FedEX collecting taxes and duties on behalf of Canada Custom | GTAMotorcycle.com

FedEX collecting taxes and duties on behalf of Canada Custom

justride

Well-known member
You guys know how CETA works with FEDEX and the international companies that deal with them.
I notice FedEx collect taxes and duties on behalf of Canada Custom. How do I stop FedEX from doing that?
 
Look up "self-clearing".

Basically, you need to refuse delivery and tell FedEx you will pay the taxes and duty yourself. Then you go to a CBSA office with your waybill and invoice and pay the taxes and duty in person. CBSA gives you a receipt, which you show to FedEx (either by fax or in person at their offices), and then they arrange delivery without the brokerage fees.

It's a lot of running around, may not be worth it to save $50...
 
They collect it from you because they have already paid it to the govt. They just want their money back.

Sent from my SM-A530W using Tapatalk
 
They collect it from you because they have already paid it to the govt. They just want their money back.

Sent from my SM-A530W using Tapatalk
I have no problem with them recovering and collecting a nominal fee (like $5) for facilitating. It infuriates me when they tack on a $40 or $50 fee to facilitate a payment to the government of $2. There is no way that is remotely linked to their costs to facilitate, it is just he highest fee they think they can get away without without being prosecuted for extortion.
 
CETA
The Comprehensive Economic and Trade Agreement is a free-trade agreement between Canada and the European Union. It has been provisionally applied, thus removing 98% of the preexisting tariffs between the two parts. The negotiations were concluded in August 2014. Wikipedia

How is it FedEX still charges 13% plus duties on behalf of Canada Custom when ordering from European Union country?
 
CETA
The Comprehensive Economic and Trade Agreement is a free-trade agreement between Canada and the European Union. It has been provisionally applied, thus removing 98% of the preexisting tariffs between the two parts. The negotiations were concluded in August 2014. Wikipedia

How is it FedEX still charges 13% plus duties on behalf of Canada Custom when ordering from European Union country?
Duties and HST are not negotiable it must be a duty item. all you can save are the brokerage fees by running around and doing it yourself.
 
Duties and HST are not negotiable it must be a duty item. all you can save are the brokerage fees by running around and doing it yourself.

Correct. Even says on the FedEx page:


Taxes. CETA applies to duties, but not taxes; therefore, any applicable GST/HST for imports into Canada, and any applicable VAT for exports to the EU, will be assessed accordingly. For VAT rates and details, visit the European Commission website.
 
got tariffs confused with taxes and duties. Will probably choose standard shipping next time (not FedEx, DHL, etc.)
Plus, FedEX was very inconvenient. They did not make a second attempt. Had to travel 25min and wait in line outside to pick at the Dixie and Queensway FedEx centre.
 
Just avoid FedEx...if shipping from the states use the post office. Same goes for Europe....I have done too many trips to the Fedex airport location & Dixie and the Queensway to shell out for brokerage and taxes...
 
Just avoid FedEx...if shipping from the states use the post office. Same goes for Europe....I have done too many trips to the Fedex airport location & Dixie and the Queensway to shell out for brokerage and taxes...
Ups sucks too. I thought dhl as well but havent used them in a very long time.
 
FedEx doesn't do second attempts if a signature is required. You get one shot at it and then you have to go get it. If there is money owed on delivery they probably didnt even bother knocking, just wrote up the delivery attempt and dropped it off. Takes too long to get a sig and collect money from you, their delivery time numbers take a huge hit.
 
Look up "self-clearing".

Basically, you need to refuse delivery and tell FedEx you will pay the taxes and duty yourself. Then you go to a CBSA office with your waybill and invoice and pay the taxes and duty in person. CBSA gives you a receipt, which you show to FedEx (either by fax or in person at their offices), and then they arrange delivery without the brokerage fees.

It's a lot of running around, may not be worth it to save $50...
I have no problem with them recovering and collecting a nominal fee (like $5) for facilitating. It infuriates me when they tack on a $40 or $50 fee to facilitate a payment to the government of $2. There is no way that is remotely linked to their costs to facilitate, it is just he highest fee they think they can get away without without being prosecuted for extortion.
Actually FedEx only charges $10 brokerage fees, that's it. All other charges are Canada taxes, duties and tariffs. My wife has worked at FedEx a long time.
They only charge the $10 because they are saving you the hassle of going to pay the fees yourself.

