Canadian Duty Taxes of Mail Orders
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I'm expecting a package today. Thanks dezz for sharing your experience in case this should happen to another forum member.
Phewph! Well there's one potential hurdle I won't have to worry about! Frankly 'duties' are enigmatic to me. I have no idea what they are or how they are calculated and unfortunately the customs sheet wasn't any clearer. Oddly I was only charged ~$18 PST (which by my calculation based on the most current information I could find from the SK Gov't: $6.25/25g) should have been $50... Who knows, maybe now I will owe them $420 instead!
You have the provincial sales tax and provincial tobacco tax, duty is on the federal end, should be 6.57 percent.
You didn't say what the cost was per tin, but let's assume it was US$10 per tin - or US$40 for the entire order before shipping. You can replicate this calculation using your actual per tin cost.
If you are in Saskatchewan:
The rate of provincial tax in SK is $6.25 per 25 grams
The federal rate is $6.57188 per 50 grams of manufactured tobacco or a fraction (of 50g) thereof. As an aside, note here that if your have 201 grams, you pay the full federal tax of 6.57188 on that extra one gram because the federal tax is levied on each 50grams or fraction thereof.
For exactly 200 grams the caculation is:
SK tobacco tax = 6.25 * 8 = $50.00
Federal tobacco tax = $6.57188 * 4 = $26.29
So value for HST is:
$49.22 (ie US$40 purchase price converts to Cdn$49.22 using, for simplicity, today's BofC noon rate of 1.2304 - this can result in a usually slight difference between what you calculate and what the CBSA calculates because they tend to use a temporal average rate, which could be better or worse than the spot rate)
+ $50.00 (SK tobacco tax)
+ 26.29 (federal tobacco tax)
= $125.51
so HST in SK is 10% of $125.51 = $12.55
So total tax I calculate would be $88.84 (i.e. $50 + 26.29 + 12.55) , plus they usually charge you an admin fee which I think is $9.95 or something like that.
Now, one vendor online always marks packages 8 oz even if you only buy 200g (I have complained to them before that 8 ounces is actually 227 grams, so if I get nailed the duty will be assessed on the declared amount of 227g not the actual 200g). Don't know what they put on your slip, but if the put 8 oz then you could end up with higher duty.
If you are in Saskatchewan:
The rate of provincial tax in SK is $6.25 per 25 grams
The federal rate is $6.57188 per 50 grams of manufactured tobacco or a fraction (of 50g) thereof. As an aside, note here that if your have 201 grams, you pay the full federal tax of 6.57188 on that extra one gram because the federal tax is levied on each 50grams or fraction thereof.
For exactly 200 grams the caculation is:
SK tobacco tax = 6.25 * 8 = $50.00
Federal tobacco tax = $6.57188 * 4 = $26.29
So value for HST is:
$49.22 (ie US$40 purchase price converts to Cdn$49.22 using, for simplicity, today's BofC noon rate of 1.2304 - this can result in a usually slight difference between what you calculate and what the CBSA calculates because they tend to use a temporal average rate, which could be better or worse than the spot rate)
+ $50.00 (SK tobacco tax)
+ 26.29 (federal tobacco tax)
= $125.51
so HST in SK is 10% of $125.51 = $12.55
So total tax I calculate would be $88.84 (i.e. $50 + 26.29 + 12.55) , plus they usually charge you an admin fee which I think is $9.95 or something like that.
Now, one vendor online always marks packages 8 oz even if you only buy 200g (I have complained to them before that 8 ounces is actually 227 grams, so if I get nailed the duty will be assessed on the declared amount of 227g not the actual 200g). Don't know what they put on your slip, but if the put 8 oz then you could end up with higher duty.
Peck you are amazing! That is going to help so much when the CBSA contacts me! (if the Canada Post guy actually followed through...) The total order was for 4 - 50g tins (all marked in g's not oz's) for a total of $42.08 before shipping. I'm not entirely sure how the waybill was marked though as the customs receipt was pasted over it so, as you said, if they marked it as 2oz tins it may be more.
Either way, I'd gladly pay
Either way, I'd gladly pay
No worries. I will say that I must have a giant horseshoe wedged up my ass because I have been very lucky in terms of my experience with packages and duty.
There is always the option of making friends in the states, if moving there isn't an option or you don't want to. You can go visit them and stay outside CAN for long enough for the allowance to take effect, and if they come to visit you they can bring tobacco with them for you. I know someone who has been getting three quarters of his tobacco this way for years, and only occasionally buys Amphora when he has no other options-- and he is 5 bowl a day kind of guy.
You could have the orders shipped to their place, and have them bring across a tin at a time even, if anyone was really worried they would get caught. Customs reserves the right, I believe, to reduce amounts allowed in depending on the duration of the visit-- for example, if I, as a US citizen, crossed with 50 cigars, a carton a cigarettes, and a can of pipe tobacco, and stated that I would be staying for 3 days, they would certainly confiscate an arbitrary amount to reduce it to an appropriate amount (in their eyes). So one tin would be a very safe bet for a US citizen to bring across.
