tax on used items from the states?

[blk_muzda]

Do you guys have experience on buying used items from the states? How does tax work? I know for new items there is regular 14% tax + 6% tax ( not made in north america) + bokerage fee.

When an item looks used, do customs still tax it base on the brand new price and will the 6% apply? Thanks

[majic]

how long are you going to the states for?

the allowances have increased recently to:

* 24 hours or more, you can bring in CAN$50 worth of goods free of duty and tax;
* 48 hours or more, you can bring in CAN$400 worth of goods free of duty and tax;
* 7 days or more, you can bring in CAN$750 worth of goods free of duty and tax.

alos, my dad has been sending me computer parts (used) via USPS and declared then at $50USD each time and there were no problems/duties or anything like that..

EDIT: the items were valued at $50 or less and he just used it as a ballpark

[blk_muzda]

I am not planning to go to the states. I sometimes look at the classifieds at Mazda3forums and I am just wondering if it's even worth making an offer due to the shipping and tax on used items.

[IMHIP2]

If you can get the seller to ship by US Postal Service (USPS) then duties and brokerage are low and as majic states have the seller value of the item at an amount that will not attract duty or brokerage. With small items it is easier. If you are shipping larger items have the valued stated be warranty return.

Don't ship with UPS or Fedex or you will be hit large with brokerage.

[Wild Weasel]

Yeah, Customs doesn't care that it's used. They'll still tax you.

[majic]

If you can get the seller to ship by US Postal Service (USPS) then duties and brokerage are low and as majic states have the seller value of the item at an amount that will not attract duty or brokerage. With small items it is easier. If you are shipping larger items have the valued stated be warranty return.

that was not the intent of my post.. these items were all MSRP or valued @ < $50 USD.. the point was to use USPS as even these $50 items came through safely..

[CanadaGTO]

Hands up who wants to be audited by Canada Revenue

[CanadaGTO]

CRA Act Regarding Used Goods Valuation:

http://www.cbsa-asfc.gc.ca/E/pub/cm/...13-10-1-e.html

Also regarding false valuation of goods. Unfortunately I see on many Canadian Forums people openly advocating misrepresenting the value of goods being brought into Canada. As I've told many customers, this can be highly risky, and we as a company are not willing to risk our business license to save some money.

From CCRA Site: ( http://www.cbsa-asfc.gc.ca/E/pub/cp/...44-e.html#P052 )

False declarations and the seizure of goods

If you do not declare goods, or if you falsely declare them, we can seize the goods. This means that you may lose the goods permanently, or that you may have to pay a penalty to get them back. Depending on the type of goods and the circumstances involved, we may impose a penalty that ranges from 25% to 80% of the value of the seized goods.

In addition, the Customs Act provides border services officers with the authority to seize all vehicles that were used to import goods unlawfully. When this happens, we impose a penalty you have to pay before we return the vehicle.

[Caz]

What about it you maked it "returning from repair" or something like that?

[CanadaGTO]

What about it you maked it "returning from repair" or something like that?

You're required to provide proof of export of the defective product in the first place, and an invoice for the work done.

[blk_muzda]

How often do they readjust the tax value. Say you specify a set of used wheels to be $300, is it likely that they'll tax a readjusted value, say $500. Wouldn't it be difficult since a set stock wheels have a market price of $300 and something like rays will be value at over $1000.

[CanadaGTO]

How often do they readjust the tax value. Say you specify a set of used wheels to be $300, is it likely that they'll tax a readjusted value, say $500. Wouldn't it be difficult since a set stock wheels have a market price of $300 and something like rays will be value at over $1000.

The depreciation percentages of Automotive parts is in my first link. Depretiation is based on original MSRP.

[IMHIP2]

Hands up who wants to be audited by Canada Revenue

Sorry my intent was not for businesses who do this, but more for individuals who do this on a very occassional basis when dealing with other individuals(maybe once a year) with used parts.

On a used item the seller can put whatever value they are comfortable with (market, actual, adjusted). If the amount paid seems "reasonable" then who is Canada Customs to tell you what you should pay for used parts.

In the example for used wheels $300 seems reasonable. Would Canada Customs jump on it and say no it is $500? Probably not. Make the wheels $30 and yes they may have a problem.

New stuff then completely different story but the OP was talking used.

[CanadaGTO]

Sorry my intent was not for businesses who do this, but more for individuals who do this on a very occassional basis when dealing with other individuals(maybe once a year) with used parts.

On a used item the seller can put whatever value they are comfortable with (market, actual, adjusted). If the amount paid seems "reasonable" then who is Canada Customs to tell you what you should pay for used parts.

In the example for used wheels $300 seems reasonable. Would Canada Customs jump on it and say no it is $500? Probably not. Make the wheels $30 and yes they may have a problem.

New stuff then completely different story but the OP was talking used.

It's not just what you pay for used parts, it's what CCRA determines is the value of the parts.

CCRA has an amazing amount of enforcement power if they choose to wield it. I've seen first hand what they can do if they want.