Sent from my SM-A530W using Tapatalk
 
Actually FedEx only charges $10 brokerage fees, that's it. All other charges are Canada taxes, duties and tariffs. My wife has worked at FedEx a long time.
They only charge the $10 because they are saving you the hassle of going to pay the fees yourself.

I checked a previous FedEx bill:

fedex.jpg

I'm no expert, so someone will probably correct me if I'm wrong. The Advancement Fee ($10) that you're talking about is like interest, since they are advancing you the amount of the duty and taxes before you get around to re-imbursing them back upon delivery.

It's the $50 Clearance Fee that is the actual administration charge for paying the duty+taxes on your behalf. This, and the $10 Advancement Fee, is what you save by doing it yourself.

If I had self-cleared the above package, I would only have paid the $90, instead of the full $160.
 
You guys know how CETA works with FEDEX and the international companies that deal with them.
I notice FedEx collect taxes and duties on behalf of Canada Custom. How do I stop FedEX from doing that?
You can't.

The shipper decides on the method for expediting goods across the border. If the shipper collects at source, the fees are much lower as FEDEX brokers 1 shipment of thousands of parcels. If the shippers does not have this capability, your single package is processed by a broker (in house I believe for Fedex) -- this is costly.
 
Actually FedEx only charges $10 brokerage fees, that's it. All other charges are Canada taxes, duties and tariffs. My wife has worked at FedEx a long time.
They only charge the $10 because they are saving you the hassle of going to pay the fees yourself.

Sent from my SM-A530W using Tapatalk
It's not always that way -- Fedex will typically do everything as a commercial importation -- not a personal one. Canadians are allowed to import low value personal shipments without paying the taxes. They do this because adding $10 to a few thousand small packages in a trailer adds up to a lot of coin! They can move an unlimited number of up to $40 at no real cost to Fedex.

For a personal shipment imported by courier:
  • Imported from any country (other than the US and Mexico)
    • Up to $20: duty and tax free
    • Above $20: duties and taxes apply, excluding the US and Mexico
  • Imported from the US and Mexico
    • Up to $40: duty and tax free
    • Above $40 to $150: duty free, but taxes still apply
    • Above $150: duties and taxes apply
 
Look up "self-clearing".

I've done this, it's annoying and probably not worth it.

I did it probably 13-15 years ago so things may have changed.

- You have to drive to where the package enters the country, mine entered through Windsor by truck.
- Go to UPS and pickup the tax declaration sheet
- Drive to the Canada customs office and pay your tax
- Take your paid tax receipt back to UPS and collect your package.
- Each person I spoke with through the process was super confused at what I was trying to do, but figured it out eventually.
 
I checked a previous FedEx bill:

View attachment 46436

I'm no expert, so someone will probably correct me if I'm wrong. The Advancement Fee ($10) that you're talking about is like interest, since they are advancing you the amount of the duty and taxes before you get around to re-imbursing them back upon delivery.

It's the $50 Clearance Fee that is the actual administration charge for paying the duty+taxes on your behalf. This, and the $10 Advancement Fee, is what you save by doing it yourself.

If I had self-cleared the above package, I would only have paid the $90, instead of the full $160.
My bad, Fedex Express (priority) charges only 10 there is no clearance entry fee. They only charge the clearance entry fee if it enters the country on a truck. (FedEx ground)
15b7b6b0b29f15b3dec01ba181ebe300.jpg


Sent from my SM-A530W using Tapatalk
 
I have no problem with them recovering and collecting a nominal fee (like $5) for facilitating. It infuriates me when they tack on a $40 or $50 fee to facilitate a payment to the government of $2. There is no way that is remotely linked to their costs to facilitate, it is just he highest fee they think they can get away without without being prosecuted for extortion.

Think this used to happen with UPS or USPS until they got sued.
 

Back
Top Bottom