Shipping from Canada?

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bort
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Shipping from Canada?

Post by bort »

I'm considering buying a tuba from a dealer in Canada. Does anyone have experience shipping from Canada to the US? Or, where to look to find more information? I'm curious about paying Canada tax, Duty to bring in the us, state tax, shipping, ...

Or, if I drive up and bought it IN Canada, how would that change things?

Thanks! :tuba:
pgym
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Re: Shipping from Canada?

Post by pgym »

Hoo, boy! Talk about a can of worms ...

Unless you're getting a helluva deal, it might be more more trouble than it's worth.

Per Canada Revenue Agency GST/HST (Goods and Services Tax/Harmonized Sales Tax) Notice 221
1.2 Will non-resident consumers who purchase goods in Canada and remove them from the country still be able to get a VRP rebate for the GST/HST they paid on the goods if the tax became payable after March 31, 2007? [VRP = Visitors Rebate Program]

No. As of April 1, 2007, non-resident consumers who purchase goods in Canada and remove them from the country cannot receive a VRP rebate for the GST/HST they paid on goods if the tax became payable after March 31, 2007.

However, there will still be no GST/HST charged when goods are shipped directly by a Canadian business to a non-resident consumer’s residence.
In other words, if you drive up and buy it in Canada AND take it back with you, you will be charged HST (14% in NS, NB, and NL) or GST (currently 5%) plus the applicable PST (provincial sales tax): 8% in ON, 7% in BC and MB, 5% in SK, 0% in YT, NT, NU, and AB, on the selling price; in Quebec (7.5%) and PEI (10%), PST is charged on the combined selling price plus GST, making the effective PST rates 7.875% and 10.5%, respectively. If you drive up and buy it in Canada but have it shipped to you in the US, you will not be charged HST/GST.

Regardless of whether or not you drive up and purchase the tuba in Canada or purchase it online, you will be charged the applicable PST in all provinces that have a PST, regardless of whether or not the tuba is exported from the province, though most provinces will refund the PST upon receipt of proof of export from the province.

[Edit: Some provinces may also require proof that sales tax has been paid to the jurisdiction in which the purchaser resides before issuing a refund of the PST. Technically, proof that sales tax has been paid is only required for items exported to another province or territory within Canada, however, provincial governments have been known to use this technicality to generate additional revenue.

Also, note that in most cases, GST and PST are charged on shipping costs, and are not refundable.]

So depending on the cost to ship the tuba, buying it in Canada and taking it back with you may or may not make sense.

Whether have it shipped or you bring it back yourself, the horn will have to clear customs before it's released to you.

Duty will be assessed by US Customs according to the rate schedule published in US International Trade Commission, Harmonized Tariff Schedule of the United States. Under NAFTA, most wind instruments imported directly from Canada should be duty free, however, there are exceptions. It's probably worth contacting US Customs and Border Patrol for more information.

You can file the customs paperwork yourself or pay a customs broker to do it for you. Depending on how much cross-border business the dealer does and/or how motivated they are to make the sale, they may be willing to do it for you. Commercial shippers (UPS, FedEx, DHL, etc. will also do it, but they charge a hefty fee for doing so. See the US Customs and Border Patrol FAQs Basic importing and exporting and Postal Service, Couriers and Freight for more information. [NB: it not an unknown occurrence for a shipping company to charge the customer the general duty rate on an item even though the item qualifies for a lower special duty rate, in addition to the customs brokerage fee. UPS is particularly notorious in this regard.]

All of which suggest that, unless you're getting a helluva deal or the tuba has special historical or sentimental significance, importing a tuba may be more trouble than it's worth.

Pgym.
Last edited by pgym on Fri Dec 18, 2009 4:23 pm, edited 1 time in total.
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bort
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Re: Shipping from Canada?

Post by bort »

Thanks! I didn't expect good news, but man, that's really a hassle. Really appreciate the help, and a shame this is so much trouble!
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Re: Shipping from Canada?

Post by DavidK »

Shipping a 6/4 tuba from Alberta to NJ $450

If you ship. Have the shipper box and pack the instrument so that it will be fully insured. Mine was packed in the case and sealed by the seller (not UPS) and UPS never honored my claim for a squashed bell. :evil:

Good luck!!!
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Re: Shipping from Canada?

Post by tubarnak »

If by any chance you are referring to a certain PT6 or Gronitz posted here (I feel bad about intruding in this discussion but this is waaaay too familiar to be a coincidence...) remember it is a consignment item and I don't have a contract with the owner forcing him to sell through me... A private sale can be arranged, which would facilitate things a bit.

If this has absolutely nothing to do with me, please accept my apologies...I will just sit quietly in front of my computer and learn everything I can from this interesting thread about international transactions... :oops:
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bort
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Re: Shipping from Canada?

Post by bort »

tubarnak wrote:If by any chance you are referring to a certain PT6 or Gronitz posted here (I feel bad about intruding in this discussion but this is waaaay too familiar to be a coincidence...) remember it is a consignment item and I don't have a contract with the owner forcing him to sell through me... A private sale can be arranged, which would facilitate things a bit.

If this has absolutely nothing to do with me, please accept my apologies...I will just sit quietly in front of my computer and learn everything I can from this interesting thread about international transactions... :oops:
Nope, this was about your tuba. :) I didn't think about the consignment aspect of it though, interesting point. Still at the top end of my budget, plus a stretch is just out of reach for me right now.
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Re: Shipping from Canada?

Post by pgym »

tubarnak wrote:If by any chance you are referring to a certain PT6 or Gronitz posted here (I feel bad about intruding in this discussion but this is waaaay too familiar to be a coincidence...) remember it is a consignment item and I don't have a contract with the owner forcing him to sell through me... A private sale can be arranged, which would facilitate things a bit.
Nope, this was about your tuba. :) ... Still at the top end of my budget, plus a stretch is just out of reach for me right now.
Might not be quite enough to get things moving again, but a private sale would eliminate the sales tax angle on the purchase (but not the shipping), and would probably eliminate the import duty angle as well, which would save you some serious shekels ... at least until you get my bill. :mrgreen:
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