What's the most infuriating part of cross-border shopping?
These days, Canadian shoppers have their cardigans and chinos in a bunch.
Yes, now that U.S. retailer J. Crew has opened its first Canadian store and – gasp! – it’s charging more than it does in its U.S. locations, consumers north of the border are pissed.
But all preppy needling aside, the J. Crew kerfuffle is just the latest in a long line of injustices against the Canadian cross-border shopper.
That would be the cross-border shopper that, compared to his American counterpart, continues to get royally screwed.
Certainly, in the “Buy Canadian” era (or, wait, is that over already?), it’s tough to drum up sympathy for the Canuck shopper that flees to spend money in the U.S.
*Bing: What cross-border malls offer the best deals for Canadians?
Though let’s cut a little slack where it’s due. Almost across the board, the Canadian cross-border shopper is given the short end.
Consider:
1) Legally, Canadians can bring back zero dollars of U.S. merchandise if they’ve been abroad for less than 24 hours. Right now, there’s a bill before Congress that would allow Americans to bring back $1,000 worth of Canadian merchandise, duty-free, after just a few hours of cross-border shopping.
2) Even after 24 hours, Canadians can only immediately bring home $50 worth of goods.
3) The maximum exemption for Canadian cross-border shoppers (a puny $750 worth of merchandise after a weeklong stay in the U.S.) hasn’t changed in more than 15 years.
4) U.S. retailers operating in Canada can gouge local shoppers. “There are two reasons prices are higher in Canada,” Ambarish Chandra of the University of Toronto’s Rotman School of Management told the Star. “It is more expensive. Retailers here have to pay higher taxes and have somewhat higher costs. But a larger part of it is because they can get away with it.”
Indeed, the laundry list expands when you toss border wait times into the mix, but using the above, we ask: what is the worst part about cross-border shopping for Canadians?
By Jason Buckland, MSN Money
Posted by: Steve | Aug 29, 2021 2:26:25 PM
Think about this. In Canada, our country is very financially stable. The USA nearly defaulted. This is a direct result of the taxation here vs. there. Think about that next time you're wondering why you're gouged in Canada, and why the USA nearly defaulted. They don't collect enough tax revenue.
Posted by: Tess | Aug 29, 2021 2:30:27 PM
My husband and I enjoy going across the border once in a while. We find that even those from here that wouldn't speak to you under any circumstances, become very friendly when you meet up with them across the border. Odd how people relax and get real when they are on a vacation. We find that prices are good in the US, but you do have to know what you are buying. Some things that we looked at are close or more expensive than they are at home. I have to say that when Winnipeg gets a Golden Corral and more reasonable pricing there probably won't be the attraction to shop in the US that there is now. Even if one is going only to vacation and not shop, seriously, where can you enjoy a selection like Golden Corral for $10.79? We can't even go to McDonalds and eat for that price here. Fuel is cheaper in the US, food is cheaper, accomodations are cheaper, people are more friendly...why would one not want to spend time relaxing across the border?
Posted by: Jimmy | Aug 29, 2021 2:45:38 PM
Definetely, I dont know why the governement of canada keep RIPPED off it's citizen like that that's not fair, taking money from hard working people to give away to lazyAss people by over taxes it's citizen, because in the U.S everything is much easier, by exemple : i live in the U.S for 5 years when I was overthere i use to work for $11/hr and be able to afford whatever i want and now I moved to canada cause of my wife then I am working for $16/Hr and even struggle to pay for the basic expenses/bill, and the worst last year i worked for $25,000/ year and they took over $100 everyweek on my paycheck and when i go to filled my income tax they told me that I have to pay the governement $2000 back on top of all the money they already took every week on my paycheck.
before I use to say that canadian are really cheap compare to the U.S people, so I dont blame them I understand NOW.
HONESTLY CANADA IS A BEAUTIFULL COUNTRY BUT IT'S really SAD for us.
Posted by: Joe | Aug 29, 2021 3:14:55 PM
Taxes don't benefit anyone....
I travel all around the world...In Europe their taxes are buried in the price. You want to buy it ..here the price thank you. The same thing with their paycheck.. You negotiate your salary with your employer, you agree on the monthly amount. There are no additional taxes or deduction taken.
It is becoming ridiculous, i am bitching and i am taxed at the highest level...everytime i want to buy something, i get taxed on my earnings, i get taxed when i consume and since time is the most precious commodity, i go to the private sector to get services i am supposed to receive f or which i get taxed.
I believe in doing my share, but i have recently become incensed at the lack of services, the un-ending lines for health care services, outrageous politicians and their suite of handler and
the way we are sold the government inefficientcies.
It is unfortunate we live in the best and most beautifull country in the world...but we have politicians with no long term vision and care. they just want to get re-elected, not create waves with unions or government workers who live on another planet.
Posted by: Now I know more about the undeducated | Aug 29, 2021 3:49:43 PM
As I said before, it is your right as a Canadian to have freedom of speech and post your comments. However, it doesn't preclude you from being told your logic comes from lack of understanding. There are many reasons why our prices are more expensive such as mall rent, salaries, benefits, paid healthcare... being more expensive than our counterparts in the US.
