Shopping Discussion

$1300 (USD) item shipped via Fedex. Realistically how much should I expect to get dinged?

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  • Jul 7th, 2021 5:04 pm
[OP]
Deal Expert
Feb 29, 2008
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Tarrana & The Ri…

$1300 (USD) item shipped via Fedex. Realistically how much should I expect to get dinged?

Does Fedex not have a calculator so I can avoid any surprises? I used an online tool and it looks like I'd have to pay an extra $500 in duties. Sound right?
14 replies
Deal Expert
Feb 7, 2017
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Eastern Ontario
Question is rather vague.

In order to truly calculate taxes & duties … need to know WHAT you bought, WHERE Made, and coming in from WHICH Country
Beyond just the US Dollar value (lots of countries besides the USA Quote in US Dollars )

That will give a rough idea

Then on top of taxes & duties
A courier / shipping / freight Co will have their own scale they set for Shipping & Brokerage Fees
Those rates … can usually be found on line
Deal Fanatic
Oct 26, 2008
6941 posts
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Victoria, BC
JayLove06 wrote: ...... it looks like I'd have to pay an extra $500 in duties. Sound right?
You are using the term duties incorrectly - as happens a lot in this forum.

I think you mean brokerage/ entry preparation fee.

If it were coming by UPS Ground instead of Fedex Ground, you would be paying about $130 CAD in brokerage.

Then of course there is the question of whether there is any duty on this item.
If it was made outside North America, there could well be. Anything from 1% up to around 25%.

So many unknowns. Maybe it is coming by one of Fedex's Express services in which case the brokerage is absorbed in the shipping fee.
Maybe it is an item that is exempt from tax.
Assuming it is taxable at 13% for Ont., there would be around $200 in tax.

So your ball park figure of around $500 could be right.
Last edited by macnut on Jul 4th, 2021 1:23 pm, edited 1 time in total.
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Jan 9, 2011
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Assuming 12% GST and PST, you're looking at $200 in taxes right there. Duty may or may not apply depending on what the item is and where it was made. Different brokerage fees will apply depending on whether it is shipped air or ground. You can always self-clear to pay just the duties and taxes owing, and avoid the brokerage fees. But this requires paperwork and an in-person visit to a CBSA office.
[OP]
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Feb 29, 2008
19974 posts
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Tarrana & The Ri…
macnut wrote: You are using the term duties incorrectly - as happens a lot in this forum.

I think you mean brokerage/ entry preparation fee.

If it were coming by UPS Ground instead of Fedex Ground, you would be paying about $130 CAD in brokerage.

Then of course there is the question of whether there is any duty on this item.
If it was made outside North America, there could well be. Anything from 1% up to around 25%.

So many unknowns. Maybe it is coming by one of Fedex's Express services in which case the brokerage is absorbed in the shipping fee.
Maybe it is an item that is exempt from tax.
Assuming it is taxable at 12% for Ont., there would be around $200 in tax.

So your ball park figure of around $500 could be right.
Yes, you're right. I meant brokerage fees. And yes as you say so many unknowns which is annoying. Wish there was an accurate calculator to allow people to make an informed decision.
[OP]
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Feb 29, 2008
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PointsHubby wrote: Question is rather vague.

In order to truly calculate taxes & duties … need to know WHAT you bought, WHERE Made, and coming in from WHICH Country
Beyond just the US Dollar value (lots of countries besides the USA Quote in US Dollars )

That will give a rough idea

Then on top of taxes & duties
A courier / shipping / freight Co will have their own scale they set for Shipping & Brokerage Fees
Those rates … can usually be found on line
It's a chair. It seems different parts are made in different countries. One I know for sure is the US, but unsure of the others.
Deal Fanatic
Feb 19, 2017
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JayLove06 wrote: It's a chair. It seems different parts are made in different countries. One I know for sure is the US, but unsure of the others.
It really depends on where the final package is put together. Where the parts are from really doesnt matter. Take apple products as an example. Most parts come from China/Taiwan but its considered made in USA because the final product is put together there (and you wont have to pay any duty).

If its "made in usa" then you won't have to pay any duty but you will likely have to pay sale taxes and if you don't clear it yourself, brokerage fees. Given the cost, i recommend you look into clearing it yourself.

