The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Import duties and fees on Chinese product sold to US customers from Canada

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

eTox

Stupid naive kid
FASTLANE INSIDER
Read Millionaire Fastlane
Speedway Pass
May 21, 2016
448
587
262
Toronto
Hi everyone,

I have this simple but interesting question that I can't find an answers to. I think many of us here who are just starting out importing products and selling to US will be interested in this question as well.

Given a fictional scenario:
Product is custom made in china for each customer. Valued at $50 as per invoice.
Product is imported to Canada and added additional items packaging.
Product is sold to US customer for $300.

Questions:
1) When importing the product from China to Canada through DHL or any other courier service I know that you have to pay import duties and taxes. What value should I state here? The $50 price that the supplier has invoiced me for? Also, are there any tips on doing this?

Each product has to go through Canada from China.

2) When selling to US customer and exporting from Canada to US through DHL or any other courier service will the customer have to pay duties and taxes again? Also what value should I state here? I am assuming the $300 that I am selling for.

3) In the case that I sell to customers outside of USA, Mexico, and Canada I am assuming the customer has pay import duties and taxes again? I am assuming the price that they will pay the import fees is from $300 sales price.

I am also interested in selling to people in other countries as well.

If anyone knows the answers please let me know. I want to get a clear picture of how this works.

If you have any tips on how to handle this also let me know.

Thanks!

I think @Walter Hay can have some, maybe @biophase and anyone who is importing to Canada as well.
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Last edited:

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Sep 13, 2014
2,882
11,740
2,453
World citizen
Before giving a complete answer, we need to know how you will be selling the product, and what quantities do you plan on ordering.

I suggest you check out this thread:
Selling my product on Amazon.com from Canada

Some general observations might help you to begin with.
  • You will pay duty on the total cost of goods, which includes the price you paid the manufacturer plus freight and insurance. It is a big mistake to only declare the FOB cost. You must calculate your costs based on that formula.
  • Courier charges on small shipments can cost more than the purchase price of the goods.
  • Most duty rates in Canada are slightly higher than those in the US.
  • Most countries have what is called a De Minimis amount, which is the maximum value of goods that may be imported at any one time under Duty and/or Sales Tax exemption schemes. Canada is very stingy, allowing only CA$20 imports duty free, but the US allows $800. Mexico is Equivalent to US$300 for postal shipments. For other countries ask me. I list in my book the rate for all countries that participate.
  • Custom making of products in China can be costly for one-offs. There is also a high risk that your idea will be copied and on the market before you see one. It can be cheaper to have some forms of customizing done in Canada or the US. If you let me know privately what you have in mind I can advise you.
  • If you a re totally new to importing I suggest you quickly read through my AMA. Because it is so long, and things change over the years, maybe start reading from the more recent posts and work your way back.
Walter
 

eTox

Stupid naive kid
FASTLANE INSIDER
Read Millionaire Fastlane
Speedway Pass
May 21, 2016
448
587
262
Toronto
@Walter Hay , thank you. Before I bombard you with silly and naive questions, I am first going to read your book, go through the thread and then ask you the remaining questions.

Also, feel free to checkout my progress thread on the inside. I would love your thoughts on it. Maybe @biophase and others can pitch in as well if they have the time.

Thanks!
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Sep 13, 2014
2,882
11,740
2,453
World citizen
@Walter Hay , thank you. Before I bombard you with silly and naive questions, I am first going to read your book, go through the thread and then ask you the remaining questions.

Also, feel free to checkout my progress thread on the inside. I would love your thoughts on it. Maybe @biophase and others can pitch in as well if they have the time.

Thanks!
Don't think you can't ask questions because they seem too naive. Everyone has to learn and that is what this forum is about.

Ask away. I enjoy helping.

Walter
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Sep 13, 2014
2,882
11,740
2,453
World citizen
I should have added that if you have a question involving confidential information, send me a PM. Over the past 6 years I have helped many that way and none of their confidential info ever goes past my inbox.

Walter
 

eTox

Stupid naive kid
FASTLANE INSIDER
Read Millionaire Fastlane
Speedway Pass
May 21, 2016
448
587
262
Toronto
I should have added that if you have a question involving confidential information, send me a PM. Over the past 6 years I have helped many that way and none of their confidential info ever goes past my inbox.

Walter
Thank you Walter, I have sent you PM.
 

Sponsored Offers

  • Sticky
MARKETPLACE Fox Web School "Legend" Group Coaching Program 2021
I thought I would post up the first video from the newest 2021 program content... Just a...
  • Sticky
MARKETPLACE Kill Bigger Incubator
I have not offered one of these in a while, but it looks like I have time to take on an...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Hi Andreas, It is per month, with the first month being half. This is a great question, I...
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
Hi Lex, I looked at several options including Kajabi and settled on the Divi theme on Wordpress...
  • Sticky
MARKETPLACE Grow Your Business With a Book (An Unorthodox Marketing Strategy That Built One of the Largest...
Are you looking for a new, lesser-known but potentially very lucrative source of leads to your...
  • Sticky
FEATURED! Introducing... WEALTH EXPO$ED, A Short Story By MJ DeMarco
The story is BASED UPON a true story. The details aren't entirely accurate or from a distinct...



Forum Sponsor

Grow an online business:
- Start immediately!
- Master business skills!
- 100+ Fastlane students enrolled!
Review & Details >

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom