• Last Updated:
  • Jul 18th, 2020 8:29 pm
Tags:
[OP]
Newbie
Jun 15, 2020
18 posts
9 upvotes

Import duty

Hello all,

If I am buying an expensive used watch from overseas, and seller declares value of the watch at sold price that is less than the retail, would CBSA assess import duty / tax based on the declared price or do they check retail price on that item and apply fees based on that?

Thanks.
13 replies
Deal Expert
Feb 7, 2017
22257 posts
20869 upvotes
Eastern Ontario
RE - CUSTOMS - Taxes & Duties

CBSA withholds the right to do both ...
If they feel that the item in question is worth more
Is Intentionally being UNDER DECLARED

So it’s a case of bring your proof of what you paid ($ X )
And what type of transaction

In this case it’s SECOND HAND / USED / RESALE

They will prob check the RESALE VALUE
To determine the amount you are declaring isn’t out of whack entirely

If it is ...

Then YES they may evaluate the item to its actual worth ($ X + $ Y = $ Z)
And charge you any required Taxes + Duties on the true value ($ Z )
Last edited by PointsHubby on Jul 16th, 2020 10:41 am, edited 1 time in total.
Sr. Member
User avatar
Sep 16, 2015
587 posts
1191 upvotes
Calgary, AB
Let's reword the OP's question. "If I break the law, do you think I'll get caught?"
Deal Expert
Feb 7, 2017
22257 posts
20869 upvotes
Eastern Ontario
jaybeeg wrote: Let's reword the OP's question. "If I break the law, do you think I'll get caught?"
Lol, possibly ...

But this one is worded better than most we see on RFD
“If I pay $ Y ... BUT get an Invoice for $ X ... will I get dinged for more / caught ? “

So I am willing to give the OP the benefit of the doubt here

Sides lots of folks buy used / resale items outside of Canada and bring them home

Gotta laugh at people who THINK they’ll get away with stuff tho
AS IF... folks at CBSA (actually Customs in ANY Country) have never seen this stuff before

Trust me ... we’ve seen it all
People just aren’t that bright at thinking up new cons

As they say... the biggest advantage to catching crooks / lawbreakers
Is they are DUMB

Esp those that just go around bragging they are smart (right there dumb move) on what they did

Truly Intelligent people don’t have to brag about how smart they are
Their record speaks for itself
Deal Fanatic
User avatar
Mar 28, 2005
7535 posts
1770 upvotes
Cornwall, Ontario
jaybeeg wrote: Let's reword the OP's question. "If I break the law, do you think I'll get caught?"
How do you possibly read this into the OPs post????
seller declares value of the watch at sold price that is less than the retail
Who ever buys anything at retail, especially members of RFD
Sr. Member
User avatar
Sep 16, 2015
587 posts
1191 upvotes
Calgary, AB
krs wrote: How do you possibly read this into the OPs post????

Who ever buys anything at retail, especially members of RFD
Because it's a strange question.

When I order something from outside Canada, I always have a receipt to confirm the price I paid. If the CBSA assesses a higher import value, I can simply submit my receipt along with a request for reimbursement.

If the OP doesn't have documentation to back up his purchase, then he's going to find it impossible to dispute a reassessment.
Deal Guru
User avatar
Mar 12, 2005
10765 posts
2610 upvotes
Victoria
In my experience if the receipt is included with the order, it makes it pretty easy for them to charge the right amount.

I've also noticed that they only check so many packages. I have the habit of buying my hiking/walking shoes from the UK. Always worth over $100 cdn. They maybe get dinged 25% of the time.
Deal Fanatic
User avatar
Mar 28, 2005
7535 posts
1770 upvotes
Cornwall, Ontario
jaybeeg wrote: Because it's a strange question.

When I order something from outside Canada, I always have a receipt to confirm the price I paid. If the CBSA assesses a higher import value, I can simply submit my receipt along with a request for reimbursement.

If the OP doesn't have documentation to back up his purchase, then he's going to find it impossible to dispute a reassessment.
I don't really understand why you think it's a strange question.

Most products have a "retail" price, MSRP set by the manufacturer and usually a lower selling price by the vedor - I read the question simply "Which one does CBSA use to calculate duty and taxes.
Your answer is the selling price
Deal Expert
Feb 7, 2017
22257 posts
20869 upvotes
Eastern Ontario
krs wrote: I don't really understand why you think it's a strange question.

