Sunday, 29 May 2011

Shopping online - Customs/duties

With the strong Canadian dollar, I'm often tempted to shop online - it's cheaper and there's more variety. However, one of the big downsides is having to pay customs once it arrives, and sometimes brokerage. I absolutely hate brokerage with a passion. I feel like I'm being robbed by UPS and Fedex when they arrive at my door. SURPRISE! Give us $50 CASH - NOW! 

I found this awesome table that summarizes which companies charge brokerage for what services.
 Shipping Method
Brokerage Fees
Notes
UPS Worldwide Expedited
Air; 2-4 days
$0Beyond 5 items, $4.50 per item.
UPS Worldwide Saver
Air; 1-2 days
$0Beyond 5 items, $4.50 per item.
UPS Standard
Ground; 7-10 days
HighEntry Preparation Charges, COD Fee, Bond Fee
FedEx International Economy
Air; 2-4 days
$0
FedEx International Priority
Air; 1-2 days
$0
FedEx Ground
Ground; 7-10 days
HighHigh Brokerage Fees; Avoid
International Priority Mail
Ground; 7-10 days
$8
International Express Mail
Air; 2-3 days
$5
Purolator Ground incl. Tax/Duty
Ground; 2-6 days
$0
DHL Standard/Expedited
Ground
$0
Source: http://www.photoprice.ca/article/brokerage-fees-by-shipping-method

The site also explains what "tax," "duty," and "brokerage" are: http://www.photoprice.ca/article/tax-duty-brokerage-demystified
This helped me a lot when I was shopping for a bridesmaid's dress from Lightinthebox.com.  When my dress finally arrived, I wasn't home, so Fedex left me a note saying I owed them $40.67 for duties. I was completely appalled by this. I was so sure they were overcharging and scamming me. So I did a little research - I went to the Canadian Border Services Agency (BCSA) website: http://www.cbsa-asfc.gc.ca/cpr-crp-eng.html

I even tried to read the Customs Act *sweatdrop*. Unfortunately, it made very little sense to me. So... I decided to phone CBSA instead. Yes, I was that determined to figure how Fedex came up with that amount. 

CBSA Toll Free Number: 1-800-461-9999 (http://www.cbsa-asfc.gc.ca/contact/general-generaux-eng.html)

The agent I spoke to was very friendly and helpful. He asked me what I was buying (bridesmaid's dress) and where it was being shipped from (China). Then he told me how much taxes would be for my province and how much duties were for dresses from China. Unfortunately, Canada charges 18% duties for clothes from China. Though I was still sad about paying an arm and a leg, I was happy that I at least knew what I was paying for!

Of course, one other way of avoiding brokerage is to send your package to a shipping/receiving centre in the US - that is if it's shipping from the US. So this would not have worked for the dress from lightinthebox. If you live in BC, there are places in Blaine and Point Robert's that will receive your package. When you cross the border, you might get dinged for duties though. But at least there's no brokerage!
 

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