Canadian import fees

[nwohiotoolguy]

I wasn't sure where to post this so hopefully it's in the right spot. I was contacted by a buyer in Ontario that is interested in a new Snap on box I had on EBAY- it did not sell but he made me an offer I would accept via e-mail. Aside from the obvious cautions I have with the monetary transactions, he wants me to give him a receipt showing he paid considerably less than the actual sale price to avoid the fees when he takes it across the border. I am reluctant to do so because I don't want to get caught up in a customs fraud or some other situation that could come back on me. I had thought about giving a receipt without a price but not sure if I'm comfortable with that either. Anyone dealt with this before? Comments welcome, thanks.

 

[BillK]

Tool guy,
That is pretty much fraud and illegal. Tell him you will gladly sell it to him, but the receipt will be for the full purchase price and he will be resposible for all of the import taxes etc. I was just reading somewhere a few days ago that they were cracking down on it up there too.

 

[71Datsun510Wagon]

As a card-carrying member of the Great White North.....

I don't do a lot of cross-border purchases but I expect to pay taxes and Customs fees when I have something shipped to me from the USA. Quite often my packages arrive with no additional taxes or fees owing, I am always surprised, and pleased, when that happens.

I have even had some Ebay purchases arrive with a reduced customs value declaration, as marked by the seller. This is without me asking them to do this BTW!

IMHO... this is an inappropriate request from your potential buyer. I would not agree to it.

I don't know your laws.... I doubt this would violate US laws, but I have no facts to base that opinion on.

HOWEVER.... suppose your box has a market value of $5000 that you sold it for, and you agree to provide a customs declaration of $500. What would happens if it gets damaged or lost in shipping? Likely all you could claim from the shipping insurance would be the declared value ($500).

*** Far too much risk exposure to you. ***

I would recommend not agreeing to this request. If the potential buyer doesn't agree to a full-value transaction, on your terms, you should find another buyer.

(relatively) High taxes are a reality for most Canadians. It is the price we pay for the social programs we enjoy.... but that is WAY off topic!

Cheers !

Rob

 

[Thorold]

Is he, perchance, a Nigerian prince ?

 

[nosnerd]

its for the GST value........(goods and services tax)

it is your box...you sell it for the price YOU want.....as long as some taxes are paid...i doubt this would raise any red flags...but nothing rediculous thought

cut him some slack

 

[Rory Bellows]

It is kinda like selling a used car. You receive cash and give the title already notarized to the new owner and they fill out the part about purchase price which is required for tax purposes. You have your money and it is up to them what happens next.

 

[Boomer343]

You are the seller and shipper of record and will be signing customs documnets stating the value of the item. Do yourself a favor and list the full selling price and if the buyer isn't good with that then sell it to someone else.

I've imported a few big ticket items, well at least big to me and I have no problems paying the taxes which by the way are not as bad as some folks make out.

As I also travel into and through the US and back into Canada the last thing I want is a nice red flag beside my name.

Your call but I don't ask sellers to do it and as stated if the unit is damaged in transit then what is the insured value?......last but not least.... customs officals may be a lot of things....but they aren't stupid and they also have internet connections....

 

[andyh]

If the purchaser can afford a Snap On tool box and the costs to pick it up/ship it, he can afford to pay the 5% Goods and Services Tax to help support the lifestyle we Canadians have become accustomed to.

 

[Sureshot]

He would be silly to do it. They look for that stuff all the time and bust alot of people. I take alot of stuff across and have had sellers try to do me the favor but I have asked for the correct amount.
I would also ask for a bank draft or cash as payment on a large purchase. I am not sure of the details but credit card law will let you claim a "never recieved" and get the charges reversed. The fact that they are trying to do it off Ebay makes my spidy senses tingle.

 

[atotalnincompoop]

i have been caught producing a false receipt at the border, and paid the price for it!
i bought a used dana 60, coilovers, wheelie bars, etc. for $1500, i got the guy to make me a receipt for $300, upon searching my truck they found my emails with the guy detailing the transaction, i had this with me because his address was on that email. my fine was $900 and change, which had to be paid right then and there. they siezed my truck right on the spot.
nothing happened to the seller who wrote the receipt.
i paid the fine and was sent on my way, then spent the next 2 years on "the list". every now and then while i was flagged they would rip everything apart searching for hidden stuff in my truck.
lesson learned!!

 

[nwohiotoolguy]

Thanks guys for the input, this is the scenario I envision, maybe not so much for myself as the buyer, but in the end I'm just not comfortable with the buyers request so I will move on. Maybe I'm paranoid but I've made it 43 years without getting my *** in hot water with the law and I see no reason to start now!

