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Slapped with $80 duties on a package from an overseas relative

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Jr. Member
Jan 21, 2014
128 posts
3 upvotes
Toronto

Slapped with $80 duties on a package from an overseas relative

I just went to the post office to pick up a package sent by a relative living abroad that contains some clothing items with a declared value of around $150 and was told that to claim it I need to pay $80 or so in duties.

I've occasionally had the relative send me clothing items as gifts like this in the past and it's the first time this is happening.

How should I deal with this? Paying $80 to claim items worth in total about $150 sounds too much. Especially considering that my relative had to already spend ~$30 in shipping cost, this makes it totally not worth it.

I do see here http://www.cbsa-asfc.gc.ca/import/posta ... x-eng.html that gifts from abroad by mail with value over $60 is dutiable, but that web page doesn't show how the amount of the duty would be calculated. In any case just on the basis of what's on that page, I am being subject to a duty of $80 for a value of $90 ($150-$60). Does this make sense?

I was told at the post office I could just return the package to the sender, but would like to avoid it. I am curious about the basis for calculation of the duty, and whether there is a way to appeal this.

As I said, this is the first time this is happening despite similar gifts in the past. Is this a crap shoot? Does the border services agency do a random check? Is my duty so high because they didn't believe the declared value on the package? I was shown the package by the post office person and it didn't seem like it was officially opened, so what would've been the basis for their decision? How can I avoid this in the past, or at least know what to expect when receiving stuff from abroad?
I can see this happening on my own overseas purchases too, so I think I should know.
28 replies
Moderator
May 28, 2012
12484 posts
5278 upvotes
Saskatoon
My MIL had to pay $80 for her Christmas gift package from her son in Michigan one year. Talk about a slap in the face. I had to pay almost $70 in duties and tax for a package worth $200. You are lucky that this is the first time you've been assessed, when you average it all out, you're still ahead.
Deal Expert
Aug 22, 2006
31271 posts
17295 upvotes
Textiles have a VERY high duty rate if it's not NAFTA.
That said, each item in the package has a $60 limit. If you send 4x $59 items it's still duty free.
But if the sender didn't declare it properly (let's say 1 item at $150 instead of 3 items at $50) you will be billed for duty purposes.
Jr. Member
Jan 21, 2014
128 posts
3 upvotes
Toronto
Oh, ok, so that starts to make some sense.
The package probably contains quite a few pieces of clothing items, but I can't imagine any single item in there would be worth more than 60$ - they are just socks, t-shirts and stuff.
And the declaration is probably $150 as opposed to smaller amounts for individual items.

So if there a way to appeal this? Would it be better to have it returned to sender (for a cost of $10) and have her declare it on individual item basis? Will that ensure that I won't need to pay duties?
Deal Expert
Aug 22, 2006
31271 posts
17295 upvotes
You can pay it and then dispute with the CBSA. You won't get the $10 fee from CP back though.
You'll most likely need an itemized invoice for all the items in the package.
Deal Expert
User avatar
Jul 30, 2007
33236 posts
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Toronto
Tell post office to keep them and/or donate to clothing charity
Jr. Member
Jan 21, 2014
128 posts
3 upvotes
Toronto
From Korea... $150 is a rough translation of what's in the package in KRW.
Unfortunately, the relative didn't get any invoices as she bought them at stores herself and didn't keep receipts either.
So it looks like disputing it won't be an option.

So three options.

1. Pay the duty and be done with it. (-$80, +value of what's in the package)
2. Forget about it and consider it a loss.
3. Send it back, have the relative declare it better (item by item) and have her send it back. (-$10 for the fees, -$30 for the relative to ship it back here, and there is some chance I will be hit with duty yet again)

What should I do?
Deal Addict
Oct 9, 2011
1852 posts
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death_hawk wrote: Textiles have a VERY high duty rate if it's not NAFTA.
That said, each item in the package has a $60 limit. If you send 4x $59 items it's still duty free.
But if the sender didn't declare it properly (let's say 1 item at $150 instead of 3 items at $50) you will be billed for duty purposes.
I don't think that is the case, it's always base on total value of the package. It's the same thing as going cross-border shopping, they want to know the total amount of goods you are brining back into Canada.