Most products have a "retail" price, MSRP set by the manufacturer and usually a lower selling price by the vedor - I read the question simply "Which one does CBSA use to calculate duty and taxes.
Your answer is the selling price
I believe the issue here is it’s a USED / RESALE item
And prob a Private Sale ... so not a regular Retailer / Retail Situation

It’s a whole other ball of wax ... when it comes to CBSA
As they can determine the value of the item
Beyond whatever “receipt” that the Importer provides

And YES...
It’s not uncommon for people to UNDER VALUE / UNDER DECLARE stuff they want to import

It’s just way more frequent an event in the RESALE market

And in the end, when to comes to anything imported ... NEW OR USED
It’s always up to the Importer / Buyer to prove their case
For whatever they are claiming
If they aren’t happy with the assessment by CBSA

Here’s but a few examples of undervaluations (and consequences) as reported by CBSA
https://www.canada.ca/en/border-service ... ftype.html
[OP]
Newbie
Jun 15, 2020
18 posts
9 upvotes
Thanks for your thoughts on this everyone on this. I am not trying to break the law, but I want to minimize a risk of dealing with CBSA getting the watch. FWIW, in luxury watch market, some used current models can be had for substantially lower than the current retail price.
Deal Expert
Feb 7, 2017
22257 posts
20869 upvotes
Eastern Ontario
BlackboxRTX wrote: Thanks for your thoughts on this everyone on this. I am not trying to break the law, but I want to minimize a risk of dealing with CBSA getting the watch. FWIW, in luxury watch market, some used current models can be had for substantially lower than the current retail price.
Used to work for Customs ...

My BEST ADVICE on “minimizing risk” as you say ... is plain & straight forward

TELL THE TRUTH

It’s the easiest way to make everything go smoothly ... and ultimately pay out the least amount of duty + taxes

As I illustrated with the link in my previous reply ... thinking you can lie, and scam the system ... well that just ends up being a very COSTLY Experience ... financially, legally, Time wise ... and the worst, you end up on the CBSA NOT TRUSTWORTHY List for YEARS. So any future dealings you have with the border (Canada or USA) in person, or not ... you’ll be flagged for Secondary Inspection. That truly is a BIG PITA.

Be smart. Tell the truth
Deal Fanatic
User avatar
Mar 28, 2005
7535 posts
1770 upvotes
Cornwall, Ontario
PointsHubby wrote: Used to work for Customs ...

My BEST ADVICE on “minimizing risk” as you say ... is plain & straight forward

TELL THE TRUTH

It’s the easiest way to make everything go smoothly ... and ultimately pay out the least amount of duty + taxes

As I illustrated with the link in my previous reply ... thinking you can lie, and scam the system ... well that just ends up being a very COSTLY Experience ... financially, legally, Time wise ... and the worst, you end up on the CBSA NOT TRUSTWORTHY List for YEARS. So any future dealings you have with the border (Canada or USA) in person, or not ... you’ll be flagged for Secondary Inspection. That truly is a BIG PITA.

Be smart. Tell the truth
I still don't see why everyone assumes that the OP is planning to lie when it comes to customs.

I have bought lots of used items overseas, had them shipped and paid tax (and duty if required)
Never a problem except around Christmas when I usually get overcharged.
But a complaint to customs always ended up in a refund. Once customs told me that they hire temporary workers at that time to handle the volume and those workers are not 100% familiar with all the custom regulations.

Just to ne on the safe side, I pay in a very transparent manner so I have some proof what I really paid as opposed to some artificial MRSP.
Deal Expert
Feb 7, 2017
22257 posts
20869 upvotes
Eastern Ontario
krs wrote: I still don't see why everyone assumes that the OP is planning to lie when it comes to customs.

I have bought lots of used items overseas, had them shipped and paid tax (and duty if required)
Never a problem except around Christmas when I usually get overcharged.
But a complaint to customs always ended up in a refund. Once customs told me that they hire temporary workers at that time to handle the volume and those workers are not 100% familiar with all the custom regulations.

Just to ne on the safe side, I pay in a very transparent manner so I have some proof what I really paid as opposed to some artificial MRSP.
And perhaps that’s WHY you aren’t seeing the other POV
(And to be fair ... I never accused the OP of anything ... been giving them the benefit of what he posted was straight up info / question)

But doesn’t mean that it doesn’t happen
Just for honest folks ... it seems so obvious to do the right thing

But that’s not everyone

And I have certainly seen my share of WHAT IF I ... type questions here on RFD

This isn’t one of them

You might be surprised how many folks think they can pull a fake invoice for an item “as proof” of what they paid

Esp true on private sales, or used merchandise

Not at all in the same ballpark as folks who buy from legit Retailers / Stores etc

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)