US to Canada duties

[freeridr]

Hello, a friend and I are thinking about putting together a fairly large order from Austin Homebrew, enough to make 3 or 4 batches. We live in Canada and, as the forum is well aware, getting certain things up here is difficult or prohibitively expensive. My question is: has anyone on the forum made a large, heavy order from the states to Canada via USPS (I've read to avoid that shady UPS business), and if so, what kind of duty charges should we be prepared for (we're thinking of getting 20 lbs DME - I know all grain is cheaper, we'll get there, but there's some things we'd like to try this summer first, though).
cheers

 

[emoutal]

I can't say for sure, but i've never had to pay duties when receiving a package that was shipped USPS. I know they have the right to charge you duties, but it seems like it will usually be skipped.

The good news is that they don't charge you an exorbitant brokerage fee. I think it's $5 (only if they choose to charge you duties) compared to the $40 or so that UPS and Fedex charge (and they are almost certain to make you pay the duties)

 

[FlyGuy]

I have rarely been charged tax and duty. I think Canada customs is so under-staffed that they can't be bothered to do the paperwork on anything that isn't a substantial amount.

Where are you located, though? There might be more local options. Shipping is going to kill you for a bulky order like that, even if duty doesn't.

 

[Cheeto]

https://www.homebrewtalk.com/f41/mashingheads-open-canada-110279/


try here these guys are in Canada


-Jason

 

[Denny's Evil Concoctions]

Besides Canada Customs ignoring the huge volume of USPS/Canada post parcels....

Grain, hops and extract are considered food and under NAFTA (I think it's NAFTA) have no duty.

Most items fall under NAFTA or other treaties and it's rare that you will incurr a duty unless it's made in China or other mass producing countries.

Tax is another issue.

 

[Kronin]

you will pay GST

 

[Denny's Evil Concoctions]

you will pay GST

Not always with USPS/Canada Post as they often "forget" to collect. Not a thing to count on, however.

 

[freeridr]

Hi, sorry for not replying earlier about my finding's (exams happened and I didn't want to bump the thread without any relevant info). Anyways we went ahead with the order, and received a very heavy box within a week (we went priority USPS, didn't really want that though) full of separated and individually sealed packages. All the unused hops are still vacuum sealed, and the DME came in 5 pound bags, so what we didn't use initially will remain fresh. The USPS shipping charges were reasonable (I try to imagine how much cheaper waiting another week or so would be, although that may have never been an option) and there was no hassle or extra charges at pick up. Considering it only cost a bit less than CAD20$ to go with USPS than UPS, I think we won out pretty big. However, Austin Homebrew, who recommended asking for USPS in the first place after my very first inquiry, seemed a little unhappy about it after the fact. We received an email asking why we wanted USPS rather than UPS and AHS said that the extra paperwork was a pain and that it costs them, and alluded to a service charge for the extra half hour of work required to set up a USPS order rather than UPS.

 

[Kronin]

boo hoo AHS, just buy elsewhere then...

 

[bradsul]

Even if AustinHomebrew did decided to apply a service charge, it will still be substantially less than the brokerage UPS would charge. It's unfortunate that they feel it's necessary given the huge amount they must subsidize their flat rate shipping to US customers, but I also understand that we're most definitely in the minority up here.

There are also Canadian online suppliers now (mashingheads and expertbrewers come to mind) and you might want to contact them as well next time. With large orders I'm sure they would be willing to go the extra mile to secure business from a fellow Canadian.

 

[FlyGuy]

MoreBeer.com has no problem whatsoever shipping USPS. They have been great to me. That's really unfortunate that Austin Homebrew claims that they happily ship USPS for Canadians, then whine about it after you place your order.

Or as Brad says, try buying locally -- the new Canadian online retailers are really doing a great job!

 

[Fingers]

However, Austin Homebrew, who recommended asking for USPS in the first place after my very first inquiry, seemed a little unhappy about it after the fact. We received an email asking why we wanted USPS rather than UPS and AHS said that the extra paperwork was a pain and that it costs them, and alluded to a service charge for the extra half hour of work required to set up a USPS order rather than UPS.

