Shipping to Canada. Please educate me.

[Mosthigh]

The seller does NOT pay the California tax.

Well, I paid tax to somebody. My invoice says not only did I pay selling and processing fees, but 'Reverb Remittance Tax'. Lousy deal, and I'll never sell to the US on Reverb again.

This article on Reverb states: "The precedent set by the South Dakota v. Wayfair, Inc. Supreme Court decision allows states to tax remote sales—like those made through Reverb and any other e-commerce sites—through a variety of methods."

What Reverb Sellers Need to Know About New Sales Tax Rules

 

[Deleted member 271037]

This will obviously vary between different countries/trade agreements. I don't live in Canada so I don't know anything about Canadian import taxes but I do expect to pay VAT + customs processing fees (as well as additional import tax for SOME types of goods) when ordering stuff from abroad. The customs handling fees can vary a lot. Carriers like UPS, FedEx, DHL Express typically charge more than national postal service. They all charge extra for customs processing though and this will usually not be included in the specified shipping costs. In my experiences only some types of "business parcel" services have the processing fees baked into the shipping costs but you'll have to be an actual business (with some kind of tax/VAT related ID number) to use these services. At least that's how it works in my part of the world.

 

[Koshchei]

Any time I list an item, I put the typical “CONUS only” at the bottom. 2 weeks ago, I had 2 separate individuals from the Great White North approach me about making an exception. One was a $2k bass. The other was a small, $200 accessory.

I’ve bought from overseas many times but never sold that way. I use Pirate Ship so I figured, “What the heck? Let’s give it a try!” and agreed to do the deals, as long as the buyers paid the extra shipping costs. Deal on both counts.

The bass buyer requested that I ship via USPS since UPS 2-day has higher fees. So I chose the USPS Priority International Expedited option which was 3-5 days as opposed to their standard USPS International which was 10 days. That was 2 weeks ago. Tracking says the bass is being delivered today (and no, there was no long delay at customs). Duties and taxes were roughly $250.

When I ran the shipping quote for the small, $200 accessory, the USPS delivery estimate was 4-6 weeks?? So I chose UPS which said it would take 2-3 days. The shipping price was only $2-3 higher for that. The buyer agreed and we were good. That package arrived on time. The buyer was charged $40 in customs/brokerage fees.

These fees and timelines are all new to me. And I hate telling someone from Canada no. I’m just curious, is there a better way?

Pirate Ship did make it easy. But it generated commercial invoices for each ‘Friends & Family’ deal. Do you guys from Canada (or other countries) assume that you’ll have to pay a ton extra and/or wait forever when you buy from the US? Is there something US sellers can be doing to make this process easier all the way around?

Please educate me.

In Canada, we assume automatically "add two weeks". Border crossings and brokerage takes time.

 

[2ndBassGuitar]

Well, I paid tax to somebody. My invoice says not only did I pay selling and processing fees, but 'Reverb Remittance Tax'. Lousy deal, and I'll never sell to the US on Reverb again.

This article on Reverb states: "The precedent set by the South Dakota v. Wayfair, Inc. Supreme Court decision allows states to tax remote sales—like those made through Reverb and any other e-commerce sites—through a variety of methods."

What Reverb Sellers Need to Know About New Sales Tax Rules


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I am sorry but you are not reading the invoice correctly. YOU did not pay the $61.26 Canadian in tax - the buyer did. You sold the amp for $740 Canadian, not $801.26. Then they added the tax paid by the buyer (which they withheld and paid to California) of $61.26. So you are back $740. Then they deducted the Reverb fees of $66.89 and paid you $673.11.

Hope this clarifies it for you.

 

[murphy]

pre covid 4 or 5 days to arrive.
Now 2 to 3 weeks or more. With sketchy tracking..lol
40 cents on the dollar with Paypal
15 percent tax duty and even Canada post have started adding their own handling fee.
300 bass body...ship from the Stratosphere..65....is 500 Canadian with Paypal exchange.
Then Canada post 78 dollar fee....

578 Dollars Canadian for a 300 dollar body

Hurts more now than before covid

 

[Koshchei]

I am sorry but you are not reading the invoice correctly. YOU did not pay the $61.26 Canadian in tax - the buyer did. You sold the amp for $740 Canadian, not $801.26. Then they added the tax (which they withheld and paid to California) of $61.26. So you are back $740. Then they deducted the Reverb fees of $66.89 and paid you $673.11.

Hope this clarifies it for you.

I don't sell anything through Reverb or across borders. Too many stories of people "renting" gear for gigs and then finding some pretence to return them on the seller's dime. I'll do kijiji and local pickup only at this point.

 

[Bass Viking]

I have some a bass coming from Bass Direct in the UK. It’s coming via ParcelForce. Like Royal Mail, that service connects to the US via USPS. So I’m having it shipped to my PO Box to minimize local postal carrier handling. Curious to see how long it takes & what I have to pay in addition to the price of the instrument/shipping. I was quoted 4-6 working days. That seems optimistic. I guess we’ll see.

I’m interested to hear how this goes. Bass Direct has cool stuff, some with lower prices than elsewhere, so I may be tempted to order from them someday. When it comes to boutique-type gear living in Canada usually involves buying from abroad.

 

[longfinger]

When I ran the shipping quote for the small, $200 accessory, the USPS delivery estimate was 4-6 weeks?? So I chose UPS which said it would take 2-3 days. The shipping price was only $2-3 higher for that. The buyer agreed and we were good. That package arrived on time. The buyer was charged $40 in customs/brokerage fees.

