Canada Duty/excise/luxury tax on diamonds shipped from USA

[YYCgirl]

We are shopping for engagement rings, and I have my heart set on a Hearts & arrows diamond from either Whiteflash or James Allen. Value would be approx $10-11k. I would like to buy the loose stone as I found a setting locally that I love. If a set stone vs. loose makes a difference, we'd be willing to mount in in a cheap $350 setting to avoid any duty.
I'm from Calgary, Alberta and understand that we'll have to pay GST of 5%, but would like clarification regarding the 1)Duty, 2)excise tax, 3)luxury tax and 4) any other customs fees charged. I tried looking on the Canadian border services agency site, but couldn't find anything clear about it. Is there somewhere else I can look? I saw there were other discussion threads, but they all seem to be pre-2009, and people had differing experiences and I would like to hear about more recent experiences.

Does the value of the diamond make a difference?
Loose vs. completed ring? Do they apply duty to a loose stone originating from outside US (I assume most of the diamonds from PriceScope vendors come from outside the US), whereas the same stone mounted on a ring would be manufactured in the US and duty-free?

Thank you so much. Would appreciate any advice.

 

[Dreamer_D]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

I have imported many diamonds from the US. You will pay provincial and/or federal taxes on the diamond when you import, on the canadian value of the stone (they work out he exchange from the US value). There are NO other duties or taxes levied. Period. If FedEx is the shipper you will pay an approximately $10 brokerage fee for them to clear the ring through customs. It makes no difference the value of the jewelery item (with some caveats below), and it makes no difference if it is loose or set. Be sure, however, that when the ring is shipped the jeweler indicates it is of US manufacture on the customs documents. This should be automatic for them. I like FedEx as a shipper, their customs team are very good in my experience.

Caveat: The customs process is different for items under $1600 and over $1600. I have found that when I get jewelery valued under $1600 quite often I am not charged taxes at all! Over $1600 and I have always been charged.

 

[Dreamer_D]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

Do they apply duty to a loose stone originating from outside US (I assume most of the diamonds from PriceScope vendors come from outside the US), whereas the same stone mounted on a ring would be manufactured in the US and duty-free?

This is a funny issue. There is a form they complete indicating the goods are of US manufacture. Vendors I have worked with always just complete the form, but I suppose on a loose stone this could be a bone of contention. I suggest you have the diamodn set by JA anyways because they will take responsibility for the diamond during setting and do good work on setting, unlike most local jewelers.

Keep any customs forms you get when you pay your import taxes btw. You will need them if you ever ship the ring to the US for repairs, to prove you had previously imported the ring at one point in time and paid. You also need it to reclaim your taxes if you return the ring for refund.

 

[canuk-gal]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

HI:

I also live in Calgary--and for what it is worth, there are vendors who sell H & A locally. Perhaps, tho, not at JA's prices!

The advice by Dreamer is sound; yet if you have any remaining doubts, you can call Canada Customs.

cheers--Sharon

 

[JaymeC]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

I just bought a stone for $11000 from whiteflash. I live in Edmonton. There was $500 duty and no other taxes or fees.

edited for spelling

 

[YYCgirl]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

Thanks Sharon, I have looked at H&A diamonds in Calgary and my best option was approx 15% -20% more than the JA diamond of approx same quality. Do you have a link to who I call at Canada customs? I got lost trying to navigate through the site.

 

[YYCgirl]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

I just bought a stone for $11000 from whiteflash. I live in Edmonton. There was $500 duty and no other taxes or fees.

edited for spelling

Hi JaymeC,
Are you sure the $500 was duty and not GST? It seems odd that you wouldn't have gotten charged for GST (As that should apply to any purchase), and $500 seems about right for 5% GST.

Thanks.

 

[JaymeC]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

I went out to the airport and paid it at Canada Customs. They said it was duty, but I didn't ask many questions, I was too excited to see my stone!! I just looked at my fiancé and he pulled out his wallet.

 

[canuk-gal]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

HI:

The excise tax (aka "DUTY") was dropped years ago. The only payment one has to remit to the government are the Provinical sales taxes on the item given the exchanged currency rate .

Sorry YYC girl, the number I called was at the Border Control services and do not have it handy, since it was also years ago I contacted them over a similar issue...but it is on the government website. That said, is not exactly an intuitive site to navigate!

cheers--Sharon

 

[JaneSmith]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

Hi Ladies, nice to see this topic come up, I am curious too. I was discussing this with Enerchi in another thread, and she says she only pays her provincial tax. I found a couple of relevant web pages for import info, but they appear to be dated 2009 and mention duty.

This one is a basic process overview:
http://www.cbsa-asfc.gc.ca/contact/menu-eng.html

This one is about the taxes.
http://www.cbsa-asfc.gc.ca/import/postal-postale/duty-droits-eng.html

This one has the contact info.
http://www.cbsa-asfc.gc.ca/contact/menu-eng.html

I'd like to know if the vendor takes the US tax off or do we claim it back later. I'd also like to know about postal insurance to cover such an expensive item during shipping.

 

[JaneSmith]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

I'm sorry, where are my manners?

YYCgirl, Congratulations!

 

[truelaostha]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

Hey,

Sorry to bring a post from the dead. I recently just move to Calgary, what are some good stores to look at quality diamonds here in Calgary (if they carry H&A that is a bonus)?

Thanks!

 

[secretagentlaura]

Re: Canada Duty/excise/luxury tax on diamonds shipped from U

We're fond of Brinkhaus, though all of the lovely jewelry that my co-worker wears comes from J Vair.