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When US Companies Ship to Toronto, What Fees Apply?

When you’re shipping internationally, you can always expect it to cost more. This isn’t just because your California courier services are going to charge you more for moving your goods, but also because there are fees which specifically apply to international shipments which don’t elsewhere. Essentially, this is a product of the different laws and taxations that apply in different countries, as well as some specific charges which are incurred in order to actually be legally allowed to move your packages across an international border.

The first fee that you’re always going to have to contend with is that of a customs broker. This is a service that you’re going to have to utilize with every package that you plan on shipping to Toronto. The interesting thing about this process though, is that a flat rate is applied to every single package that you ship. This creates a method that can save money for people who are shipping to Toronto on a very regular basis. Instead of paying that fee over and over again on a host of smaller packages, you can save a great deal of money by combining your shipments into one large order that you send to Canada all at once. In that situation, you’re only going to have to pay that brokerage fee the one time.

The next thing that you’re going to have to worry about is the taxes. Whenever you’re shipping something into another country, you usually are going to have to pay the tax which applies to that item in the country that you are shipping into. In the case of Toronto, this means paying any applicable national and provincial taxes that apply in Ontario.

What this means specifically for you has changed very recently. In the past, you would have to pay one federal tax, and one provincial tax. Ontario has recently changed their taxation law to provide you with a single Harmonized Sales Tax (HST). Although there may be exceptions, most of the products that you ship to Toronto are going to be subject to the complete amount of the HST, which is 13%.

There are other situations where specialized fees or duties may apply. There can also be fees that are associated with certain permits that you may need to acquire in order to move certain types of goods into Canada. The best thing to do is to work with your courier company when assessing the total cost of shipping.

Carry is a consultant for fresno courier, modesto delivery and sacramento courier businesses.