 

[PCO6]

nwohiotoolguy - ^^^ I think you have it right. I have received packages from the US & Britain in the past where the vendor, on their own, not at my request, has sent a bogus receipt or marked the package as a "gift" and I have not been happy about that. They think they are doing me a favour. I have never got in trouble because of it but it would be hard to explain my way out of it if I ever had to.

 

[nehog]

We sell a lot of stuff to foreign countries. We'd never, ever undervalue our shipments--the legal penalties would be so high that there is no reason for us to attempt to defraud a government. We do it straight by the book! BTW, never had complaints either. Ethical buyers understand that this is not legal or ethical, and rarely ask.

 

[Outlander]

I think the key here is the overt action on the part of the buyer to specifically request you to do something a little 'off'. Your spider sense was tingling immediately becuase you knew it wasn't the right thing to do.

No need to drag anyone else into the quagmire, buyer should live with the Canadian tax & duty requirements all on his own. Next you'll be meeting him in on a dark country road to toss the box over the fence!

 

[henrysgarage]

I do not think that there is an import charge, just an HST of 13%, as Ontario has combined the PST and GST. Most times when we bring goods into Canada they ask us where and how we found the item. If you say ebay or ? they ask for an item # and any communications you had with the seller, then they go on line and check the add, yes fines are high. We came back with one of my drag buddy's who bought slicks and did not declare them and a receipt fell out of his wallet, they impounded the whole rig and he had to pay a fine on the spot of about 800$ to get all back and drive home. Will the authorities contact you? Who knows but listen to your inner self and do what you feel is right.

 

[79firebird]

nwohiotoolguy i buy stuff from ebay all the time and the sellers allways put the value as less then i payed so its cheaper to ship and cheaper thru customs. On avrage i spend about 10 g a year on ebay and with the lower price for customs i save about 2g total.

 

[Ironhorse]

I wasn't sure where to post this so hopefully it's in the right spot. I was contacted by a buyer in Ontario that is interested in a new Snap on box I had on EBAY- it did not sell but he made me an offer I would accept via e-mail. Aside from the obvious cautions I have with the monetary transactions, he wants me to give him a receipt showing he paid considerably less than the actual sale price to avoid the fees when he takes it across the border. I am reluctant to do so because I don't want to get caught up in a customs fraud or some other situation that could come back on me. I had thought about giving a receipt without a price but not sure if I'm comfortable with that either. Anyone dealt with this before? Comments welcome, thanks.

I just shipped a trailer load of **** from Canada to the US...we have a agreement in both countrys...if it is made in US or Canada....there is little to no taxes on it anyway...They tax the **** out of China **** as it should be. I buy and sell from Canada...great equipement and great trade agreements...**** hits the fan here I will move up there and deal with the snow...

 

[Ryan87LX]

There is no duty on goods that are made in America, so he'd only have to pay the taxes at the border. Don't do it.

 

[jvitez]

+1.

Come on now. Ontario's total retail sales tax (now called the Harmonized Sales Tax, I won't bore you with the stupidity of this....) is 13%. So he wants to commit fraud to save 13%? If he can't afford that, he shouldn't be looking at a Snap-On box.

And if it's made in Canada or the US (which it should be unless it's a Blue Point Taiwanese or Chinese made utility cart) there is no duty due to the North American Free Trade Agreement (NAFTA).

 

[bbqislands]

I don't know your laws. I doubt this would violate US laws, but I have no facts to base that opinion on. It is kind of like selling a used material. You receive cash and give the title already notarized to the new owner and they fill out the part about purchase price which is required for tax purposes.

Visit: Kitchen Accessories of BBQ Islands

 

[Sureshot]

nwohiotoolguy i buy stuff from ebay all the time and the sellers allways put the value as less then i payed so its cheaper to ship and cheaper thru customs. On avrage i spend about 10 g a year on ebay and with the lower price for customs i save about 2g total.

You save 20%? At 13% tax the total tax is $1300.

 

[nehog]

I just shipped a trailer load of **** from Canada to the US...we have a agreement in both countrys...if it is made in US or Canada....there is little to no taxes on it anyway...They tax the **** out of China **** as it should be. I buy and sell from Canada...great equipement and great trade agreements...**** hits the fan here I will move up there and deal with the snow...

NAFTA eliminated all import duties WRT Mexico-USA-Canada. We mark our shipments made in USA (which they are) and I've not had any reports of our customers paying import duties.

But all Canadian buyers pay HST/PST/GST or whatever sales tax applies. But they'd pay that on any purchase, so "what's the big deal?" is all I can say.

Canadians: your taxes are under your control, if you don't like the system change it.