Selling in Canada and Shipping from the US

[ChristopherJB]

31 minutes ago, gregpj said:

Do you have the right thread? If so, what are you doing raiding TRU's north of the border!! ;)

North of the border is cheaper than south of the border. More Americans are bound to raid up north. Would you be willing to pay 199USD plus state tax for a tumbler? Or pay 229CAD plus taxes for a tumbler? Do the math and you'll put together a massive list to clean out at the lego store, and just dump it back down south.

[Brickson]

26 minutes ago, ChristopherJB said:

North of the border is cheaper than south of the border. More Americans are bound to raid up north. Would you be willing to pay 199USD plus state tax for a tumbler? Or pay 229CAD plus taxes for a tumbler? Do the math and you'll put together a massive list to clean out at the lego store, and just dump it back down south.

How do you get transport it where those savings are worthwhile? If you factor in gas costs or shipping costs? What about taxes when you come across the border? 

Not even considering the time and effort and luck (in stock) required.. I'm still trying to understand

[Elkkthunder]

22 minutes ago, Brickson said:

How do you get transport it where those savings are worthwhile? If you factor in gas costs or shipping costs? What about taxes when you come across the border? 

Not even considering the time and effort and luck (in stock) required.. I'm still trying to understand

I just drove them back

no taxes when coming back into US

i was driving up looking for other stuff anyway, did not make a special trip for legos

that is a fail

Got smarties, kinder eggs and Swiss chalet sauce too so it was a good trip

[gregpj]

26 minutes ago, ChristopherJB said: North of the border is cheaper than south of the border. More Americans are bound to raid up north. Would you be willing to pay 199USD plus state tax for a tumbler? Or pay 229CAD plus taxes for a tumbler? Do the math and you'll put together a massive list to clean out at the lego store, and just dump it back down south.

How do you get transport it where those savings are worthwhile? If you factor in gas costs or shipping costs? What about taxes when you come across the border? 

Not even considering the time and effort and luck (in stock) required.. I'm still trying to understand

He buys them for his kids, then decides they're spoiled and must be sold!

Seriously... People who do this regularly at the border are probably lying through their teeth to avoid the taxes. If you're really close like Supraboy errrrr ChristopherJB is then gas and time doesn't really factor into it as much. Just get a bunch of your buddies who lie and cheat the system and take the risk together/reduce your costs together.

[gregpj]

31 minutes ago, gregpj said: Do you have the right thread? If so, what are you doing raiding TRU's north of the border!!

North of the border is cheaper than south of the border. More Americans are bound to raid up north. Would you be willing to pay 199USD plus state tax for a tumbler? Or pay 229CAD plus taxes for a tumbler? Do the math and you'll put together a massive list to clean out at the lego store, and just dump it back down south.

I am well aware of the exchange rate, but unless you live close enough to the border so you can ship via USPS to the states, international shipping can kill the deal... Not to mention many Americans have this unsaid fear of shipping over borders which is why they have the GSP on eBay and we don't!

[Guest ph4tb0i]

10 minutes ago, gregpj said:

 

He buys them for his kids, then decides they're spoiled and must be sold!

 

Seriously... People who do this regularly at the border are probably lying through their teeth to avoid the taxes. If you're really close like Supraboy errrrr ChristopherJB is then gas and time doesn't really factor into it as much. Just get a bunch of your buddies who lie and cheat the system and take the risk together/reduce your costs together.

I'm sure he's done his math/following the rules. After all, nobody could possibly be stupid enough to smuggle Lego into the US now that the US CBP terror alert is at its highest since 9/11... lol. 

If we try to pull something over CBSA here and get caught it's 6 years on the black list where your entire party will be subject to MANDATORY secondary inspection for Air/Sea/Land. Just for those of you that think about trying to conveniently "forget" about that lego set(s) in the trunk...  

Remember, the onus is on you to prove you are not misdeclaring/smuggling your goods. Not the other way around. 

Edited November 24, 2015 by ph4tb0i
adding details.

[gravtation]

I'm not sure about tax for US or other international customers as they return into their homeland... but for sure  when they leave Canada with goods,  all customs fees if there is or tax can be refunded after they submit a legal paper to Our Nice Country .. this make me sick .. try to do the same as you enter Canada with 5000$ of goods , you pay customs fees and tx but no way you get a refund for the US tax you paid in the US ... Our we the only Country who does that ?

 

Sometimes in the local newspaper ads there's people looking for travelers to buy specific jewels  at high price, they know they will return to their mainland and will be able to get the tax back .. so they offer a little prime to travelers and they save big $$$$.

