Canadians: why do we have to pay custom duties if we buy goods online from the US if there is NAFTA in place?

Question

I ordered two packages totalling 200 bucks including shipping and hadling. I had to pay almost 100 bucks in taxes.

I've read NAFTA charter laws, and it says our government can't charge us any cross border duties on goods.

So SINCE they aren't allowed to tax goods crossing canada/us border, according to our Constitutional Law it says they can only charge us a "fee" not a "tax" but my receipt says something like, Duties $40, Provincial Tax, then Federal Tax then Handling.

They even charged me 20 bucks for "handling", even though I already paid for handling when I bought the things online. Isn't it illegal they are charging handling twice, because the first postal company is giving them a share of what it takes in to get the parcel where it needs to go once it gets into Canada?

Are these situations valid for constitutional or nafta review?

Answer 1

NAFTA is NOT an absolute free trade zone like the European Union is. While it abolishes most cross-border tariffs, it has several exemptions and loopholes. For example, prescription drugs (which are subsidized in Canada but not in the US) are excluded, as are alcoholic beverages, which in some states and provinces may only be sold by the government.

Answer 2

What makes you think you can read a complex treaty like that and analyze it objectively without proper training?



If you could, you would not need to ask here.



But the real place to ask is an expert - an attorney in international trade in your country. If you pay a lot of these fees, then it is worth it to invest in a couple hours of his time to explain it to you.



My guess is if you want to import stuff by the container-load, then you will be good to go. What you can carry stuff by hand, it is subject to duty. Ever been to a duty free shop in an airport? If everything was duty free, there would be no such shops, right?



As for handling, the handling fee is for the customs folks, not the folks in the warehouse where the goods came from.

Answer 3

Sounds like they are testing the waters for instating the NAU. and that is what NAFTA will give you, the SHAFTA! Stated before, don't matter left or right, Democratic or republican, they are all stroking the same rod in the center. I say they can kiss my *** not on the left or right sides, BUTT right in da middle with their taxes

Answer 4

Because Bush's lap dog Stephan Harper wants your money.