Guide to Buying a Sager in Canada

[NovaH]

I thought it would be a good idea to clarify things for everyone in Canada on the different factors involved in bringing in a Sager or any other laptop into Canada. We’ve been reselling Sagers for 7 years now and seem to run into the same questions all the time, so I put together this little guide to help people better understand the process of importing a laptop. Please keep in mind that some of the numbers such as taxes and fees may change over time so please verify what they are at the time you are reading this.

1) Price and Exchange Rates

As a Canadian reseller of US notebooks the first biggest question we get is “ Why is the price higher in Canada?” The number one reason is the US to Canadian dollar exchange rates. The price isn’t actually higher. Normally the Canadian dollar isn’t worth as much as the US dollar. On top of that any financial institution will also charge anywhere between 2% and 5% more than the base exchange rate. If $1.00 US dollar is worth $1.15 Canadian dollars, then a $1000.00 US dollar laptop will be $1150.00 Canadian Dollars + anywhere between 20$-50$ more depending on your financial institution’s rate. If you are buying directly from the U.S. you should always check what rate your bank or credit card company is charging to know how much you will actually pay. Do not rely on the current market rate as you will always pay more.

2) Shipping and Brokerage Charges

The next biggest mystery seems to be shipping charges and brokerage fees. When you are bringing in a laptop from the US it has to clear Canadian Customs. The shipper usually takes care of this for you but charges you a brokerage fee based on the value of the item. The brokerage fee is neither a tax nor a duty imposed by the government. It is a fee charged by the shipper to clear the package through customs. Most expedited shipping methods will include the brokerage fees.

Here is a list of APPROXIMATE shipping fees, brokerage fees and shipping times to most major centers in Canada for a laptop coming directly from Sager:

UPS Ground – 5 to 7 business days: $45.00-$95.00 shipping + $65.00-$115.00 Brokerage
UPS 3 Day Express (2-4 business days): $145.00-$190.00 Includes Brokerage
UPS Expedited (1-2 Business days): $170.00-$200.00 Includes Brokerage

3) Taxes and Duties

To keep things simple let’s eliminate Duties from the equation. At the time of this post and at least for the 7 years prior to it, there are and have been NO DUTIES on laptops coming into Canada.

Ok now for the taxes. This is the most confusing part that feels more like mysticism than math.
The first thing to look at is where you are buying the laptop from, the US or Canada.

If you buy the laptop from the US:

If it’s a personal purchase you will be charged the provincial sales tax and the Federal sales tax from the shipping company when you receive it. This is because the shipping company already paid the taxes to Customs Canada at the time crossed the border with the package. If it’s a business purchase the same applies, but you will be charged just the Federal Tax.

If you buy the Notebook from a Canadian reseller, they should charge you the appropriate tax upon purchase. This will vary based on your location and the reseller’s location. The rule of thumb however is simple. You always pay the federal sales tax. If your province charges Provincial Sales Tax and the reseller is within the same province (or has an office within your province), then you will have to pay the Provincial Sales Tax. If your province charges Provincial Sales Tax and the reseller is not within your province, then you DO NOT have to pay the Provincial tax.

Here is a chart of the tax rates at the time of this post:

Ontario: Federal Tax only HST 13%
BC: Federal Tax only HST 12%
Quebec: Federal Tax GST 5% Provincial Tax QST 8.5%
Nova Scotia: Federal Tax only HST 15%
New Brunswick: Federal Tax only HST 13%
Newfoundland: Federal Tax only HST 13%
PEI: Federal Tax only HST 13%
Manitoba: Federal Tax GST 5% Provincial Tax PST 7%
Saskatchewan: Federal Tax GST 5% Provincial Tax PST 5%
Alberta: Federal Tax only GST 5%
Nunavut, Yukon, NWT: Federal Tax only GST 5%

That’s it for now! Hope I have clarified some things and if anyone has any more questions simply make a post or PM me and I’ll be glad to help.

[Aikimox]

Very nice summary with all the important and valid points covered.
I'm sure, this will be very helpful to many Canadian buyers.
+1 Rep!

[Stelio]

Wow great post, I never heard of reflexnotebook ! I've got so many companies offering the same laptop to compare -.- decisions decisions

[reaversedge]

i have heard about reflexnotebook in some sites, do they accept international orders?

[BaronGalf]

Is there a reseller in canada that do Trade-in discount on new system ??

[NovaH]

Wow great post, I never heard of reflexnotebook ! I've got so many companies offering the same laptop to compare -.- decisions decisions

Actually the company is called AET Solutions and we have been selling Sagers since 2004. Reflexnotebook is our new website as of June 2010. We were getting a lot of complaints about the old site so we gae it a fresh look.

i have heard about reflexnotebook in some sites, do they accept international orders?

We do accept international orders with some restrictions to payment methods to avoid fraud. PM me for details.

Is there a reseller in canada that do Trade-in discount on new system ??

We actually offer trade-in discounts but on a case by case basis. PM me for details.

[roymathieu]

The damn HST is making it much harder to save PST for out-of-province buyers! Thank god for the separatists here in Quebec for delaying the HST

They're usually wrong on all issues but they're right on this one... although it's probably for the wrong reasons

[Stelio]

If a canadian buys from an american retailer when do we pay taxes? is it when the mailman comes to the door? or will they leave the package at the nearest postal office to pay the difference?

Will they take creditcard at my doorstep or only cash ??

[NovaH]

If you buy the laptop from a U.S. Reseller, the UPS delivery guy will show up with an invoice and ask for both the taxes and brokerage charges(if applicable). You are able to pay him via Credit Card right at the door. If you cannot pay him on the spot he will not leave you the package. I am unsure if they will reschedule delivery, but I do know that you can then go to the depot and pay to pick it up.

I know that Fedex and Purolator operate in the same manner.

I don't know how it works if you use the postal sevice. Though you save quite a bit on brokerage with USPS/Canada Post (roughly 5.00$ for a package of any value), we have seen delivery times go as long as 3 weeks. Also, I do not know if they have resolved this, but I remember a few years back, we were not able to track packages that crossed the border.

[Stelio]

thanks novah you rock

such hard decisions ahead -.-