Quote:
Originally Posted by Chromey
This Is a New one to me, Please explain.
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It's a bit of a process but most of it is outlined in this article:
http://trueler.com/2010/09/13/ups-br...ting-avoid-it/
Here is the step-by-step which I've followed:
http://trueler.com/2010/11/24/self-c...brokerage-fee/
Basics of Brokerage:
Certain goods are subject to sales tax (HST, or whatever the applicable sales tax is in your province). Most US and international retailers do not charge HST up front, meaning when something passes through customs you still owe the province the standard sales tax.
If you ship with UPS or FedEx, both of these companies will go ahead and pay
Canadian Border Services the outstanding tax you owe, on your behalf, without asking you. They in turn, charge you
brokerage which is a combination of the sales tax you owe, plus a very large service fee that they add on for no other reason than to make more money.
You might notice, that companies like Canada Post never charge brokerage, but do charge HST, depending on the nature and origin of the goods you are importing.
My Experience:
There is no way around HST, but brokerage can be avoided by self-declaring your package, (basically paying your HST in-person). The article above outlines this procedure. Last Summer I followed through with self-declaring the HST on a backpack I imported. The backpack was worth $100, and FedEx wanted to charge me $50 in brokerage. Luckily my nearest CBSA office (
just east of Union station in Toronto, along Front street) is close to where I work in the Summer so it's not at all a hassle for me to do.
The important thing to note is that if a package comes to your door and you owe brokerage, let the delivery man know you'll be self-declaring your package. More than likely he'll have no idea what you're talking about. But the process is pretty painless, as long as your local CBSA office is not too far away.