Question on Selling Parts into Canada

Ohmess

Ohmess

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So, having struck a deal to sell auto parts to a guy in Canada, I am now confronted with how to actually complete the transaction. I’m posting here to find out if these are the ordinary charges that should be expected, or if I have wandered down the wrong path and am creating additional complexities for no good reason. (If so, I would appreciate being steered in the right direction).

Fedex is telling me that I need to generate a “Commercial Invoice” because shipping anything other than documents into Canada is considered to be a commercial transaction.

And so, I need to determine the “harmonization code” for the items within my shipment, declare their value, and also declare the country that manufactured these items so that customs duties may be calculated. I am not merely facilitating the calculation, however. Oh no. Instead, once Fedex determines that the import duty on a German Manufactured Motor Vehicle Bumper heading into Canada is 6% of declared value, they want to bill me for the import duty.

And, to make things even more exciting, then Fedex also wants to collect from me the 5% Canadian GST.

Is this just how it goes? I’m just a guy in his garage trying to recycle parts for these lovely old cars. I really didn’t expect to be deputized to collect taxes by a foreign country in doing so.
 
I just sent a part to a forum member in Vancouver using USPS. The international form takes a while to fill out. It probably costs a little more but not a huge deal.

Canadians are people too.
 
shipping anything big and/or heavy is astronomical. Ridiculous since it's just over the border.

See if the buyer is close to a border town and see if he's able to pick them up in the USA across the border (if Covid allows it).
 
Thomas - Its not just the Canadians; I would be annoyed no matter which government was involved. As a philosophical matter, I think casual sales of stuff laying around in my garage should not put me in a position of calcluating and collecting taxes for a government. If I ran a business, sure. But I'm a hobbyist.
 
Ohmess said:
Thomas - Its not just the Canadians; I would be annoyed no matter which government was involved. As a philosophical matter, I think casual sales of stuff laying around in my garage should not put me in a position of calcluating and collecting taxes for a government. If I ran a business, sure. But I'm a hobbyist.
Click to expand...
I can't type sarcasm, I'm just being a smart ass.
 
teahead said:
shipping anything big and/or heavy is astronomical. Ridiculous since it's just over the border.

See if the buyer is close to a border town and see if he's able to pick them up in the USA across the border (if Covid allows it).
Click to expand...

Buyers can cross over if said BMW parts are essential (sheetmetal, red screwdrivers, etc). Then they must take a test on arrival, quarantine for 14 days (if negative), then take another test. Definitely worth if it if they save $100+ on shipping! :D
 
Being in Canada nd dealing with older BMW.s, Porsches and Alfas, I have to pretty much get everything from the US or another country. I found that a few things help, One, fitting everything into a small as possible box ( it is not only weight but size that costs more ) two only declare what the part is worth, if you put down more for insurance purposes, that is what they base their charges on, three mark it down as used car parts, I believe that way, it does not matter what country they come from Four, mark it down as a gift, that helps I know everyone is down on USPS but I only ship that way, touch wood but have not had any thing go missing They will charge for only GST AT the post office when picking it up and charge a 10 handling fee. The threshold for the border guys is $20.00 Canadian, it will be up to the individual border guys to let it go thru or make a charge against it FEDEX and UPS have all sorts of extra brokerage fee, handling fees and whatever else they feel like adding on and a lot of the times, that bill shows up a couple of weeks later SURPRISE!! I have a daughter and son who live in the US and I am lucky, I get things sent to them and then they dorward stuff on to me as family I just had a bunch of parts arrive from my daughter valued at 70.00 US and no issues , straight to the house, no extra charges I also had an Alpina horn button sent to me , paid 50.00US for it, the guy put down 100.00 for insurance purposes and it ended up costing me an extra 20 bucks to get it out of the post office We only get charged GST (5% ) once the US price has been converted to Can dollars and the 9.95 handling fee Uphere we get used to dealing with this stuff both ways, something that most of you don't have to deal with Can't wait until the border opens up again so |I can have everything shipped to a mailbox place in a small town literally just across the border from 3 days to ship to there instead of the 2 weeks or more to ship directly to Canada


I could say that is my 2 cents worth but with the dollar diff, it is at least 5 cents

Thanks, Rick
 
Thanks Rick for jumping in. Bumper parts have to go in a big box; no other option. Value is sales price, which also works for insurance if there is damage.