More info on self clearing
how-save-14-95-dhl-fees-self-clearing-packages-2076527/

(i believe some mention their experience with fed ex self clear inside the thread)
Deal Addict
Dec 26, 2005
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JayLove06 wrote: It's a chair. It seems different parts are made in different countries. One I know for sure is the US, but unsure of the others.
Is the seller collecting and submitting CDN taxes (HST) on this item, as Rockauto does? If they do, there should be no extra import fees.
Deal Expert
Aug 22, 2006
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JayLove06 wrote: Does Fedex not have a calculator so I can avoid any surprises?
Last time I looked they don't even publish what their brokerage rates are.
UPS at least tells you how much they're gonna bend you over the table. As does DHL but they don't do nearly as much bending.

If they're anything like UPS (and they typically are), clearance fees are gonna be in the neighborhood of $100 plus probably a bond fee if you don't have an account.
This is in addition to GST/PST/HST/actual duty. $100 (plus taxes) just covers the paperwork.

Here's UPS's rates:
https://www.ups.com/ca/en/shipping/zone ... rance.page

I have no idea where you're located, but if you want to save yourself $100, you can self account for the package. This makes sense if you have a CBSA office nearby.
https://www.cbsa-asfc.gc.ca/do-rb/servi ... v-eng.html

If none of those are near you, Inland offices also apparently do low value shipments. If you're not near any office, you can hire a 3rd party broker for cheaper.


EDIT: Side note: Self accounting is like pulling teeth with the couriers though.
My last couple packages I contacted both UPS and Fedex THREE times for each package telling them I want to self account. "Yep, we'll email you the documents!" or "email this address that doesn't actually work" or "we'll call you back".
Bother them until you get the paperwork.

That's why I like DHL. Cheap and has an online portal to pay your bill.
UPS has an online portal to pay your bill too, but it's a large bill.
Do you not have anything else to do rather than argue with strangers on the internet
Nope. That's why I'm on the internet arguing with strangers. If I had anything better to do I'd probably be doing it.
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Jan 25, 2009
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I ordered a gold chain worth $1200 USD last year and I was charged $80 CAD. I had used FEDEX.
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Sep 5, 2005
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JayLove06 wrote: Yes, you're right. I meant brokerage fees. And yes as you say so many unknowns which is annoying. Wish there was an accurate calculator to allow people to make an informed decision.
There are so many variables. Duties & taxes aren't a simple thing. If you know where it was made, what the category that it will be declared as and what the value is, you can look up the duty amount on the CBSA website. Plus then add the brokerage fee, which also varies depending on the exact type of shipping service selected. But, without all that info no calculator would be able to tell you.
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Jan 15, 2006
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Recently bought a purse for the wife from Paris, shipped by FedEx, full value declaration at $7000 and paid 6% duties + HST. Brokerage fee was around $20 if I remember right. This was shipped overnight shipping, any express shipping will always have the lowest fees, but you pay for it in shipping LOL (at least it arrives faster).
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Oct 26, 2008
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Paigne wrote: It really depends on where the final package is put together. Where the parts are from really doesnt matter. Take apple products as an example. Most parts come from China/Taiwan but its considered made in USA because the final product is put together there (and you wont have to pay any duty).
............
With respect, I don't think you have that quite right.

Apple products have components from their global supply chain (including the U.S.) with final assembly taking place in China.
That is why they are marked "Designed in California, Made in China".

They are duty free for us Canadians because computers are zero rated (even handheld devices that can make telephone calls).
So Apple would have no need to do final assembly in the USA - even if they were remotely concerned about Canadians having to pay duty.

As many as 36 of the United States supply some aspect of what goes into a typical Apple product, in their effort to support the home economy and its workers.
While some key parts may be sourced from China and Taiwan, I am not sure it is 'most'.

Back to the OP's chair. Not as cut and dried as an Apple product, because Canada has historically tried to protect its own furniture industry.
Unless final assembly took place in N. America I think it would have a fairly high rate of duty.
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Jan 20, 2012
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JayLove06 wrote: It's a chair. It seems different parts are made in different countries. One I know for sure is the US, but unsure of the others.
CBSA tariff code
-Other seats, with wooden frames: 9401.61.10 - - -For domestic purposes 9.5%, free from US

-Other seats, with metal frames: 9401.71.10 - - -For domestic purposes 8%, free from US

If the chair's final assembly happened in US, then you pay HST of claimed value + brokerage fee.
If the chair is imported by US company and selling it to you. You will pay above duty + HST + brokerage fee.

It will be based on your commercial invoice value. If it is $1300USD. You will pay ~$130-160 on duty, ~$230 HST, plus ~$20 breakage fee.

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