Going on a shopping spree in the states

[patron]

Im planning a shopping spree trip to US from GTA. Not sure where to go, where to stay, taxes im looking at paying, Tax-loops i can take advantage of, anything unexpected, never done before.

Details of trip:

4-5 People, 1 car.
Going to spend about $500each except me
Im planning on brinign back 2-3 Iphones (1 for me :D )
Willing to spend extended hours for the rumorued lower taxes.

I very much appreciate any input, I am looking to the RFD community for help in this matte as I am utterly clueless.

Thnx in advance.

[Pete_Coach]

There are so many shopping in the US threads on this forum that clearly you have not read or else you would not be asking these questions. Do everyone a favour by searching instead of starting another thread.
iPhone in Canada, kinda a waste of money isn't it? Can't use them here, no provider.
"Willing to spend extended hours for the rumorued lower taxes." there are no rumoured lower taxes. All taxes are fact.

[patron]

While I admit to being misinformed about Outlet shopping, you must be equally misinformed about the Iphone. Im not looking for critisim but rather an overall consensus as to best place to go shopping. From my research it appears to be Grove City

[Pete_Coach]

No criticisms here. You asked questions and got an answer.
Telling you to search is a valid response instead of repeating many threads.
As far as the iPhone, I must be "equally misinformed" as I still cannot find a Canadian provider. It seems there is a lot of talk but there is no one yet. If you have info, can you let me know? Apparently Rogers will host but dates have still not been announced.

[LNahid2000]

The iPhone can be unlocked to be used on Rogers with a SIM card, and there is a $400 tax/duty exemption if you stay in the US for 48 hours.

[Psylocke]

Im planning a shopping spree trip to US from GTA. Not sure where to go, where to stay, taxes im looking at paying, Tax-loops i can take advantage of, anything unexpected, never done before.

Details of trip:

4-5 People, 1 car.
Going to spend about $500each except me
Im planning on brinign back 2-3 Iphones (1 for me :D )
Willing to spend extended hours for the rumorued lower taxes.

I very much appreciate any input, I am looking to the RFD community for help in this matte as I am utterly clueless.

Thnx in advance.

Here's a very detailed post by Ebola about common cross-border FAQ's. (http://www.redflagdeals.com/forums/showthread.php?t=514565)

And here's one on shopping at Prime Outlets. (http://www.redflagdeals.com/forums/showthread.php?t=443488&highlight=grove+city)

It's a pretty easy drive down there. I only went for a day trip. Spent about $200 (tax-free in PA since I bought mostly clothing). Didn't have to pay any duty on the way back into Canada, but did have to pay GST and PST (only $20). Well worth it.

Next time I head down there I might make it an overnight visit in order to get the exemption and have more time shopping in that huge complex (The Nike store is awesome). Erie is a great place to shop as well (Millcreek Mall). About 1 hour before you hit Grove City.

[Pete_Coach]

The iPhone can be unlocked to be used on Rogers with a SIM card, and there is a $400 tax/duty exemption if you stay in the US for 48 hours.

The exemption is duty only. See http://www.cbsa-asfc.gc.ca/publications/pub/bsf5056-eng.html#P021

Thanks for that info on the iPhone. So you can use the iPhone and all it's features in Canada even without an authorized provider. Or is it that you can just use the phone feature?

[sunnybono]

While I admit to being misinformed about Outlet shopping, you must be equally misinformed about the Iphone. Im not looking for critisim but rather an overall consensus as to best place to go shopping. From my research it appears to be Grove City

I personally didn't like Grove City. I found Millcreek to be better!! (1 hour b4Grove City.) Then again, you can go to both places and check them out yourself!!! Pete was right, do a search. That is how I ended up at Millcreek!!!

sk

[patron]

Thank you for all replies. Much clearer now. I was thinking of buying an iphone but seems the taxes will absolutely kill the opportunity. If the item costs $400 in Buffalo, how much would i be expecting to pay in taxes and duty on i.t

[Ebola]

The exemption is duty only. See http://www.cbsa-asfc.gc.ca/publications/pub/bsf5056-eng.html#P021

Thanks for that info on the iPhone. So you can use the iPhone and all it's features in Canada even without an authorized provider. Or is it that you can just use the phone feature?

The exemption is tax as well.

$400 tax free. All taxes, including duty.

[Pete_Coach]

The exemption is tax as well.

$400 tax free. All taxes, including duty.

Don't want to argue because I know you are a Border Services employee but the I Declare brochure only says duties

"After each absence of 24 hours or more

You can claim up to CAN$50 worth of goods without paying any duties. This is your personal exemption. You must have the goods with you when you arrive and you cannot include tobacco products or alcoholic beverages in this exemption. If the goods you bring in are worth more than CAN$50 in total, you cannot claim this exemption. Instead you have to pay full duties on all goods you bring in."

[Ebola]

Don't want to argue because I know you are a Border Services employee but the I Declare brochure only says duties

"After each absence of 24 hours or more

You can claim up to CAN$50 worth of goods without paying any duties. This is your personal exemption. You must have the goods with you when you arrive and you cannot include tobacco products or alcoholic beverages in this exemption. If the goods you bring in are worth more than CAN$50 in total, you cannot claim this exemption. Instead you have to pay full duties on all goods you bring in."

Basically duties means actual duty (readexcise tax) and GST. Or HST where it applies...