How do you indicate that the part is used? If the part originated in the US, I think there would be no import duties if the value is less than $800 (although GST still applies). I don't see where this question is asked.
 
Chris, Don’t forget, you may be paying those fees but your customer should be responsible for compensating you in addition to normal shipping cost.
 
Thanks Chris. Yes, that is precisely where I am in the process. I am seeking to get a total to bill to the customer, and I don't want them to come back to me and say "silly American, nobody pays that."

And, I have just learned that the $800 threshold applies to imports into the U.S. Canada's threshold is $40, so my little transaction is not exempt from import duties.

And, I have also learned that I should create a Low Value Shipment form, which has a threshold that just increased to $3,300 from $2,500, but which only applies to goods that are not regulated, controlled or prohibited. Otherwise, something called "formal entries" are required to be submitted for customs clearance. Informal sounds better, but who knows.

I wonder if I will have to get a Canadian taxpayer identification number after this. And then the IRS will ask me about my foreign source income.
 
And do I need an Agent's Authority for Entry of a Single Importation form? Or is the need for this form mitigated by the Low Value Shipment form?

And, is a Destination Control Statement required, which would tend to indicate I am concerned about the ultimate destination of my used bumper.

I am so happy to be learning about all of this.
 
In the outgoing Customs form at USPS for "Contents" put "used auto part" "or used auto bumper"

Ohmess said:
How do you indicate that the part is used? If the part originated in the US, I think there would be no import duties if the value is less than $800 (although GST still applies). I don't see where this question is asked.
Click to expand...
 
I have shipped many, many parts into the US from here. It appears the process is different if shipping from Canada into the US or vice versa. I have shipped a bumper, a large case differential all sorts of items. Usually find Canada Post/USPS most economical balance. Have used UPS for the diff, item sat around at each depot it went through 'cuz it was so heavy. No one wanted to place it on the next truck, I guess. Built a custom wooden crate around the diff. I had to initiate a search during the journey a couple times, but it got there. Takes some time to learn the forms required and how to describe stuff, but from this side anyway, it is usually something like 1 used car ______. I have also learned how to box in the smallest size possible. I shipped a BBS front spoiler to Toronto but had to create a custom box to do so. Looked kinda like a canoe! But Fedex took it, and was not too expensive. Perhaps Fedex not the right choice for your shipment. You have choices. Just a steep learning curve. Good luck! Mike. P.S. I should add : I usually take a photo of the package with shipping label attached, in case a search or claim is needed. Really firms up your case. ;)
 
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Have shipped a number of tail light sets and wind deflector kits to Canada using USPS.
Haven't had a problem. You need to complete a customs form.
If the buyer agrees, s it can be listed as a gift...
 
Stan said:
Have shipped a number of tail light sets and wind deflector kits to Canada using USPS.
Haven't had a problem. You need to complete a customs form.
If the buyer agrees, s it can be listed as a gift...
Click to expand...

Stan - I am concerned about labeling bumper parts as a gift, in part because they have to go in a large box. Perhaps with something as small as a tail light that might work to avoid tarrifs, particularly if you reuse an old box or recycle a box that has been sitting on your shelf with parts in it.

As to shipping without collecting GST using the USPS, I understand when we do this your buyer has to pay GST in Canada when they pick up the item from the Canadian postal service. And I think the Canadian postal service charges them a small fee, like $10, to collect the tax.

I bring up this last point because my charge from the USPS is within a couple of dollars of the price I am getting from Fedex, and Fedex includes both the auto parts tarrif and GST. So if the Canadian post office is going to charge GST when the buyer picks up the bumper parts, it will actually be about $40 cheaper to them if I ship using Fedex.
 
When shipping out of country, I try to use the Postal Service as much as possible as I believe it eliminates a customs brokerage fee on the other end
 
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