AgriSuccess Journal November / December 2011 : Page 4
YOUR MONEY Considering cross-border shopping? Buying and selling from a distance has never been easier. PayPal, online retailers, eBay auctions and online classified sites such as Craigslist and kijiji make it relatively easy to deal with suppliers and customers next door, across the country or around the world. While it is sometimes possible to save considerable cash by purchasing from international suppliers, shoppers need to be wary that a good buy doesn’t become a bad deal after paying brokerage fees to the shipping company and exchange rates to the credit card company. appropriate amount of tax will be assessed and collected at the border. “Customers are responsible for payment of duties and taxes,” states the UPS website. Otherwise, additional charges are applied. A vast array of farm-specific equipment is zero-rated for GST/HST and also duty free. Search for GI-051 on the publications tab at www.cra-arc.gc.ca for details on zero-rated agricultural equipment. TheFinalCost.com provides an easy-to-use online calculator that lets Canadians figure out all taxes and fees. Shoppers enter the cost of the purchase into the appropriate box, add the shipping charges, check the box if it was made in the U.S., select the shipping company and province, and click enter. The program quickly displays a breakdown of expected costs. To avoid paying a brokerage company to clear a U.S.-originating package through customs, or to buy a product from a small American company that doesn’t ship to Canada, some buyers arrange to have it shipped to a private mailbox company in a U.S. border town. Ontario residents who don’t mind the drive to Niagara Falls, N.Y., for example, could check out www.cbiusa.com. Many companies have policies in place to protect their Canadian distributors; others may not offer warranty service on products not bought in Canada. If buying new and having warranty service in Canada is important, check out the manufacturer’s warranty policy before you buy. Once everything is considered, many find they’re better off finding domestic sources for their purchases. American shipping company UPS lists brokerage fees at www.UPS.com: • Shipping tab > Calculate Time and Cost • On the left navigation menu > Zones and Rates > Rates for Customs Clearance into Canada UPS, for example, charges $ 19.45 for items valued from $ 20.01 to $ 40.00; rates go up from there, and the fee doesn’t include tax or duty. Most non-commercial goods manufactured in the U.S. can be imported duty free, but duty may apply if it was manufactured somewhere else. No matter where the product came from, the buyer still has to pay applicable GST, HST and provincial sales taxes. In most cases, the 4 | AGRISUCCESS
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