Do All Courier Services Charge Broker Fees From Canada To USA

[arcra8009]

Hello all, I never thought about this much but I was wondering if we sell items from Canada to USA and use courier services like UPS, FedEx or Purolator via eBay Labels, Net parcel or Stallion Express, would those courier services use brokers to clear the shipment and later bill either the buyer or the seller for brokerage fees? Or does the shipping cost initially quoted covers that already. Or do they not need go go through a broker for clearing the goods under $800? Thanks in advance.

[recped]

Everything needs to be reported and cleared through US Customs. For almost all carriers there is no charge if there is no duty payable (anything under US$800).

[reallynicestamps]

@recped  is right, especially about the $800 duty free allowance which makes much of the question moot.

In any case, it is the Buyer's responsibility to know if their country allows the import of their purchase and what duties may be applicable, not the Seller's.

[ledisme]

Reallynicestamps is right. It is the buyers responsibility to know their countries duties and charges at their customs. I've never sent anything to the USA via a courier... But I do buy things that come to Canada via courier by UPS and FedEx, and they always charge a brokerage fee or clearing fee, without fail regardless of the price of the item. Which I'm sure you knew already... But I don't know how it works from here to the USA, but I'm assuming it's the same in reverse because the item has to be clear customs by the courier.

[recped]

It's considerably different, Canada to USA vs USA to Canada

going in to the US anything under US$800 only requires a casual entry and is free of tax and duty in most cases. From $800 to $2500 it's only a "casual" entry.

Going the other direction anything over $20 (maybe it's $40 now) requires a formal customs entry which will always involve GST/HST collection so carriers are almost always laying out cash and thus charge brokerage fees.

[reallynicestamps]

Where does the $150 duty free allowance for imports from the USA*? Is the $40 you mention the tax free allowance?

* And possibly Mexico since this is a CUSMA /NAFTA agreement.

[recped]

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@reallynicestamps wrote:

Where does the $150 duty free allowance for imports from the USA*? Is the $40 you mention the tax free allowance?

* And possibly Mexico since this is a CUSMA /NAFTA agreement.

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Yes, the $150 is for duty and only applies to personal imports AT a border crossing (but I might be wrong on the details).

My experience, especially in the last decade or so is with commercial import/export, not really up on the personal import side of things.

[reallynicestamps]

I don't think so because the duty free for border crossinghas been $200 for several years, perhaps decades.

The $150 duty free was, as I understand it, for imported shipments including postal and couriered.

[marnotom!]

Canada Post duty and tax free limit is officially C$20 for casual imports, including those from CUSMA countries. 

For other carriers, the tax-free limit for casual imports is officially C$40 and the duty-free limit is C$150.  It may be lower for non-CUSMA countries, I'm not sure.

Many consumer goods are duty-free anyway.  After all, the purpose of duty is to protect local industry, and Canada doesn't have a lot of that.  Anybody remember Seanix Technology?

[dfa_wildcat]

I shipped a 1800 lb pallet to the US from Canada. Got a shipping quote for just over $1500 CDN.  Charged the customer $1500 shipping. Item sold for $8000 Cdn, and it was declared as $8000 on the documents. I included export documents, certificate of origin, and a bill of sale on the item as well as emailed to the freight company. The transport company picked the pallet up yesterday and today emailed asking for the buyer/importers broker. I asked the buyer for their broker info and they said they have never needed a broker before. Is there a way to clear this for the customer on the US side? 

[recped]

Unless you are in the import/export business it would be rare for anyone to have a broker so the carriers usually handles that and of course they have fees which vary depending on the complexity of the customs entry (multiple tariff codes, additional permits etc.) and of course how much money they have to layout on your behalf.

It's sounds like you are using a LTL trucking service, generally these carriers do not handle brokerage, they expect you to provide a broker of your own.

If it's going via a trucking company then customs clearance is usually done at the border crossing so it's usually not possible for the recipient to submit the documentation and they would have to use a broker.

If you let me know the carrier and the ship from / ship to locations I might be able to suggest a broker.

[dfa_wildcat]

It went LTL via CTS as it was 4' x 4' x 4' and weighed 1800 lbs, too big for FedEx, Purolator, etc. I sent the buyer and the trucking company a pdf of the receipt, export declaration, and certificate of origin. To make it easier for the buyer I would pre clear it for him but I don't believe I cam, it has to be the importer?

[recped]

The sender or recipient can arrange for the customs clearance.