- Jan 5, 2005
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Originally posted by: The Czar
Private sales are not subject to duty in Canada, even those from the United States. If I remember correctly, on the customs form, there are three check boxes: Gift, Merchandise and Other. Most people mistakenly check Merchandise, if the sale comes from eBay. There's nothing fraudulent about that, but if you are a private individual selling to another private individual, then you can check Other and state that it's a private sale or eBay auction, which would save your buyer the duty fees when being imported into Canada.
Checking Gift would be fraud, as a gift implies there has been no money exchanging hands across the border. You generally don't have to pay your friends to get a gift from them. ;-)
If you're running a business on eBay, however, all bets are off, as purchases from American businesses are subject to a $5CDN handling fee, plus 7% federal tax, plus whatever other tax the province levies against the import (the graphics card guy sounds to me like he's from Quebec, which would be 8%).
As well, there's contact information on the back of the duty slip which your buyer can appeal the fees based on the fact that it was a private sale, or whatever. The most I would say you should do is provide evidence that you are a private individual who sold him the graphics card, if that is indeed the case.
Cheers,
The Czar
Thanks for the Extremely valuable info. I think you should win the "Best 1st Post" award. :thumbsup:
On the form I have here, it has 4 check boxes; Gift, Commercial sample, Documents, Other.