De Minimis threshold raised

[bpl521_sell]

Apparently under the new USMC agreement the threshold has been raised to $150.00 from $20.00. Pending ratification of course.

[lady.stark]

That is good news if it's true! Would have prefered something like $250, but I'll take $150. Better than the outdated $20.

[bpl521_sell]

It's true. Although from what I read the Cdn. gov may still want the tax on the amount which may not stop the couriers from raking us over the coals on their brokerage fees.

https://business.financialpost.com/pmn/business-pmn/usmca-may-be-boon-for-online-shoppers-trouble-fo...

[cumos55]

Buyers will have to adjust their thinking about buying online.....

Purchase from a US seller versus a Canadian seller.

Canadian sellers will most likely (or ..... might ) have to adjust their approach to selling... depends on what they sell,  and where their competition is located.

[bpl521_sell]

Personally,I prefer buying in Canada unless it's not available which is OFTEN the case. Shipping from the U.S. has gotten quite expensive over the last few years so sometimes it's just not worth it, unless it's the only option. 

[reallynicestamps]

@bpl521_sell

Shipping from the U.S. has gotten quite expensive over the last few years

I think part of the reason is the way USPS lays out their webpage.

If we look up pricing on the Canada Post website, the first rate is the cheapest (https://www.canadapost.ca/cpotools/apps/far/business/findARate?execution=e1s2).

USPS by contrast puts the expensive Priority Rate first and the often cheapest First Class International Parcel last and under Shape and Size which is not a transparent description. (https://postcalc.usps.com/?country=10440) .  They are also not clear and forthcoming about insurance and Confirmation of Delivery.

So it makes sense that an American seller, unused to foreign buyers, would choose the rate he sees first. We are all busy people.

And then there is GSP. I am unclear whether sellers are instructed to put domestic shipping labels on the package they are sending to Erlanger KY or international/ Canada.

But yeah-- once we add postage, never mind import fees whatever they may be--  we have to think twice about importing anything. Certainly if it is also available in Canada.

[musicyouneed]

Not really.  From another thread:

My comment:

So from what they are saying, by mail Canadians still will have the $20 limit if it is delivered by Canada Post.  If it is delivered by UPS, the limit is $150, with taxes on items over $40.

https://www.ecommercebytes.com/C/blog/blog.pl?/comments/2018/10/1538496802.html#comments

Canadians will now have to remember and manage three thresholds - $20 for postal shipments, $40 for tax on courier shipments, and $150 for duty on courier shipments. 

[tellephoto]

Canada jumped at the $150 amount.  The USA wanted it to be near to what their De Minimis which is $800 USD or just over $1000 CDN.  Canada did not want that to be the case.

[tyler@ebay]

Hi everyone - 

We've made an announcement regarding the USMCA this morning, if you're interested. 🙂

Thanks!

[lotzofuniquegoodies]

Now for the time to get a full explanation from the parties involved courier vs mail and a transaction qualifying. How many online transactions would still be mail and not express or actually considered courier? When you think there is a chance of things improving, you start to wonder if? If, due to the fact the mail moves from GSP warehouse to Ontario by "courier" is it covered? The technicalities left to the imagination!!! Hmmmm???

-CM

PS. May be better off waiting for an official announcement from Canadapost and "Couriers" with a complete translation!!

[reallynicestamps]

Protip from a retired public servant--

If you don't understand what a government document says, read it in the other language.

Seriously, government translators are very good at their jobs.

[bpl521_sell]

---

tyler@ebay wrote:

Hi everyone - 

We've made an announcement regarding the USMCA this morning, if you're interested. 🙂

Thanks!

---

thanks for the information. It really is a dogs breakfast and going to make people frustrated. Too many what "ifs" depending on the mode of shipping and the amount. Why they just didn't make it a flat $150.00 across the board regardless if courier, postal, which type of courier ..express or standard. A complete mess, to be sure to befuddle the occasional buyer.  Duty was never really a big expense for the masses, and somewhat the same for taxes, it's the brokerage fees from the couriers which had the biggest bite to buyers. Not sure how that will be rolled out due to the complexity of the thresholds and the mode(s) of delivery.

