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Vendors: What do you declare when shipping to international clients?

Discussion in 'RockyTalky' started by Mixtress, May 12, 2019.

  1. Mixtress
    Rough_Rock

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    by Mixtress » May 12, 2019
    I am from Canada, and about to send my ring to a vendor located in London, UK to have my setting changed. We Canadians pay quite a hefty amount for items purchased from the UK.

    I was given the heads up from the vendor earlier today that they declare the full value of the ring (diamond + setting) when shipping item back to me. However, in doing so, the Canadian Border Services will be charging me duties + taxes on the diamond again.

    This doesn't make sense to me.. I was always under the impression that I should be paying duties + taxes for the item(s) I bought, in this case, a new setting. I shouldn't have to be paying for my diamond again nor should the vendor feel the need to have to declare the full value when the diamond wasn't purchased through them. I could be wrong though.. what to do? Has anyone else gone through a similar situation?
     
    


    


  2. Wink
    Ideal_Rock
    Trade

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    by Wink » May 12, 2019
    You may want to call your Canadian customs department and ask them how to establish that you are sending this ring to the UK and that you will be bringing it back to Canada after the new ring has been made for it.

    In theory, you are correct that you should be paying duty on the increased value of the item. However, each country has their own way to regulate the proof of export and the subsequent re-importation.

    It can be frustrating, but if you can get someone to help you with the paperwork, it can be well worth the time and effort.

    Good luck.

    Wink
     
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  3. HHtv
    Rough_Rock

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    by HHtv » May 13, 2019
    From my understading with customs when i bought a diamond online: if you send a loose gem outside of canada and have it set, it is considered a new product on return and duty/ taxes are applicable to the total amount. I'm not sure if the NAFTA agreement still applies- if you can state it's made in north america you only pay the tax versus the duty and tax if it's not north american made.

    If it's a loose diamond or gemstone that you're importing, it's generally duty free, with only taxes applying.
     
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  4. jp201845
    Shiny_Rock

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    by jp201845 » May 13, 2019
    Where in Canada are you from ? And have you considered a vendor locally to avoid import/export taxes ?
     
    


    


  5. kmoro
    Brilliant_Rock

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    by kmoro » May 13, 2019
    I’m in Canada, and yes they will declare the whole value, but the package can state the diamond was sent for resetting, and when the item comes back and is in customs waiting for clearance, provide the paperwork showing the shipment trail, ie, the shipment invoice for the original shipment into Canada and the shipping invoice for shipping to UK ... once you can show that you already paid duty and/or tax on the diamond, you will only have to pay tax on the additional amount. You just have to be able to prove it to them (vendor receipt, shipment tracking info, receipt for original duty/tax payment). If they won’t let the item through without you paying the whole amount, you can fill out a form to have the double charge reimbursed but it is a hassle and you will still have to show them that you already paid, so you might as well provide the proof at the time the shipment arrives back in Canada. I believe they have to declare the full value for insurance purposes. It is a hassle, but you really are not expected to pay tax on the same item twice.
     
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  6. kmoro
    Brilliant_Rock

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    by kmoro » May 13, 2019
    I’m in Canada and deal with a US vendor because they were the vendor that had the product that I wanted. Otherwise, yes, I would prefer to avoid import/export taxes. I can’t speak for the OP but can’t think of any other reason why anyone would not consider local before choosing a vendor in another country.
     
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  7. Bron357
    Ideal_Rock

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    by Bron357 » May 13, 2019
    Yes, it’s the same issue here in Australia. Check with your customs dept because If you can prove that it’s a “return item” (with the original paperwork for the purchase) possibly like here in Australia where they automatically charge you again you can, like I did, fill out a ton of forms and send them away and in like 4 months, you get a refund.
    That said, It would be easier if you got the setting sent to you in Canada and found a local jeweller to set it for you.
     
  8. dreamer_dachsie
    Super_Ideal_Rock

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    by dreamer_dachsie » May 14, 2019
    Where did you buy the ring/diamond originally? If somewhere other than Canada or UK it might complicate matters
     
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  9. Joey_mhaske
    Rough_Rock

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    by Joey_mhaske » May 14, 2019
    I think the reason why they have to declare the full value is for insurance purposes..
     
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  10. Mixtress
    Rough_Rock

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    by Mixtress » May 17, 2019 at 2:04 PM
    I just wanted to update and thank everyone who took the time to reply to my post, sharing their experiences, or whom gave me excellent advice. I did contact Canadian customs, the agent I spoke to said I will likely have to pay for the entire ring, then go through a bunch of paperwork (much like what @Bron357 went through to get her ring) to get a refund.

