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Import Duty for Bike Purchased In Canada?
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I live in the US and will be traveling to Canada for business. I have found some good pricing on a bike I would like to purchase at a few shops located in Canada near where I will be. With our current favorable exchange (18% to 20%) rate it makes pricing more attractive even with the 13% Canadian GST tax I will have to pay and the $100.00 fee for checking it in as luggage on my trip home. I am still unsure of the US Duty I would have to pay. Does anyone have experience with this type of purchase and what Duty would/could cost once I re-enter the US. I did some research but still confused. Before GST cost of bike will be $3500 to $3800 Canadian depending on what shop I decide to buy it from.

Any help would be appreciated.

Thanks,
Rob
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Re: Import Duty for Bike Purchased In Canada? [RRWJ] [ In reply to ]
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Ride it around the block a few times before you pack it up. No one will know it's new ;)


Rodney
TrainingPeaks | Altra Running | RAD Roller
http://www.goinglong.ca
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Re: Import Duty for Bike Purchased In Canada? [RRWJ] [ In reply to ]
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GST in Canada is 5%, not 13%. Some provinces have a PST (provincial sales tax) as well, and some have harmonized their provincial taxes with the GST. In British Columbia, the PST is 7%, but bicycles are exempt. So if you bought your bike here, you'd only pay 5% tax. I'm guessing if you're paying 13% tax you're planning on buying the bike in Ontario? You should see if there's a shop in BC that will sell it to you, and you'll save that extra 8%. As for US duty, my guess is it would depend on where the bike was manufactured. If it was manufactured in the US, you may be able to avoid duty fees. Otherwise, it looks like the import duty into the US on bikes is 11%.
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Re: Import Duty for Bike Purchased In Canada? [alligatorCAN] [ In reply to ]
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Thank you. Yes Ontario.
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Re: Import Duty for Bike Purchased In Canada? [RRWJ] [ In reply to ]
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Here as some rules that applies to Canadians coming back from the states. You're allowed $800 if you spent more then 48 hours in the States. Everything over $800 you have to pay taxes and duty. If the product you are bringing back is made in the USA, Canada or Mexico then it's a bit cheaper, approximately 12%. If the product is made outside those three then it's close to 20%. Those rules should be similar for you.

Formely stef32
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Re: Import Duty for Bike Purchased In Canada? [StephanM] [ In reply to ]
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You do have to pay a duty to the US, the current rate is easy to find by looking up the customs and duty information. The good news, you can also get a refund on the GST/PST, get the documents from Canadian Customs. On expensive stuff, it works in your favor to pay US Duty and refund of Canadian GST or harmonized tax.
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Re: Import Duty for Bike Purchased In Canada? [RRWJ] [ In reply to ]
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Do what every other person who has bought a bike overseas....ride it around the parking lot, get it a bit dusty and dirty, and don't declare it. Could even have the shop put some old tires on it to improve the illusion*. Otherwise you will pay duty.

*Note: This message is only for information. This message should not be construed as support for customs evasion.

_____________________________________________________
"Oh man, it's going to take days to kill all these people!" - Jens Voigt
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Re: Import Duty for Bike Purchased In Canada? [RRWJ] [ In reply to ]
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RRWJ wrote:
I live in the US and will be traveling to Canada for business. I have found some good pricing on a bike I would like to purchase at a few shops located in Canada near where I will be. With our current favorable exchange (18% to 20%) rate it makes pricing more attractive even with the 13% Canadian GST tax I will have to pay and the $100.00 fee for checking it in as luggage on my trip home. I am still unsure of the US Duty I would have to pay. Does anyone have experience with this type of purchase and what Duty would/could cost once I re-enter the US. I did some research but still confused. Before GST cost of bike will be $3500 to $3800 Canadian depending on what shop I decide to buy it from.

Any help would be appreciated.

Thanks,
Rob
wrong question. The question you want to ask is the import duty on articles purchased in a NAFTA country, and the answer is "it depends." Apparently nothing for framesets, but iirc, wheels could be different.

Suggest you check out the Harmonized Tariff Schedule. Bike frames (painted) and parts are listed under 8714.91.20 (under chpt 87http://hts.usitc.gov/)
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Re: Import Duty for Bike Purchased In Canada? [RRWJ] [ In reply to ]
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So here is update on how it actually worked for me. Flying home from Toronto you go through US customs at the Airport (Pearson). Once you check in and let them know you are declaring a purchase over $800 they send you to "special baggage". I met with a very nice customs agent who took me through the process and it worked out much better than expected.

Bicycle fell under H.T.U.S.A. 8714.00.25 so here is how it worked.
  • Took Purchase Price of Bike in Canadian Dollars and Adjusted utilizing current exchange To US Dollars. They did not ask for receipt but I provided exact purchase price regardless.
  • First $800 is free so they subtract from the purchase price In US Dollars
  • First $1,000 is taxed at only $30.00
  • Subtracts the $1,000 from remaining amount and it was then taxed at 5.5%
  • Total Taxed paid was under $100.00 so it worked out well for me.

Bike shop packed the bike great and it traveled home in perfect condition. I was very nervous about this and consider myself lucky. I did not have to pay for checking bike in because it was under the measurement for oversized luggage (it was shipped in regular bike box)

All in all I saved a good amount of money on a bike I most likely would not have purchased without help of exchange rate. Bike is under full warranty too. It was also a fun experience and I found really great bike shop that provided a great and very detailed fit for my new bike.
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Re: Import Duty for Bike Purchased In Canada? [RRWJ] [ In reply to ]
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Sounds like a great experience! If you don't, mind me asking...which shop did you go to?
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Re: Import Duty for Bike Purchased In Canada? [nowhere] [ In reply to ]
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The bike shop was Via Ciclante in Mississauga. I actually was planning on buying from a different shop originally. The original shop had more aggressive pricing because they were offering "Marketing" bikes on sale. I even visited the shop with the special pricing and checked out the bikes myself and they were in perfect condition, however I had spoken to JP the owner at Via Ciclante over the phone a few times as well and just had a very positive feeling. Last minute I decided to go to Via Ciclante because I wanted to see the shop and meet JP all based on my conversations with JP. I was so happy I decided to. Not because of price because I ended up paying more. His passion for cycling, customers who love cycling, and interest in his customer is incredible. He was extremely detailed in his fitting process in every possible aspect including my flexibility off the bike. I travel quite a bit for work all over the country (and Canada) and one of the things I try to do in every city or town is visit local bike shops. This was one of the best in my opinion. He caters to I would say more serious tri, road, and mountain bike enthusiasts and focuses on higher end bikes. Its a nice store front bike shop right in the center of town.
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