How to avoid double GST & PST collection?

[nickia]

Hi,

Let say if I run a business in Canada and ships my item from my warehouse in USA, how do I avoid my customers to being charged GST and PST twice?


e.g. When I make a sale, I will collect GST and PST. However, when my customers receive their item, they will be charged GST and PST again by the Customs.


Is there any way to avoid this problem?

[fooit]

Around 2006 I called Customs asking this question and the person I talked to wasn't able to answer it back then.

In the same time Tigerdirect.ca and Newegg.ca do ship from their warehouses from the States and, AFAIK, you are not asked to pay GSP and PST.

[slavka012]

Around 2006 I called Customs asking this question and the person I talked to wasn't able to answer it back then.

In the same time Tigerdirect.ca and Newegg.ca do ship from their warehouses from the States and, AFAIK, you are not asked to pay GSP and PST.

They ship in bulk and clear the shipments themselves, paying the GST on imports, then claiming it back. (Or something like this. )

[nickia]

Thanks a lot guys!


Being in Canada creates a large logistic disadvantage because the overall cost is too expensive. There is no way to compete in the U.S. market without having a warehouse there...

[Drew_W]

There is no way to compete in the U.S. market without having a warehouse there...

That depends entirely on what you're selling.

[astupidmoose]

have you ever talked to a customs broker? although the fee to clear a shipment through a broker is usually not worth it on smaller value goods, might be worth it just to look into it. If you have a commercial invoice provided to the carrier i beleive you can have the goods cleared as sold to your company and shipped to the customer, that way any fees are charged to your company. and if you have a GST exempt importing number you wouldnt pay it?


sorry im no customs expert but i think this is how it worked when i was buying product from the USA.