I'm getting ready to buy an item off of reverb.com and it's coming from Canada. On the checkout page, it states "This item is shipping to you from Canada. You may be required to pay import duties or taxes upon delivery." Anyone have any idea how much (if anything) I'll have to pay?
There are a few factors at play here.
First, it depends upon where the item was made. If the item was made in Canada, the US, or Mexico, then it is my understanding that under NAFTA (North American Free Trade Agreement) that these three countries allow "free trade" between them for items that were made within those borders. There might be odd exceptions, and I'm completely ignoring issues like using rare rainforest woods and whatnot, but basically if it is Canada/US/Mexico made, there will be no duties. If it was made anywhere else, then you *may* be responsible for the duties that the US charges on the type of item that it is and the country it is coming from. For example, a musical instrument from Japan has a certain duty on it, and an electronic device from China may have a totally different amount. Please note that even if the item is "used" - i.e. it was originally shipped to Canada and you are buying it from the original owner up here - you are still liable for duty on it when it arrives in your country. Whether or not they decide to charge you is another matter altogether, but we'll get to that in a bit. Anyway, you should be able to look up somewhere on a US government website what the duties are for the item based upon the country it was made in.
Secondly, there is the issue of taxes. This one is entirely up to the state (and country) that you live in. If where you live has a state sales tax, then they *may* choose to apply that when it crosses your state border based upon the declared sale price/value of the item, and if they do, you'll have to pay it before you pick it up. This holds true whether you are buying from a store in Canada or from a private individual - the mail system doesn't care who you are buying it from, they only care about taxing you (or at least this is the case in Canada and with most if not all of the buyers I've dealt with in the US on past transactions I've done).
Thirdly, there is the issue of brokerage fees. If the item is being shipped to you through a courier (FedEx, UPS), then you will almost certainly have to pay a brokerage fee above and beyond the aforementioned costs to the carrier. They charge you this for their time and effort spent figuring out what duties and taxes you have to pay. Couriers are THIEVES in this regard, and will nail you with massive charges for brokerage. In Canada, our national mail carrier has a brokerage fee that is a fraction of the couriers. When I buy things from outside Canada and get them shipped to me, I refuse to have them sent any way other than through regular mail (USPS/CanadaPost) for this very reason. Once I paid nearly $75 in brokerage fees to a courier for a pedal that was worth less than that.
Fourth, it depends upon the sale price of the item. When shipping across borders, the value of an item (along with a description of what it is and where it was made) must be declared by the person shipping it. This is the information that is used by the shipper to determine the duties and fees listed above. Usually what you do is declare the amount that you paid for it, although technically if you bought it for a "steal", you should declare the actual value of it. Also note that an item cannot be insured for an amount different than what it is declared for. As far as I know, falsely declaring the value of an item is a federal crime in both Canada and the US, so ensure that the amount declared is appropriate.
Fifth, it depends upon what I'll call the "status" of the item. If the item is something you bought, then you are responsible for all duties and taxes on it. If the item is coming to you as a gift, or a return, or being sent for repair, then there are exceptions to be made, although sometimes they are limited in their amounts. For example, in Canada, you can receive a gift of up to $100 in value from another country without having to pay duty or taxes, but any amount over that you are responsible for, gift or not. I don't know what the American rule (if any) around this is, but I do know that the Netherlands (as one example) has no such gift exemption at all.
Sixth, all this depends upon the carrier. Sometimes with "small" items, carriers decide to not inspect them rigourously, and you may receive something without having to pay anything on it just because they've decide to let it through. Other times, like 100% of the time with couriers, you'll have to pay all the duties and taxes as well as brokerage fees. They give no leeway, I'm sure in part because they love charging that outlandish brokerage fee.
Seventh and final point, all of these taxes and duties and charges are the sole 100% responsibility of the recipient/importer. There is absolutely no influence that the shipper can have over these. You have to pay them because of the laws that your country and/or state have imposed. Sometimes people get caught off guard because they didn't know about these things and then go back to the shipper upset, which is not only "wrong", there is also no recourse for you. Be sure you educate yourself before buying and selling across the border. All in all, these fees don't matter much when you are talking about a $100 pedal, but once you get up to, say, a $4000 bass, it could be a big deal.
Hopefully that helps, and I also hope it doesn't dissuade you (or anyone else) from buying cross-border. Once you know what you are doing and what to expect, it is actually quite easy and seamless to do, and with the Canadian Dollar being in the toilet right now, there are some incredible deals to be had for Americans! Good luck with your purchase!
