Tobacco taxes in Canada

[BudSpencer]

Would a fellow Canadian have some tips for me? So far, I've received about 5 Snus Shipments, 3 were not taxed at all and 2 were, one package (5 cans) for about 26$ and another 5 cans for about 56$? I don't think I'll pick it up at that price!

I've heard that the Quebec Province gets the lowest tobacco tax rate of all the provinces so this seems a bit too much for about 16$ worth of tobacco. Is there a "safe" amount of cans to order in your experience?

Is this always like that for all Canadians?

[snusgetter]

I do feel for your plight but it helps prove that the
US is not the only haven for misguided, ill-informed
(stupid as a brick o' mud) bureaucrats and politicos!!


WELCOME TO SNUSON
"SNUS does bring it ON!!"

[Snarfblat]

Hi and welcome. I've been dealing with this problem as well, I live in Alberta so I'll tell you what I think is correct here:

The classification is 2403-99-10-10 Tobacco - Snuff

The Federal Excise Duty on Manufactured Tobacco is $2.8925 per 50 grams (or fraction of 50 grams contained in a package)
There is no "Excise Tax" for Box 7 on CBSA Postal Import Form E14, it's rolled into "Duty"
(This info is in publication edm1-5-1-e.pdf, I forget where I found it somewhere on the govt website. )

The PST - TVP on import form E14 includes provincial tobacco tax. In Alberta there is no Provincial Sales Tax, but the tobacco tax is $0.30/gram.
(If you look at page 5 Appendix A on form d2-3-6-eng.pdf it says that Quebec has 7.5%PST and $0.103 per gram).
http://www.cbsa-asfc.gc.ca/publicati...2-3-6-eng.html


If you have a dispute about the charges (they often vary wildly, like they are pulling numbers out of their butts), you have 3 options, see here:
http://www.cbsa.gc.ca/import/postal-...ation-eng.html

1 - don't pick up the package, it gets sent back to the shipper
2 - request a reassessment
3 - request an adjustment

I would certainly never do #3 again. I've been in snail-mail correspondence since May, including copying/sending a dozen papers, and I am still waiting on some kind of resolution and refund.

I tried #2 just this week, but the ladies at the post office didn't seem to know what I was requesting, even after I printed off that page from the CBSA and read it to them. We'll see how that goes.

So here's an example for Alberta:

5 cans in package
Value $20
Weight = 5x24g = 120g

Duty: $2.8925 x3 = $8.68
GST: ($20 + $8.68) x 0.05 = $1.43 (yes indeed, you need to pay TAX on the DUTY)
PST (Alberta): 120g x 0.30 = $36
Handling Fee: $5

Total Tax: $51.11
Total Cost: $20 Snus + $5 Shipping + $51.11 tax = $76.11
Cost per tin: $76.11 / 5 = $15.22

I have been getting 3 tins per package from Sweden, and I think I'm probably getting nabbed more than 50% of the time, and of those, about 50% are incorrectly assessed for duty/taxes.

I used to get 3 tins/package from Northerner in the US, and I'm guessing that less than 50% of the packages were inspected, and of those about 50% were incorrectly assessed. This is now impossible due to PACT.

I have multiple packages of 5 cans coming from Sweden right now, and expect delivery within the coming weeks. If anyone has a formula for greater success in getting snus into Canada, I'm sure a lot of us would really love to hear it. Good luck eh!

[BudSpencer]

I do feel for your plight but it helps prove that the
US is not the only haven for misguided, ill-informed
(stupid as a brick o' mud) bureaucrats and politicos!!


WELCOME TO SNUSON
"SNUS does bring it ON!!"

Oh no... they're all the same it seems.