Sending it back will be extra cost for the sender, unless the sender refuse to take delivery. If you don't want to waste the $150+30 your relative spent, your only choice is pay the duties.

Next time just lower declaration value, it might not work 100% of the time because they can still open the package regardless, and if they think the goods cost more, they can still charge you. But it worked for me 90% of the time. Good luck.
Deal Expert
Aug 22, 2006
31271 posts
17295 upvotes
jjesskaka wrote: I don't think that is the case, it's always base on total value of the package.
I receive gifts quite often. This is exactly how it is.
http://www.cbsa-asfc.gc.ca/import/posta ... x-eng.html
It's not very clear but you notice that it makes no mention of gift(s).
Each gift under $60 is duty free.
Don't expect to ship like a dozen identical shirts or something valued at $59 because that's suspicious.
But a shirt, socks, pants, glasses, etc all valued at $59 or less each will be fine.
It's the same thing as going cross-border shopping, they want to know the total amount of goods you are brining back into Canada.
That's different.
Next time just lower declaration value
Yeah this is horribly illegal. A better method is to declare the items properly.
Deal Addict
Oct 9, 2011
1852 posts
1102 upvotes
death_hawk wrote: I receive gifts quite often. This is exactly how it is.
http://www.cbsa-asfc.gc.ca/import/posta ... x-eng.html
It's not very clear but you notice that it makes no mention of gift(s).
Each gift under $60 is duty free.
Don't expect to ship like a dozen identical shirts or something valued at $59 because that's suspicious.
But a shirt, socks, pants, glasses, etc all valued at $59 or less each will be fine.
I receive stuff from oversea friends and relatives often too. There was once when the total value of my package is close to $100 but each individual item are all around $10-$20 and I still got charged for customs and duties. Ontario tax is 13%, duties is 12-15%? and then some service fee of $10.

The website you posted, the $60 is referring to the entire package not each individual item. (At least that is is how I interpret it... )

Not here to argue, just offering some personal experience. OP, if you send the package back and ask your relative to re-send it and declare it correctly, it's just gonna cost more money and you still might get charged for tax.

Sometime it's really about luck, they don't check every single package. I've had package that worth more than $100 but didn't get charged, I've had package that is just slightly over $50 but got charged for customs and duties.
Deal Guru
User avatar
Oct 14, 2003
14325 posts
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monotious wrote: 1. Pay the duty and be done with it. (-$80, +value of what's in the package)
2. Forget about it and consider it a loss.
3. Send it back, have the relative declare it better (item by item) and have her send it back. (-$10 for the fees, -$30 for the relative to ship it back here, and there is some chance I will be hit with duty yet again)

What should I do?
Since the item isn't a gift from your first option (you'e paying for the items in the box) you should not lie and pay for it.
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Deal Expert
Mar 25, 2005
22705 posts
3696 upvotes
jjesskaka wrote: I receive stuff from oversea friends and relatives often too. There was once when the total value of my package is close to $100 but each individual item are all around $10-$20 and I still got charged for customs and duties. Ontario tax is 13%, duties is 12-15%? and then some service fee of $10.

The website you posted, the $60 is referring to the entire package not each individual item. (At least that is is how I interpret it... )

Not here to argue, just offering some personal experience. OP, if you send the package back and ask your relative to re-send it and declare it correctly, it's just gonna cost more money and you still might get charged for tax.

Sometime it's really about luck, they don't check every single package. I've had package that worth more than $100 but didn't get charged, I've had package that is just slightly over $50 but got charged for customs and duties.
Memorandum D2-1-4 allows for multiple gifts in one container.
Jr. Member
Jan 21, 2014
128 posts
3 upvotes
Toronto
Ojam wrote: Since the item isn't a gift from your first option (you'e paying for the items in the box) you should not lie and pay for it.
I am not sure if I understand you...
The items are a gift. Yes, if I choose the first option, I am effectively paying for it, and it's less of a gift at least from my perspective, but I don't understand the relationship between that and lying.
I don't think any of the three options is lying.

