Topic: Fedexing to Canada?

[Jhurlbs81]

Hey everyone-

What's people experience shipping valuable items to Canada?  I've read about issues getting delivery confirmation when shipping outside the country (amongst other issues).  What should I expect if I decide to sell/ship my mics up there?  Can you get reliable delivery confirmation/tracking when sending through them out of the country?

Jesse

[H₂O]

You can actually do FedEx Ground between US and Canada and prices are resonable.
 
With FedEx the package is always in the FedEx network from your hands to the end delviery so you can track and insure end-to-end
 
The thing to watch out for is Import Duties and Taxes - FedEx uses a external contractor to handle these so it can get messy (i.e. you will get a bill in the mail 3 months later for taxes - if the buyer refuses to pay taxes costs - they will be asked to pay upon reciept of the item or even before it's delivered).
 
I have found it difficult to "get around" these taxes so watch out.
 
 

[Jhurlbs81]

but it would be the buyer that would ultimately be responsible for handling that?

[H₂O]

With FedEx, if the buyer refuses to pay the taxes then they will deliver and come to you for the payment of the taxes.
 
This has happened to me 3 times when shipping to Canada (ebay sales) and only once the buyer ended up paying for the duties - I had to pay the other 2 times.  This is because FedEx also has all of your information so they can come to you for payment.
 
This may be because I ship with a FedEx account or it may be isolated to FedEx ground (as I have never used other FedEx services to Canada).
 

[dorrcoq]

I've never heard of a case where someone could refuse to pay the duties and/or taxes and STILL have the package delivered to them.  I guess I'll be doing that from now on if that is Fed-Ex's policy.

[printguy]

I've never heard of a case where someone could refuse to pay the duties and/or taxes and STILL have the package delivered to them.  I guess I'll be doing that from now on if that is Fed-Ex's policy.

I'm with you dorrcoq. I've refused in the past and my FedEx guy said that means they return the package. Same goes for when I've received things through the postal service from the US.

I ship 100s of packages per month with FedEx, UPS and Purolator and never once has an item been delivered if the receiver refuses to pay. It all comes don to how the paperwork is filled out - make sure that it is marked that the receiver pays; if they don't the package is not delivered.

And in my history UPS is the best from US to Canada. The do the customs themselves and all the costs are known at the point of ordering... So you can include it in your cost to the seller.

[illconditioned]

I think both UPS and FedEX work the same way - they buyer has to pay extra "brokerage fees" when they receive the item.  These fees can be significant.  I forget the amount, but it could be something like $30 + taxes owed.  That can be significant on small items.

The other alternative is to pay for a higher tier of shipping, something like "International Priority".  Not sure the name, but both UPS and FedEX have this upgrade, each with their own name for it.  In this case "brokerage fees" are included in the ship amount, but the ship amount can be quite a lot higher.  I believe taxes are still collected, but that extra $30 or so is not added.  I don't know what the exact details are, but I'll be cynical and say that it probably amounts to a small cost to upgrade the shipping method, but the same extra $30 added each way, so still a rip off!

The best way to avoid this IMO is to ship small items by USPS.  USPS *without tracking* will be charged by the Canadian post office at $5CAD + taxes charged.  UPS *with tracking* will cost more up front, but will still be the same charge, $5 + taxes owed.

So, small items, USPS without tracking (optionally marked as lower value or "gift" to avoid taxes).  No insurange or tracking, so someone, usually buyer, must assume responsibility for loss.  Medium value items, use USPS with tracking, valueable items UPS or FedEX Prioirty (verify brokerage fees before paying higher shipping charges).  That is what I would do.

  Richard

[bobbygeeWOW]

What Richard said.

Only way to ship to Canada is USPS, use their International Priority service to get courier-style services (like speed + tracking).

With Fedex the extra charges are levied during delivery.
With UPS, the Canadian recipient gets a significant bill months later, not as its being delivered.
Totally outrageous charges - UPS is under class-action for those shenanigans right now.

[prof_peabody]

What Richard said.

Only way to ship to Canada is USPS, use their International Priority service to get courier-style services (like speed + tracking).

With Fedex the extra charges are levied during delivery.
With UPS, the Canadian recipient gets a significant bill months later, not as its being delivered.
Totally outrageous charges - UPS is under class-action for those shenanigans right now.

This summary is dead right.  I did once get a UPS style brokerage fees letter after receiving a fedex package.  What was infuriating was that it was for a package of documents that were declared valueless.  USPS is the best route nd very reliable to Canada.  Fedex is better than UPS for shipping to Canada, but I avoid both as much as possible.

