Has anyone of you ever shipped jewelry on consignment from the US to
Canada? The problem seems to be having to pay taxes when crossing the
border on the full value of the items, some duty fees and other
gobbledygook I don’t understand. I’m thinking this would be more
trouble than it’s worth. Any solutions to this problem out there?
Annette @Annette_Andres
Dear Annette We import and wholesale jewellery in Canada. There are
instances when we have to import samples or goods into Canada on
returnable basis.
Under Canadian regulations the Jewellery is subjected to
-
5% customs duty (5-1/2% in case of non MFN - Most Favored Nation -
countries. -
10% Excise duty on the Original value of goods + the customs
duties. -
7% GST
The GST is refundable/Claimable against the GST paid by the business
for business expenses. However the Duties and Excise is not refundable
in this manner. When the goods are re-exported from Canada, the copy
of the airway bill, original invoice and the proof of duties paid is
enough to claim back the refund. The refund takes anywhere from 2 to 6
months. The customs brokers do this for a fee ranging from 10% of the
claim to 20% of the total claim.
Another solution could be Carnet. A Carnet is a paper obtained by the
chambers of commerce for a nominal fee and the deposit (sometimes 40%
of the value of the goods) Under carnet the goods/samples can be
imported into the participating countries without paying the local
duties and can be returned to the originating country. The procedures
differ from country to country. Please contact your local chamber of
commerce for the exact formalities. In canada we would log on to
www.chambers.ca
Hope this helps
Pradeep Khurana