Better Value in Dollar

The most popular goods often invoke the most questions.

What’s the duty rate for computers, laptops, netbooks, printers (ink-jet printers), printer parts, scanners, photocopiers, hard-disks, monitors, modems, routers, switches?  And what about other gadgets such as cell phones, battery chargers, power supplies and controllers, video games, Digital cameras, TV cameras and video recorders?

The good news is that they are all free from duty.

What about the multi-functional units, such as a HP printer/scanner/copier?

This is covered in category: 8443.31.00 00 – -Machines which perform two or more of the functions of printing, copying or facsimile transmission, capable of connecting to an automatic data processing machine or to a network.

Printer, scanner and copier are all free of duty individually. And there’s no duty when they are combined.

• Duty rate for Wigs, false beards, eyebrows and eyelashes, switches and the like, of human or animal hair or of textile materials; articles of human hair not elsewhere specified or included.
• Duty rate for Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders.
• Duty rate for Static converters
• Duty rate for Aluminum electrolytic

Lately I was asked a lot of questions regarding importing large screen Plasma/LCD TVs from the US.

After a brief survey, I wasn’t surprised that there’s a sharp price disparity between the US and Canadian prices. Take the popular Sharp – AQUOS 52″ 1080p Flat-Panel LCD HDTV for example, both BestBuy.com and BestBuy.ca have a special offer, one at US$1299, the other at CA$1,899. 46% price difference.

So it makes all the sense to shop in the US. Or is it?

Now how much duty or tax will you be charged? This may change the equation significantly. Here’s the list of taxes that you’ll have to pay when importing that big screen TV.

• US state tax, depending on which state you purchase the TV. New Hampshire has 0% state tax, whereas Washington taxes 6.5%.
• Duty of 5% (8528.72, covering high-definition, flat-screen, projection, CRT ), if the TV is not made in Mexico or US. One reader reported 7% being labeled as “luxury tax”. I cannot find reference on excise tax.
• GST/PST on top of all above.

If you have stayed outside Canada over 48 hours, you can claim your personal exemption of $400 or $750.

One tip, many good brand TV, e.g. Panasonic 50″ Plasma T.V, are  made in Mexico. You can get away without paying the duty by choose those brands. When you cross the border, choose a senior-looking officers who would be more experienced in dealing with NAFTA and duty issues, and make less mistake in calculating the duty/tax.

Do your math, then you know whether it’s worthwhile.

Update Jan. 6 2010: A reader reported that the duty of an HD display TV is 3.5%,  assuming it’s made outside North America.

• Excise Tax or Duty on Wine, Beer, Spirit, Cigar or Tobacco
• FAQ
• Excise Tax, Sin Taxes or Luxury Taxes
• Tax Exemptions
• Duty Rates

Did you notice that one Canadian Dollar can exchanged for nearly 0.98 US$ in the last few day?

Well some people did.  And the idea of cross border shopping jumped immediately to their mind.

I had two email in the last two days inviting me to two interviews.  One with CBC Winnipeg, and the with The Global and Mail.

Being a self-appointed expert (well I learnt it by mistakes), I gladly accepted both invitations.   In the pre-interview, the CBC Winnipeg producer asked me when I started cross-border shopping.  My answer, “since there was a border.”

The CBC Winnipeg interview was broadcasted live at Oct. 14^th 6:10pm EDT.  I have a recording here, if you’re interested (CBC-Winnipeg-Interview).  And the Global and Mail interview was yesterday, with a promise to publish on next Monday’s paper (Oct. 19^th) or the PDF: How to score a cross-border shopping deal.  Have a good reading, if you grab a copy.  It’s full of tips on cross-border shopping that you can read on this website.

I’m glad that our loonie is close to par again with US dollar, like I predicted in early June. But I didn’t expect it to return so soon.

Let’s put aside the debate of why Canadian prices are so high (be it price gauging or scale of economy). By all means, take advantage of the strong Canadian dollar, and Happy Cross-border shopping.

• Tools
• Car Shopping
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• Will Canadian dollar appreciate to par with US$ again?
• Tax Exemptions

For the latest tariff rate, please refer to CBSA

• Duty rate for Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, water closet pans, flushing cisterns, urinals and similar sanitary fixtures.
• Duty rate for Table, kitchen or other household articles and parts thereof, of aluminum; pot scourers and scouring or polishing pads, gloves and the like, of aluminum; sanitary ware and parts thereof, of aluminum.
• Duty rate for Sanitary ware and parts thereof, of iron or steel.
• Duty rate for Builders’ ware of plastics, not elsewhere specified or included.
• Duty rate for Wallpaper and similar wall coverings; window transparencies of paper.

For the latest tariff rate, please refer to CBSA

• Duty rate for Waste of wool or of fine or coarse animal hair, including yarn waste but excluding garnetted stock.
• Duty rate for Waste (including noils, yarn waste and garnetted stock) of man-made fibres.
• Duty rate for True hemp (Cannabis sativa L.), raw or processed but not spun; tow and waste of true hemp (including yarn waste and garnetted stock).
• Duty rate for Flax, raw or processed but not spun; flax tow and waste (including yarn waste and garnetted stock).
• Duty rate for Textile wall coverings.

For the latest tariff rate, please refer to CBSA

• Duty rate for Zirconium and articles thereof, including waste and scrap.
• Duty rate for Zinc dust, powders and flakes.
• Duty rate for Yeasts (active or inactive); other single-cell micro-organisms, dead (but not including vaccines of heading 30.02); prepared baking powders.
• Duty rate for Yarn of wool or of fine animal hair, put up for retail sale.
• Duty rate for Yarn of other vegetable textile fibres; paper yarn.

For the latest tariff rate, please refer to CBSA

• Duty rate for Tractors (other than tractors of heading 87.09).
• Duty rate for Of a cylinder capacity exceeding 1,000 cc
• Duty rate for Yachts and other vessels for pleasure or sports; rowing boats and canoes.
• Duty rate for Wrist-watches, pocket-watches and other watches, including stop-watches, other than those of heading 91.01.
• Duty rate for Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 68.01; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of natural stone (including slate).

For the latest tariff rate, please refer to CBSA

• Duty rate for Parts and accessories (not specified or included elsewhere in this Chapter) for machines, appliances, instruments or apparatus of Chapter 90.
• Duty rate for Paint, distemper, varnish or similar brushes (other than brushes of subheading 9603.30); paint pads and rollers
• Duty rate for Other instruments, appliances and machines
• Duty rate for Other instruments
• Duty rate for Furnace burners for liquid fuel, for pulverized solid fuel or for gas; mechanical stokers, including their mechanical grates, mechanical ash dischargers and similar appliances.

For the latest tariff rate, please refer to CBSA

• Duty rate for Of poly(ethylene terephthalate)
• Duty rate for Liquid dielectric transformers:
• Duty rate for Zirconium and articles thereof, including waste and scrap.
• Duty rate for Zinc dust, powders and flakes.
• Duty rate for Yeasts (active or inactive); other single-cell micro-organisms, dead (but not including vaccines of heading 30.02); prepared baking powders.

For the latest tariff rate, please refer to CBSA

• Duty rate for Wire of stainless steel.
• Duty rate for Thiuram mono-, di- or tetrasulphides
• Duty rate for Thallium:
• Duty rate for Tea, whether or not flavoured.
• Duty rate for Refractory cements, mortars, concretes and similar compositions, other than products of heading 38.01.