Help! - Canada Duty calculations??

[alphagator]

Hello,
I have purchased an e-ring from WF and it has not been shipped yet. I am just wondering how is the duty calculated for canadians. Is the duty calculated on the canadian $$ based on the exchange rate at the time of purchase or is the duty calculated based on the exchange rate at the time of shipping?

Here is what I mean if the above is not clear.

Say I purchased a ring for $1000 us on Dec 15th and say the exchange rate is 1.1 so the CDN$ is $1100
The item is shipped on Dec 21st and say the exchange rate is 1.15. My question is will the duty be based on Cdn$ 1100 (at time of purchase) or will the duty be based on Cdn$ 1150 based on exchange rate at time of shipping?

It will be great if someone is able to clarify this for me.

Thanks and have a save and happy holidays.

 

[ChunkyCushionLover]

Date: 12/21/2009 1:32:12 AM
Author:alphagator
Hello,
I have purchased an e-ring from WF and it has not been shipped yet. I am just wondering how is the duty calculated for canadians. Is the duty calculated on the canadian $$ based on the exchange rate at the time of purchase or is the duty calculated based on the exchange rate at the time of shipping?

Here is what I mean if the above is not clear.

Say I purchased a ring for $1000 us on Dec 15th and say the exchange rate is 1.1 so the CDN$ is $1100
The item is shipped on Dec 21st and say the exchange rate is 1.15. My question is will the duty be based on Cdn$ 1100 (at time of purchase) or will the duty be based on Cdn$ 1150 based on exchange rate at time of shipping?

It will be great if someone is able to clarify this for me.

Thanks and have a save and happy holidays.

The exhange rate at the time of clearance.

 

[Lestat]

I believe under NAFTA that jewellery manufactured in the USA should be duty-free in Canada, you should only have to pay PST (if applicable) and GST. I''m not sure on the process to claim, I would check with Whiteflash as they most likely have a lot of experience shipping across the border.

 

[ChunkyCushionLover]

Date: 12/21/2009 5:35:51 AM
Author: Lestat
I believe under NAFTA that jewellery manufactured in the USA should be duty-free in Canada, you should only have to pay PST (if applicable) and GST. I''m not sure on the process to claim, I would check with Whiteflash as they most likely have a lot of experience shipping across the border.

Correct no duty on jewelry. You pay GST and PST(depend on which province). Also it is best to have it shipped by courier Fedex so you don''t get hit with a huge brokerage bill. Fedex charges $10 for brokerage fees, if it is sent via UPS standard the brokerage fees can be enormous, if sent by UPS priority they wave them.

 

[alphagator]

Thanks Lestat and Chunky for clearing up the duty. I guess the other question will be the exchange rate on the Gst/Pst.

 

[Dreamer_D]

Date: 12/21/2009 10:23:49 AM
Author: alphagator
Thanks Lestat and Chunky for clearing up the duty. I guess the other question will be the exchange rate on the Gst/Pst.

It is all calculated based on the exchange rate on the da of clearance through customs. I suppose you could contest it if the difference in exchange rate was large, but I don't think it will go anywhere. Customes cares about the *value* of the goods, not what you paid. So the package will have a value mrked on it in US $$ and they will calulate their own exchange rate on it based on the day it clears and then they will bill you for the GST/PST for the value in Canadian dollars.

ETA If it is $1000 US then it would work out to be around $1130 Canadian and that is the value you pay taxes on.

 

[Todd Gray]

Date: 12/21/2009 10:17:08 AM
Author: ChunkyCushionLover

Date: 12/21/2009 5:35:51 AM
Author: Lestat
I believe under NAFTA that jewellery manufactured in the USA should be duty-free in Canada, you should only have to pay PST (if applicable) and GST. I''m not sure on the process to claim, I would check with Whiteflash as they most likely have a lot of experience shipping across the border.

Correct no duty on jewelry. You pay GST and PST(depend on which province). Also it is best to have it shipped by courier Fedex so you don''t get hit with a huge brokerage bill. Fedex charges $10 for brokerage fees, if it is sent via UPS standard the brokerage fees can be enormous, if sent by UPS priority they wave them.

Good to know! I actually was not aware that UPS charged different brokerage fees for the service... Thanks! I guess this is because we usually use Fed Ex for international shipments, but more out of habit than any other reason.

 

[alphagator]

Thank you everyone for clearing things up for me. Have a safe and wonderful holidays.