How unusual. I had a bit of a discussion with Forrest about shipping USPS to Canada and he seemed quite willing to accommodate us. In fact, I've ordered a great deal of stuff from him because of that. I wonder if maybe you got a shipper that had a bad day.

I hope Forrest will chime in here and clear things up for us.

 

[bradsul]

How unusual. I had a bit of a discussion with Forrest about shipping USPS to Canada and he seemed quite willing to accommodate us. In fact, I've ordered a great deal of stuff from him because of that. I wonder if maybe you got a shipper that had a bad day.

I hope Forrest will chime in here and clear things up for us.

I think that is probably the case as well. I've done a few orders from Austin Homebrew once they instituted that policy and they all went off without a hitch. That said I do prefer to support our Canadian alternatives, otherwise they will disappear.

 

[Austinhomebrew]

I wanted to give the customer the option. If I remember correctly the UPS charge was $56 and the charge for USPS was about $84. The USPS charge was significantly more. Since UPS was almost $30 cheaper and much easier for us to do (1/2 hour less paperwork) I thought I would give the option. It seems that no one knows how much extra the duties are when delivered by UPS, I thought the $30 might make the difference. I didn't think I was doing anything wrong giving the customer an option.

I seems that USPS works in the fees because it is so much more expensive than UPS.

Forrest
austinhomebrew.com

 

[bradsul]

Forrest thanks for the info. To give some insight into the brokerage fees that UPS charges, I bought your aeration kit a couple years ago, the price from you was $33USD I believe. I then paid $9USD for shipping. When UPS showed up at my door they demanded a further $24CAD on the spot or they wouldn't give me my order.

Another example is a coffee machine (I have no idea what it was, not a coffee person) that was just over $200USD. UPS demanded $65CAD at my door or they wouldn't release the package to me. Keep in mind this is on top of the shipping costs already paid at time of order.

I placed a $75-100USD order with you last year and had it shipped with USPS. I believe the shipping was $2-3USD more than the UPS option however when I picked it up at the post office my only duty and customs fee was $5CAD. I'm sure UPS brokerage would have been ~$35CAD (again this in on top of shipping).

So as I said; even if you decide to charge a modest processing fee to give us the USPS option, it would still save us money.

 

[Austinhomebrew]

Can someone point me to a chart that states the fees that UPS collects and USPS does not? I need to know how to calculate the fees so I know what you are up against. UPS legally has to collect the fees so it is not UPS fault. Since USPS is so much more expensive they must work them in or are just expensive and do not charge the fees because they are the government and they won't get in trouble.

Please show me a chart if there is one. That would be helpful.

Forrest
Austin Homebrew Supply

 

[bradsul]

I'm not aware of any chart but I'll look around. UPS is legally required to collect the customs fees for CCRA but where they nail you is on their brokerage fee which is substantial.

 

[Austinhomebrew]

What percent is the brokarage fee? If anyone has some curent info it would help.

When I ask customers they say "it could be $50 it could be $100 I don't know"

Forrest

 

[bradsul]

I did a bit of googling and found this link. I haven't worked out the exchange rate differences or figured out the finals with the customs fees but it looks about right. I avoid UPS like the plague so I haven't had a recent order from them to compare with.

 

[Austinhomebrew]

The last Canadian customer that ordered from me ordered $110 worth of stuff which is $124 Canadian. How much in fees would he have paid? The UPS shipping charge was $29 less than the USPS shipping charge.


Rates for Customs Clearance into Canada


Entry Preparation Charges
Bond Fees

Entry Preparation Charges

UPS offers free+* routine customs clearance of UPS Worldwide Express Plus™, UPS Worldwide Express™, UPS Worldwide Express Saver™ and UPS Worldwide Expedited™. Use the chart below to calculate the customs brokerage fee for your inbound shipments.

- Rates do not include applicable duties or taxes.

