Shopping Discussion

Canada Post notice of Amount Due Unreasonably High

  • Last Updated:
  • Jan 22nd, 2015 10:59 pm
[OP]
Newbie
Jan 21, 2015
1 posts
Mississauga, ON

Canada Post notice of Amount Due Unreasonably High

I received a delivery notice card today and I look on the back and it says on the back, amount due : $53.80. But my order total was only $68.87 on my Credit Card.

So what I ordered was some clothes off Karma Loop when they had there 75% off sale and my order breakdown looked like this (this is all in USD):

Subtotal: $164.00 USD
Shipping: $13.14
Handling: $2.25
Tax: $.00
Discounts: saleiscray: -$123.00
Order Grand Total: $56.39

So my guess is that Canada Customs charged me whatever % tax on the subtotal of $164 USD?
If that is so is there anyway I can fight this amount due to reflect what I actually paid?
8 replies
Member
Mar 5, 2013
497 posts
118 upvotes
Ottawa
From what I could see on their website, KarmLoop ships by UPS, and not the US Postal Service. If Customs was involved, you shouldn't be paying more than $20 in taxes (which would also include the fee to Canada Post.) . Because UPS was used, I suspect your being charged service fees on top of the taxes. When it comes to fighting, I think you're only option is to refuse the package.
Newbie
User avatar
Dec 1, 2014
81 posts
18 upvotes
Vancouver, BC
If the courier company didn't pass off the shipment to Canada Post for the final delivery I would have suggested calling in and tell them that you want to self clear.
But since Canada Post is involved I makes doing so much more complicated......... Like @blueeyetea suggested refusing the package would be the best option
Deal Addict
Feb 26, 2003
4099 posts
113 upvotes
Tahsis
If you want the goods, I would suggest paying and filing a b2 adjustment. CBSA doesn't look at parcels when it's just taxes, Canada post does it. They probably read the wrong line or something. It also looks like you probably paid tax and duty on the 164, plus Canada post's fee. If you refuse it the parcel just goes back.
Banned
User avatar
Jun 22, 2012
4737 posts
692 upvotes
Shhanada
rommelrommel wrote: If you want the goods, I would suggest paying and filing a b2 adjustment. CBSA doesn't look at parcels when it's just taxes, Canada post does it. They probably read the wrong line or something. It also looks like you probably paid tax and duty on the 164, plus Canada post's fee. If you refuse it the parcel just goes back.
Canada Post's fee is $9.99 (I think, unless they instituted yet another ridiculous large jack up) so even if the wrong $164 base was used, does $58 taxes/duty sound right? That's 35-36%
Newbie
Jan 18, 2015
4 posts
1 upvote
Toronto, ON
That is really odd.

I have ordered tons of stuff from the States. I always make sure that it ships with USPS so that Canada Post does the final delivery. It may not always be as quick as UPS, but you are more likely to avoid Customs taxing you and if you do get taxed, it is much cheaper than UPS or FedEx who clear the package for you, always, and charge you service fees. A relative ordered a sports jersey from the U.K. last year. Shipped with DHL but once it got to Canada, it was passed along to Canada Post for final delivery. Got dinged so hard with taxes and service charges. Odd as it was, when it ships with a carrier like DHL, FedEx, they usually deliver it entirely on their own from point A to B.

If it is indeed USPS, with Canada Post for final delivery: are you on Ontario? I am, so I will just assume that you are meant to be taxed at 13% if Customs does ding you for it, plus the $9.95 Canada Post handling fee. You should only have been charged $31.27 with taxes and handling fee. If the goods are made (or from?) in the States, there should not be any duties. Far as I know, anyway.

$53 is ridiculous. That is near the amount I had to pay when I bought an almost $500 leather briefcase from Saddleback Leather in the States. I would expect a fee of $53 for that amount from UPS or some other carrier rather than the national postal service. Well, actually, no. I would expect an exuberant amount if it were UPS.

All you can do is challenge the amount, refuse the package or just pay. For the future, always make sure it is shipping with USPS because that means Canada Post will deliver and if you do get taxed, it will be reasonable unless CBSA screws up.

EDIT: I see you actually paid $56.39. Apologies, however, on the Customs declaration form, I think they would still declare the value of the goods pre-sale? I had that happen with my briefcase. As your order was under $100, that is even more odd, along with the amount. I have never been taxed, thus far, on an order under $100. Though, only items under $20 are exempt or gifts under $60.
Deal Addict
Feb 26, 2003
4099 posts
113 upvotes
Tahsis
Clothing has high duty and hardly any of it is made in the USA.
Deal Fanatic
Oct 26, 2008
6065 posts
1731 upvotes
BC
Thalyn wrote: .... will just assume that you are meant to be taxed at 13% if Customs does ding you for it, plus the $9.95 Canada Post handling fee. You should only have been charged $31.27 with taxes and handling fee....... I would expect an exuberant amount if it were UPS.
Tax is on the amount in Cdn.$ not USD, so in your example if they read just the sub-total amount of $164 USD, the HST on approx. $200 Cdn. + CP fee would have come to more like $36.
Even if they included the S&H fee, which technically they could, we would still be looking at only around $40 to pay.

So it looks as though there must be some duty in there. But at 18% it then looks as though they didn't use the non-discounted sub-total as that would have been around $40 duty +$30 HST + $9.95 fee.

Maybe they had an issue with believing a 75% discount and applied their own valuation of about $130 Cdn. total to come up with the $53.80 owing? ($25 duty + $19 HST + $10 fee)

BTW, if UPS was involved, the amount owing would be exorbitant - not exuberant (that's what you are when a delivered package has nothing owing).
Newbie
Jan 18, 2015
4 posts
1 upvote
Toronto, ON
macnut wrote: Tax is on the amount in Cdn.$ not USD, so in your example if they read just the sub-total amount of $164 USD, the HST on approx. $200 Cdn. + CP fee would have come to more like $36.
Even if they included the S&H fee, which technically they could, we would still be looking at only around $40 to pay.

So it looks as though there must be some duty in there. But at 18% it then looks as though they didn't use the non-discounted sub-total as that would have been around $40 duty +$30 HST + $9.95 fee.

Maybe they had an issue with believing a 75% discount and applied their own valuation of about $130 Cdn. total to come up with the $53.80 owing? ($25 duty + $19 HST + $10 fee)

BTW, if UPS was involved, the amount owing would be exorbitant - not exuberant (that's what you are when a delivered package has nothing owing).
Yeah, I was typing this up on my phone, on the bus. I didn't proof-read, and just left the spelling that my iPhone automatically put in, haha. But thanks, I do know the difference between those two words.

You are right, they take the amount in CDN not USD. I've only ever been taxed twice, and just took OP's first amount when doing quick calculations and mentally I had the image of the Customs Declaration form, which has the amounts in USD. My bad there. However, I don't think I was wrong about anything else.

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