Possible duties?

[thriftyshopping22]

If I purchase a vintage designer watch for 1/4th the price (~$200 while it retails for $800) from an international seller and the seller provides both the box+papers with the parcel marked as a gift, if in case the parcel is opened+checked at customs... would I have to pay duties on the retail value or on the purchase value?

[faircrochet]

Quite possibly you'd have to pay duties on the regular retail price if customs documents are falsified (ie marked as a gift when they weren't) plus a fine.  If there documentation inside which clearly shows the actual purchase price, however, you might get away with duties on the low price plus a fine.

[thriftyshopping22]

But I have not asked the seller to mark the parcel as a gift. I just contacted her asking whether she has dealt with Canadian buyers in the past and if they've had to pay duties on their purchases so I could estimate a value to which she responded not with a value, but just with the statement that they mail these parcels as gifts and it seems I'm the highest buyer and will likely win, what should I do now? I don't mind paying duties, I would just like to know on what value but I definitely wouldn't want to pay a fine or want the documents to be falsified. 

[pjcdn2005]

You should be charged duty based on what you paid for the item so ask the seller to mark that amount on the customs form and to also include an invoice or packing slip with the price inside of the package.  Gifts over the amount of $60 are eligible for duty so you might want to mention to your seller that listing it as a gift won't help and that you prefer it be listed as merchandise.

If customs think that the item is valued at more than they can reassess and charge you duty on a higher amount but you can appeal that as you can prove what you have actually paid. Buy unless something looks suspicious, it is unlikely that they would reassess it.

[reallynicestamps]

Tell her NOT to mark it as a gift and to give the value as the price you paid for it.

Then ask her to ship by USPS First Class International and let her know that this service is now trackable and insurable, which are both benefits for her (though useless to you.)

If she avoids the Global Shipping Program there is a good chance you will avoid all duty and sales tax. But be prepared in any case, which you seem to be.

With the GSP, you will pay duty and tax upfront on the selling price.