Every time I've gone through customs as a US citizen visiting friends in Canada, they have generally been really lax. I basically declared that I "had some tobacco" and they acknowledged it, and cut me off to ask me another question. They also said that "one can" was the allowance, even though all the cans that they let through were 14 oz cans, and the actual limit is 200 grams duty free if the duty free allowance applies to you.
You could have the orders shipped to their place, and have them bring across a tin at a time even, if anyone was really worried they would get caught. Customs reserves the right, I believe, to reduce amounts allowed in depending on the duration of the visit-- for example, if I, as a US citizen, crossed with 50 cigars, a carton a cigarettes, and a can of pipe tobacco, and stated that I would be staying for 3 days, they would certainly confiscate an arbitrary amount to reduce it to an appropriate amount (in their eyes). So one tin would be a very safe bet for a US citizen to bring across.
Every time I've gone through customs as a US citizen visiting friends in Canada, they have generally been really lax. I basically declared that I "had some tobacco" and they acknowledged it, and cut me off to ask me another question. They also said that "one can" was the allowance, even though all the cans that they let through were 14 oz cans, and the actual limit is 200 grams duty free if the duty free allowance applies to you.
I've made maybe just short of a dozen orders. This is the second to have been opened at customs and charged. The first was a very reasonable 50 bucks or so!
My gf actually goes to school in the states! It was super handy when I wanted to get an order of McCranies since they don't ship to Canada. Most of all she just lives in a beautiful city which makes for a great trip which is nice -- being able to bring tobacco back is just a nice perk
Huzzah! This adventure has come to an end! Yesterday I finally picked up my package from the post office.
The final damage? $46.41. More than $300 bucks less than they originally wanted and almost half of what I expected to be the actual amount owing. At this point... I really think they just pick a number out of the air - or somewhere less pleasant.
All-in-all the biggest hastle was just figuring out the process for reassessment and needing to walk the clerk from Canada Post through their job. If this happens any of you fine folk, just tell the clerk that they are to write your telephone number down on Form E14 - CBSA Postal Import Form (though I was never actually contacted by the CBSA) and have it sent to the CBSA for reassessment (as per these instructions on the CBSA website).
After all of this back-and-foth with Canada Post and the Canadian Border Service Agency, I think I'll try my first bowl of Wessex Brigade Campaign Dark Flake today - on Canada Day. Seems fitting!
Thanks everyone for their help and suggestions!
The final damage? $46.41. More than $300 bucks less than they originally wanted and almost half of what I expected to be the actual amount owing. At this point... I really think they just pick a number out of the air - or somewhere less pleasant.
All-in-all the biggest hastle was just figuring out the process for reassessment and needing to walk the clerk from Canada Post through their job. If this happens any of you fine folk, just tell the clerk that they are to write your telephone number down on Form E14 - CBSA Postal Import Form (though I was never actually contacted by the CBSA) and have it sent to the CBSA for reassessment (as per these instructions on the CBSA website).
After all of this back-and-foth with Canada Post and the Canadian Border Service Agency, I think I'll try my first bowl of Wessex Brigade Campaign Dark Flake today - on Canada Day. Seems fitting!
Thanks everyone for their help and suggestions!
Congratulations on getting this cleared up with no jail time or refinancing your house, sometimes you may stumble across competence in our civil service, enjoy.
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Hello I am new to pipe smoking and I bought my first 3 tins of tobacco, a corncob pipe and few pipe accessories like pipe cleaners. I actually received them today and was surprised to find out how much I had to pay for the duties and extra. Looking at drezz01's reassessment package, I started to wonder if I was overcharged as well. Obviously not to the extent of $350 but I did have to pay $81 although I only had 2 50grams and a 1.5 oz (42.5 grams). By the way I live in Ontario. Can anyone tell me if it needs to be reassessed as well? If so, what procedures should I take now that I paid all that fee in excitement to try my first pipe?
Please help! Thank you!
P.S Attached is the photo of my receipt.
Please help! Thank you!
P.S Attached is the photo of my receipt.
I'm from Alberta but 81 dollars seems about right. You can search online for 'Ontario tobacco tax' to get the exact tax amount per 50g, and then add the federal tobacco tax which is around $7 per 50g.
It's still cheaper than paying 45 bucks a tin domestically I bet.
Edit :it sounds like you've paid the fees and lit up your pipe. If so how'd it go?
It's still cheaper than paying 45 bucks a tin domestically I bet.
Edit :it sounds like you've paid the fees and lit up your pipe. If so how'd it go?
This is the key phrase, finding a Canada Post employee with so little self-confidence that they'll let a customer that owes duty explain to them how much should be charged by walking them through the process. I think Drezz really lucked out as 46$ is a bit to low, but I have to give him props for going through it and getting it worked out.
I do find interesting what looks like the >100 grams on the contents part, it looks almost as if you keep it to under 100 grams they won't bother assessing it. Of course it's just hopeful thinking but maybe worth a shot.
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