Shopping Discussion

DUTY for everyone IMPORTING a Laptop from U.S.

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Newbie
Jan 24, 2011
31 posts
2 upvotes

DUTY for everyone IMPORTING a Laptop from U.S.

I have been doing searches on how to import a laptop from US to Canada, specifically regarding duty, with a lot of ambiguous results. So I thought I would post my own research findings:

Buying from HP.com which has trouble with anything but US credit cards, but this is a completely different issue.
I had a relative purchase my laptop from HP.com and had it shipped to a different US address where I can pick it up.

Here were the other options: USPS, Fedex, UPS, other mail-forwarding services
The problem with shipping from such services is their outstanding BROKERAGE and DISBURSEMENT fees (which does NOT have anything to do with DUTY).

The best solution I have found is if your close enough just go over to the States, pick it up, and pay HST (for Ontario, other provinces maybe different, eg. Quebec) at customs.

I am using this mail-holding service (http://www.usaddressinc.com/ for $5/package, the best one I could find around my area, though they DO NOT FORWARD MAIL, ONLY FOR HOLDING), where HP.com can ship it under my name, and the package will be held under my name.


So, for the good stuff

I called Canadian customs: 1-800-461-9999 about 4 different times asking them the same question:
'I am going to bring over a laptop that I purchased from US, it is made in China. Will there be any duty?'

And their response was the same everytime, 'NO DUTY ON LAPTOPS that you have purchased in the US and are bringing over to Canada REGARDLESS of origin. You only pay HST.'

I asked about what is taxable, the declared value? the base value w/o US tax? The customs agents said:
(US price +US tax + total shipping charges) x HST = Total Price for Laptop

Shipping cost is shipping + brokerage + disbursement + anything else UPS/Fedex charge you. So the real reason I think people get unexpectedly shafted when shipping from US into Canada, is the HST tax you pay on the total, and then the HST you pay on the total shipping charges.


Customs Tariffs on Laptops (code 8470.31.00) is found HERE, on PAGE 106
and that even though it is made in China, it is FREE of General Preferential Tariff treatment (GPT, which is the only tariff that applies to laptops made in China) mentioned in above link, and found HERE

If you have anything to add or had experience with this please add.
I hope this helps anyone else looking through forums for some peace of mind.
14 replies
Deal Fanatic
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Feb 25, 2004
5655 posts
149 upvotes
New Westminster
fakenjones wrote: Shipping cost is shipping + brokerage + disbursement + anything else UPS/Fedex charge you. So the real reason I think people get unexpectedly shafted when shipping from US into Canada, is the HST tax you pay on the total, and then the HST you pay on the total shipping charges.
Anybody who reviews the I Declare guide would quickly find out that they are subject to HST/PST on whatever they are bringing in so most people shouldn't "shafted" when having to pay this.

While most might feed "shafted" having to pay HST/PST on the shipping charges, in reality, many places would ship a laptop for $20 ... paying $1 extra in taxes on the shipping isn't the biggest "shaft".

But to complete your research look here: http://www.ups.com/content/ca/en/shippi ... rance.html

The seller (via the courier company) might charge $20 to ship that $600 laptop via UPS into Canada ... then, when it gets to your door, the UPS guy tells you that you will have to pay $56.50 in brokerage PLUS 2.7% bond fee PLUS GST/PST/HST on the brokerage fee ... say another $60 in "fees" from UPS (or the other couriers) to clear customs ... none of this readily disclosed up front ... and that is when a cross border shopper feels "shafted".
Deal Guru
Sep 9, 2003
10598 posts
4849 upvotes
Burnaby
Get stuff shipped via ups or fedex Air/expedited, brokerage is included in the shipping charge. Not worth it for a run of the mill item, moreso for special order items
Banned
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Sep 13, 2012
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Can someone please confirm the discussion in this thread? Is it true that one only pays HST (or PST in the case of Alberta) on the total shipped cost of a laptop including US taxes?

