Incoming package from India and tariffs

I won an item that's coming from Mumbai, India.

 

Looking at the tracking I see this:

 

Delivery office Canada

Tariff 182.00

 

What is this tariff?  The item only cost $26 CAD.  Am I going to have to pay $182 in import duties/taxes/tariffs?

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Incoming package from India and tariffs

Whether taxes and duty are assessed on your item by incoming Customs depends entirely on the nature of the item and its value; this is the nature of importing items into your country of residence regardless of whether you are shopping online or traveling abroad.

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Incoming package from India and tariffs


@what-does-your-watch-say wrote:

I won an item that's coming from Mumbai, India.

Looking at the tracking I see this:

Delivery office Canada

Tariff 182.00


How is it being shipped?

It is unusual to see a tariff listed as part of tracking.

 

Some freight companies have very high processing charges.

 

And sometimes customs clearance paperwork gets screwed up, with wrong charges being calculated. I once had a 25 item package worth $100 be processed by a DHL clerk as 25 items worth $100 each -- way, way, overvalued for the taxes/duty calculation. Smiley Mad

 

 

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Incoming package from India and tariffs


@momcqueen wrote:

Whether taxes and duty are assessed on your item by incoming Customs depends entirely on the nature of the item and its value; this is the nature of importing items into your country of residence regardless of whether you are shopping online or traveling abroad.


I'm sorry, but do you really believe this was a helpful reply?  It answered nothing.

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Incoming package from India and tariffs

@ypdc_dennis wrote:


How is it being shipped?It is unusual to see a tariff listed as part of tracking.Some freight companies have very high processing charges.And sometimes customs clearance paperwork gets screwed up, with wrong charges being calculated. I once had a 25 item package worth $100 be processed by a DHL clerk as 25 items worth $100 each -- way, way, overvalued for the taxes/duty calculation.


From what I can tell it's registered mail.  I found this online chart of tariffs charged for shipping from India Post and it appears to be based on weight and distance.

 

I'm wondering if the seller took multiple items and it's all weighed as one unit, like your example.

 

http://www.indianphilately.net/inlandspeedpostrates.html 

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Incoming package from India and tariffs

A response to @ypdc_dennis’ query about the carrier used would be helpful as this information might help us figure out the charges involved.

I’ll just add to his response that for items sent by mail, at least, customs can reassess the declared value of the item if it’s felt to be too low and charge taxes and duties based on that reassessed value.

If the item wasn’t sent through the mail, I suspect that what’s happened here is that a decimal place or comma is missing from or misplaced in the declared value.
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Incoming package from India and tariffs

I posted a reply to ypdc_dennis but for some reason it's not here anymore.

 

The package is being sent by India Post registered mail.  

 

I found a link that showed tariffs on shipped items locally and internationally.

 

The tariffs were based on weight and distance.

 

I'm wondering if this is a situation where the seller took multiple items to the post at once and they were all shipped as one item, perhaps weighted together before being loaded on the plane and the tariff is that the seller was charged for shipping.

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Incoming package from India and tariffs

Any import over $20Cdn is likely to be assessed for duty and sales tax. The customs broker can also charge for his services.

 Is the $182 in Canadian dollars? Or is it in rupees? (There are 53 rupees to the loonie.)

 

You can avoid the brokerage fee by wrangling the purchase through customs yourself.

This is sometimes more expensive than allowing a company to do it, depending on your wages and how many hours it will take you, which is why most importers pay the broker to do it.

 

There is an archived thread about UPS over 5000 posts long complaining about their brokerage fees, which start at $25 and rise from there. UPS will not turn over the shipment until their fees are paid.

 

Generally, on low value, small (not bulky) goods it is worth confirming that the seller will be using the postal system for delivery. CBSA has decided not to bother with assessing and charging duty and sales taxes on such shipments, because it would cost the taxpayer more to do so than to pass them through uninspected.

 

Sometimes the seller will give the retail value of the item, purchased at a discount, rather than the actual purchase price. Usually this is done by US sellers, for some reason.

