Anyone shipping from USA ?

[dipmicro]

I would like to start sending my US and international parcels from USA.

Found this article:

http://www.canadabusiness.ca/servlet/ContentServer?cid=1085667968866〈=en&pagename=CBSC_ON/display&c=GuideInfoGuide

The documentation required for informal entry should contain "a Commercial Invoice stating "Informal Entry as per Section 321"

How does CanadaPost do it? Do they create a commercial invoice for each parcel or do they use the formal entry method and clear the whole truckload of parcels at the same time?

Do I need commercial invoice for each parcel or can I somehow combine them all onto single one?

If it's a combined invoice, who would be a receiver of this invoice ?

Thanks

[bestbranddeals]

dipmicro,

not quite sure how you plan to do this (didnt read your link though).

You plan to go to USA 3 times a week and ship your packages from there ? That will be more costly wouldnt it ? or do you plan to send the packages to someone have them ship it for you?

[dipmicro]

You plan to go to USA 3 times a week and ship your packages from there ? That will be more costly wouldnt it ? or do you plan to send the packages to someone have them ship it for you?

The cost is 16km drive one way, wait at the post office, 16km back, $4 toll. With electronically prepared shipping can be done under 1hr.

Time savings for me: no need to prepare CN22. Electronic shipping tools allow First Class Mail while CanadaPost electronic shipping does not support Light Packet.(my most used service).

Time savings for customer: most of US in 2-3 days vs. 1-2 weeks. USPS delivers on Saturdays.

Cash savings: about 50% of the CanadaPost rates. Delivery confirmation costs $0.19. Free shipping supplies (I buy boxes from Uline for $0.70 each).

I think it's worth the initial trouble. But ask me in 3 months, maybe I was just lucky so far.

[surplusdealdude]

But ask me in 3 months, maybe I was just lucky so far.

I've been doing it for 6 months with a 90 mile one-way trip and it's still getting better. -------------------------------------------------------------------

"The test of courage comes when we are in the minority. The test of tolerance comes when we are in the majority."
- Ralph W. Sockman

[fatdane]

For those making frequent trips to the USA remember the number 180. If my memory is correct if you are in the US for more than 180 days the IRS considers you a resident and subject to US taxes, and who wants to play with the IRS

[recped]

I am trying because Click-N-Ship does not allow First Class Mail but do not have credit card with US address, which Endicia requires. Even my M&T account has Canadian address.

Although I did use my M+T card initially with Endicia (and had zero problem doing so) they made me switch to direct bank debit (ACH) because of the high ratio of First Class (Domestic & International) that I was using. Endicia makes no money (actually lose money) when customers use a credit card to buy postage for First Class (Endicia gets no extra discount from USPS for FC and USPS don't pick up any of the credit card fees).

Just switch your payment method to direct debit! Regardless, Endicia don't give a hoot what your billing address is but they do need a US address to establish your sending zip code (also will be your default return address on labels).

Even the default return address that shows on the labels can be overridden with a little ingenuity. The important part is that you mail from within the same zip code which is part of the Indicia.

If my memory is correct if you are in the US for more than 180 days the IRS considers you a resident

That would be 180 complete 24 hour days, not 180 visits of less than a full day.

[jakeeangel]

What Recped said! I've been going over for 4 or 5 years now at least once a week plus several holidays of 1 - 3 weeks a year. That's more than 180 days. What you're referring to is 180 continuous days of living there not separate visits.

The US border guards are not there to assist you in filling out the forms. They get rather po'd at those that ask for help or have it done wrong. We've been x-rayed once and once or twice someone opened the back door to look at the packages but he didn't go through them all. I think he just wanted to make sure they were pacakges and nothing hiding underneath that we weren't declaring.

In all the years I've been going over I haven't been made to go inside.

As for Endicia, I use my PayPal debit card which has my Canadian address on it but I have a US address for Endicia. Dipmicro, go to US Address. You should see them on your right hand side heading home if you cross at Lewiston. 3909 Witmer Rd. You'll get a US address that you can use for Endicia.

[surplusdealdude]

If you go inside the US Customs building at Lewiston, the border guards there will give you a phone number to their Import Specialists.

I have found them very helpful. -------------------------------------------------------------------

"The test of courage comes when we are in the minority. The test of tolerance comes when we are in the majority."
- Ralph W. Sockman

[fatdane]

Apparently the magic number for days in the US is 183. There is something at the US treasury site, http://www.treas.gov/offices/tax-policy/library/CanadaProtocol07.pdf, that goes into who pays tax to who for what, but I think its best read by a lawyer, or one who consumse a lot of Windsors Best beverage before attempting to read and understand - it was to much for me on a Sunday AM

[dipmicro]

When I was reading about this, I found information that IRS considers foreign subjects taxable if they maintain physical location, i.e. rent an office etc.

What we are doing is import to US. The actual sale happens on Canadian soil (internet sales are considered on the location of the business, not the physical location of the server) otherwise import paperwork should not be required.

Btw. regarding US authorities bullying foreigners - see what Blayne Lastman did in 1994 when Bill Clinton send him "cease and desist" letter for using his look-a-like in TV commercials ... he replied this is Canada, not the 51st state and hired also Hillary's look-a-like afterwards.

http://www.nooobody.com/history.php

[dipmicro]

How does IRS track income of people who spend more than 183 days in US if they are paid from Canada?

Pierre, you are the taxman, right? How does Revenue Canada do it without income return?

[surplusdealdude]

ebay tells the IRS about sales made by American Powersellers.

