What makes a good Canadian $ price???

[Jaak]

I was asked about this, and also thinking about it before...(Many times!)
There are times when I look at USD pricing from our friends south of the border and think "Wow, that's awesome pricing!". Sometimes it is, sometimes it isn't...

So what makes a good price, compared to Canadian pricing? Looking at the fundamentals, I normally go through the following process when deciding if that USD price is as good as I think it is...

(Price + Shipping) * currency conversion + brokerage charges + taxes

1) There's that great looking US price. Plus US priced shipping.

2) Then the exchange rate. I use www.bankofcanada.ca to work this out. Reality? It isn't the reported exchange rate. No one's going to convert you Canuck Bucks to Yankee Dollas without some sort of cut. The currency converter on the Bank of Canada web site will factor in 4% to do this. It can vary but I use that as a rough guide.

3) Brokerage fees. I've seen from $30-$90 depending on the item(s).

4) Taxes. I annoys the crap out of me, but they seem to charge taxes on top of the price+shipping. I've disputed this and lost, which is crap, because there's no sales tax on a service, as far as I know. GST, yes, but not provincial sales tax (for those of us stuck with it).

So as an example, something costs $100 US, what's it cost to get to my house? Well, let's say shipping is $25 US. So 100+25 and current Bank of Canada rate says...

http://www.bankofcanada.ca/en/rates/converter.html

Today it's a $1.15, but using a more realistic conversion, it's actually closer to $1.20 to buy USD with Canadian. So this means that $125 USD bill is roughly $150 Canadian.

Add brokerage charges. Let's say, $45 although it could be more, or less. Now we're at $195 Canadian for that great deal. Hmmm... Of course, you pay taxes, here or purchased there and brought in... So no escape there.

What if the item was $300 US? Using the same factors, it's now $360 Canadian plus brokerage, so it's at least $400 Canadian.

Every time I see something in the US, I have to go through this, and determine if it's a good deal. Pirelli Scorpion Ice and Snows? Couldn't buy them here, out of stock. It was worth getting them. Husky floor mats. Couldn't find them here at a reasonable price, it was worth it.

Sirius satellite radio? Found it here at roughly the same price. Is it worth it to be able to return it if there's an issue and have warranty coverage in Canada? Yeah. Plus, all things being equal, I'd rather support a local seller, whenever it's reasonable to do so.

One other thing I do when considering US sourced product. If the local guy's price doesn't compete, I give him a chance. Tell him up front, what you estimate your cost to buy it from the US. Give him a chance to match it. If he can't, he needs to know that so he can go back to his supplier and let them know, they're gouging him!

Let's see, the last thing I got was the hood props. The Brokerage cost half as much as the items. It took it from a $60 Canadian item, to a $90 Canadian item, just with brokerage charges.

Of course, the best thing is to have relatives in the US who like to send you "gifts" in the mail. I don't know about recently, but it used to be that stuff $40 and under could go through unscathed...

I'm sure lots of other Canadians here have experienced similar situations. I'd love to hear your feedback and know any "tricks" or "tips" you might have to get better deals on either side of the border!

And when you do consider buying from the US, do you give your local sources a chance to compete? The more you ask, the more they will realise when they're losing business and work with their suppliers to address this.

[gn300]

I usually look at if i can't get it here i'll pick it up when i travel. Some stull you just can't get in canada like 134 ac gas at us wall marts for $20 a can with guage.
Yes you can bring it across the border for your own use.

[wheelife]

there's no sales tax on a service, as far as I know. GST, yes, but not provincial sales tax (for those of us stuck with it).

I think Plumbers don't charge P.S.T. for labour in Ontario but bicycle mechanics do for bike repairs, go figure, unless your in the atlantic provinces then they charge H.S.T. on almost everything.

[Token]

Nice write-up Jim, just a couple of things to consider:

1) Any item imported from the US with a value for customs under $20.00 CAD (excluding shipping) is tax and brokerage exempt.

2) "Gifts" are tax and brokerage exempt up to $100.00 CAD value per importation. Now the important thing to remember here is that to qualify as a gift an item MUST be sent from person to person. If you order anything from a company it will NEVER be looked at as a "Gift", this also applies if someone were to actually buy you a gift from a US company and have it drop shipped to you. Even though the item was actually a GIFT, because it was shipped from a company taxes and brokerage ARE applicable.

