Avoiding Duties when Loaning tools to Canada

ChrisBennet · ChrisBennet's Garage

Help guys!
I want to lend a tool to a fellow Pelican in Canada but I don't want to pay customs duties (it's an expensive tool). Is there a ->>>legal<<<<- way to do this?
-Chris

addictionMS · addictionMS's Garage

call it a gift, and say it is worth less than $40, and mail it.

Jim

RickM · RickM's Garage

When coming out of Canada you don't have to pay duty on an American made product. This may apply to any non-Canadian made product.

I learned this from a recent experience when leaving there with a Clausing Mill in tow (Made in MI). The border inspector could care less after I stated it's country of origin.

Wheter it's different when using a shipping carrier I don't know.

Porsche_monkey · 10-02-2003, 06:53 AM

Fill out a NAFTA certificate to return it. 'Goods of US Origin', or what jim said.

Decolliber · 10-02-2003, 07:03 AM

free trade area = no customs duties

RickM · RickM's Garage

Aren't Free Trade Zones temporary Tax/duty free US sites for assembling and packaging products before shipping off to another country? More or less a middle-man who's not subject to taxation.

ChrisBennet · ChrisBennet's Garage

Maybe "duty" is the wrong term. I know you need to pay some sort of tax.
-Chris

RickM · RickM's Garage

Not in your case Chris.

Purrybonker · 10-02-2003, 08:16 AM

You are not exposed to tax at your end as the shipper, but the recipient will be exposed to GST ("Goods & Services Tax") at the Canadian end. (Duty not applicable per NAFTA on US mfg products.)

The amount of GST is strictly based on 7% of the "value". Value is determined, in this case by the value you put on the US customs declaration at the post office (unless that is seen as unreasonable). The recipient will be taxed 7% (plus a CCRA "handling fee" of a few dollars) on delivery. Or not - GST levies on stuff through the post office are a bit of a lottery - sometimes charged -sometimes not.

Mark the package as a used item and value it according to risk tolerance vs. GST cost (7% is probably pretty cheap rent)

ChrisBennet · ChrisBennet's Garage

Quote:

Originally posted by Purrybonker
You are not exposed to tax at your end as the shipper, but the recipient will be exposed to GST ("Goods & Services Tax") at the Canadian end. (Duty not applicable per NAFTA on US mfg products.)

The amount of GST is strictly based on 7% of the "value". Value is determined, in this case by the value you put on the US customs declaration at the post office (unless that is seen as unreasonable). The recipient will be taxed 7% (plus a CCRA "handling fee" of a few dollars) on delivery. Or not - GST levies on stuff through the post office are a bit of a lottery - sometimes charged -sometimes not.

Mark the package as a used item and value it according to risk tolerance vs. GST cost (7% is probably pretty cheap rent)

Thanks!
-Chris

dvkk · 10-03-2003, 01:27 AM

Canada Post has a $40cdn threshold. Anything of value below that will pass straight through without any taxes added. Since its your old used tool you can assign any value you wish. If you describe the contents as "tool, to be returned to USA" and Value = $35cdn, you will not be lying and there will be no tax. The tax can be a lot higher depending on the province destination. Customs collects provincial tax along with the federal GST.

Paul Franssen · Paul Franssen's Garage

Join the EEC!