Trading between Canada and U.S - no tax for Canadians?

[tradernick]

Guys, I'm trying to get this info but while I search I thought I'd go to the source.

I'm in Canada and I may want to trade a U.S. resident pretty close to straight across for his bass. Both made in USA.

As a Canadian I would expect to pay taxes (13% here in Ontario) on any import, whether or not the bass was made in USA.

Have any Canadians done a high value trade with a US trader? Since the value will be almost $0, will I avoid taxes? Or will Ottawa tell me that I need to pay tax on the estimated cash value even though little or no money is changing hands??

 

[Thornton Davis]

You're going to have to declare the value of the bass coming into the country which means you'll pay HST on it. If the bass was made in USA or Mexico there will be no duty, but if it was made elsewhere you can expect a duty charge in addition to a brokerage fee charged by the carrier. If possible ship both instruments via USPS and Canada Post to minimize your costs.

Good luck with this.

TD

 

[charlie monroe]

Barter may be tax free, but importing goods is not.

Render unto Justin the things that are Justin's.

 

[Terracite]

Avoid UPS like the plague.

(Thornton nailed the rest.)

 

[tradernick]

Avoid UPS like the plague.

(Thornton nailed the rest.)

Thanks guys. What a drag.

Yeah I've experienced the awesome UPS 'brokerage fee'. FedEx all day long, but this throws a wrench into my deal...

 

[Matthew_84]

Do US goods coming into Canada still qualify for zero duty, or has this been temporarily (hopefully) halted while NAFTA is down the tubes?

 

[12bass]

Importing by mail or courier - Paying duty and/or taxes on imported goods

Travellers - Paying duty and taxes

What are duty and taxes?
Duty is a tariff payable on a good imported to Canada. Rates of Duty are established by the Department of Finance Canada and can vary significantly from one trade agreement to another.

No duty is payable on goods imported for personal use, if it is marked as "made in Canada or Mexico", or if there is no marking or labelling indicating that it was made somewhere other than Canada or Mexico.

More information on duties payable on all goods imported into Canada is provided in the Customs Tariff.

Most imported goods are also subject to the Federal Goods and Services Tax (GST) and Provincial Sales Tax (PST) or, in certain provinces and territories, the Harmonized Sales Tax (HST)

Not sure what to make of the above, as U.S.A. is not included in the exemption list for duty. Perhaps this is due to the recent NAFTA issues?

 

[tradernick]

Great question. I'm going to see what I can find out at my local.

 

[capnjim]

I think you should march right down to your local government and demand you not pay any taxes on a used item. It was purchased new at one point and has already had it taxes paid.

 

[12bass]

I think you should march right down to your local government and demand you not pay any taxes on a used item. It was purchased new at one point and has already had it taxes paid.

Collecting tax costs money! That's why they tax previously taxed items. There ought to be a tax on the taxes... and maybe another tax on top to cover administration costs.

 

[4-fingers]

Guys, I'm trying to get this info but while I search I thought I'd go to the source.

I'm in Canada and I may want to trade a U.S. resident pretty close to straight across for his bass. Both made in USA.

As a Canadian I would expect to pay taxes (13% here in Ontario) on any import, whether or not the bass was made in USA.

Have any Canadians done a high value trade with a US trader? Since the value will be almost $0, will I avoid taxes? Or will Ottawa tell me that I need to pay tax on the estimated cash value even though little or no money is changing hands??

Traded a mandolin straight up to a US resident. UPS charged me the tax as they were handing me the instrument. The charge was based on the declared value on the shipment. Still bothers me.........

 

[Matthew_84]

I'm assuming (but don't know so please double-check) there is still zero duty on items that didn't have the tariffs applied to them (like steel, etc).

I'm not too clear on which tariffs get paid for each way. Whatever Trudeau applied tariffs to I believe would be items Canadians would pay duty/tariffs on. You'll need to look into it, maybe the link above will provide some answers.

Also, keep in mind a bass is made up of various materials (wood, aluminum (assumed), nickel, electronic components, etc).

 

[howlin]

Is rosewood involved on either instrument? I ask because . . . CITES.

 

[Clef_de_fa]

Whatever stuff comes from the US you'll have to pay taxes on the declare value

 

[ll Rip ll]

I made the trip myself and crossed with a pedulla. No charges.

 

[mikewalker]

Fedex, UPS, purolator.. you WILL PAY THE TAXES.

Canada post ( USPS) - it's VERY HIT AND MISS. I have paid tax on maybe 5% of the last hundred postal shipments from USA - some of them worth more than CAD1000.00, most were several hundred buxxorz...

 

[Matthew_84]

Is rosewood involved on either instrument? I ask because . . . CITES.

As well as bubinga, and I believe possibly ebony too. OP should check CITES appendixes for woods listed because if any of those woods are on either bass, the sender will have to provide a CITES permit.

 

[TolerancEJ]

You are even hit with taxes if you drive across, buy or pick up the instrument and come back. Claim the item; the worst that will happen is you will pay any taxes due. If you fail to report at the border and they request your vehicle to be searched, they have the right to seize your property and/or charge you. Then your name goes into a database to be checked every single time you cross for the next 10 years. Only one time, a customs officer let me pass through without paying, maybe because it was my birthday? I don't know.

Thinking about this for a moment... If the value of an instrument is up to $800CAD, then you could take a trip to the US for at least 3 days (48 hours + 1 day, as they do not count the day you left Canada). $800CAD is the maximum travel exemption per person, whether you travel for the above 48 hours or if it exceeds 1 week.

P.S. I edited to remove my note about combining personal exemptions with another travel partner. I just checked the CBSA site and they don't allow it.

These points do not reflect CITES' restrictions, so that is an additional aspect you'd need to take into consideration.

 

[erigod23]

I don't think there is a scenario that exists where a Canadian will not have to pay tax.

 

[Acoop]

If you're close to the border you can have it shipped to a post office, or shipping depot, drive across across pick it up ship off your bass and drive home. ... No need to declair. ... But, if you do get stopped and searched remember to show them the photoshopped picture of you, playing the bass, on stage with Hendrix.