Yeah the USPS-> Canada Post path has lower brokerage fees.
UPS may ship cheaply, but Canadian people get screwed at brokerage.

I bought some items from a web store, made the mistake of choosing UPS and got handed a $150 CAD brokerage fee on a $400 CAD purchase. I declined to pay that online before delivery, package went to warehouse. Instead, I filled out the right forms at my local Customs and Duties office, paid about $60, then triumphantly informed UPS that I did my own brokerage and sent them the PDF docs. They had to deliver and release the package without extra charge.

USPS->Canada Post don't mark up their brokerage service like UPS does.

It is extra work and took time, research to do the first instance, but for big ticket items buyers doing our own brokerage is worth it. Repeat brokerage work will be easier, since it's the same process over and over.

 

[JES]

+1 on all the UPS hate. My driver's a nice guy but I would never want an expensive item shipped to me that way. Them, Purolator and FedEx all charge ridiculous "service" fees on top of taxes and duties. USPS for Americans is the way to go.

 

[AMJBASS]

I think this is where I’m confused. The bass I sold was valued at $1500 on the customs form. But according to the Canada Post tracking info, he had to pay $248.60 in duty and taxes. That seems high.

That seems about right to me. It’s something you need to consider(or I should say we need to consider) when buying from the US. I’ve never had any issues shipping from US to Canada. Duty/tax is something that shows up on our end. If you want the item, you just need to expect to pay it. And yes, USPS is always the way to go! I’ve never had anything take longer than about 10 days.

 

[Stuart.C]

FYI you can avoid the UPS/ FedEx brokerage fees, if you go to a customs office and pay the duty yourself.

I learned this when UPS wanted $480CAD on $500 USD Bow, it's a pain but worth it. (especially to stick it to them)

The brokerage fee technically is what UPS/FedEX is charging you for them to deal with customs on your behalf, and it's arbitrary.

You need to get the customs / shipping documentation from the shipper then take it to a customs office (the boarder / any airport with international flights) then pay the duty your self, they stamp the docs and then shipper has to give you your package no extra fees.

USPS and Canada post don't have these charges so by far the best option.

 

[superheavyfunk]

By choosing UPS you received a faster delivery, but UPS will charge the customer $40-$50 in brokerage fees.

Or often, much more. UPS just charged me $85 CAD in brokerage for a pedal. More than double what the customs charges were!

 

[jlo95]

Or often, much more. UPS just charged me $85 CAD in brokerage for a pedal. More than double what the customs charges were!

Yup, I believe it. But it’s still cheaper than having your own broker. For example You’d need to be bonded ($400 annual fee) and unless you’re shipping numerous international orders exceeding $2-3k each, you wouldn’t see an ROI.

Best thing to do is just pay UPS brokerage fee. Or get a job in freight forwarding and do it all yourself

 

[walking_line]

Yeah, I just learned about the self-clearing customs option when I had my Stingray Special shipped UPS instead of USPS from the seller in California (from the classifieds here). So glad I figured that out—saved myself hundreds for about an hour of my time.

 

[longfinger]

Yup, I believe it. But it’s still cheaper than having your own broker. For example You’d need to be bonded ($400 annual fee) and unless you’re shipping numerous international orders exceeding $2-3k each, you wouldn’t see an ROI.

Best thing to do is just pay UPS brokerage fee. Or get a job in freight forwarding and do it all yourself

For a customer receiving once in a while orders, no need to have a professional broker. Self-Clearing Paperwork is easy once we learn what to do. I did it myself for an order, and saved about $90CAD and learned a lot in the process.

Other option of USPS+Canada Post and simply waiting the extra weeks is also a better option. Order in advance of need.

 

[2ndBassGuitar]

Yup, I believe it. But it’s still cheaper than having your own broker. For example You’d need to be bonded ($400 annual fee) and unless you’re shipping numerous international orders exceeding $2-3k each, you wouldn’t see an ROI.

Best thing to do is just pay UPS brokerage fee. Or get a job in freight forwarding and do it all yourself

Yup, I believe it. But it’s still cheaper than having your own broker. For example You’d need to be bonded ($400 annual fee) and unless you’re shipping numerous international orders exceeding $2-3k each, you wouldn’t see an ROI.

Best thing to do is just pay UPS brokerage fee. Or get a job in freight forwarding and do it all yourself

It is important not to spread misinformation here. This thread is titled “Shipping to Canada”. I believe jlo95 lives in the US, and maybe it is different there.

I have been importing shipments from my suppliers into Canada for years. In fact, I have a few pieces that arrived last night to process at the customs at Victoria airport from Phil Jones Bass.

You do Not need to be bonded in Canada to fill out the customs documents. I do this regularly.

 

[walking_line]

This the website I referred to when I self-cleared my bass recently. You absolutely do NOT need to be bonded to do this.

Avoid Paying UPS Brokerage Fees in Canada w/Self Clearance

 

[superheavyfunk]

This the website I referred to when I self-cleared my bass recently. You absolutely do NOT need to be bonded to do this.

Avoid Paying UPS Brokerage Fees in Canada w/Self Clearance

Bookmarked! Thanks for this!!

 

[walking_line]

Bookmarked! Thanks for this!!

No worries--happy importing to you!

 

[murphy]

Yeah, I just learned about the self-clearing customs option when I had my Stingray Special shipped UPS instead of USPS from the seller in California (from the classifieds here). So glad I figured that out—saved myself hundreds for about an hour of my time.

Can you elaborate on how you did it?

Drive to the airport? $$$