Canada Post Strike and Shipping Changes
Canada Post is currently scheduled to go on strike beginning May 22, for the second time in about six months. In order to prevent in-transit product shipments to Canada from being stranded mid-shipment if a strike occurs, BMOW is temporarily suspending some shipping methods. UPS shipping options to Canada will remain available, but shipments via the regular postal service as well as our “economy express” service have been suspend until the strike situation is resolved. Sorry for the inconvenience, and thanks for your understanding.
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Hi. I recently purchased the Floppy Emu Bundle and chose UPS due to impending Canada Post strike and seemingly reasonable cost before sales tax (an expected add-on). The order was Floppy Emu Model C Deluxe Bundle $129.00 and Shipping $21.68 for a Total USD$150.68. However, I was shocked to find the additional real cost was not just that sales tax CA$29.30 but was that plus a further CA$92.65. The website needs to at least provide an estimate and clearly state that “Shipping” doesn’t mean shipping cost. I am not sure what it means. An infrequent average buyer should beware opting for UPS vs waiting out the postal delay! The only thing I don’t know is what would the additional cost have been if opted for USPS> I would like to know that. I was connsidering a follow-up purchase of the external drive switcher but stopped when I received the UPS bill. Regards
Hi Tony, I’m so sorry you received an unwelcome surprise in import costs. Would you be able to send me the detailed breakdown of the UPS charges: GST, sales tax, tariff, brokerage fees, etc? You can email me through the Customer Support link at upper right.
With the double whammy of tariffs and Canada Post strike, the current situation is difficult for Canadian customers. The BMOW checkout page does mention that customers outside the USA are responsible for paying all import duties, taxes, VAT, tariffs, and other customs-related costs at the time of delivery. This is also covered in more detail in the store’s Shipping Policy page.
Unfortunately there’s no easy way of calculating the total of all the import-related costs that a customer may face, since they’re composed of many individual costs and taxes that BMOW never sees and that frequently change. According to my math today, you should have a 13 percent Ontario HST. I’m uncertain if the 25 percent Canadian tariff on US imports also applies. There should also be a 34.70 CAD brokerage fee from UPS for “entry processing” (documented on page 115 of the rate schedule here: https://www.ups.com/assets/resources/webcontent/en_CA/rate_guide_ca.pdf). These costs should all be the same with any shipper, except for the brokerage cost.
If you live near a major airport or sea port with a CBSA office, it appears that you can avoid the UPS brokerage fee if you pay the other government taxes directly in person at the CBSA office, and then present proof of payment to UPS. This is called self-clearing.
Please do email me the detailed breakdown of charges if you’re able, and I’ll see if I can recommend anything else.
Hi. Thanks for the thorough reply, and I understand. I guess when things were less costly I stopped looking throught the details (brokerage fees etc). Now, the “Other Government Charges” and Brokerage (both subject to the expected 13% GST/HST) add up to make it difficult to accommodate US purchases in a pensioner’s budget :).
Regards
You asked for details behind the CA$121.95 UPS Invoice: HST/GST+PST of CAD$29.30 ; Other Gov’t Charges of CAD$45.08 ; US Customs Brokerage OF CA$42.10 ; Applicable HST/GST+PST of CAD$5.47
Thanks. Other Gov’t Charges of CAD$45.08 must be the 25 percent retaliatory tariff that Canada has imposed on certain US imports. But from what I’ve been able to learn, computer products like the Floppy Emu are not supposed to be subject to this tariff. You can verify this at CBSA’s own site here: https://www.cbsa-asfc.gc.ca/travel-voyage/dte-acl/est-cal-eng.html
Am I correct that Ontario has a total effective sales tax rate (GST + PST) of 13 percent? I believe the value of the shipment was 180.32 CAD, so sales tax should have been 23.44 CAD not 29.30, as far as I can tell. Any idea why the difference? EDIT: Ahhh, I see. They’re adding the CAD$45.08 retaliatory tariff to the 180.32 to get a total of 225.40, then charging 13 percent sales tax on that total. So you’re expected to pay sales tax on a tariff, which is itself just another type of tax. In essence, it’s a tax on a tax.
The last bit I’m guessing was a typo and was supposed to be UPS Customs Brokerage, not US? From further reading of that UPS doc I linked to previously, this will be $34.70 for “entry processing” (varies according to the shipment value) plus a fixed $7.40 “disbursement fee”. The total of these two matches the amount you gave. I didn’t expect there would be sales tax charged on a brokerage fee, but there it is, at exactly 13 percent.
The UPS-related fees could be avoided with a different shipper, but the other taxes and tariffs are an unfortunate part of the current international shipping landscape.
I’ve re-enabled USPS and Economy International shipping options for Canadian customers. Although the threat of a Canada Post strike still looms, the service is working for the time being, and I want to make this lower-cost option available for customers who want it and are willing to take a small risk of a delay if a strike does occur.
Please be aware that regardless of which shipping method you choose, Canada still imposes a 25 percent tariff on imports from the USA. This cost will need to be paid directly to the shipping company before you can receive your package – it’s not paid to or handled by BMOW.