[Elkkthunder]

6 minutes ago, gravtation said:

I'm not sure about tax for US or other international customers as they return into their homeland... but for sure  when they leave Canada with goods,  all customs fees if there is or tax can be refunded after they submit a legal paper to Our Nice Country .. this make me sick .. try to do the same as you enter Canada with 5000$ of goods , you pay customs fees and tx but no way you get a refund for the US tax you paid in the US ... Our we the only Country who does that ?

 

Sometimes in the local newspaper ads there's people looking for travelers to buy specific jewels  at high price, they know they will return to their mainland and will be able to get the tax back .. so they offer a little prime to travelers and they save big $$$$.

I think they stopped the tax refund a few years ago

[gravtation]

14 minutes ago, Elkkthunder said:

I think they stopped the tax refund a few years ago

No Canada still have this policy .. saw it at the airport last summer !  And we complaint that we are loosing money that we need more income . of course WE pay for everyone ..

 

Edited November 24, 2015 by gravtation

[redghostx]

22 minutes ago, Brickson said: How do you get transport it where those savings are worthwhile? If you factor in gas costs or shipping costs? What about taxes when you come across the border? 

Not even considering the time and effort and luck (in stock) required.. I'm still trying to understand

I just drove them back

no taxes when coming back into US

i was driving up looking for other stuff anyway, did not make a special trip for legos

that is a fail

Got smarties, kinder eggs and Swiss chalet sauce too so it was a good trip

Unless the rules have changed, Kinder surprise is not permitted in the US FYI.

[Elkkthunder]

10 minutes ago, redghostx said:

Unless the rules have changed, Kinder surprise is not permitted in the US FYI.

I know 

threw that in and someone caught it

[gregpj]

1 hour ago, ph4tb0i said:

I'm sure he's done his math/following the rules. After all, nobody could possibly be stupid enough to smuggle Lego into the US now that the US CBP terror alert is at its highest since 9/11... lol. 

If we try to pull something over CBSA here and get caught it's 6 years on the black list where your entire party will be subject to MANDATORY secondary inspection for Air/Sea/Land. Just for those of you that think about trying to conveniently "forget" about that lego set(s) in the trunk...  

Remember, the onus is on you to prove you are not misdeclaring/smuggling your goods. Not the other way around. 

It was a little bit tongue and cheek about what Supraboy had once told us he was doing when the exchange rate favoured buying in the US and bringing it back into Canada to sell. In a nutshell, him and his pals would load up on toys from Walmart, Target, TRU etc south of the border... even rent a cube van to bring it back. His story was that the border guards often let him through without paying tax and/or he'd say they were gifts for his kids.. to which he promptly added that after he crossed the border he would decide that they were spoiled and he was just going to sell them.

I know we can't expect new members to go back and read posts from 2-3 years ago but the nuggets are there for those who choose to brave pages upon pages of nothing. Then sometimes they'll understand why the mods and other long-time members get sick and tired of some of the crap posted in the forums.

With the way the exchange rate is now, you're better to buy in Canada and sell in the US.

(as for math, jury is out on that one....)

1 hour ago, Elkkthunder said:

wasnt trying to cause this OT discussion but rather scope out for the garage on clearance

No worries, nobody is perfect... especially TRU Raiders from the South. We'll run you out of these threads yet. </kidding>

[peenutz]

2 hours ago, Elkkthunder said:

Got smarties, kinder eggs and Swiss chalet sauce too so it was a good trip

No Coffee Crisps? My relatives down south always ask me to bring them boxes and boxes of it, on top of Smarties and Kinder Surprise.

[redghostx]

2 hours ago, Elkkthunder said: Got smarties, kinder eggs and Swiss chalet sauce too so it was a good trip

No Coffee Crisps? My relatives down south always ask me to bring them boxes and boxes of it, on top of Smarties and Kinder Surprise.

I have to bring Canadian Beer and I used to have to bring HP sauce everywhere and to my family. We would even pull it out at breakfast on trips.

Add: Extra strength ibuprofen and Shreddies.

[seapotato]

Is coffee crisp a Canadian thing?!

[Thumper]

7 hours ago, seapotato said:

Is coffee crisp a Canadian thing?!

a disgusting thing indeed!!! 

[tacsniper]

14 hours ago, gravtation said:

No Canada still have this policy .. saw it at the airport last summer !  And we complaint that we are loosing money that we need more income . of course WE pay for everyone ..

 

Shop in Seattle, show your driver license or passport and they remove their sales tax. Does the near by cities in the east coast do the same thing?

Edited November 24, 2015 by tacsniper

[seapotato]

7 hours ago, seapotato said: Is coffee crisp a Canadian thing?!

a disgusting thing indeed!!! 

Coffee crisp are one of my fave chocolate bars!

[anolian]

2 minutes ago, seapotato said:

Coffee crisp are one of my fave chocolate bars!

Me to I love coffee crisp. Probably one of my favs if not my fav, I had no idea they did not sell them in the US.

