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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
tobias
1,534 posts
 
Fees on goods going to Canada:

N.A.-manufactured:
GST (Goods & Services Tax) + PST (Provincial Sales Tax) + brokerage + shipping

Made outside North America:
Duty + GST + PST + brokerage + shipping

Duty, if any, and taxes are charged on the declared value of the goods. It doesn't matter if the goods are used or new.

The sale price of the item will be verified if an insurance claim is made. Transaction records such as auction postings and bills of sale will be required to prove the amount paid. Besides being illegal to falsify a customs declaration, it is a foolish risk.
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oregonpapa's avatar
oregonpapa
4,867 posts
 
I say pay the taxes and don't cheat. With that said, money, like water, follows the path of least resistance. Therefore, we have tax avoidance in a multitude of ways, running the whole gambit from under-valuing a piece of audio equipment coming across the Canadian border to offshore bank accounts.

Frank
rsf507
2,321 posts
 
When I've sold to Canada and have been requested to declare a lower value I always inform the person that if the item is lost, stolen or damaged the only thing they can get is the declared amount not matter the actual cost. 90% say no problem. 
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