Is this individual above me correct about the brokerage fees charged, and which shipper would be the cheapest. What about USPS Priority Mail International Large Flat Rate Box?
Sr. Member
Aug 26, 2010
503 posts
63 upvotes
Toronto
glassandmonocle wrote: Can someone please confirm the discussion in this thread? Is it true that one only pays HST (or PST in the case of Alberta) on the total shipped cost of a laptop including US taxes?

Is this individual above me correct about the brokerage fees charged, and which shipper would be the cheapest. What about USPS Priority Mail International Large Flat Rate Box?
The USPS PMI Large box dimensions are 12" x 12" x 5 1/2" (their website) and most laptop boxes are larger and flatter than that size.
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Sep 13, 2012
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hsz wrote: The USPS PMI Large box dimensions are 12" x 12" x 5 1/2" (their website) and most laptop boxes are larger and flatter than that size.
Not in this case.

I'd rather not distract you with this minutia though, I'm more concerned with the brokerage fees and tax consequences of the shipment.
Banned
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Sep 13, 2012
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Thanks. In regards to brokerage fees, is there anyway of avoiding/minimizing them?
Deal Fanatic
Oct 26, 2008
7022 posts
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Victoria, BC
glassandmonocle wrote: Is it true that one only pays HST (or PST in the case of Alberta) on the total shipped cost of a laptop including US taxes?

Is this individual above me correct about the brokerage fees charged, and which shipper would be the cheapest. What about USPS Priority Mail International Large Flat Rate Box?

I think there are 4 questions in there.

1. Yes, in theory that is correct. In practice, Cdn. tax is applied to whatever you paid for the item as documented on the total line of the receipt, so includes State/local taxes but S&H (where applicable) is often overlooked for expediency.

2. Yes, brokerage fees exist because someone is acting on your behalf as the importer of your item and advancing funds for the taxes and any duty assessed.

3. How much that service should cost is another issue. Canada Post calls it a handling or processing fee and has recently increased it to a flat $8.50. But USPS/CP is still the lowest cost option in most cases.
Courier companies charge more for brokerage and the amount varies based on shipment value. UPS is probably highest, followed closely by FedEx. DHL tends to be cheaper but thre are reasons for that.
Some RFD members think a sliding scale is wrong and it should be a flat rate too, but the higher the item value, the greater the amount of tax/duty they are advancing on your behalf.

4. The Flat Rate Boxes are not always the best option from the recipient's point of view. They are a convenience for the sender, and may or may not save them money on postage.

You can reduce brokerage fees with the courier companies in a few ways, such as:
- have an account with them linked to your bank account so that taxes/duty can be charged directly to you, thus avoiding the relatively hefty bond fee (and tax on top of it)
- do the import brokerage yourself if you live in a convenient location and know how to get the courier company to cooperate in you doing that
Deal Guru
User avatar
Mar 12, 2005
11677 posts
3489 upvotes
Victoria
Also if your using UPS if you use the more expensive shipping methods like worldwide express they include the brokerage. This means you only get stuck paying the tax when you recieved.

The problem with UPS is most retailers use the cheapest method (which I think is UPS Standard?). This is when you get stuck with brokerage. UPS has a bunch of higher tier packages that include it. In my experience paying a little more for the shipping up front saves alot of money upon receipt.

USPS to Canada Post is still the cheapest method though. As a previous poster mentioned its only $8.50 + HST / GST/ PST combo of your province. Canada Post is also pretty famous for letting alot of stuff slide without collecting tax (allthough I would hope they catch something as expensive as a laptop :) ).
Deal Addict
User avatar
Jul 1, 2004
2778 posts
119 upvotes
Sudbury
Toukolou wrote: These replies in 3 threads have been very helpful.

What are you auditioning for a mod job or something?
yes
"What an emotionally wrecking of the stomach game"
Newbie
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May 30, 2007
23 posts
3 upvotes
tempbond wrote: Just as an update as this thread is 8 years old...

Canada Border Services Agency - customs tariff 8471.30.00 - see page 86 of 108 of the PDF

So tariff has not changed and is still 0%, but you still have to pay provincial and federal sales tax on the entire amount paid (price of item + shipping).
Thank you, I was just about to ask and check! Appreciate all the comments, thanks.

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