Post # 1
I am currently looking into purchasing a diamond from the online retailer idonowidont.com. My question is, what charges can I expect to incur upon importation into Ontario, Canada. Will it be merely 13% HST?
Additionally, will the HST be calculated based on the purchase price or the appraisal replacement value? The appraisal value was three times the cost of the actual purchase so I hope to not be charged HST based on the higher price.
Thanks for your help!
Post # 4
Just went through this! Although we ended up buying in town after doing all of the research. Taxes will be charged based on what the purchase price was and depending on the percentage of taxes where you live. Purchasing in some states (where the website is based/ring ships from) makes you eligible for tax refund (whatever the American taxes were). The laws recently changed and now no states that border Canada are eligible for tax refunds – obviously Canadians hop the border to shop (but sorta chincy in my opinion). The only other thing you have to worry about is the package getting held up in customs. It can take weeks and you get charged for them opening the package (about $50-$100) even if they find nothing wrong with it and just send it out again.
Post # 5
@blushbliss: I imported a diamond ring from the US to Canada a few months ago. I think the easiness mainly depends on how complete the documentation from the vendor is, and how experienced they are with shipping to Canada.
In my case, the company (Whiteflash) was very experienced, so it was much faster and easier than I thought it would be. I believe it was declared as a diamond ring, with documentation that it was made in the US (so therefore duty-free according to NAFTA). It shipped via Fedex from Texas and arrived at Canadian customs the next day. I got a call from Fedex to get my CC information to pay my provincial tax rate, and I had to email them saying that I allowed them to clear my package through customs on my behalf. It was in my hands the day after that, I was very impressed.
The taxes was based on what I paid, not what the appraisal said. So in your case, you would only pay 13% of the purchase price, plus whatever rate the shipping vendor charges to clear a package through customs. Fedex’s rate was really small, something like $10-$20 (flat rate).
Some companies like Blue Nile charge the taxes upfront, so there are no surprises at the border. I personally don’t think it makes a difference, you’d be paying the same amount either way.
Just make sure the company is experienced with international shipping. Your case is slightly different, since mine was physically made in the US, so there was no duty charges. In your case, you’re essentially buying from a reseller and the ring has unknown origins. I’d definitely ask about the vendor about it
Post # 6
Mr TTR & I got Engaged in the USA (Proposal sans ring). We looked for a Ring while we were on vacation but decided against it due to the whole hassle with regards to Importation (even tho we were in the USA and on Vacation and would have qualified for part of our Purchase as Duty Free)
I did make some inquiries… and was told we could be charged both Duty & Taxes based on the Appraised Price (depends on the mood of the Inspector at the time). Duty would depend on where the ring was made… a lot of Diamond Rings are made in India… not in North America so they wouldn`t qualify under NAFTA
In our case, we figured it would come in somewhere around 20 to 25% extra to bring a ring back (13% Ontario HST & at least 7% Duty)
For us that wasn`t worth it … in so much as we also wanted a Ring that could be Warrantied here (Canadian Jeweller) and cared for here by the store we bought it from.
What I will say…
Is if you buy this ring make sure you have all your paperwork in top notch condition… and INSURE YOUR RING before you have it sent to you… even if it means a few days delay while the Insurance Co gets the paperwork processed for that (we bought my ERing in Canada, and sent our Home Owners Insurance Co the info one day… Sales Receipt, Photograph, Certification & Appraisal Forms… and it was a day or two later when we got the Ok from our Insurance that it was all completed)
Hope this helps,