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Old 03-12-2008, 02:07 AM   #1
Alpine White
Join Date: Apr 2007
Location: Downtown Toronto
Posts: 1,297
Duty and Tax Calculation... how does it work?

Today I just picked up my M3 replica bumper near Pearson Airport.

The shipping company was Bax Inc and they asked me if I want them to clear the bumper for me for $105 + duty.

I said I will do it myself and I drove it there today. (saved $105)

Euro-Spec from e46fanatics claimed value for $120 CAD.

Bax Inc told me I need to pay 5% for the duty. (GST I guess)

When I bring my doctument to Custom located right next to their warehouse charged me a duty for 13%..(GST + PST) basically I paid a tax.

Here is the question..

Few days ago I got my LED tails and my total payment was duty + GST + PST + handling fee..

why % are varies??

does anyone have an answer for my question?

Thank in advance.

difference between "duty" and "tax"??
summit425 is offline   Reply With Quote
Old 03-12-2008, 11:50 AM   #2
6th Gear Member
Join Date: Dec 2003
Location: Ottawa, ON
Posts: 1,876
Duty is charged on item imported into the country at various rates ... there is a huge CRA document that lists all the various rules. Usually, stuff made in USA or Mexico are duty free (under NAFTA). Most other stuff is not duy-free, but it is rarely charged ... for some reason, they customs just assumes it's made in the USA if it comes from there. The duty on German stuff (like BMW parts) is 6.1%.

Now, on top of that, there is GST and PST which is charged on all things, just like buying at a store. Some things are exept again (like wheelchairs) but most items get charged 13% in addition to the duty.

So, on a $100 item (CAN value) if it's not made in North America, you'll usually pay 6% (duty) + 13% (GST + PST) = $19. Sometimes, the duty (6%) is not charged ... no idea why. Now carriers, like UPS will hose you for an additional "brokerage fee", which can be huge (like the $105 in your case, or $50+ from UPS).

Make sense?
2007 BMW 328Xi Touring, 6 speed
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Old 03-12-2008, 12:30 PM   #3
Boots R
Boots, not boost
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Join Date: Jun 2006
Location: Brampton
Posts: 10,958
GST: 5% on everything, canada wide
PST: % based on province
HST: Don't worry about that.
Duty: % based on origin and/or commodity
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Old 03-12-2008, 05:27 PM   #4
Alpine White
Join Date: Apr 2007
Location: Downtown Toronto
Posts: 1,297
oh now I got it!!!

Thank you very much guys~!!!

always so helpful!!
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Old 03-12-2008, 06:01 PM   #5
runnin' capless
Join Date: Jan 2006
Location: Mississauga/Hamilton
Posts: 498
brokerage fees based on broker and value claimed. I know any value greater than $20 and less than $200, fedex charges a flat rate of $40.
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Old 03-18-2010, 08:31 PM   #6
325Xi Executive Pkg
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Join Date: Apr 2009
Location: Toronto
Posts: 180
Sry to bring up an old thread but im buying rims from USA and they are going to be delivered to Pearson airport.
The shipping wants to charge me $150 for clearing customs. How would i clear the customs my self?
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