# Charged duty for used guitar from USA



## murraythek (Jun 1, 2013)

Just received my Danocaster Tele this morning along with a hefty duty charge of $350.

Has anyone had any success getting this fee partially or fully reimbursed?


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## Robert1950 (Jan 21, 2006)

Who was the shipper? Are you taking about just duty or does that include brokerage fees and taxes. I that know UPS, for example, charges an arm and 2 legs for brokerage fees to process collect taxes and/or duty


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## Alex (Feb 11, 2006)

murraythek said:


> Just received my Danocaster Tele this morning along with a hefty duty charge of $350.
> 
> Has anyone had any success getting this fee partially or fully reimbursed?


US made instruments would be charged HST and a brokerage fee from UPS if it was shipped ground. Brokerage for a $2K + guitar should be around $60-$80. On the Customs form, it will provide you with a breakdown of the charges. If by mistake you were charged duties (6%) for a non NAFTA made instrument, you can fill out the back of the form and send it in to claim back a wrongful charge.

It has happened to me a couple times and I received a refund.


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## murraythek (Jun 1, 2013)

It was shipped USPS and picked up by Canada Post as per my recommendation to avoid customs/duty fees. 

This is the first time in 5 years of buying across the border and using USPS/Canada Post that I have been subject to a customs/duty charge.


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## Alex (Feb 11, 2006)

murraythek said:


> It was shipped USPS and picked up by Canada Post as per my recommendation to avoid customs/duty fees.
> 
> This is the first time in 5 years of buying across the border and using USPS/Canada Post that I have been subject to a customs/duty charge.


Canada Post also collects HST. Assuming a $US2,400 Dano, the $350 amount looks right and it is taxes (GST and PST). It appears you paid taxes and no duties. Post pics of the guitar.


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## Diablo (Dec 20, 2007)

im not aware of USPS/Canada Post being some sort of way around taxes/customs/duty charges. Sometimes things may slip through the cracks, but the main thing is they just don't have the outrageous brokerage fees on top that FedEx/UPS have.


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## murraythek (Jun 1, 2013)

Diablo said:


> im not aware of USPS/Canada Post being some sort of way around taxes/customs/duty charges. Sometimes things may slip through the cracks, but the main thing is they just don't have the outrageous brokerage fees on top that FedEx/UPS have.


Using USPS / Canada Post grants you a high chance of avoiding additional charges. Looks like this time my guitar was randomly picked out.


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## Alex (Feb 11, 2006)

Diablo said:


> . Sometimes things may slip through the cracks, but the main thing is they just don't have the outrageous brokerage fees on top that FedEx/UPS have.


It's been my experience as well, sometimes they will collect HST and other times not on small ticket items. If the item is declared under $40, they typically don't but on a higher ticket item, they do collect save for the following exception. A couple years ago, I received two high end guitars delivered on a Sunday during the holiday season and no HST to pay. Thank you CP.


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## Alex (Feb 11, 2006)

murraythek said:


> Using USPS / Canada Post grants you a high chance of avoiding additional charges. Looks like this time my guitar was randomly picked out.


Other than the exception I mentioned above, I've always paid HST on guitars coming from abroad (many transactions).


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## ZeroGravity (Mar 25, 2016)

Here's a link to the Canadian Tariff Schedule. Musical instruments are covered in chapter 92, guitars specifically under 9202.90.90. There is a nominal duty rate of 6%, with preferential tariffs of free, 5%, or 2%, depending on country of origin. It is important to keep in mind it is the country *where it is made*, not where it was bought from.

Made in the US - UST Tariff = free
Made in China - MFN = 6%
Made in Mexico - MT, MUST = free
Made in Korea - KRT = 2%


Customs Tariff 2016


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## Robert1950 (Jan 21, 2006)

It has been hit and miss for me when it comes to Canada Post collecting taxes, etc. Looks like you got hit with HST this time. I guess you have been fairly lucky up until now. If it had come through on a Monday morning or Friday afternoon, it likely would have passed. That's C.P. for you.


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## Chitmo (Sep 2, 2013)

Diablo said:


> im not aware of USPS/Canada Post being some sort of way around taxes/customs/duty charges. Sometimes things may slip through the cracks, but the main thing is they just don't have the outrageous brokerage fees on top that FedEx/UPS have.