Entry Preparation Charges

Value for Duty
CAD UPS Standard Service and All Other Couriers/Transportation Companies* UPS Worldwide Express Plus, UPS Worldwide Express, UPS Worldwide Express Saver, and UPS Worldwide Expedited Services


$0.00 to $20.00 $ - Free+


$ 20.01 to $40.00 $7.00


$40.01 to $100.00 $19.45


$100.01 to $200.00 $29.00


$200.01 to $350.00 $41.50


$350.01 to $500.00 $46.60


$500.01 to $750.00 $53.00


$750.01 to $1,000.00 $59.30


$1,000.01 to $1,250.00 $65.65


$1,250.01 to $1,600.00 $69.80


$1,600.01 to $5,000.00 $73.60


Each additional $1,000 $5.70








Bond Fees

Customers are responsible for payment of duties and taxes. When funds are not provided in advance by the customer, and UPS must post a bond to allow UPS shipments to be released in advance of payment to the Canada Border Services Agency (CBSA), a fee of 2.7 percent (minimum $5.85) of the amount advanced by UPS will be charged. To avoid bond fees call 1-800-PICK-UPS and ask about our EFT plans.

Additional Services

Service Charge


Duty and Tax Amendment $50.00


Import Permits (each) $23.00 each


Other Government Departments (O.G.D.) Processing Fee** $16.00 each


Outport Entry Fee (for non-UPS carried shipments only) $10.00 each


Low-Value Shipment Amendment $10.00


Each additional classification line after first 5 lines* $4.50/line


Collect On Delivery (C.O.D.) Fee for collecting import charges on delivery to avoid C.O.D. Fees and expedite the customs clearance of your shipments, call 1-800-PICK-UPS and ask about setting up a UPS Customs Brokerage/Importer Account. $4.25


Invoice Integrity Fee*** $4.00

 

[Kronin]

the fees in question that UPS charges , that are the issue, is not duty.

It is a brokerage fee, i.e. a fee they charge just for themselves to do paperwork.

they are not required to charge it as you never pay this fee with USPS, Fedex, or any other shipper. only UPS.

<edit> Plus in my experience, I have never paid duty on anything from UPS. Just Tax, and their broker fee. Why do the other shipping company's not charge this?

 

[FlyGuy]

I'm still trying to figure out why it takes an extra half hour to process USPS shipments over UPS. Forrest -- you guys aren't dropping USPS boxes off at the post office personally are you? That would be a huge hassle -- I really feel for you in that case. I thought USPS offered courier pickup for priority International mail.

Also, how much stuff did the OP order? Three flat rate boxes will ship at $25 each ($75 USD total) and carry up to 20 lbs each (i.e. 60 lbs total). I guess that works out to about $85 Canadian, so perhaps they ordered that much stuff. In the end, I bet he saved about $50 on UPS 'brokerage' fees.

As for the table that Brad posted, I know UPS doesn't follow it. A few years ago I received a $19 pump on a warranty replacement from Oregon, and (despite what I told her) my wife paid UPS $30 in brokerage fees when UPS showed up at our door while I was at work. This was despite that the value of the item was clearly labeled on the package, and it also said Warranty Replacement. It should have been free. My wife only paid because the USPS guy was so convincing that there was no way around the charge. USPS are crooks (just check out the class action law suit against them for this very reason).

 

[Austinhomebrew]

We are not dropping the package off at the post office. They will pick up. It is all of the customs forms. We have to itemize all of the products one by one with descriptions and weights. Then if it doesn't add up to the weight that the box really is we have to add the weight to the items. The last order was 3 pages of customs forms.

You say he saved $50 on UPS "brokerage fees" but he spent $29 extra dollars by shipping by USPS instead of UPS. So he saved $20, maybe. No one really knows how much the brokerage fees are they just guess. I will call UPS and get a final answer. UPS shipping charges are significatly cheaper than USPS, maybe 30%. The brokerage fees hopfully are less that the 30% difference. For example, on the last shipment UPS was around $56 and the USPS was around $85.

Why are you saying that USPS are crooks? I don't understand.