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Incoming package from India and tariffs

@what-does-your-watch-say 

a situation where the seller took multiple items to the post at once and they were all shipped as one item, perhaps weighted together before being loaded on the plane

 

That -- and the one where a dozen items with a total value was assessed as a dozen items each with the total value-- is the best reason for doing your own brokerage.

 

It is also possible to pay the shipper his fee, then appeal to CBSA if there is an error. The CBSA contact is on the back of the customs paperwork, I believe. This would not get the shipper's service fee back.

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Incoming package from India and tariffs

As a point of interest, I noticed today that tracking through Canada Post on an item that shipped to me from Germany has a tab under Features that now tells me exactly how much Duty and Taxes I owe.

It is a knitting machine. Valued at slightly less than $300. I owe $45.09 on it.

Tracking says:

The Canada Border Services Agency (CBSA) has determined that you’ll need to pay duty and/or taxes when you receive your item. It will be delivered with a CBSA Postal Import Form detailing the duty, taxes, and handling fee owed.

Handy to have advance warning but I’m almost certain this ‘notice’ is new on the part of Canada Post. I can’t say I’ve seen it before.

Also, it was supposed to be delivered yesterday. Nearly all of my inbound parcels are late this holiday shopping season regardless of which carrier is delivering them. Except maybe FedEx. They delivered the last thing to me on time. Canada Post is 95 per cent late for the past month and so is Dynamex, Purolator and Loomis as well as UPS. A bit discouraging and worrisome. Santa, you know.
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Incoming package from India and tariffs

Tariff 182.00 isn’t necessarily a fee. It may be akin to HS Code.
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Incoming package from India and tariffs

In doing some research it appears India uses an 8 digit HS coding system.

 

The Indian customs classification on tariff items follows the Harmonized Commodity Description and Coding System (Harmonized System or HS).  Customs uses six-digit HS codes, the Directorate-General of Commercial Intelligence and Statistics (DGCI&S) uses eight-digit codes for statistical purposes, and the Directorate General of Foreign Trade (DGFT) has broadly extended the eight-digit DGCI&S codes up to 10 digits.

 

9605 TRAVEL SETS FOR PERSONAL TOILET, SEWING OR
SHOE OR CLOTHES CLEANING
9605 00 - Travel sets for personal toilet, sewing or
shoe or clothes cleaning :
9605 00 10 --- For personal toilet u 10% -
9605 00 90 --- Other u 10% -

 

9704 00 10 --- Used postal stamp kg. Free -
9704 00 20 --- Used or unused first-day covers for philatelists kg. Free -
9704 00 90 --- Other kg. Free -
_________________________________
______________________________________________________________________________________________Lotz

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Incoming package from India and tariffs


@what-does-your-watch-say wrote:

 

The package is being sent by India Post registered mail.  

 

I found a link that showed tariffs on shipped items locally and internationally.

 

The tariffs were based on weight and distance.


If the item hasn't reached Canada Border Services yet, there's no way India Post would know the tariffs owing on it.  It's not India Post's responsibility to calculate fees owing by an importer in another country.

 

Given how Indian English has its peculiarities (just as Canadian English has its quirks), I'm now wondering if a different definition of "tariff" is being employed here, especially as you believe it's being applied to the item's weight and travel distance, not its declared value.  A British definition of "tariff" is "fee schedule" and has nothing to do with fees related to an item's importation.  I'm wondering if in this case, this is either the mailing charge for the item,  a surcharge related to the item's registration, or something akin to the "minimum density" or volumetric weight charges Canada Post levies on parcels.

On which postal system's website are you checking the tracking?

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Incoming package from India and tariffs

The multiple meanings of "tariff" combined with the lack of a currency indication struck me too.

CBSA charges duty and sales taxes and calls them that.

 

I also thought of the HS codes, which are international and do not vary from country to country, but they are longer.  Hmm - DVDs are 8533.40 -  is the purchase a recording of any sort?

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Incoming package from India and tariffs

I’m now thinking that “182.00” is a code India Post uses for certain types of international registered mail.
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