The corporations in Canada do not make any more profit than the same ones or similar ones in the US. If that was the case, we would all invest in the Canadian Corporate Stocks. Do you think Walmart stores in the U.S. are less profitable because their products are sold at a discount to Canada's Walmart? What about McDonald's? Major
Think Tanks have done this very long exercise already. Go ahead and compare a U.S. Citizen vs. Canadian Citizen. Compare both pays after taxes for similar jobs and then see what you have left in your pockets to buy stuff. Before, you comment, find out first how much Americans pay for their Healthcare and then do the math. And if you still feel we are paying more, of course consider the lack of crime and great lifestyle.
There is no doubt U.S. items are less expensive because salaried workers make less. So if we cross-border, it will be cheaper for we Canadians. Just don't blame companies for gouging. Just blame yourselve for deciding to "backstand" your fellow Canadian by eliminating jobs because of your lack of reasoning
Posted by: Caroomehan | Aug 29, 2021 3:56:42 PM
If you think ordinary people are being gouged,wait till you become a SENIOR and then see what being gouged means. The Canadian Government now tell seniors what they can spend and what they can make for wages, otherwise if you make anymore or have any amount of money put away for retirement, the Canadian Government will be sure that you are taxed in the form of a percentage that increases each year after you turn your RRSP into your RRIF. When you do that at age 71, the Government now has you!!!! So don't worry about shopping PERIOD!!!! You will not have any money to SHOP WITH!!! Also the Government keeps close tabs on every seniors tax returns.
If you are making $2.00 above the poverty amount (the amount of money the Government says that you can live on) now your old age security WILL be clawed back. So NO SHOPPING either in the States or Canada. Seniors are taxed to the HILTS!!! And nothing can be done about it because the Government knows that they will all be dead before too long, so get all their savings before they go.Being a senior in Canada is not much fun. Wait till you get there, or make sure you have at least 20-30 million stashed away, even then the Government will get it!!!
Thank-you.
Posted by: LC | Aug 29, 2021 4:16:19 PM
Hahaha... the biggest thing is to remember, that buying kids clothing or baby wear, well I think we got across last time with about $300 worth of clothes duty free.
Got nabbed the time before for buying a 60oz of rum at $19.99 while the same bottle of Rum here is $54 or so.
It's disgusting how much more we have to pay for things.
Let alone the Hydro that we generate, we sell to the US and then they turn around and sell it back to us after marking it up 100% or more. It's disgraceful. Sure, we have free healthcare, but we pay for it with taxes out the rear end.
And Mr. Taxman Dalton McGuinty sure isn't making things easier for us at all.
Posted by: susan smith | Aug 29, 2021 4:26:30 PM
wow HEE HAW (the name says it all). Less people=smaller tax base= more taxes paid for roads, infrustructure etc. Stooooooopid
Posted by: Ron | Aug 29, 2021 5:00:30 PM
My wife and I cross border shop to Buffalo about every 3-4 weeks. We have a setup a US address at a fulfillment house in Niagara Falls where we have all our purchases shipped there. As new parent of twins, we purchase our formula in bulk from the manufacturer, Abbott and had them ship to the address. The cost of the ready to feed formula sells for $9.97/bottle at Walmart Canada versus $3.5 in the US. What annoys me most is Walmart in US sells them for about $3.70. Why such a hugh price difference ... especially from the same store?? Also, Walmart US do not tax on baby formula as well.
I always declare on my purchases at cdn customs and don't have any worries on being interrogated by custom officers. The taxes I pay is peanuts compared to the savings.
Posted by: Mon | Aug 29, 2021 5:12:14 PM
Again, all your arguements are valid, but I still would want to live and raise my family here in Canada where street are safer for my kids, education are fairly good, guality and standard of living are much much better then our neighbor in the south not to mention our health care is one of the best in the world. And oh, the people are much nicer here indeed, am sure you will all agree. All this if it means paying higher taxes on goods and services, then by all means I am more then willing. Maybe my views are shared by a lot who are still lining up to get into Canada making it their new homes.
Posted by: john may | Aug 29, 2021 5:52:25 PM
aug 29th
last week I bought a book at INDIGO North Vancouver
- the book was by a Canadian author
- the book was published by a Canadian publisher
- and ( miracle) the book was printed in Canada
The prices printed on the dust cover are
US$16.95
CA$19.25
When asked i was told that the prices is set by the publisher
???????
Posted by: Quinton | Aug 29, 2021 6:06:01 PM
Learn to use the system. Any post office is your free ticket to duty free shopping!!! Send an item through the U.S. postal system with Declared Value = Gift. No duty, No hassle.
Cheers.
Posted by: Trixie | Aug 29, 2021 7:13:53 PM
Mon, what planet are you living on?
The streets aren't any safer in Canada than in the USA. Cities aren't as safe, in both countries, small towns/country living is safer in both countries.