    Slept on it for a few days and decided it's best not to go through with this idea, even if I do really like this particular setting. Plus, the vendor would take really long to answer questions, and as of now, still haven't given me a price for the setting. I feel that because I am not getting the entire ring from them that my business isn't as appreciated or wanted.
     
    Last edited: May 17, 2019 at 2:12 PM
    


    


  11. Mixtress
    Rough_Rock

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    by Mixtress » May 17, 2019 at 2:11 PM
    I live in the west coast, although I live in a major city we just don't have a lot of options. Not many vendors who specialize or whom are good with recreating antique style settings. Most of the vendors here seem to excel in the classic settings (solitaires, 3-stones, pave, etc.) judging from the rings some of my peers have.

    I bought the ring in the US. I agree, this would have definitely complicated matters even more.
     
  12. dreamer_dachsie
    Super_Ideal_Rock

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    by dreamer_dachsie » May 17, 2019 at 3:33 PM
    I have not had any issues sending a diamond I own to the US to be set, and then returned. So you could consider US vendors.
     
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  13. jp201845
    Shiny_Rock

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    by jp201845 » May 17, 2019 at 3:47 PM
    I would contact Martin from USA Certed Diamonds he is from Toronto but has contacts all over Canada. This way he can help you with the setting you want without dealing with customs and paying for import/export charges. He is a recommended vendor on this site and very reputable.
     
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  14. Karl_K
    Ideal_Rock
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    by Karl_K » May 17, 2019 at 5:46 PM
    It is illegal to ship anything across any border without properly and correctly declaring it according to the laws of both countries.
    They are extremely fussy about diamonds and they pop on x-ray scans.
    An improperly declared shipment is subject to confiscation and criminal changes.
     
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  15. kmoro
    Brilliant_Rock

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    by kmoro » May 17, 2019 at 6:10 PM
    My vendor invoice showed the original purchase as a credit against the new total value, showing the net value increase. I ended up paying tax on the increase in value only, after a discussion with Canada Customs. When the package is at the border, you give Fedex permission to act as your agent (a simple email is sufficient), and then let them know your situation - Customs called me and told me what I needed to send them. All you have to do is show them that you already paid tax on a portion of the shipment while it is being held for clearance; then, you only ever pay for the increase - no paying for the total amount and then applying for a refund. Just as it was super easy sending an outside setting to my diamond vendor for setting. Don’t let people scare you off, it is not a formidable process unless you can’t speak on the telephone and have 15 spare minutes.
     
    


    


  16. Mixtress
    Rough_Rock

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    by Mixtress » May 17, 2019 at 7:05 PM
    I will be working with Erika Winters for the new setting. When you sent your diamond to the US to have it set, what did you write the item was in the declaration? Did you include your original invoice for the diamond with the paper work? I am probably going to use FedEx but unsure of what to write because I don't want it to be obvious its a diamond inside and have someone greedy try to steal it.

    This was what I expected the vendor from the UK to do, however after chatting with them it looks like they are just going to write up the full amount of the diamond + new setting, no credit outlining my original purchase. It's ok though, I have moved on. Working with a vendor in the US gives me more peace of mind, the UK vendor seemed uninterested in having my business.
     
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  17. Bron357
    Ideal_Rock

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    by Bron357 » May 17, 2019 at 8:49 PM
    Different countries have different rules and formats. Here in Australia they have absolutely no interest in what you paid before, they just charge you for the assessed /declared value. If you want your item insured, here they use that as the basis for customs assessment. US to Canada sales are probably a lot easier and more common so they can do any amended assessment. And I think US vendors are more used to sending items internationally.
     
  18. pearaffair
    Ideal_Rock

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    by pearaffair » May 20, 2019 at 1:39 AM
    -mineral specimen

    Technically true ;-)

    Do you have a good goldsmith that could set the stone locally? I’m in BC if you need any suggestions.
     
  19. Mixtress
    Rough_Rock

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    by Mixtress » May 20, 2019 at 7:12 PM
    Thank you, I will label it as mineral specimen. I don't know anyone here in the lower mainland who could set the stone for me. The original vendor I was going to work with in the UK won't send the setting on its own. But that's ok, I am going to be working with Erika Winters instead. She's based in Seattle so it will be quite fast to send the ring to her via FedEx.

    I offered to drive down and drop it off myself but I suppose due to privacy concerns she only accepts diamonds through UPS or FedEx. Fair enough.
     
  20. pearaffair
    Ideal_Rock

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    by pearaffair » May 20, 2019 at 7:34 PM
    Omg you will have to join us at the next Vancouver GTG!!! :)

    Find me on LT? Message me?
     

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