Surprised to see the reduction on the U.S. side from $800 to $100.  What is the definition of "express", so many questions, guess we will have to see how it all comes out in the wash. 

[momcqueen]

Under the new USMCA, the de minimis threshold for goods coming from the US and Mexico and imported via express carriers will change: Canadians will be able import up to $40 CAD in value without incurring taxes and up to $150 CAD without incurring duties.   It’s important to note that these changes do not apply to postal services (i.e. goods shipped from the US using USPS and delivered in Canada via Canada Post). As a result, the current $20 de minimis threshold will remain in place for goods imported by postal carriers.

https://community.ebay.ca/t5/Announcements/Changes-to-duties-and-taxes-on-goods-imported-from-the-US...

[marnotom!]

---

@bpl521_sell wrote:

Why they just didn't make it a flat $150.00 across the board regardless if courier, postal, which type of courier ..express or standard. A complete mess, to be sure to befuddle the occasional buyer.  Duty was never really a big expense for the masses, and somewhat the same for taxes, it's the brokerage fees from the couriers which had the biggest bite to buyers. Not sure how that will be rolled out due to the complexity of the thresholds and the mode(s) of delivery.

Items purchased by mail, etc. from out of state locations are subject to "use tax" in 40-odd American states and as far as I know, there's no "use tax free" threshold.  "Use tax" is, simply stated, the equivalent of state sales tax.

The difference between "use tax" and PST/GST/HST when it comes to its application to casual imports is that the mechanisms for collecting "use tax" are pretty weak compared to their Canadian counterparts as only the state has the ability to collect them, not the feds.

It's been estimated that 80% or so Americans are either not aware of use tax, or else they are and choose not to pay it anyway.

[silverpinups]

Why they just didn't make it a flat $150.00 across the board regardless if courier, postal, which type of courier ..express or standard. A complete mess, to be sure to befuddle the occasional buyer. 

I agree, 150.00 across the board with no duty or taxes.... a clean and simple policy to follow.

It's just common sense but of course the government doesn't operate that way, common sense isn't part of their mind-set.

I think I'll vote for the Conservatives next time...

[bpl521_sell]

Well, it really isn't going to save a buyer. The couriers are probably still going to charge a fee from $40.00 to $150.00. Only saving is if it was under $40.00. That's assuming they keep their rates the same.

UPS

[momcqueen]

How we as Canadians voted in the last election is irrelevant in this debate on the existing trade agreement; neither Canada nor Mexico is dictating the terms on negotiations. Until the unlikely day that citizens of Canada can vote in American elections, the thoughts on NAFTA (or what will replace it) by mere mortals like you and I don't really matter, and only Russians (hackers) are allowed to influence American polling outcomes. 

I simply cannot get worked up about anything underfoot south of the border even when it might affect me because I cannot influence its outcome even if I wanted to change it. We are unwilling participants in it. My plan is to ignore it all until it goes away. My blood pressure thanks me for it.

[silverpinups]

The de minimus has been so low for so long that was time for a significant change and some thing the Americans wanted in a fair and mutual exchange. The American Government raised theirs to 800.00USD so I don't see why the Canadian Government can't cleanly raise theirs to 150.00 with no strings attached. The Americans wanted a much higher Canadian de minimus...

Hey, Trudeau and friends... This is 2018!

[marnotom!]

@silverpinups

See my earlier post. The US federal $800 threshold applies only to duty. To the best of my knowledge, there is NO threshold for use tax (state-applied taxes) in 40+ states. Use tax applies to both interstate and international shipments, FWIW.

I wonder if US negotiators even grasped the fact that state taxes are applied and collected in a different manner than provincial taxes (where applicable) on casual imports.

[momcqueen]

I stopped importing from the USA into Canada when their political climate took its turn. The de minimus on imports into Canada can stay $20 until 2202 for all that I care about it.