So I have received various packages from the United States over the years. Half the time I’m dinged with the Customs and Brokerage Fees and the other half not. I dunno if there is supposed to be some sort of method to this madness, but today I got an invoice for fees from a package that I got 2 months ago.
What I don’t understand is how Canada Customs could be so behind on providing courier companies (DHL Courier) various manifest information so they can invoice us when the package is delievered. The other thing I don’t understand is how they can charge me taxes on an item that was sent to me for free. In this case, the charge is $7.12 in taxes and another 7.42 as the processing fee. Which doesn’t amount to a lot, but it seems like it is a bit of a money grab especially now 2 months after the fact, where I don’t even have the choice to refuse the package.
In another instance last year, I was couriered some CDs from California. The band sent me 4 copies because my photo appeared on the cover art of the disc. I obviously didn’t pay for the merchandise, but again, I was dinged for Customs and a Brokerage fees from courier company. It hardly seemed right, but I had no choice if I wanted the package. Sure, there is the option of not signing for the package or paying for the fee, but then basically they’re holding my stuff for randsom.
In any case, I guess I will have to search around to see if there is an appeals process in place, if I want to complain about a charge, but in all seriousness, if it really worth the time and effort?
UPDATE
I talked to representatives from DHL and Canada Customs and both informed me that it didn’t matter if the goods that were being imported were free or not, Duty and taxes would be charged based on the value of the item being imported.
I did find on about.com that some courier companies absorb this brokerage fee in the cost of shipping, while others charge you the brokerage fee on top. Based on the comments below it seems that UPS and DHL are your prime offenders.
I think what upsets me the most about all this is that fact that these fees are usually sprung on us, without notice. Especially in this case with DHL, invoicing me two months after the fact seems a little outrageous.
My take on them charging you taxes is b/c they think that you’re trying to get out of paying Canadian taxes by shipping them in from the outside our borders. So they’ll charge you taxes for what they think it’s worth. As for taxes on free items… I don’t know… maybe you can call up Customs and bitch.
The only time I’ve had to deal with brokerage fees is when I’ve had something shipped from the states using UPS. Though I guess I’ve never bought anything that custom charges apply to.
Ive never had fees from things sent to/from canada luckly…Logan has though, from me. It has something to do with the value…if its over some amount (like 60 dollars for the border) dollars they usually charge you GST and such.
Hmmm, dunno how you would argue out of it.
In the case of the CDs it was worth less than 60 dollars. But I have to agree with Troy, this usually happens with UPS. Although this was the first time I’ve dealt with a cross border package from DHL.
I guess most of the stuff we buy from the states are off of EBay and shipped using the US Postal Service. We also get the seller to mark the GIFT box if they will.
I remember getting a subscription to McSweeney’s a couple years ago. They uses UPS. The first book I recieved was worth about 30 bucks and I was charged 17 dollars for the brokerage and taxes etc. I ended up contacting McSweeney’s and they switched me over to the USPS. I was never charged anything after that.
DHL will ding you every time, and yes, they send you the invoice WAY after the package arrives. It’s complete crap. And UPS, don’t even get me started on the ridiculous fees that UPS charges. If I’m ever getting anything sent to me from the states, I always use the US Postal service.
UPS is the worst, but all the carriers will get you somehow. With UPS, your tax could be minimal but you’ll pay more than the price of your purchase by the time they charge you their brokerage fees.
s for free items, it’s completely hit and miss. Worst memories: I was offered a free photobook from apple, but paid full price after a brokerage/duties hit… but it was free? Was send a prize from Lomography.com, paid $50 for the package… could have bleddy well bought it myself here.
You may find this link interesting. Targeted towards Photography equipment mainly, but also mentioned the idea that gifts in value of $60 or less are exempt from tax and duty.
http://www.imageswest.ca/cross-border.htm
I bought lens, used, off a guy from Fredmiranda.com who lived in Tennessee. I got dinged for sales taxes based on the purchase price because the guy put his company name (he designs home theatre equipment) on the customs form.
I’m sure that if he had left the company field blank, I wouldn’t have had to pay.
Garrr….I hate the customs brokerage fees. I sometimes buy books for work from the U.S. and beg them to use FEDEX which don’t seem to have that problem, or at least it is quietly covered at a lower cost. With UPS I get dinged for the GST, plus a customs brokerage fee, plus GST on the customs brokerage fee. Sometimes that costs more than the book itself. I’ve tried refusing to pay and ignoring them, but they are persistent and will pester pester pester until I pay up. Garrrr.
It’s best to advise the Brokerage/Courier company that you’d prefer to clear the goods through Customs on your own, that way they can’t ding you for a service performed. Keep in mind that Canada Customs (CBSA) doesn’t charge this fee, it’s the brokerage/courier. In the cases of Canada Post, they charge a handling fee if Duties & Taxes are assessed on the package. The next time you receive goods and then an invoice for brokerage fees as the representative from the courier company for a copy of the signed power of attorney that they received from you, if you don’t, refuse to pay the invoice and make a complaint to the Canadian Society of Customs Brokers (C.S.C.B). If you clear your goods yourself, it’ll usually involve a trip to the Customs office and all that is involved with the buracracy of waiting in line at a Government office, but more often than not, you won’t be charged for Duties and/or taxes and definitely won’t be charged the ridiculous brokerage fees.
Just an addition to my previous post, and a correction on a typo I noticed after posting(sorry)
ask, not as the company representative for the signed power of attorney they received from you.
As for clearing goods in person, you may or may not be assessed Duties & Taxes based on the value of the goods being imported, the circumstances surrounding the importation(shipment, i.e. gift, sample, etc.) and of course, the individual officer you are dealing with
I got dinged by UPS when I bought a home theatre speaker set from a seller in the states through ebay. Their bill for the brokerage fee came a couple of month after I received the item, and I ignored it.
After a year, I think they wrote it off their books =)
Nonetheless, I will never deal with UPS again!
Hi, I’m a Customs Officer and I have a post on my unofficial Canada Customs blog at http://www.canadacustomsinfo.com where I explain importing goods by courier and I try to explain how duties and taxes work. Feel free to drop by and ask any questions in my forum. You guys who are tired getting these bills from the couriers need to start self clearing. 9 times out of 10 you never gave the courier company authority to represent you so you do not need to pay them. You can pay any taxes owing by yourself.
regards,
CI