Your bank sends the IRS a copy of any interest paid to you in the year. -------------------------------------------------------------------

"The test of courage comes when we are in the minority. The test of tolerance comes when we are in the majority."
- Ralph W. Sockman

[dipmicro]

Then they can tax my interest 🙂

Nonetheless, my point was that one agency (border agency) should not consider a sale outside of US for import purposes while another agency (IRS) would consider it an income.

Say if someone has absolutely no income coming from USA but spends more than 183 days there. So they send them form filled with zeroes like my wife used to do to CRA upon an advice from our accountant ?

[gifts_of_elegance]

Good luck shipping from USA! I did it for years without any problems and then they put me through hell for three years. I did everything they asked, but the requirement changed from Custom's agent to agent. Even amongst themselves they could not agree. I had the decal, I had commercial invoices for each item, did all the forms, lined up with the truckers, etc. One thing they all agreed on: THEY ALL WANTED ME TO USE A BROKER. The Homeland Security site clearly states that there is NO LAW requiring this. When I waived that in their face, they slapped 8% duty on all my items. I am not a person who gives up easily and I put a lot of time, patience and work into making it go right but it just didn't matter. Their attitude became more and more hostile and I finally decided that NOTHING WAS WORTH IT! I live in Sarnia and going to USPS is closer than the local post office for most people but it just became impossible.

I have a UPS store address in Michigan for my purchases. I have brought back tons of items over the past 10 years without any problems. I declared everything, a Canadian Customs officer did the Custom's entry, I paid my GST and went on my way. This applied for shipments under $1,600.
As of last December, that is no longer the case. All commercial shipments to Canada (even under $1,600) have to go through the commercial lane, must have duplicate invoices for all items and must make a formal entry. Instead of just paying GST, items are now subject to payment for Duty as well. This is at the Sarnia location.

Sometimes the worst thing that happens to us is a blessing in disquise. I stopped buying and I am stuck with a lot less inventory in this slow market.

[recped]

Say if someone has absolutely no income coming from USA but spends more than 183 days there. So they send them form filled with zeroes like my wife used to do to CRA upon an advice from our accountant ?

Doesn't work that way! Whichever country (US or Canada) that is your official country of residence (the one you reside in for more 183 days or more) is the country in which you report income and pay taxes (if applicable) and in both countries that means your WORLDWIDE income.

Of course Canada and the USA have a tax treaty, any taxes you might pay in one country (for example withholding taxes on investment income) can be used as a 100% credit when filing a tax return in the other country. When you opened the bank account they should have had you complete a W-BEN8 form (irs) which exempts you from any withholding tax because you are from a country which has a reciprocal tax treaty with the USA.

Tax treaties exists between almost all countries although there are a few very popular "tax havens" out there where you can hide foreign income.

[jakeeangel]

"As of last December, that is no longer the case. All commercial shipments to Canada (even under $1,600) have to go through the commercial lane, must have duplicate invoices for all items and must make a formal entry. Instead of just paying GST, items are now subject to payment for Duty as well. This is at the Sarnia location."


This has never been the case. It has always been that ALL commercial shipments regardless of value, have to be declared as commercial shipments and imported properly. I don't know who told you that they didn't but that was wrong and I suspect you misunderstood the instructions.

I also think you got lucky because all commercial shipments have to have a commercial entry. You can't just bring them in through the personal lanes. It's always been that way not just as of December of last year.

[nflsdeals]

We've been importing raw materials etc and exporting finished products for about 5 years now. Commercial import is a breeze once you know the basic information like country of origin and the proper code for each item. Customs duty is paid only when importing from certain countries. However if you are exporting the same goods then it can be claimed. A slightly more complicated process than just claiming GST.
As far as exporting to the US, it works well as long as you don't deal with clothing. We deal with art and clothing so one goes through CanadaPost and the other through FedEx/USPS in the US. We are just looking into having everything done by Purolator. Anyone willing to share their experience with them?
Thanks

Katy

[surplusdealdude]

Purolater is a division of Canada Post, you know.

And do NOT ship fabric through them to the States - every shipment requires a customs clearance because of the US import quotas and Purolator will nail your customers for clearance charges every time.

Use Canada Post for clothing.

I'm not really fussy about Purolator generally - their service tends to be sloppy. -------------------------------------------------------------------

If there were in the world today any large number of people who desired their own happiness more than they desired the unhappiness of others, we could have paradise in a few years.
- Bertrand Russell

[gifts_of_elegance]

jakeeangel:

"This has never been the case. It has always been that ALL commercial shipments regardless of value, have to be declared as commercial shipments and imported properly. I don't know who told you that they didn't but that was wrong and I suspect you misunderstood the instructions. "

I did not misunderstand the instructions. That is the way they handled all commercial shipments under $1.600 Cdn. at Sarnia, as far back as 2000 until end of 2008. I declared everything as commercial goods, I brought it in under our business name and just paid GST.

[gifts_of_elegance]

>
> I also think you got lucky because all commercial shipments have to have a commercial entry. You can't just bring them in through the personal lanes. It's always been that way not just as of December of last year.

I have been importing commercial goods since 2000, 2 to 5 times a week and always went through the personal lanes and always had a commercial entry made by a Customs officer. That is the way it was at Sarnia for merchandise under $1,600 Cdn. and luck had nothing to do with it.

[surplusdealdude]

There's a simple explanation.

I've found that, at Lewiston, almost everybody has a different way of doing the clearance. Some want all the attached paperwork, some don't.

Sarnia just does it a bit differently, that's all.

As long as they let you through, you're doing it right - that's my motto. -------------------------------------------------------------------

If there were in the world today any large number of people who desired their own happiness more than they desired the unhappiness of others, we could have paradise in a few years.
- Bertrand Russell