# Why does some gear from the US come in GST/PST free?



## Soldano16 (Sep 14, 2006)

I just got a new speaker from the US. It was declared at $169 $US dollars. It's right on the US custom form.

The postman gives it to me, makes me sign but doesn't ask for any GST or PST.

Why not?


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## devnulljp (Mar 18, 2008)

Luck of the draw.
If it comes in by UPS or FedEx it's all but guaranteed you'll have to pay taxes AFAIK. 
Canada Post it seems to be just luck.

I think in theory you're supposed to go report it to customs and excise yourself and volunteer the taxes...

I'd love to know if there was a formula...a "these are not the droids you are looking for" thing to write on the package but I don't think it exists. Too many packages, not enough customs people is my guess.


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## Rugburn (Jan 14, 2009)

My wife works at DHL and she agrees it's a crap shoot.....however!! If you have the option of using the U.S. Postal service, do it. This generally means you won't get snagged. My wife is a jeweller, and whenever she recieves parcels through the U.S. Post, she rarely if ever pays tax or duty. Them stones is heavy too! Hope this helps.

Shawn.


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## mario (Feb 18, 2006)

Like devnulljp said...luck of the draw. LOL, I bought a PRS McCarty a couple of years ago from a guy a from TGP and Canada Post just left it jammed in my front door! Guitar was fine and no taxes whatsoever:food-smiley-004:.


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## Robert1950 (Jan 21, 2006)

What everybody has said. 

One more comment. Only a Canadian would ask, "Why didn't they collect tax from me?" :smilie_flagge17:


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## Soldano16 (Sep 14, 2006)

Seriously - luck of the draw makes no sense, especially when the value is right on the form. Do they just tell a guy to look at packages as they pass on the conveyor belt and pull out what looks expensive and charge on those?

I got hugely lucky last month on a Super Lead I brought in. But on that one, the US post office was very busy and didn't ask fr the value. But this last package has it on the USPS form. I'm not saying I'm dying to pay taxes but this "system" seems to really suck in terms of being consistent.

The gov can't do anything right - even collecting easy money.


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## mrmatt1972 (Apr 3, 2008)

So what happened to NAFTA anyway. Weren't we supposed to have no duty on US made musical equipment?


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## Robert1950 (Jan 21, 2006)

mrmatt1972 said:


> So what happened to NAFTA anyway. Weren't we supposed to have no duty on US made musical equipment?


Collecting sales tax is not charging duty. That's for items not covered by NAFTA. Brokerage is the fee for paperwork and collecting the sales tax and duty.


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## rebeldog (Dec 24, 2008)

I could be wrong here but I believe that you only pay PST on things you buy in your province so you should only have to pay GST and that could be included in the brokerage or shipping fees


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## shoretyus (Jan 6, 2007)

I think it has more do do with commercial markings on parcels.


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## Rugburn (Jan 14, 2009)

Many smaller companies will ship smaller packages as a "gift", if you are able to talk with them prior to shipping. It goes without saying that this doesn't apply to amps, instruments etc. Pedals, pickups other smaller hardware are good candidates.

Shawn.


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## Soldano16 (Sep 14, 2006)

mrmatt1972 said:


> So what happened to NAFTA anyway. Weren't we supposed to have no duty on US made musical equipment?


There is no duty. I'm talking GST and PST only.


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## devnulljp (Mar 18, 2008)

Rugburn said:


> Many smaller companies will ship smaller packages as a "gift", if you are able to talk with them prior to shipping. It goes without saying that this doesn't apply to amps, instruments etc. Pedals, pickups other smaller hardware are good candidates.
> 
> Shawn.


In theory it doesn't matter - gift or no you are supposed to pay tax...I've heard a cutoff value of over $50 or something, but I don't think that's true. 
A client of mine in Japan sent a gift when our baby was born but shipped on their commercial shipping account--it cost us more in taxes to receive it than it cost them to buy it in the first place.


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## 4345567 (Jun 26, 2008)

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## lyric girl (Sep 4, 2008)

Seems to depend on what mood the customs agents are in on that day.


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## Soldano16 (Sep 14, 2006)

nkjanssen said:


> Regular cutoff is around $50. Cutoff for a gift is around $75.


So how did my clearly marked $169 US dollars package get in free?


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## sysexguy (Mar 5, 2006)

Free Trade is an oxymoron and NAFTA was created by Reaganites to benefit a tiny but powerful subset of US export/import interests.

UPS and Fedex usually charge as much as they can so they never risk an AIMS penalty. Canada Post are far more relaxed......

Anyone who marks "gift" is an idiot, most likely it'll get through but it's a little like the RIAA lawsuits, they can and will go after "little guys" and the penalties are very severe.

anyway same experience here and it's puzzling....anyway makes up for all the mistakes that FEDUPS make (and then charge $75 to correct if they are willing agree that you were right)

Andy


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## 4345567 (Jun 26, 2008)

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