[redghostx]

1 hour ago, tacsniper said:

Shop in Seattle, show your driver license or passport and they remove their sales tax. Does the near by cities in the east coast do the same thing?

This works in Washington state if you live in a jurisdiction with no sales tax or if you have a value added tax.

[ChristopherJB]

I find it funny that some of you are doubting or questioning how I am doing this. Some speculation is good, and someone did mention "living close to the border." That plays a big factor when dumping off Tumblers nonstop at the post office. There's also a "nexus" pass for commercial lanes, and annual fees. I don't just "dump" off tumblers there. Dumping off Ferris Wheels, Maersks, Ewok Villages, Simpsons sets, etc......you do the math again and you'll finally see the light. You can say "all that work for making $20 on each tumbler, yup, a lot of work when I punch in tumblers during double VIPs and unloading x'mas sets. All I had to do is open the box, pull out the free sets, make sure set isn't damaged, take the invoice, slap a new shipping label, off we go. And it isn't just ONE tumbler, it's multiple sets of exclusives.

[gregpj]

Nobody is doubting there is money that can be made and certainly when there are great promo items that really helps.

Some of us are just simply doubting that you're doing this above board... You can't sell an item bought/stored in Canada to an American buyer without declaring it at the border. You need to declare that you're leaving $X thousands of dollars of goods behind whether you have a Nexus card or not so that governments can get their cut when applicable. Those companies bringing semi loads of goods over are paying the necessary taxes and fees prior to the truck going through the border.

 

[redghostx]

31 minutes ago, gregpj said:

Nobody is doubting there is money that can be made and certainly when there are great promo items that really helps.

Some of us are just simply doubting that you're doing this above board... You can't sell an item bought/stored in Canada to an American buyer without declaring it at the border. You need to declare that you're leaving $X thousands of dollars of goods behind whether you have a Nexus card or not so that governments can get their cut when applicable. Those companies bringing semi loads of goods over are paying the necessary taxes and fees prior to the truck going through the border.

 

 

45 minutes ago, ChristopherJB said:

I find it funny that some of you are doubting or questioning how I am doing this. Some speculation is good, and someone did mention "living close to the border." That plays a big factor when dumping off Tumblers nonstop at the post office. There's also a "nexus" pass for commercial lanes, and annual fees. I don't just "dump" off tumblers there. Dumping off Ferris Wheels, Maersks, Ewok Villages, Simpsons sets, etc......you do the math again and you'll finally see the light. You can say "all that work for making $20 on each tumbler, yup, a lot of work when I punch in tumblers during double VIPs and unloading x'mas sets. All I had to do is open the box, pull out the free sets, make sure set isn't damaged, take the invoice, slap a new shipping label, off we go. And it isn't just ONE tumbler, it's multiple sets of exclusives.

 

It is probably different for Americans returning to the US and, full disclosure, I haven't read up on all of the rules for US citizens returning to the US but for a Canadian, it really is as simple as ChristopherJB (the ugly American stereotype at play) indicates and anyone can do what he does using the following legal method, according to my research and discussions with CBP agents.

Any Canadian may import up to $2,500 worth of commercial goods at a crossing into the US without completing the official form and will be required to pay a user fee of $10.75.   Whether you bring $20 worth of goods or 2,000 over 20 transactions at once, the $10.75 is a constant (one example that I know of is a person that sells vinyl records brings down dozens at a time to ensure only one user fee).  There are additional fees over the limit and there is an official form to file but I no longer have it (and have been previously asked why did I fill it out).

A commercial good is anything that you have sold AND on top of that, for declaration purposes when returning, a FREE item is not free, you are supposed to declare the actual value.

Persons crossing the border may not use the designated nexus lanes but may use commercial lanes and pay the user fee at the booth without going inside and if you go through a commercial lane then you MUST pay the user fee.  If you go through a passenger lane, then you MAY be required to go inside and pay the user fee and you may not.  This is at the discretion of the border guard.  Once inside, you are permitted to use the nexus line to expedite your process and leave sooner.  These are not secondary inspections and the slip will simply indicate user fee (as opposed to nexus compliance for example).

For regular commercial vehicles, you may purchase a decal and your yearly payment covers all trips.  This is very dangerous for a resident of BC to get, on a personal level, because the standard insurance option allows you 6 days of commercial related trips a month unless you have a commercially designated insurance rate (like a company car).

Items should not be sealed when crossing the border as CBP agents or their superiors have the authority to go through your packages.  Bring a tape gun and tape it once you have cleared customs.

So if you are making $20 a package x10 packages to stay under the $2,500 limit then each trip is $189.25 profit and all it requires is a tape gun and a label printer. 

 

Taxes are another issue entirely, but I will assume that ChristopherJB reports this as income, lest the taxman find him.

 

Additional information:

 

 

Can I drive into the U.S. and mail a package?

