Just received an invoice from my last TRR shipment with value of USD$100, and called UPS to explain the charges. Here is what I have heard.
The declared value is USD$100 that I paid to TRR (price of the item before shipment) that they have translated into CAD $131. On this amount, the charges are:
Assessed duty of 18% - $23.46
Assessed tax of 13% of that amount - $19.99
Bond disbursement that is the UPS charges for them paying duty on my behalf - $ 1.32
Total pay is CAD $44.77
The UPS says that if you pay online, you save $5. They note that 'savings are the result of the elimination of the Import Collect on Delivery (ICOD) fee applied to driver collections, where online payment is made prior to delivery'.
An interesting thing though that an amount upon receiving a TRR item in Canada can still be less than expected. A couple of weeks ago I have purchased an item that was more expensive than the above example, but my charges were less. I asked UPS the question, and they explained that it depends on the declared Country of Manufacture. In the example with the more expensive item with less charges, the item was declared as 'made in the US'. That may have eliminated the duties. In the case with the less expensive item but more charges, the Country of Manufacture was indicated as 'made in Italy'. That may have triggered the duties.
Therefore, the amount that we pay locally for the TRR purchases also depends on the country of manufacture. My guess would be that in the above post, the TRR might have declared a non-US country as the country of manufacture.
The declared value is USD$100 that I paid to TRR (price of the item before shipment) that they have translated into CAD $131. On this amount, the charges are:
Assessed duty of 18% - $23.46
Assessed tax of 13% of that amount - $19.99
Bond disbursement that is the UPS charges for them paying duty on my behalf - $ 1.32
Total pay is CAD $44.77
The UPS says that if you pay online, you save $5. They note that 'savings are the result of the elimination of the Import Collect on Delivery (ICOD) fee applied to driver collections, where online payment is made prior to delivery'.
An interesting thing though that an amount upon receiving a TRR item in Canada can still be less than expected. A couple of weeks ago I have purchased an item that was more expensive than the above example, but my charges were less. I asked UPS the question, and they explained that it depends on the declared Country of Manufacture. In the example with the more expensive item with less charges, the item was declared as 'made in the US'. That may have eliminated the duties. In the case with the less expensive item but more charges, the Country of Manufacture was indicated as 'made in Italy'. That may have triggered the duties.
Therefore, the amount that we pay locally for the TRR purchases also depends on the country of manufacture. My guess would be that in the above post, the TRR might have declared a non-US country as the country of manufacture.