For 1, I will be paying the amount of the duty asked and picking up the package, enjoying what's inside.
For 2, I just refuse to pay the duty and give up the package.
For 3, I send it back, and have my relative properly declare the items from her end, which, as I said, will be assortment of low value clothing items none of which will be more than $60 (not even more than $20, I suspect).

I am not ready to be offended yet, but would like you to explain to me what you meant by how I should not lie.
Deal Fanatic
User avatar
Jan 31, 2006
8541 posts
2655 upvotes
Toronto
monotious wrote: I am not sure if I understand you...
The items are a gift. Yes, if I choose the first option, I am effectively paying for it, and it's less of a gift at least from my perspective, but I don't understand the relationship between that and lying.
I don't think any of the three options is lying.

For 1, I will be paying the amount of the duty asked and picking up the package, enjoying what's inside.
For 2, I just refuse to pay the duty and give up the package.
For 3, I send it back, and have my relative properly declare the items from her end, which, as I said, will be assortment of low value clothing items none of which will be more than $60 (not even more than $20, I suspect).

I am not ready to be offended yet, but would like you to explain to me what you meant by how I should not lie.
As you mention above that your relative did not kept/lost the receipt already, so option 3 is out of question for now. Next time simple remind your relative to include a copy of all receipt in the package.
Deal Expert
Aug 22, 2006
31271 posts
17295 upvotes
jjesskaka wrote: I receive stuff from oversea friends and relatives often too. There was once when the total value of my package is close to $100 but each individual item are all around $10-$20 and I still got charged for customs and duties. Ontario tax is 13%, duties is 12-15%? and then some service fee of $10.
Someone on the sending end didn't do the paperwork correctly then. You could have disputed it and received a refund.
Even a bunch of items shipped via UPS Ground (eg guaranteed paperwork) doesn't incur duties.
Deal Guru
User avatar
Mar 12, 2004
12139 posts
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Guelph
Just for this one time, take the $80 hit. If you send it back for $10, ship it back for $30 again, your out $40 and might be hit with duties again anyways! Its a gamble really and you just been lucky thus far.
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Deal Fanatic
Jun 26, 2009
5427 posts
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GTA
Best thing to do is not overestimate the value of your content. If they sent just some t-shirts - $50 as a value would be sufficient. You wouldn't have to pay anything.
Deal Guru
Mar 14, 2005
13811 posts
2516 upvotes
http://www.cbsa-asfc.gc.ca/publications ... 4-eng.html

4. To be eligible for free importation, no gift can be more than CAN$60, regardless of the number of joint recipients (for example, a wedding gift for a couple). If more than one gift is shipped in a container, each gift valued at not more than $60 can be imported free under tariff item No. 9816.00.00. Each gift in the container has to be clearly identified as one gift. This applies regardless of whether one or more donors or recipients are involved.


http://www.cbsa-asfc.gc.ca/publications ... ml#_item04

A gift sent by a friend or family member abroad to a person in Canada is exempt from duties and taxes as long as the gift is worth $60 or less. Alcoholic beverages, tobacco products and advertising material do not qualify for this gift exemption.

The declaration should clearly identify the goods as a gift and should include a gift card or tag to avoid any misunderstanding. For gifts worth more than $60, you have to pay duties and taxes on the amount over the $60 exemption.
Deal Guru
Mar 14, 2005
13811 posts
2516 upvotes
monotious wrote: ...
For 1, I will be paying the amount of the duty asked and picking up the package, enjoying what's inside.
For 2, I just refuse to pay the duty and give up the package.
For 3, I send it back, and have my relative properly declare the items from her end, which, as I said, will be assortment of low value clothing items none of which will be more than $60 (not even more than $20, I suspect).
...
For option 1 (pay the duty and enjoy the package), you have a year to dispute the duty by sending CBSA as much proof as possible that your low value items were all gifts. You can try doing this by looking up each item online and showing its value, and maybe including an email from your Korean relative saying the stuff was all gifts individually valued at under CDN$60.

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