custom, gst or taxes to pay.

You can pick that stuff up in Vancouver now along Commercial. ;) Q Shoe Guy may have some experience that area. :D