[Seth01]

Another endorsement here for USPS and what Richard said.  UPS charges are so absolutely outrageous that it could easily double the cost of a $50 item.  I purchase plenty from the US but refuse to buy from companies/people that won't ship USPS...it's just too expensive otherwise.  Paying taxes, duties, excise, etc. is one thing but then paying these outrageous "brokerage fees" that aren't charged by USPS just puts it over the top.  On top of that, I find that when things are shipped via USPS more often than not I don't even get a tax/duty bill.

[illconditioned]

Another endorsement here for USPS and what Richard said.  UPS charges are so absolutely outrageous that it could easily double the cost of a $50 item.  I purchase plenty from the US but refuse to buy from companies/people that won't ship USPS...it's just too expensive otherwise.  Paying taxes, duties, excise, etc. is one thing but then paying these outrageous "brokerage fees" that aren't charged by USPS just puts it over the top.  On top of that, I find that when things are shipped via USPS more often than not I don't even get a tax/duty bill.

Yep.  Just to summarize.  USPS regular has no tracking, and will charge the recipient $5CAD to collect the taxes (this is from Canada Post IIRC).  USPS "global priority" provides tracking, and will be less likely to collect (if at all?) the taxes from the recipient.  For a small parcel it might cost something like $10 to ship regular USPS, and $40 to ship global priority.  So, it can still be costly to send priority, but this is the only way if you want tracking and/or insurance.

My advice: if item is $100 or less, just use regular USPS (and trust the transaction on both ends).  For a larger transcation, use USPS priority with tracking and insurance.  For the most important, use FedEX, as the tracking/reliability is likely better.  Well, the main point is to trust the transaction.  I can certainly understand a seller's reluctance to ship to Canada... at least to an unproven (or questionable) member of TS.com.

Finally, I note that some retailers are pushing back on this.  I'm getting orders from Digikey.ca, the Canadian office of Digikey.com.  Some of those are actually shipping from USA, and the shipping rates they charge are incredibly low, eg., $8CAD per order!  I have to pay Canadian taxes, but at least the shipping is cheap (and the next day it arrives).  So things will get better for companies at least.  Individuals, I don't know.

  Richard

[jmz93]

Hi folks.

I just bought a fairly expensive used item from someone here on Taperssection, and it is now in limbo with UPS.  It was coming from the US to Canada, just over the border from Buffalo NY to Ontario. 

I was not ready to pay an extra $180 plus at the door for a used item whose declared worth is around $800.  The brokerage fees I understand, but of course am frustrated over. However, they also wanted GST (goods and services tax, for the non-Canadians reading this).

Now the item is being held for a couple days, until we figure out what to do re. paperwork.

A couple questions to other Canadians on here:

1. The item is USED.  Am I right in assuming there should be no taxes on a used item?  If the shipper informs UPS at his end that the package in fact contains used goods, will that at least get me around the GST portion of the bill?

2.  I guess I can't do anything about the brokerage fees at this point, except take the risk of putting a lower dollar amount on the form?  The item is already in Canada, box is intact etc. so I'm not worried about the risk of damage or anything. 

I realize my last question is a little ethically suspect, i.e. to declare or not to declare full value ... please send any opinions/help to me in a PM, if you've been through this already and have some advice.

Needless to say, I am never ever ever using UPS again!  I usually use USPS and now I know why - so much cheaper, although of course the delivery time is longer.
*sigh* live and learn I guess...

All comments/suggestions gratefully received!
b

[illconditioned]

Both Fedex and UPS have (similar) high brokerage fees.  Fees for doing what, exactly, you still pay taxes?

One trick that I did learn: if you get upgraded shipping, "2nd day" or "Express" or whatever, you can avoid brokerage fees.  There is a big step in price, but it may still be worth the upgrade.  You *may* avoid tax charges as well.  I'm not sure abou that.

If you can afford the risk, up to several $100, just use USPS and declare a low value.  And, if you get taxes, you pay taxes + $5.00 service charge.  Unfortunately, most retailers won't ship USPS, and may not ship internationally at all.

  Richard

[printguy]

Taxes, duty, brokerage fees, and possibly a handling fee may all be applicable regardless of which carrier you choose.

And unless the shipper marks your shipment as a gift, or it's less than $20, you have to pay.

http://www.cbsa-asfc.gc.ca/import/postal-postale/duty-droits-eng.html

Lying to customs... not worth the risk.

GST on $800 is $40. What are the other fees that jacked it up to $180? How much was the brokerage fee? I recall a recent/current class action lawsuit against UPS for outrageous fees...

[illconditioned]

Oh yeah, if you refuse the parcel, does it go back to the sender?  If so, do they pay any additional charges?

  Richard