Just about everything imported into Canada is subject to the GST (Goods and Services Tax). This tax is at 5% and is calculated after any customs duties and fees have been applied. But the charges that can really surprise you are the brokerage fees.
Brokerage fees vary by the courier service being used. USPS is the cheapest courier by far in regards to brokerage fees, but most distributors of wholesale sunglasses ship their products by means other than the Postal Service. Generally you will find US based sunglass distributors using Fedex or UPS as their shipping carrier and the brokerage fees charged by shipping couriers such as these can be as high as $50 to $100! This brokerage fee is in addition to the taxes and duties that are already being applied. That is a lot of money wasted by not buying locally!
You can boost your business’ bottom line by avoiding these charges. If you add up all the additional taxes, duties and brokerage fees on the shipments of wholesale sunglasses you receive throughout the year I’m sure you would have rather put that money in your pocket as opposed to paying it out in unnecessary fees. Just using the brokerage fees as an example, 1 UPS shipment a month with a brokerage fee of $70 equates to $840 total brokerage fees paid over a year. Apply the exchange rate to that fee and you will have paid over $1000 CAD in brokerage fees.
This money could be much better applied to your business or just simply counted with your profits. Needless charges such as these brokerage fees can really eat away at your business and turn profitable exchanges into losses.
For a more detailed look into how Canadian customers can benefit by not having to order from a US based company click here.