Ok folks I'm hoping someone living in Canada can help me out here , I'm in the early stages of adding to my SMP with a Speedy (hopefully a DSOTM ) Just wondering what the import costs / fees are if I order from an online store outside Canada . I'm in BC so the taxes would be 12% , Plus any other import costs they want to throw at me.
Be grateful of your experience importing a watch to Canada , I've spoken to a few online retailers but none the wiser .

Thanks

Kevin

 

So, you can google a duty calculator and select watches being sent to your provinces and it will show you, more or less it's like 5% + hst.

I have noticed that a lot of items I buy, if sent by usps to Canada post the taxes and duties get skipped over ( item is declared at full value) but if I go with ups or fed ex or dhl taxes and duties are always collected.

 

I also live in BC, @kgb33. And all I can say is it’s become a real crapshoot; lately, it’s favoured Ottawa more than me. No 100% guarantees, I’m afraid.

I order a number of items each year from the UK (road cycling gear), and this year I added 2 watches - 1 each from the US and Sweden. The cycling stuff used to be almost always exempt. Now I pay duties, tax, etc. It’s become pricey. And yet the watches were exempt! One came through Canada Post via Nordpost, the other watch by Purolator. The declared value can make all the difference. A seller may be willing ‘gift’ it, or declare a reduced value. The caveat is going lower in value comes with risks, of course. But they’re reasonable ones, especially with courier firms. Still, I go into every order knowing I may need to tack on 10-20% +/-. Or the gods are smiling and I get a gift.

 

An addendum. I have just bought another watch from the US sent FedEx Ground. FedEx just called me to let me know they are going to charge me $40 to clear it. That does not include 12% gst/pst and 5% import fee! I can self clear the watch and avoid the charge if I go to the CBSA office myself, show them FedEx’s paperwork (emailed to me once the package reaches Canada) and pay the requisite taxes and duty. Then I can scan the CBSA receipt and send it to FedEx, who will release the watch for delivery. FedEx, yet again, prove to be a huge pain.

I just got off the phone with CBSA. They verified the process. If I can prove the watch is over 50 years old, I can avoid 5% duty but still owe 12% gst/pst.

There you go.

 

Good to know about the duty being dropped if its 50 + years old! Yet another reason to buy vintage.

 

I don't believe there is an excise tax on watches:
Excise Tax on Watches

The Canada Revenue Agency (CRA) will administer the amendments to the ETA as described above. Accordingly, effective November 25, 2005, the excise tax on watches is eliminated, whether they are manufactured in Canada or imported into Canada. They CRA views a watch as follows: a portable timepiece that has a movement driven in any of several ways (as by a spring or a battery) and is designed to be worn (as on the wrist) or carried in a pocket.

Where the material composition of a watch is such that it may qualify as another type of taxable good, if the good can be reasonably viewed as only a watch, as defined above, the CRA will treat it as a watch, with the result that no tax will apply to it, effective November 25, 2005.

For example, one of the watches described in your submission had a mother-of-pearl dial. Such an item is taxable, pursuant to section 5.1 of the ETA, being "an article made in whole or in part of ivory, jet..... mother-of pearl.... or other semi-precious stones." However, because this item is also clearly a watch, the CRA will treat it as such, and there is no excise tax on it, effective November 25, 2005.

The foregoing comments represent our views with respect to the subject matter of your letter. Proposed amendments to the ETA, if enacted, could have an effect on the interpretation provided herein. These comment are not rulings, and in accordance with guidelines set out in section 1.5 of Chapter 1 of the GST/HST Memorandum series do not bind the CRA with respect to a particular situation.

 

Swiss watches into Canada are duty free

 

Thanks all !
I did some more research and it seems the robbing ******* want 5% GST 7% HST and 5% duty /Import fees , the 5% is on Swiss watches , if you declare it , if you don't and nip across the border , come back with a nice Speedy , you insure it , BUT if you make a claim they'll want proof that the duty and tax as been paid before paying out . so it's a huge gamble , I could drive across to AB and buy from an AD and avoid the 12% , But not sure they'll get anywhere near online prices .
My poker face isn't that good , so driving across the border with one is another huge risk , especially if I don't declare it , as they make things awkward when you want to leave the country again .

so on a $10k CAD watch they'd want $1760

est-cal-eng.html

 

The CBSA agent on the phone mentioned watches made in the US, Canada and Mexico are exempt. Swiss watches not so much (5%); again, if they're over 50 years old (no matter country of origin) you save 5% but they'll need proof so having a photo of the movement/serial# is essential.