You may bring a package to mail in the U.S., however standard import rules, regulations, and duty rates apply. Questions about specific imports can be directed to the port where you plan to enter.  A list of border crossings can be found here.

 

If you are bringing in a personal package to mail there is no user fee.  Bringing in commercial merchandise to mail within the U.S. would require you to pay a $10.75 user fee per entry (subject to change) or an annual user fee decal.

Note: CBP has the authority to open all packages and may assess duty.  It is recommended that you do not seal packages as they are subject to inspection.

If you wish to receive automatic updates to this Q&A, select "Subscribe to Updates" on the left side of this screen.

 

Edited November 24, 2015 by redghostx

[lego rules]

27 minutes ago, gregpj said:

Nobody is doubting there is money that can be made and certainly when there are great promo items that really helps.

Some of us are just simply doubting that you're doing this above board... You can't sell an item bought/stored in Canada to an American buyer without declaring it at the border. You need to declare that you're leaving $X thousands of dollars of goods behind whether you have a Nexus card or not so that governments can get their cut when applicable. Those companies bringing semi loads of goods over are paying the necessary taxes and fees prior to the truck going through the border.

 

Currency arbitrage is easy to do with product.  The main problem in Canada is the high shipping cost.  He is basically avoiding that by shipping from the USA.  Not sure what the exemption is the states but if the product is under that value, I don't really see anything wrong with what he is doing.

[gregpj]

13 minutes ago, redghostx said:

 

 

It is probably different for Americans returning to the US and, full disclosure, I haven't read up on all of the rules for US citizens returning to the US but for a Canadian, it really is as simple as ChristopherJB (the ugly American stereotype at play) indicates and anyone can do what he does using the following legal method, according to my research and discussions with CBP agents.

Any Canadian may import up to $2,500 worth of commercial goods at a crossing into the US without completing the official form and will be required to pay a user fee of $10.75.   Whether you bring $20 worth of goods or 2,000 over 20 transactions at once, the $10.75 is a constant (one example that I know of is a person that sells vinyl records brings down dozens at a time to ensure only one user fee).  There are additional fees over the limit and there is an official form to file but I no longer have it (and have been previously asked why did I fill it out).

A commercial good is anything that you have sold AND on top of that, for declaration purposes when returning, a FREE item is not free, you are supposed to declare the actual value.

Persons crossing the border may not use the designated nexus lanes but may use commercial lanes and pay the user fee at the booth without going inside and if you go through a commercial lane then you MUST pay the user fee.  If you go through a passenger lane, then you MAY be required to go inside and pay the user fee and you may not.  This is at the discretion of the border guard.  Once inside, you are permitted to use the nexus line to expedite your process and leave sooner.  These are not secondary inspections and the slip will simply indicate user fee (as opposed to nexus compliance for example).

For regular commercial vehicles, you may purchase a decal and your yearly payment covers all trips.  This is very dangerous for a resident of BC to get, on a personal level, because the standard insurance option allows you 6 days of commercial related trips a month unless you have a commercially designated insurance rate (like a company car).

Items should not be sealed when crossing the border as CBP agents or their superiors have the authority to go through your packages.  Bring a tape gun and tape it once you have cleared customs.

So if you are making $20 a package x10 packages to stay under the $2,500 limit then each trip is $189.25 profit and all it requires is a tape gun and a label printer. 

 

Taxes are another issue entirely, but I will assume that ChristopherJB reports this as income, lest the taxman find him.

 

Additional information:

 

 

Can I drive into the U.S. and mail a package?

You may bring a package to mail in the U.S., however standard import rules, regulations, and duty rates apply. Questions about specific imports can be directed to the port where you plan to enter.  A list of border crossings can be found here.

 

If you are bringing in a personal package to mail there is no user fee.  Bringing in commercial merchandise to mail within the U.S. would require you to pay a $10.75 user fee per entry (subject to change) or an annual user fee decal.

Note: CBP has the authority to open all packages and may assess duty.  It is recommended that you do not seal packages as they are subject to inspection.

If you wish to receive automatic updates to this Q&A, select "Subscribe to Updates" on the left side of this screen.

 

Well, it's not quite as simple as that excerpt implies. That $10.75 "border processing fee" simply allows you to transport commercial good across the border. Also, note the "standard import rules" apply... Are you guys filling in the correct customs declaration forms and slapping them on the parcels so the "buyers" pay the correct taxes/duties if applicable?

If you're not declaring the items with the right customs forms, you are effectively importing goods into the US and those rules are here:

https://www.cbp.gov/sites/default/files/documents/Importing%20into%20the%20U.S.pdf

Page 15 - the limit is $2000 US for most items, toys are limited to $250.. but luckily Toys have no duty and I'm betting most items are being sold for less than $250.