3) There's another thing, anything that you buy from the US that is shipped here then lets say it was defective and you sent it back, the replacement that the company ships to you as a "Warranty Replacement" is exempt of taxes and brokerage. **This will also work if you buy something from a DCX dealer in the US and they are willing to ship it to you with "Warranty Replacement" clearly marked on the customs paperwork.**

Any deviation at all from the above mentioned will make your importation tax and brokerage applicable.

The shipping method makes a HUGE difference:

If the item is shipped via USPS then CPC will add the taxes and charge an $8.00 brokerage fee for a shipment sent to a RESIDENTIAL address. This is called a "Casual Import" by Canada Border Services Agency, if it is shipped to a business address it then is classified as a "Commercial Importation" and all the rules change.

The "Brokerage Fee" charged by a carrier is de-regulated and therefore the carrier can decide whatever they want to charge.

UPS is known to charge $49.00 per import, FedEx $30.00, and DHL $25.00. These rates can change at any time.

UPS has also been known to charge brokerage for each package of a multi-part shipment, even though it is not right this fee is almost never recoverable, so it is honestly best to avoid this carrier.

The least costly shipping method will always be the Postal System(s). They will not charge the taxes and brokerage when they not suposed to, now you're dealing with the Government as CBSA does the papaerwork and charges the fees so mistakes can happen, but if they do the Gov't will refund monies imporperly assessed, this is not the case with other carriers.

Hope this helps

[hemiwagn]

Good analysis Jaak.
In addition to brokerage, international shipping from the US into Canada is often a lot more expensive too.

I fully agree with letting the local guys compete. When I bought the MOPAR VES unit (over $1,000) the Canadian price was hundreds of dollars more (currency converted). I asked the local parts guy if he could come close -- he couldn't -- he said he wished he could buy them that cheap. Oh well, at least he had a shot.

I live in Toronto, about 90 min from Buffalo and I have friends in Fort Erie (which is the Canadian town on the other side of the border from Buffalo).

So a long time ago, I got a drop address at a mailboxes etc. (now called UPS stores) 10 min from the border in Buffalo. I use this for all my ebay stuff and magnum stuff, and lots more. about C$90/yr. The staff there are great. I've had tires, wheels, exhaust and even the magnaflow cat back shipped there. So no brokerage when you cross the border, and often if the purchase is small, they just let you go, no GST or PST. I ALWAYS declare what I have because I go across a lot. And I do not want to be on their black list and get the car searched every time.

The only thing I have noticed recently is when paying by credit card, the vendor wants the shipping address = the billing address on the card. I may have to get a US credit card for these types of vendors.

[Jaak]

Cool! I knew that sharing what little knowledge I had would bring out more! By the way, having friends to help out is fabulous too!

[Netsrac]

I always check locally, but will buy from the states more often when the price is right.

As an example, I saw some TIS03 wheels for $311 USD + $25 USD shipping convert to CDN is $403 best price I could find here was $571 CDN

Guess where I am buying them? Or maybe the special from Avon $1999

I also have a best friend who lives in Florida and a sister who lives in Arizona, so they ship what I need.

The worst company to ship from the States to Canada is UPS they are the worst.
I prefer to wait and have them ship by USPS, that way there are no brokerage fees.

Another was my Volant CAI, I bought it for $235 USD and the cheapest I could find it at the time here was $591 CDN - sister brought that up at Xmas

The best trick if you don't have friends or relatives in the states, have them send it up as gifts when possible, got both my engine cover and flap from Ernie, sent them up as gifts - no brokerage no taxes sweet.

[Token]

Oh yea, a couple of things I didn't mention. I took this thread as meaning importing stuff for car.

Most items shipped from the US are "Duty Free", in fact most hings shipped from most places in the world are actually "Duty Free" under what is called MFN or Most Favored Nation by CBSA, however there are exceptions, textiles will always carry some duty which varied by it's Country of Manufacture.

Alcohol and Tobacco products will ALWAYS carry high duty $$$ no matter what (No gift exemption here)

and there are a couple hundred other Customs rules that I won't bother to get into here, if anyone has any questions about an import just PM me I'll help any way I can so you have the right information.

Some last things to think of:
It is a good idea to have a checklist that you share with the exporter of an item you have purchased. They do not know the rules in Canada, nor should they be expected to.

