Importing good from USA

So I have looking at dealing with a few wholesalers from the US and wondering if anyone has some advice on this..



Many Companies only ship UPS so I have found a business that offers a US Address to which my items can be shipped to and then from there I can have them ship it to Canada by USPS ...




Does anyone have experience with companies like this and can anyone maybe offer some advice on whether these companies are reliable..

Message 1 of 9
latest reply
8 REPLIES 8

Importing good from USA

Advice?


 


Have the goods shipped directly from your wholesale supplier to you by UPS.  You are running a business and there are some costs.  Customs clearance happens to be one of them.


 


I have regularly used UPS for over twenty years to import large shipments from the USA until I retired a few years ago.  The superior quality and speed of service cannot be compared with Canada Post.


 


The difference in brokerage fees is negligible if you are importing large shipments with some value.  The cost of having someone reforward the shipments to you using USPS (additional shipping charge) would not justify the difference in fees.


 


UPS brokerage fees are about $75 for a $1,000 shipment and $85 for $5,000 compared to $10 at Canada Post.


 


http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html 


 


At the end of the day, you get what you pay for.  Peace of mind is important.

Message 2 of 9
latest reply

Importing good from USA

See that is what I read but i was charge $135 brokerage on item valued at $350  last year through UPS...



Orders would be roughly 5-25k ..I have read about the cost using these services I just don't know whether to trust UPS as I always get charged way more then what you just spoke of ..



Basically I am looking for advise ffor the best way to get stuff from across the border to me with paying the less brokerage and custom fees..



I have calculated the cost of using the company which is not much but i am scared to have a $5000 order com in UPS due to my history with them which is always about 50% total feeas on the cost of items purchased ..



I am really just looking for suggestions ..



The Number you speak of is there a way to ensure this is what I am charged keeping in mind i do not live near anything but a bunch of trees so not goverment or ups building anywhere

Message 3 of 9
latest reply

Importing good from USA

To avoid confusion, my comments above reflect the fact you are a business importing goods from a wholesale in large quantities.


 


Nothing to do with the individual Canadian buyers importing a $50 or $100 item from a US seller.


 


A few more points:


 


Depending on the type of UPS service selected, there may not be any Customs brokerage fee.  Those fees only apply to the cheapest economy (Standard) service. Check he link sent earlier.


 


Also, brokerage fees are per shipment.  If you have ten boxes coming in, only one fee is charged for the shipment.  At Canada Post, you would be charged $10 per box ($100 for the shipment: more than UPS !)


 


In addition, once you have the UPS tracking number, you can call them and pay the taxes and brokerage fees with your credit card on the phone prior to receiving the shipment(avoiding the COD charges).


 


Finally, in most instances, you can expect UPS to deliver all ten boxes at one time.  Canada Post would deliver or ask you to pick up at the local postal outlet four boxes one day, three the next, two the following and... be patient... the last one will show up eventually.

Message 4 of 9
latest reply

Importing good from USA

ok thanks for the advice as always i appreciate it very much... Thanks and happy new year pierre

Message 5 of 9
latest reply

Importing good from USA

"charge $135 brokerage on item valued at $350 "


 


Sorry, that is not possible.


 


The charge was not only for brokerage but for taxes (GST/PST/HST) and duty if applicable.


 


Once again, please refer tpo the link provided earlier giving you exactly what UPS charge for Customs clearance brokerage.


 


"i am scared to have a $5000 order com in UPS due..."


 


I have had shipments valued will over $10,000 come regularly without being overcharged one penny ever.  It is not a question of percentage. The fees (if they apply) are fixed based on value of the shipment.  A $15,000 shipment would cost about $160 in fees (taxes extra of course)


 


However, your volume indicates you are GST/HST registered and all the taxes paid are fully returned to you through Input Tax Credit (ITCs). 


 


If you are not yet registered with GST/HST, talk to your accountant immediately.  Do not delay.


 

Message 6 of 9
latest reply

Importing good from USA

Can your supplier send you everything prepaid? I believe they can. Ask how much the total is.


 


I am sure freight forwarders work fine, for a fee, and a time delay with their handling, then delayed, again, with Canada Customs. You are adding layers of handling and complexity.

Message 7 of 9
latest reply

Importing good from USA

UPS brokerage fees are about $75 for a $1,000 shipment and $85 for $5,000


 


Highway robbery! You can hire a third-party broker who will clear a simple shipment for much less.



Even if you use UPS as a broker you can negotiate the fees if you are a regular importer or even for a single shipment reduce the fees by "pre-paying" the taxes with an on-file credit card.




 


 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 8 of 9
latest reply

Importing good from USA

Few years ago I tried to sign-up with a US address "company", I purchased the subscription from ebay. Turned out it was a private house and I never used that subscription because I did not trust the deal. Ended up signing up with UPS Store, they are all over US and Canada. Some even accept one-off shipments without account, call the one close to you. I dealt with 2 locations in Canada and 1 in USA and they are reliable.



Now about importing:



As a business, you will pay 5% GST, which becomes your ITC



If shipment entering as individual, you will pay 13% HST. This is also ITC.



When UPS (or Fedex or DHL) are importing and they don't have your GST number they collect assign 13% HST.



The collected amount for $5k will be $0 or $83.30 + GST/HST + $135 bond fee (2.7%) + $4.50/line (first 5 lines are included in the fee) + duties.



$83.30 applies to Stadard only, other services have this portion waived: http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html



There is also way to waive bond fee. One of them is setup brokerare account with preauthorized payment (UPS wants debit access - void cheque, Fedex is happy with credit card #). There may be other ways, but I did not explore them.



There may be other charges that can increase import costs:



1) customs considers your shipment more valuable than what you actually paid and they charge you for their own estimated value. Say you $5k shipment is worth $50k, they tax you from $50k. This will be clearly indicated in your customs invoice.



2) duties - some classification codes have duties, and they may go very high. There is no legal way around this, if you bring something on Canadian soil that has dutiable classification code, you are going to end up paying duties and those are unrecoverable even if you ship the item out of the country. Lookup your classification code and determine your duties.



An extreme scenario - customs determines your $5k shipment of ultra great deal you got from auction is worth $50k, items are not made in NA and not subject to NAFTA and the duty on the item is 70%. Do your homework before accepting the deal.

Message 9 of 9
latest reply