Shopping Discussion

Is Customs Tax/Duty applicable on imported services?

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  • Apr 11th, 2012 12:56 am
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Deal Fanatic
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Apr 17, 2005
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Is Customs Tax/Duty applicable on imported services?

Here's a question for you guys which Im having trouble figuring out.

Say I send something to the US to have a service done to it (eg. cleaning, appraised, restorations etc. that kind of thing). And when it comes back across the border it gets taxed (I would assume that Customs is assuming I am importing something and is therefore applying taxes/duty on the declared value of the item).

If I have proof that I exported and subsequently imported the exact same item back, do I have a valid reason to request a refund from Customs? Or is the imported service taxable?

Thanks for help and insight
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Deal Expert
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May 8, 2009
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Toronto
You'll probably be fine and get a refund on the custom/duty charges If you have proof that you bought It already and only sent It for cleaning/repairs/etc.

Although you may be able to dodge those fees; I think you would still have to pay for the "handling" fee.. I'm not to sure but that's what I think..

I'd also like to know 100% what would happen.. I RMA'ed a headset and wondering If I will get hit by duties/taxes when It's sent back.
Deal Addict
Jul 14, 2009
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New Westminster
GST/HST should be charged on the value of the service. You should make sure to have:

-Proof of purchase in Canada / Proof of Importation
-Proof of export for repairs
-Invoice for repairs in the US

for importation into Canada
Wizard1 wrote: Here's a question for you guys which Im having trouble figuring out.

Say I send something to the US to have a service done to it (eg. cleaning, appraised, restorations etc. that kind of thing). And when it comes back across the border it gets taxed (I would assume that Customs is assuming I am importing something and is therefore applying taxes/duty on the declared value of the item).

If I have proof that I exported and subsequently imported the exact same item back, do I have a valid reason to request a refund from Customs? Or is the imported service taxable?

Thanks for help and insight
Deal Guru
Sep 9, 2003
10594 posts
4839 upvotes
Burnaby
http://www.cbsa-asfc.gc.ca/publications ... c-eng.html

[QUOTE]2. The provision allows customs duty-free entry on the full value (export value and the foreign value added) of the returned goods, which were temporarily exported to a free trade partner (United States, Mexico, Chile, Israel, or a CIFTA beneficiary) for repair or alteration. At the time of import no customs duty is paid on the value of the repair or alteration. However, duties under the Excise Tax Act including the goods and services tax (GST) and excise tax, if applicable, are payable on the foreign value added. Where excisable goods are repaired abroad, and the value is enhanced, excise tax is payable on the duty-paid value of the enhancement. For duty purposes, this provision applies to qualifying goods regardless of whether the repair or alteration is under warranty or not and regardless of whether the repair or alteration could have been performed in Canada.[/QUOTE]

No duty

[QUOTE]Goods and Services Tax (GST)

4. This tariff item does not provide remission from the 7% GST. However, paragraph 3(j) of the Non-Taxable Imported Goods (GST) Regulations prescribes certain goods as non-taxable, namely those imported after being exported for repair under warranty. For the goods to qualify for GST relief, the warranty must cover the full value of all parts and labour, excluding partial or conditional warranties. For non-warranty repairs, proposed amendments to the Value of Imported Goods (GST) Regulations are to provide that the GST is payable only on the value of the repair or alteration performed outside Canada.[/QUOTE]

Yes GST (and HST) if paid repair, no GST/HST if 100% warranty repair (documentation must be filled in properly by the manufacturer though - Logitech for example is very good at it)
Deal Expert
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May 8, 2009
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crimsona wrote: http://www.cbsa-asfc.gc.ca/publications ... c-eng.html



No duty



Yes GST (and HST) if paid repair, no GST/HST if 100% warranty repair (documentation must be filled in properly by the manufacturer though - Logitech for example is very good at it)

The company I'm sending my headset back to which Is Steelseries says they will just send a new package and mark the value as low.. Does that kind of count of them filling the documentation out properly? :cheesygri !

No update on my tracking # yet since "March 18, 2012, 6:53 pm"..
Deal Fanatic
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Apr 17, 2005
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FYI.... if you can prove that you paid less, you can take the top custom's form.... fill out the back part and request for partial reimbursement for the duties collected. Just fill out the form and send to CBSA Casual Refund Centre.

Sent a letter to CBSA with the custom's form and reference to Provision #2 of the CBSA regulations. Argument is that it was modified/altered/restored however it did not add any added value to the item (I was getting some collectibles graded by a Third Party Grading company). Crosses fingers and waits.

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