1) If this is a purchase make sure there is a commercial invoice on the outside of the package (a bill of sale or receipt for anything from the US will also do just fine) {for an e-bay purchase a screen print of the closed e-bay auction with the final purchase price showing will be accepted too}

2) If the things you bought are large and shipped in multiple packages, like if you were to buy a set of headlights that were shipped in 2 boxes, the customs documentation MUST say that there is 2 packages and that the value listed is for all packages in the shipment, if not the entire value declared can be taken for each package.

3) Any Shipping and Handling charges are clearly marked on a bill of sale as these charges are tax, brokerage, and duty exempt. So they should NEVER be included in a "Total"

4) Make sure that the declared value stated is correct. A lot of people will think they are doing you a favor by putting $200.00 insurance (which is no charge in the US) on an item you paid $10.00 for, but they have now made the value for customs $200.00 and it's gonna cost you.

And Lastly, if there is no commercial invoice, or receipt on the outside of a package CBSA will open and inspect the contents of the shipment and put a value on it. (Almost always the wrong value too)

Remember CBSA has the right to open and inspect the contents of any and all packages shipped into Canada. Don't get something shipped here you don't want them to see (not that I think any of you would do that )

[Netsrac]

Hey Token
Question, do you think this would fly?

I was thinking of having my wheels sent to a place in the states that I could pick them up and have mounted and when I return, say that I bought my used wheels from someone in the states for a quarter of the price I paid for the new ones.

Another idea was to bring back two at a time and tell them I use those for dragging.

What do you think, and remember I don't know you...lol

[Jaak]

3) Any Shipping and Handling charges are clearly marked on a bill of sale as these charges are tax, brokerage, and duty exempt. So they should NEVER be included in a "Total"

So, as I was standing there, asking specifically about being charged taxes on the shipping cost of my tires and being told that it didn't matter, I have recourse to claim those taxes back?

Any idea as to who I should contact? Customs?

At that point I was wishing my father would magically come back from the dead and set them straight as he was a manager of a group that would determine if and how things should be taxed within the province.

I remember laughing, as a kid, when he'd get charged for tax on items that weren't chargable and after the vendor would dispute his statement, he'd pull out his business card and hand it to them. This of course, was always responded to with profuse apologies...

[Token]

So, as I was standing there, asking specifically about being charged taxes on the shipping cost of my tires and being told that it didn't matter, I have recourse to claim those taxes back?

Any idea as to who I should contact? Customs?

Couple of questions,

how were they shipped?
what exactly does it say on the customs documentation?

[Token]

Hey Token
Question, do you think this would fly?

I was thinking of having my wheels sent to a place in the states that I could pick them up and have mounted and when I return, say that I bought my used wheels from someone in the states for a quarter of the price I paid for the new ones.You would need a receipt for the purchase, now I'm not telling you to go on ebay and find an ended auction for a set of wheels that sold really cheap, print the ended auction page and then tell the Customs Officer you picked them up instead of paying shipping. (wink wink, say no more, say no more)

Another idea was to bring back two at a time and tell them I use those for dragging.Might work but they would be new ind shiny, probably won't fly the Customs Officer can ask you for the original purchase receipt from Canada and if you can't provide on will charge you and say you can claim a refund by sendig the receipt into the refund centre

What do you think, and remember I don't know you...lol My $0.02 TTYL Carsten LOL

answers in bold

[Netsrac]

Thanks for the info,
I'll pretend I didn't hear that..lol

And for you enjoyment, check out my friends in this post

[Northern Rider]

Great thread. As mentioned, commercial courriers charge a brokerage fee + the duty and taxes for the Canadian gov't. UPS is the worst. An $80.00 US item can end up costing do uble in CDN $!

Personally, I always insist on shipping United States Postal Services to my home address. Here is one other tid bit: The Canadian Postal Service does not scrutinize every parcel for applicable duty. It's a bit like playing the slots - a postal worker told me it was 1 in 6 that got charged duty. My experience is more like 1 in 3. And - there is no "brokerage" fee.

As to driving down to an American city and actually having an item installed on your car down there - well, I have heard of people that do that . . .

[Jaak]

Couple of questions,

how were they shipped?
what exactly does it say on the customs documentation?

It was shipped from one place in the US to another. I picked it up there, and drove it in to the country. The shipping charges were detailed on the invoice as a separate line item, and then a total presented. (I'm going from memory, but it was pretty clear what the shipping was.)

I didn't argue with the guy as they were still a lot cheaper than trying to buy them here (especially with no stock).

NR, yeah, I've seen Canada Post ignore things too, but it seems most places in the US I've dealt with, don't like to ship this way. I suspect it's because there's no way to track delivery.