Canadians ship goods using different channels. FedEx is one of the most prominent international shipping companies used in Canada. And while shipping with FedEx, it is crucial to understand the overall cost you will be bearing for the shipment.
One of the most vital factors to consider when shipping goods internationally in Canada is delivery cost, duties, taxes and clearance charges. This article will be reviewing FedEx duties and how to pay online.
Any shipment you import into Canada via FedEx is subject to duties and taxes by the Canada Border Services Agency (CBSA). However, the duty rate the CBSA requires you to pay depends on the type of goods and the manufacturing country. Moreover, there are ways you can avoid customs charges when importing stuff from the USA to Canada.
Generally, the amount of duties and taxes (GST, PST, QST, and HST) an individual will pay depends on the value of the item in Canadian value and the purpose for the shipment. When shipping, you are to indicate whether or not it is a gift. If you’re importing a gift, you could save on expensive import fees.
Note that the CBSA imposes these duties and taxes to generate revenue and protect local industry. So, almost all imported goods are subject to duty and tax assessment. Customs officials carry out these assessments using details they get on the air waybill, the Commercial Invoice, and other supporting documents.
FedEx Shipping Duty Pricing Factor
FedEx uses the following factors to evaluate and calculate the amount of duty each shipment will pay:
- Product value
- Country of manufacture
- The product’s Harmonized System (HS) code
- Trade agreements
- Description and end-use of the product
- Country-specific regulations
FedEx Duties Valuation
Generally, the most prominent factor FedEx uses to determine duty cost is the value of the transaction. The value of the goods on the Commercial Invoice must equal the value the buyer paid for the goods.
For instance, if, as a Canadian, you buy a gadget from a U.S merchant for US$2500, the merchant must indicate the value on the Commercial Invoice. Note that this is applicable even if the merchant’s cost price is US$1500.
Hence, you must evaluate all the goods in your shipment properly to prevent your shipment from being delayed, rejected or seized by customs. Note that the customs might hold your shipment, and you will have to pay monetary penalties under the CBSA’s Administrative Monetary Penalty System (AMPS) program.
How to Pay FedEx Online
With digitalization, making payments is very easy. You do not have to go to a physical store to initiate your bill payment. The same is the case of FedEx duty payment. You can pay your FedEx duties online using your credit or debit cards (MasterCard or Visa Debit Card and PayPal)
To pay online,
- Login into the FedEx duties online portal
- Enter your invoice 9-digit number (available on the top right corner of your invoice)
- Proceed to input the invoice amount due (available on the top right corner of your invoice)
- Then click on pay
Alternatively, you can pay over the phone by contacting FedEx customer services on 03456 07 08 09, click on option four after the voice prompt. However, before making the phone call, ensure you have your invoice number available.
Paying for Duties without a FedEx Account
If you have any outstanding duty bill to pay and do not have a FedEx account or your FedEx has a bad payment history, below are ways to pay your duties:
- Pre-pay by credit card
- Call FedEx Customer Service at 1.800.
- Pay by cash, cheque or credit card during delivery.
- GoFedEx on 1.800.463.3339 with your tracking number
However, if you are not responsible for the payment, FedEx will hold the shipment at the destination station until the responsible parties clear all payments.
FedEx Gift Duty Exemption
Most countries, including Canada, allow gifts to enter their countries duty-free. This exemption is applicable only if the value of the gift is less than a specified amount. Also, if CBSA does not consider the gifts you are shipping to be regulated/prohibited goods, you will not pay duty on them.
Requirement for Duty Exemption on Gifts
- You must tag shipments as gifts.
- The total value of the shipment must be less than CA$60.
- You must send shipments individually.
- A detailed description of the goods must be included in the shipment
FedEx Rate Exemptions
Your shipment from the U.S or Mexico might be eligible for duty exemption if it meets the following criteria:
- No statement certifying the goods origination from a CUSMA/USMCA/T-MEC country was issued a commercial invoice for commercial shipments worth less than CA$3300
- If the good you are shipping is not produced in a CUSMA/USMCA/T-MEC country – Canada, Mexico, and the U.S.
- No signed CUSMA/USMCA/T-MEC Certification of Origin was issued for commercial shipments worth CA$3300 and above.
Note, your can sign electronically.
Sending goods internationally is hassle-free when you meet requirements and pay all necessary fees and dues. The FedEx duties are one of these fees, and making payments is quite easy. Also, you can make your FedEx payment online using your credit or debit card. It is advisable to pay in time to avoid your shipment being delayed by customs.