FedEx and UPS ALWAYS charge customs and taxes. It gives them a reason to charge BS brokerage fees. As for USPS/Canada post, it's really random. It's not that it's a way around customs and taxes it's just that they don't check every package. If you do get dinged it's usually based on the declared value. I always have pedals shipped as guitar accessories and declared as a gift and take my chances not insuring if the seller agrees.


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## murraythek (Jun 1, 2013)

Looks like I've been lucky thus far and this was the highest values item I've purchased from the USA. Seller wasn't keen on not insuring at full value because it was shipped in a Dano gigbag and in a box - so I went with it. No biggie as the guitars flat out ROCKS!!!!!

Pics to come!


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## Diablo (Dec 20, 2007)

Alex said:


> Other than the exception I mentioned above, I've always paid HST on guitars coming from abroad (many transactions).


That's been my experience as well...USPS usually lets little stuff through, but on big stuff, I usually get dinged. But at least there isn't the brokerage fee on top.
I certainly don't _expect_ to not get taxed just because its USPS...I just _hope_ it doesn't!


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## zdogma (Mar 21, 2006)

Yeah pretty much everything over $100 I end up paying HST these days. It was much less likely a couple of years ago.


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## rockinbluesfan (Mar 3, 2008)

You always have to pay taxes - I have brought several across the border. One time while there I asked what would happen if I traded even with someone from the U.S. - no money exchanged and they said I would have to pay taxes on the value of the guitar I was getting!


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## Alex (Feb 11, 2006)

Diablo said:


> That's been my experience as well...USPS usually lets little stuff through, but on big stuff, I usually get dinged. But at least there isn't the brokerage fee on top.
> I certainly don't _expect_ to not get taxed just because its USPS...I just _hope_ it doesn't!


CP used to charge a flat handling fee (i.e. Brokerage fee) of $5 for parcels which is currently $10 but now, that fee is not always charged. They must have some internal $$$ threshold to charge it or not. I use to get charged the $5 fee everytime but that was a few years back.


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## ZeroGravity (Mar 25, 2016)

Diablo said:


> That's been my experience as well...USPS usually lets little stuff through, but on big stuff, I usually get dinged. But at least there isn't the brokerage fee on top.
> I certainly don't _expect_ to not get taxed just because its USPS...I just _hope_ it doesn't!


There is a brokerage fee when Canada Post does collect any tax/duty, but it is a flat rate around $10 regardless of the item's value, but they don't charge anything if they don't collect other fees.


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## cheezyridr (Jun 8, 2009)

try ordering a tremol-no online. exchange, brokerage and taxes more than double the online price.


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## Diablo (Dec 20, 2007)

cheezyridr said:


> try ordering a tremol-no online. exchange, brokerage and taxes more than double the online price.


lol...same thing happened to me with a D-Tuna. tax man likes tremolos I guess.


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## Granny Gremlin (Jun 3, 2016)

Alex said:


> Canada Post also collects HST. Assuming a $US2,400 Dano, the $350 amount looks right and it is taxes (GST and PST). It appears you paid taxes and no duties. Post pics of the guitar.


Quite sure that was GST only (CanPost is Federal). But it may have changed since I last checked or since harmonization.



Robert1950 said:


> It has been hit and miss for me when it comes to Canada Post collecting taxes, etc. Looks like you got hit with HST this time. I guess you have been fairly lucky up until now. If it had come through on a Monday morning or Friday afternoon, it likely would have passed. That's C.P. for you.


There is a threshold, don't quote me on this but like 90 or 100 bucks, maybe a bit more, where imports are exempt from taxes (kinda like bringing stuff back with you when you've visited a foreign country; litterally the same rule). Also exempt if the sender marks it as a gift (some do so without you even asking for it) - legit shops/dealers won't do it (postal fraud) but individuals on ebay or reverb might.


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## Alex (Feb 11, 2006)

Granny Gremlin said:


> Quite sure that was GST only (CanPost is Federal). But it may have changed since I last checked or since harmonization.
> 
> 
> 
> There is a threshold, don't quote me on this but like 90 or 100 bucks, maybe a bit more, where imports are exempt from taxes (kinda like bringing stuff back with you when you've visited a foreign country; litterally the same rule). Also exempt if the sender marks it as a gift (some do so without you even asking for it) - legit shops/deals won't do it (postal fraud) but individuals on ebay or reverb might.


