Why was I charged customs?

[espeed]

I bought 2 ebay phones, value totalling 55.46 after exchange rate, and sent as a GIFT, but the GST was 2.77, PST was 4.44 and handling fee was 5 (customs opened it)...

I thought gifts valued under $60 were non-taxable?

[Hairball]

Probably customs found out it wasn't a gift.

Did it come from a business?

[Kasakato]

1) You were not charged "customs." You were charged provincial and federal tax, plus the brokerage fee.
2) The package was opened and reassessed by the CBSA, and determined to not be a gift. As such, it was passed through as a commercial package.

[Pavel]

I read somewhere on RFD that if you're declared value is > $20 you're "likely" to be charged a Canada Post fee plus duty (if applicable) and taxes.

Being charged high amounts for brokerage is one of the pitfalls of buying from Ebay, that's why I don't buy unless I plan to pick it up at a US/Can border town.

[jmc0]

I bought 2 ebay phones, value totalling 55.46 after exchange rate, and sent as a GIFT, but the GST was 2.77, PST was 4.44 and handling fee was 5 (customs opened it)...

I thought gifts valued under $60 were non-taxable?
http://www.canadapost.ca/tools/pg/manual/pgcustoms-e.asp
check out section 3.2, specifically 3.2.1 and 3.2.3
hope that helps