First Time Cross Border Shopper! Need your help! (Question About Duty and Taxes)

[xxblazing_aznxx]

Hey guys, I am going to go cross border shopping for the first time next week and I had a few questions about taxes and duties. Does anyone know where I can go to get rates on duties and taxes?

I am probably going to get a few pairs of True Religion and Rock & Republic jeans...I heard it is alot cheaper in the states, but will it still be after the duties and taxes have been applied?

Also, I heard that if the products you buy are made in the states/canada/mexico, those items are duty/tax free, is that true?

Enlighten me with your knowledge please.

Thanks!

[Hairball]

Here is a guide:
http://www.cbsa-asfc.gc.ca/publications/pub/bsf5056-eng.html

You have to declare what you have.

If you have no exemption, you have to pay applicable taxes and duties on your items. At times they may just not charge you anything.

If things are made in the NAFTA region, no duties, only GST and PST. Items made in other places may be subject to duties, it varies depending on item and where its made, plus the GST and PST.

For regular travellers it's rare to be charged "duty", usually it's just the GST and PST if anything at all.

[xxblazing_aznxx]

How would I know if it's cheaper or not to just buy the stuff here? Is there a website with all the duty rates? Because I plan on spending 500-1000$ on clothing there...so how much would you expect me to get charged? and what do you mean by regular travellers don't get charged any duties? :confused:

[Hairball]

There is a 7.3 MB PDF with the list of the custom tariffs for the item and location it was manufactured:
http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2009/01-99/tblmod-1-eng.html

In practice it is rare for average travellers to be charged these, usually it's just GST and PST.

And whether it's a deal or not is up to you to figure out.

[rommelrommel]

How would I know if it's cheaper or not to just buy the stuff here? Is there a website with all the duty rates? Because I plan on spending 500-1000$ on clothing there...so how much would you expect me to get charged? and what do you mean by regular travellers don't get charged any duties? :confused:

You'll pay that stupid new HST I guess, and you may be charged 17% duty on any clothing made outside of Canada/USA/Mexico. Generally people go to the USA to save money by buying their cheap crap, but if you're spending that much I assume you're going designer, and then the savings are not that big in general. Just more selection.

[xstatik]

Generally people go to the USA to save money by buying their cheap crap, but if you're spending that much I assume you're going designer, and then the savings are not that big in general. Just more selection.

Actually, the complete opposite is true..
Based on comparisons between Toronto and Buffalo.
Cheap Wal-Mart type items, electronics and computers are priced similarly, with little savings with going to the States.
Designer Clothing has the biggest savings.. Designer Jeans in the States (Rock, True Religion etc) can be found aroung $100-$150 while selling for $200-$400 in Toronto. Hugo Boss suits for $400-600 in Niagara US sell for $700 - $1500 in Toronto.

In terms of the duties and taxes, I find that all they will charge you is GST and PST if they even pull you over. I decalre all the time and have only been pulled over once to pay the tax.. (all visits less than 24h)

[xxblazing_aznxx]

Thanks for your help guys! I was also wondering, where could I get cheap R&R and True Religion jeans? and maybe some gucci stuff? My cousin told me the mall at this address is really good:

1900 Military Road Niagara Falls, NY 14304

[macnut]

For regular travellers it's rare to be charged "duty", usually it's just the GST and PST if anything at all.

Might vary by region, individual border crossing, volume of traffic.

OP is from Ottawa and might find that applicable duty is collected more frequently than people in S. Ontario seem to encounter.
As the OP is spending as much as $1000US, at least 20% should be factored in for duty, GST and PST.
If it's less than that, count it as a bonus.
Add in 15% for currency conversion, and then say that the price in USD should be close to 1/2 the Canadian price for it to be worth buying.
(Keep in mind you will be paying the state/local taxes as well.)

[win-star]

1900 Military Road Niagara Falls, NY 14304

Prime outlet mall or something if i remember correctly when i went there 2 months ago

[Sunraven]

If you're going to a Prime Outlet mall you're going to want to get one of their 1CLUB discount cards.

See here -> http://www.primeoutlets.com/rewards.aspx

[xxblazing_aznxx]

I am only going like 30 mins across the border...no farther than that...the Prime Outlets Mall is sooo far into the states...no way I can go there...but the mall on military road apparently sells true religion and rock & republics because my cousin told me he bought from there...but does anyone know which store it is? because I looked at the store directory, and there isn't a proper R&R or True Religion store...

[xxblazing_aznxx]

Nvm the above comment, I just checked and the mall in Niagara Falls is called Prime Outlets. But yah, where can I find Rock & Republic and True Religions in there?

Thanks!

[feelthedeal]

Nvm the above comment, I just checked and the mall in Niagara Falls is called Prime Outlets. But yah, where can I find Rock & Republic and True Religions in there?

Thanks!

Saks Off Fifth had them last time I was there....TRs...not R&R from what I can remember

However, Walden Galleria would probably have a store or two that carries them as well

[number8888]

Hey guys, I am going to go cross border shopping for the first time next week and I had a few questions about taxes and duties. Does anyone know where I can go to get rates on duties and taxes?

I am probably going to get a few pairs of True Religion and Rock & Republic jeans...I heard it is alot cheaper in the states, but will it still be after the duties and taxes have been applied?

Also, I heard that if the products you buy are made in the states/canada/mexico, those items are duty/tax free, is that true?

Enlighten me with your knowledge please.

Thanks!

How long are you planning to stay in the States?

You get a certain amount of exemption on your purchases so you don't have to pay taxes when you cross the border. However if you are only going for a short time (less than 24hr) then you don't get any.

If you are spending $1000+ I think you are very likely to get pulled over and get charged the taxes.

Should also note that taxes charge at the border is on top of the NY state taxes as well.

Whether prices are a lot cheaper depends on many factors. We have a pretty strong CAD right now so that helps. Also due to the recession there's a good chance the stores have good discounts. You really need do your research beforehand.