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
Just to underline the point: Canadians pay taxes, not duty, on audio gear made in North America. These can vary but the 14% mentioned is typical. On gear from outside North America, taxes are charged and duty is also charged; the maximum duty is just under 7%. Finally, the carrier will charge fees for taking the package through Customs, and these vary. The cheapest is Canada Post.

I have never asked a U.S. shipper to declare any other value than the one I paid. For small uninsured packages--tubes, perhaps--it is convenient to have the shipper drop the total a bit, deducting the shipping charges for example. Some do this without being asked, but as far as I'm concerned it is entirely up to him. A good deal is built on mutual understanding and respect of each other's limits.
Its amazing anyone would ask to have anything falsified on a transaction. I do know it happens and it has been asked of me too. I sure don't wish to be involved any anything illegal so somebody can save a buck.

Good thread, perhaps enough will read this and stop this nonsense.
I have the shipment sent to a close to the border Fed Ex station to be held there and pick it up in person. That way I take it across the border myself, declare what I paid for the item (you should see the looks of disbelief on the agents' faces, no not because the value is low but they simply can't figure out why a guy should buy a used amp or cd player and pay way way more than a new one at Best Buy), but save the horrendous so called "brokerage" fee charged by the shipping companies. The shipping is cheaper too. I know, I know, this is of no help if you live, say, in Edmonton or Cornerbrook.

No duty on items made in the US, just GST and PST. I got Linn products with a declaration that they are made in Scotland or GB or the EU across and never was charged duty either, just taxes, for reasons that escape me.
It is the law and laws must be obeyed irrespective of whether they make any sense. Are many of these taxes reasonable or fair?...no they most certainly are not! For example, an item originating from the UK and sold in the US will have US import taxes and sales taxes applied to it. This same item if sold used to a Canadian will have import duties and all sales taxes applied all over again....double taxation!!!

Oh and NAFTA....it is a complete farce. Americans apply protectionist taxes against many Canadian products (such as softwood lumber) and Canadians apply protectionist taxes against many American products (telecomms, banking, financial services, cars etc.)

The only things certain in life are death and taxes!

BTW....this will only get worse. The US has $1 trillion in debt...China has a seriously undervalued currency (Yuan) => more protectionism looks heavily on the cards!
Shadorne, your comments on budget deficits and Chinese economics are excellent thoughts. I thought however for the record I should point out the US budget deficit is now at $8.7 Trillion dollars. I wish it was only one, our dollar would be much strong.