How to ship loose diamond from Canada to US?

[EvangelineG]

I had planned on shipping my AVR to the US to be set in a custom setting. It is insured through Jeweller's Mutual/Perfect Circle. I am not sure what carrier or method would be safest? Does anyone have experience with this?

 

[ngambit]

Hi EvangelineG,

I do not have an answer to your original question, but just wanted to forward a piece of information I found during my quest for an ER. Just an FYI in case you were unaware. I'm not sure if this applies because you are not traveling with the stone, but might be something worth investigating.

http://travel.gc.ca/returning/customs/declare

Modifying an item outside Canada

Under the customs legislation, if you take any item outside of Canada and change it in any way to enhance its condition or value, the CBSA does not consider it to be the same item when you bring it back into the country. You therefore have to declare the full value of the new item.

Example:

You take an old diamond ring with you on a trip outside of Canada. While outside of Canada, you decide to have the diamond taken out of the old ring and placed in a new setting. This is not considered to be a repair or an alteration. It is considered to be further manufacturing or processing. When you return to Canada, the original ring, which is now just a metal setting with no stone, will be considered to be a returning good because it has not been advanced in value. (In fact, it has decreased in value.) The new ring will be considered to be a new item and therefore must be declared accordingly, even though it contains part of the original ring (i.e., the diamond) that originated in Canada. The CBSA will treat the new ring like any other piece of jewellery purchased outside the country and the duties and taxes owing will be calculated on the full value of the new ring, including the diamond that was exported from Canada. This rule applies unless you have received previous authorization from the CBSA to have the new ring made while outside the country. Please note that such an authorization would only be granted if the work to create the new setting could not be carried out in Canada.

 

[EvangelineG]

Ok...freaking out a little bit here now. I had no idea that I may be charged taxes again on the entire value of the ring, including the diamond, which I have already paid taxes on?! Not just taxes on the value of the setting? If I am reading that correctly.

So how do Canadian PSers do this?

I could have the jeweller send me my setting as a semi mount, but then I get all the fun suspense of waiting to see if a local jeweller messes up the prongs or setting while setting it?! Which is exactly what I have been trying to avoid!

 

[KenD]

I'm not sure, but I don't think JM will cover stones that are being sent by mail, etc.

 

[EvangelineG]

I can address that part of it. I emailed my JM policy person yesterday to be doubly sure, and she said my diamond will be covered during transit to the US, and during the setting process in the US. So that made me feel a little better.

From the research I have done Canada Post will not handle a loose diamond.

My H called Fedex yesterday and they told him that they will only cover $1000. That there are certain forms to be filled out proving we have already paid taxes on the diamond, and in what amount, and then the jeweller needs to send back those same forms, and we will only be charged taxes on the difference between what we have already paid for the diamond and total value of the completed ring (so just on the setting value).

I am still nervous as hell about sending it. The advice seems to be to be careful to send the package with no indication that there is a diamond/jewellery inside to avoid it being a target for theft, but how is one to do that when it will have customs forms attached saying exactly what it is?

 

[cactus88]

I can address that part of it. I emailed my JM policy person yesterday to be doubly sure, and she said my diamond will be covered during transit to the US, and during the setting process in the US. So that made me feel a little better.

From the research I have done Canada Post will not handle a loose diamond.

My H called Fedex yesterday and they told him that they will only cover $1000. That there are certain forms to be filled out proving we have already paid taxes on the diamond, and in what amount, and then the jeweller needs to send back those same forms, and we will only be charged taxes on the difference between what we have already paid for the diamond and total value of the completed ring (so just on the setting value).

I am still nervous as hell about sending it. The advice seems to be to be careful to send the package with no indication that there is a diamond/jewellery inside to avoid it being a target for theft, but how is one to do that when it will have customs forms attached saying exactly what it is?

congratulations

Any update on how duty/tax would be charged in this case? I am in similar situation on whether to mount locally or sent it to state