Quality of living is also NO better in Canada than in the USA.
Maybe you are an immigrant who is just happy to be out of the country you came from?
Right now I can't think of anything that is better in Canada than the USA, and I'm thinking hard.
Posted by: Berndog | Aug 29, 2021 8:43:35 PM
I absolutely LOVE shopping in the US. We go 2-3 times a year and save hundreds of dollars. The hotel rooms are even cheaper in the states, as well as the gasoline, so even to pay a couple hundred for rooms and gas it is still way cheaper to wait until I go to the states to purchase clothing, shoes & purses, etc. Shoes are about 1/2 the cost and you can buy name brand much cheaper than in Canada. I ususally buy the kid's clothes for the entire season when we go down as kids clothes are usually on sale, and the sales are very good when they have them. YES, I love my country and we at least have a health care system, and better wages, but our stores do rip us off!!! As for crossing the border, I always go way beyonnd my limit, but I just state how much I`ve spent and sometimes have to go pay the taxes - big deal!! The customs officers always try to give you the best deal as somethings higher in duty than others.
Posted by: Mike | Aug 29, 2021 9:07:53 PM
It's sickening how bad we get raped here in Canada on the costs of goods and services.
I just went to new your state for some camping, here are some samples:
1. Camp site in US $19...surcharge for being out of state + $5 = $24...same site at a provincial park $40.50 (non Electrical)
2. Need inner and outer tie rods for my Honda Pilot. Honda dealer here in Canada $302...Honda Dealer in Buffalo. $165. 8% state tax extra, 13$ provincial tax extra. Also need a timing belt job coming up soon, checked pricing. Buffalo $650, Cambridge $985.
3. Purchased pair of Nike air Shox at an outlet store...$85..in Canada $165
4. Sauasages for the camp fire..my favorite ones $2.59, purchased the same ones at Zehrs a few week later here in Canada$4.59
The list goes on and on...SICKENING
Now, don't get me wrong, I agree thing should cost more here wbecasue it really does cost more to do business in Canada with higher wages, taxes, energy cost, insurance ect...ect..
15-25% more is fair but sometimes up to 100% more is Fvcking outrageous.
Posted by: Parksy | Aug 29, 2021 9:47:34 PM
There was a comment from "Joe" about what you can and can't bring back to Canada and how much. Basically, you can bring back whatever you want, you just have to be prepared to pay HST and potentially duty. If it is a taxable item in Canada, you pay HST. Whether it is taxable in the US has no bearing on what you pay when you bring it back to Canada. He seemed to interchange the terms "Tax" and "Duty". They are very different things and applied differently. A tax can be charged on goods and services (example HST). Duty is a charge that is applied at different rates depending on the type of good and its origin. Canada has a free trade agreement with Mexico and the US, so we don't pay DUTY on items manufactured there. However, when you buy that item at Walmart, you still pay the applicable sales taxes. Most border people won't worry about charging duty as its more of a process and government workers are steriotypically adverse to work. You only pay duty on items that were manufactured in a country that doesn't have a free trade agreement with Canada. If you bring back $600 worth of mixed goods, you may get through with no problem but you also may have to pay the 13% HST (in Ontario). It's possible, although in my experiences, very unlikely you'd have to pay duty. If you bring back a single item worth $600 manufactured in a country that doesn't have a deal with Canada, you'd better be prepared to pay both HST and Duty. Not as much work for our border tax collectors!
Posted by: Mon | Aug 29, 2021 9:58:11 PM
Trixie, we are all immigrants just to remind you. History? Well if your thinking hard I would suggest do some research on the crime rate comparision between Seattle and Vancouver for example. This alone I believe will tell you that I know I am living here on earth and in touch with reality. Don't know about you. Good luck.
Posted by: bernie brockway | Aug 29, 2021 10:01:09 PM
Two years ago while on a vist to Bellingham Wash i went into a hard liquer store where i noticed that Grey Goose Vodka was selling at $26 a bottle here in BC its was selling at $52 a bottle when i asked the manager why it was double the price in BC he said that was becouse i live in Canada i said i thought there was a free trade agreement between US and Canada , they fact is that i dont even drink vodka but i was anoyed that we in Canada are paying double the price, i belive that the drink is made in Canada. Its lucky that i dont live in the states as i sure that the house would be full of booze.
Posted by: Grant Hughes | Aug 29, 2021 10:32:24 PM
Every week my family goes to Bellingham to buy our groceries, clothing, etc and we never pay any duties or taxes. We declare the groceries and, because there are 3 to 5 of us in our van, the border guard motions us through and tells us to have a good day. We never declare the clothing and other stuff because we wear it or have it hidden in secret compartments. Since we are laughing, smiling and seem to be honest, the border guard never suspects us of smuggling.
Posted by: dave | Aug 29, 2021 10:34:42 PM
Donna make sue that cheaper fireplace has a cga gas sticker on it or your home insurance may be void and deb does that mean you charge the same for cotton candy as they do in the U.S