The only tax that is different is a PST.. but again that is only collected above the level of your personal exemptions. It's all about in excess of personal exemptions...

If you are within your exemption.. no duties (PST included) , if you are above exemption.. then you get charged duties.. (GST+PST.. possibly excise.. ad valorem what have you.)

Edit: Ahh here we are:


The term duties can include excise taxes and GST/HST. It does not include provincial or territorial sales tax. However, the CBSA has working agreements with some provinces and territories that allow us to collect provincial and territorial taxes, levies and fees on goods that have a value higher than your personal exemption.

If you reside in one of the provinces or territories that has a working agreement with the CBSA and you return to Canada at a port of entry in your province or territory of residence, the goods that you import in excess of your personal exemption will be subject to the provincial/territorial assessment. If you bring in more than the free allowance of alcohol, you will have to pay the provincial/territorial assessment for the province or territory where you enter Canada, even if it is not your province/territory of residence.

The Government of Canada has agreements with New Brunswick, Nova Scotia and Newfoundland and Labrador to collect HST at a rate of 14%. If you live in a participating province and the value of the non-commercial goods you import is more than your personal exemption, you have to pay HST instead of GST, regardless of where you enter Canada.

[Pete_Coach]

:arrowu: Thanks Ebola

[Octavius]

Thank you for all replies. Much clearer now. I was thinking of buying an iphone but seems the taxes will absolutely kill the opportunity. If the item costs $400 in Buffalo, how much would i be expecting to pay in taxes and duty on i.t

I believe the iPhone is Duty-Exempt. You'll still have to pay GST on it though.

Anywho, I plan on making a similar trip from Ottawa to NYC sometime in the new year. I've bookmarked the two links in this thread and I'll be sure to go through them and the Border Crossings Thread in the Shopping Discussion Section before going.

[Elessar]

When did the 48 hour exemption go up to $400?

I swear just two weeks ago, my Customs form (returning from the States via Air Canada) said only $200 bucks for the 48 hour to 7 day slot.

[cwb27]

When did the 48 hour exemption go up to $400?

I swear just two weeks ago, my Customs form (returning from the States via Air Canada) said only $200 bucks for the 48 hour to 7 day slot.

Last Federal budget.

[Elessar]

Last Federal budget.

I suppose this means the forms I'm filling out on the airlines are outdated.

... wow, this changes everything! :)

[cwb27]

I suppose this means the forms I'm filling out on the airlines are outdated.

... wow, this changes everything! :)

The government is VERY slow updating their paperwork...

[Ebola]

I suppose this means the forms I'm filling out on the airlines are outdated.

... wow, this changes everything! :)

Yea people now say they spent $390 instead of $190; but in both cases they had $500.

[royaljelly]

Would people recommend keeping/showing all receipts from purchases made while in US? (just to avoid argument over actual costs at the border)

The last time I did cross border shopping was before Cdn/USD parity, where I'd throw out all receipts and bluff my way back without ever getting questioned or searched (aside from the quick look in my messy trunk). Now I hear that everyone coming back is getting searched and paying taxes on purchases.

[HighFlyer]

I swear just two weeks ago, my Customs form (returning from the States via Air Canada) said only $200 bucks for the 48 hour to 7 day slot.

As far as a week ago, the 'old' forms are still appearing on AC, KLM and United Airlines flights.

[Pete_Coach]

Yea people now say they spent $390 instead of $190; but in both cases they had $500.

Funny :lol: but oh so true.

[Hairball]

Would people recommend keeping/showing all receipts from purchases made while in US? (just to avoid argument over actual costs at the border)

The last time I did cross border shopping was before Cdn/USD parity, where I'd throw out all receipts and bluff my way back without ever getting questioned or searched (aside from the quick look in my messy trunk). Now I hear that everyone coming back is getting searched and paying taxes on purchases.

If you plan to declare the "real" value, which you are supposed to, then yes keep the receipts, it's proof of what you're saying to customs is true.

However, if you are planning not to declare the real value, then I would throw out the receipts, if they search you and find the receipts, you'll be screwed as it'll be very clear that you lied.

[CSK'sMom]

However, if you are planning not to declare the real value, then I would throw out the receipts, if they search you and find the receipts, you'll be screwed as it'll be very clear that you lied.

And then they will assess a value that could very well be higher than you actually paid. ;) The onus is on the traveller to prove the value of the goods, not the other way around...

[hurricane]

Why not support Canadian retailers? Is saving a few bucks really worth it in the long run?

[Pavel]

When it comes to electronics, you're saving more than a few dollars. Then again, electronics drop in value really quickly. It really depends on how bad you need the item.

BTW, don't you need to use an actual complicated hardware hack to unlock the iphone to accept another Cellphone provider?

[divx]

Why not support Canadian retailers? Is saving a few bucks really worth it in the long run?

1. Canadian retailer don't carry the iphone.
2. People willing to spend a day of time, a tank of gas, a lot of patience, and paying PST and GST on top of the American tax to save money means the saving won't just be "few bucks".

[divx]

When it comes to electronics, you're saving more than a few dollars. Then again, electronics drop in value really quickly. It really depends on how bad you need the item.

BTW, don't you need to use an actual complicated hardware hack to unlock the iphone to accept another Cellphone provider?

The software hack is complicated, but the hardware hack is simple. Hardware hack does cost extra $100 though (just for the device itself).