For a big ticket item like a Speedy (waaaaay out of my league), going legit has its benefits. A former CEO of mine bought a stunning Ulysses Nardin in Asia. A couple of years later, he got testy during an exchange with a CBSA officer at YVR on his way back from Europe (never a good idea to piss of a border agent!). The agent went to town, asked for receipts for damn near everything in his suitcase (my boss traveled a lot and so many items were purchased overseas) - as well as his watch. He had no receipt, of course, and they confiscated it until he A) produced a receipt and paid applicable duties and taxes, or B) fessed up on the spot and paid applicable duties and taxes. Lose-Lose.

My 2254 Seamaster is over 10 years old and not worth any more than $2K and I still travel with a receipt. Ya never know.

 

Wow that is harsh , I travel all the time with my Seamaster Quartz and never thought of keeping the receipt with me , ( it was bought in Calgary from an AD ) But then again I would never piss a border agent off . Maybe it's not worth the risk and just buy in country , If I have to pay full retail , it just won't happen , frustrating when you see online prices .

 

Mos Eisley spaceport. You will never find a more wretched hive of scum and villainy, but you will surely find someone to smuggle in your watch.

Seriously though, factor it into the price. Look for a nice older piece say from the 80s or 90s. Factor in cost of service too.. All in you might get to the price of a new one in an AD locally .

 

Not necessarily. If a Swiss watch is shipped through another country that is not party to the trade agreement (i.e. the US) then it is subject to duty in most cases.

 

Definatley 5% on Swiss watches

 

Ok, I've purchased Swiss watches in the Caribbean, declared it at the airport and only paid PST and GST, the agent had to go and check and there were no duties/tariffs. If you call CBSA again mention that Switzerland (Country of Origin) has preferential tariffs on watches (tariff item# 91) and see if you get different answer. Maybe the difference is that I wore the watch home verses you "importing" it, or the country I purchased in has a treaty with Canada,

Dealing with CBSA for other things, they seemed more interested where the item was manufactured "rules of origin" .

I'd believe Al since in his trade he likely deals with this for parts.

 

I've purchased watches abroad, declared them upon return to Canada, and paid nothing at all. The fact that a CBSA agent decides to waive something in any particular instance, does not indicate broad policy or the actual regulations.

Most people who are commenting about there being no duty are referring to the ETFA. If a watch is shipped directly from Switzerland, no duties would apply. However if the watch is shipped via a country that is not party to the agreements, duties may apply - this is the specific clause:

Excerpt of Annex C of the EFTA

- Article 14 - Transport through a non-party
An originating product that has been transported through the territory of a non-Party shall be considered as non-originating unless it can be demonstrated that:

(a) the product underwent no further production or other operation in the territory of that non-Party, other than unloading, splitting up of loads, reloading or any other operation necessary to preserve it in good condition; and

(b) the product remained under customs control while outside the territories of the Parties.

If a watch has been distributed to an AD in the US for example (not a party to our agreement), it would have been "out of customs control" and subject to duties on importation to Canada.

Full text here:

http://www.efta.int/media/documents...of Origin and Administrative Co-operation.pdf

Keep in mind that CBSA agents make mistakes as well...

Cheers, Al

 

I am currently travelling to the US for work and I never thought it would happen but I was once asked to prove that my Speedmaster was purchased in the US (I did not have anything but the watch). I also went and bought a lottery ticket that same day.

If you find yourself comfortable trying to beat the system and want to gamble on the fact that you may not need to take your watch outside of Canada or do not mind being asked to prove the purchase was taxed... You should be okay.

Of course, you have to factor in the HST, potential duty and dollar conversion cost to see if it is truly still a deal.

 

I went by the calculator in the link I provided , (official cbsa)asked were the watch was made , duties came out at 17% for BC
I did import some car stuff a few years ago , picked it up from just across the border , decarled it and showed the officer the receipt for over $2K , he charged me on $700 cad , real nice guy who seemed to appreciate I was being honest . Looking at this thread and others I googled on this , seems it’s a bit of a lottery.