Ordering Parts from South of the Border

[Matster]

Just a heads up to the Canadian C5 family when placing orders for parts south of the border.

The bulk of orders shipped from the US will most likely be shipped by one of the 3 main courier companies mostly for convenience and rates already negotiated by the vendor for their domestic shipping. This is fine if you are in a hurry for the part, but be prepared to pay for it.

If you are not in a hurry (7-14 business days) and the vendor is willing to do so, have it shipped via United States Postal Service (USPS). This method will not get you out of paying duty and taxes, but the handling fee charged by Canada Post is normally $5. The courier companies will charge you a brokerage fee and handling charges and of course because these are services, charge you HST or Provincial/Federal Sales Tax (Alberta excluded) on these services. These brokerage fees can vary wildly but most often are based on a percentage of the value of the goods. The higher the value of the goods, the more you pay in brokerage fees.

When figure out whether the savings are worth buying from the US, the following is how duty and taxes are calculated.

Value of the Goods X Exchange Rate = Cdn Value
Cdn Value X Duty Rate = Duty Payable
Cdn Value + Duty Payable = Value for Tax
Value for Taxes X 13% = Taxes payable

Are my goods dutiable? In today's world most goods shipped from the United States via a courier company or by mail are rightly or wrongly extended the benefits of the NAFTA. A package that is labelled as made in the USA will most likely not have any duty assessed. The main reason for this is how courier shipments are accounted for with our Government. Goods that are deemed to be Low Value Shipments, $1,600.00 CAD or less, are processed through the LVS Program. The simplest explanation for this is, they group a whole bunch of shipments together and declare them to the Government at the same time. As a result, these shipment receive far less scrutiny thus speeding up the customs clearance process. Having said that, the Canada Border Services Agency can and do randomly and not so randomly select packages for inspection to verify the package content and for whole lot of other reasons (use your imagination). The same can be said for Parcel Post shipments.

When the package arrives at your door step, whether delivered by courier or Canada Post, expect there to be some COD charges. Most companies do NOT pay all charges. Canada Post still accepts cash but most of the courier companies now only accept credit cards as a method of payment.

If the goods are valued at less than $20 Canadian, the USPS option is even a better option because....

The CBSA does not assess duty or tax on mail items valued at $20CDN or less. However, this general rule does not apply to certain products including intoxicating beverages, cigars, cigarettes, manufactured tobacco, and publications where the supplier is required to register under the Excise Tax Act. Also, this may not be combined with other exemptions.
The CBSA does not consider items to be of low value in cases where a single transaction is split into smaller shipments to keep the value below $20CDN.
A handling fee of $5CDN per dutiable or taxable mail item is applied ($8CDN for Express Mail Service (EMS) items). This fee is in line with the government’s efforts to help recover costs from those who benefit from services, and is similar to arrangements in the United States and other countries.

Post any questions you have below and I will try and answer them.

[RickRay]

If you do get your order mailed to you in Canada, then asked the company not to charge duty and that you will clear customs yourself. This way you only pay taxes & no duty. Thats what happened to me when I ordered my auto shifter handle. Ups came to my door and left me a note(wasn`t Home) for where to P/U my parcel & the amount I had to pay...It was like $80 ($20 TXs & $60+ for Duty) WTF..I called UPS and he told me if you don`t want to pay duty that you should clear customs yourself..So thats what I did..I went to the UPS store & he gave me the papers & then I went to the customs building & paid the txs ($20)..returned & P/U my parcel.
Usually I have my items shipped to Freeport Forwarding(USA Border) just 25 min from my place and I P/U there..pay them $3 a BX and sometimes I pay taxes at the border depending on the amount & the AGENT. Since it is almost always free shipping to the lower 48 states...but they charge shipping if sent to Canada.

[CDN SS]

Since I bought my Camaro I have ordered 5-6 different items from US vendors on C5. AAC shipped using the USPS and when I picked the package up at my post office I paid the customs charge of $17 on a total value of $400 USD. All other venders don't use the USPS so I had my packages shipped to the UPS store in Niagara Falls NY. They call me when the package arrives and I drive over the border and pick it up myself. I get charged $5-10 depending on the size of the box plus an extra $1/day if I can't go over right away. I always declare the full value of my purchase and usually get pulled in to pay the HST once the value (plus shipping) is converted into Canadian.

I can usually figure my full cost to within a few dollars so I know the difference in cost between buying US or in Canada. As an example when I purchased my Flowmaster cat backs I paid $749 USD to Maryland Speed plus HST at the border, so $847. I called a speed shop in Stoney Creek and they quoted my $1093 plus HST which would have been $1235. So for an hour of my time and $3.25 bridge toll I saved myself $388.

The guys at SPI told me they can get me almost anything that's out there so from now on I'll be checking with them before I order any more parts.

[Ravirn]

Originally Posted by CDN SS

I called a speed shop in Stoney Creek and they quoted my $1093 plus HST which would have been $1235. So for an hour of my time and $3.25 bridge toll I saved myself $388.

The guys at SPI told me they can get me almost anything that's out there so from now on I'll be checking with them before I order any more parts.

I honestly have NO IDEA how you folks can stand paying HST.

The 5% GST is bad enough!!

[Matster]

Originally Posted by Ravirn

I honestly have NO IDEA how you folks can stand paying HST.

The 5% GST is bad enough!!

Rub it in

[Topher5000]

I do the same as CDN SS, but with CBI USA. It's 5 minutes from the Rainbow bridge.
I had my Stillen splitter sent there & it was $190 for the splitter, $12 at CBI since it was an oversize package, $22 HST at the border & $3.75 bridge toll. To get it shipped to Canada would have been $325.

[Allanski]

I have my stuff shipped to my Mom in Florida then she mails it to me as a gift under $20.

Sorry my mom doesn't do this for other people.

[Matster]

Originally Posted by Allanski

I have my stuff shipped to my Mom in Florida then she mails it to me as a gift under $20.

Sorry my mom doesn't do this for other people.

Awh! Just kidding.

[CanadianCamaro]

What Rick has felt the sting of is what I call the "UPS rip-off". UPS has their own in-house brokerage clearing department (others use the CBSA brokerage clearing process). For this privledge, UPS sees fit to charge their customers between $40-60 brokerage fee!!! Want to know how bad this is? Recently (as in last week) I had 3 boxes shipped to me from the US. Their commercial invoice was marked "DONATION TO CHARITABLE EVENT - Value $10". But UPS still charged me $40!!! Oddly enough everyone else (e.g. USPS) charges $5. Can you say "rip-off"??!! This is why I try, as much as possible, to ship USPS.

[COLD_Cam]

RickRay,

when you are receiving packages at FreeportForwarding, do you have to notify them before or you have to open an account?

How do you know that your order is in? they call you or you need the monitor with the tracking number.

Thank's for the info

[RickRay]

Originally Posted by COLD_Cam

RickRay,

when you are receiving packages at FreeportForwarding, do you have to notify them before or you have to open an account?

How do you know that your order is in? they call you or you need the monitor with the tracking number.

Thank's for the info

Just open an account... then phone them for your #... Usually the shipper will give a tracking number. Then you just show up & P/U your package. Or you can call them & give them your name & they will tell you..Make sure you have receipt for the border or email notice for the customs...

[CloudXTC]

USPS will only do up to a certain size correct?

[CanadianCamaro]

Originally Posted by CloudXTC

USPS will only do up to a certain size correct?

Yes - Not sure of their exact maximum size. Check their website. But if you're getting anything they can't ship (e.g. full set of wheels) then you should be using a freight forwarder anyway. The rates on the others will kill you.