Since the late 90's, all carriers collect for the provinces as well. GST + PST.


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## 4345567 (Jun 26, 2008)

__________


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## BSTheTech (Sep 30, 2015)

The only time I had to pay anything other than tax was when I brought in a couple Marshall 1x12 cabinets. They asked where they were made and I said I bought them in the US. CBSA said they didn't care and wanted to know where they were made. I said the UK (gray placards on each cabinet indicating such- made in the mid 80's). CBSA charged me a hefty tariff. I forget how much but it pissed me off. Since then I've been getting my Marshall stuff in Canada (tariffs already paid).


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## bluebayou (May 25, 2015)

I have a guitar on the way to me, Ottawa, via USPS right now. When I get it, barring a fullblown postal strike, Iwill let you know what I had to pay.


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## Scottone (Feb 10, 2006)

Alex said:


> It's been my experience as well, sometimes they will collect HST and other times not on small ticket items. If the item is declared under $40, they typically don't but on a higher ticket item, they do collect save for the following exception. A couple years ago, I received two high end guitars delivered on a Sunday during the holiday season and no HST to pay. Thank you CP.


I got lucky on a Trussart shipped in around the holidays as well. Had my credit card out and ready to pay the HST, and they said "no charge". They must get overwhelmed and don't bother processing the paperwork.


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## blueshores_guy (Apr 8, 2007)

rockinbluesfan said:


> You always have to pay taxes - I have brought several across the border. One time while there I asked what would happen if I traded even with someone from the U.S. - no money exchanged and they said I would have to pay taxes on the value of the guitar I was getting!


I had a very similar situation a couple of years ago when I took a Heritage (U.S. made) guitar from Ontario into Michigan and traded it for another Heritage, then returned to Ontario the same day. It wasn't to be an even trade....I was going to receive $200 USD as well as the guitar in the deal. 
On the way to Michigan, I stopped in at the Sarnia/Port Huron Canada Customs building, in order to determine what the HST situation would be when I returned later that day. I knew that no duty would be payable on U.S. made goods so that wasn't a concern. However, the guitar I was bringing back was worth well over $2K CAD at the time, so paying or not paying 13% HST was indeed an issue I wanted resolved. 
Spoke to an old battle-axe lady agent there who insisted I would need to pay HST on the value of goods I was bringing into Canada, regardless of what I took over with me, and regardless of whether I made a trade or not. It also didn't matter to her that I was dealing with a private individual, not a store. Pay HST on the value of goods coming in, that's all she could say. And she did, several times.
On my way out of the customs building, one of the younger agents, who had heard the conversation, pulled me aside and said this: Everything is up to the discretion of the agent at the border crossing into Canada. Fully document your transaction(s), and tell the truth about what you're doing.

I took this advice, and on the way back into Ontario later that day, lucked into a very pleasant young lady agent at the border who listened intently to my story, looked at the bill of sale the seller had written at my request (which showed the trade and balance due to me), and just waved me through.

1500km travelled, about 12 hours of driving time (yes, I may have been abusing the speed limit here and there), and a good result at the end of the day.

This is the one that came back with me.........


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## ZeroGravity (Mar 25, 2016)

blueshores_guy said:


> It also didn't matter to her that I was dealing with a private individual, not a store. Pay HST on the value of goods coming in, that's all she could say.


Technically, the word of the tax law is that one is supposed to pay sales tax on _*every* _sales transaction, person to person or business to person, new, used, doesn't matter. Even the government knows that there is no way to actually enforce this and collect so it is never done. They can only ding you for things that involve the government, like cars or border crossing. So technically she was correct on that point.


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## Steadfastly (Nov 14, 2008)

I don't think you paid $350.00 worth of duty. As others have said, paid HST. There may have been a small amount of brokerage thrown in there as well. Many people assume charges are duties when they are not.


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## murraythek (Jun 1, 2013)

Yes it was $350 HST. My mistake as the delivering agent indicated they were "customs" charges.


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