In the process of conducting trade with Canada, as a United States citizen, you will find that things are quite complicated. Or, rather, that the process is more complicated than when conducting trade within the United States as you must now account for international trade duties and taxes. This is a complex process and one that the average person probably knows very little—if anything—about.
Of course, this is why many people seek professional Clearit customs consulting services. Looking more closely at what they do it is easy to see why many people seek these professionals; but here is a list of things they can help you with:
- Free and Secure Trade
- Customs Manuals and Documentation Preparation
- Binding Rulings
- Compliance Audits
- Harmonized Tariff System Classifications
- Compliance Audits
- Harmonized Tariff/Valuation Appeals
- Duty Rates and Trade Agreements
- Participating Government Agency advisory services
- Duty Drawbacks
- Tax Requirements and Exemptions
- Incoterm Expertise
- Government Appeals
- Customs-Trade Partnership Against Terrorism
- Foreign Trade Zone analysts
And this is only a portion of what Customs Brokers can do. So lets take a look at an area of expertise where a broker would come in handy.
DUTIES and TAXES WHEN IMPORTING A VEHICLE
When importing a vehicle, for example, you may have to pay various import duties, taxes, and excise fees.
- The standard Import Duty on a non-NAFTA vehicle is calculated at 6.1% of the vehicles’ value.
- The standard Goods & Services Tax on any vehicle imported to Canada (from the United States) is 5%.
- Vehicles imported to Canada will also be subject to a sales tax according to the province where the vehicle is registered.
- Vehicles that have air conditioning are also subject to an excise Air Conditioning Tax of a flat $100, which is due at the border
- Vehicles that weigh more than 2,007 kg (approximately 4,425 lbs) will also have to pay an excise tax.
- Vehicles imported to Canada may also have to pay an excise tax if they have poor fuel consumption ratings. This excise tax ranges from $1,000 to $4,000 on vehicles with a weighted average fuel consumption rating higher than 13.