[BudSpencer]

Hi and welcome. I've been dealing with this problem as well, I live in Alberta so I'll tell you what I think is correct here:

The classification is 2403-99-10-10 Tobacco - Snuff

The Federal Excise Duty on Manufactured Tobacco is $2.8925 per 50 grams (or fraction of 50 grams contained in a package)
There is no "Excise Tax" for Box 7 on CBSA Postal Import Form E14, it's rolled into "Duty"
(This info is in publication edm1-5-1-e.pdf, I forget where I found it somewhere on the govt website. )

The PST - TVP on import form E14 includes provincial tobacco tax. In Alberta there is no Provincial Sales Tax, but the tobacco tax is $0.30/gram.
(If you look at page 5 Appendix A on form d2-3-6-eng.pdf it says that Quebec has 7.5%PST and $0.103 per gram).
http://www.cbsa-asfc.gc.ca/publicati...2-3-6-eng.html


If you have a dispute about the charges (they often vary wildly, like they are pulling numbers out of their butts), you have 3 options, see here:
http://www.cbsa.gc.ca/import/postal-...ation-eng.html

1 - don't pick up the package, it gets sent back to the shipper
2 - request a reassessment
3 - request an adjustment

I would certainly never do #3 again. I've been in snail-mail correspondence since May, including copying/sending a dozen papers, and I am still waiting on some kind of resolution and refund.

I tried #2 just this week, but the ladies at the post office didn't seem to know what I was requesting, even after I printed off that page from the CBSA and read it to them. We'll see how that goes.

So here's an example for Alberta:

5 cans in package
Value $20
Weight = 5x24g = 120g

Duty: $2.8925 x3 = $8.68
GST: ($20 + $8.68) x 0.05 = $1.43 (yes indeed, you need to pay TAX on the DUTY)
PST (Alberta): 120g x 0.30 = $36
Handling Fee: $5

Total Tax: $51.11
Total Cost: $20 Snus + $5 Shipping + $51.11 tax = $76.11
Cost per tin: $76.11 / 5 = $15.22

I have been getting 3 tins per package from Sweden, and I think I'm probably getting nabbed more than 50% of the time, and of those, about 50% are incorrectly assessed for duty/taxes.

I used to get 3 tins/package from Northerner in the US, and I'm guessing that less than 50% of the packages were inspected, and of those about 50% were incorrectly assessed. This is now impossible due to PACT.

I have multiple packages of 5 cans coming from Sweden right now, and expect delivery within the coming weeks. If anyone has a formula for greater success in getting snus into Canada, I'm sure a lot of us would really love to hear it. Good luck eh!

Thanks a lot for the infos Snarfblat. Out of curiosity, what do you personally do when they power-tax your 5 tins? Do you just leave the package at the post office and let them return it? Do you happen to know how long it takes for the Post office to send it back? I guess I could try to ask the Snus website CS to send them back to try again at my charge. As much as I love Snus, more than 15$ a tin is too much. The wife won't be happy to know I'm spending more on Snus than smokes.

[Snarfblat]

A tin of snus will last me for a couple of days at least, a pack of 20 smokes ($11) wasn't lasting me 2 full days, so it's still slightly cheaper than smoking for me assuming every package gets inspected.

I haven't ignored any packages to get them sent back. If the tax/duty is close to what it should be, I just pay it because I want the snus and don't need the hassle. I think it will work out OK in the long run.

One thing to note is that since the Excise duty is fully applied on fractions of 50 grams, it'd probably be better to go with 4 (96g) or 6 can shipments (144g) to save a buck or 2.

[BudSpencer]

You're right, its not that bad in the long run, it might be a bit more expensive for me since I've switched to a cheaper brand of cigarettes a while ago, but I feel Snus is a lot better for my health so its worth it. I also smoked about a pack in 2 days and a can of Snus will last me around 3 days. I think I was just shocked to find out what is the real tax rate on tobacco in Canada.

I'll just go pay the taxes at the post office with a tear running down my face, and get my 5 Lucky Strikes white then :-)

Thanks for the support

[snusgetter]

I'll just go pay the taxes at the post office with a tear running down my face, and get my 5 Lucky Strikes white then :-)

And there we were feeling sorry for you!!

At least you get to have BANNED IN THE USA product.

[Snarfblat]

I think the package that was charged $56 is probably a mistake. I don't know if GST is added on top of PST or vice versa, but I did some quick calculations for Quebec:

5 cans in package
Value $20
Weight = 5x24g = 120g

Duty: $2.8925 x3 = $8.68
PST+GST: ($20 + $8.68) x 0.125 = $3.59
Tobacco Tax (Quebec): 120g x 0.103 = $12.36
Handling Fee: $5

Total Tax: $29.63

Total Cost: $20 Snus + $5 Shipping + $29.63 = $54.63
Cost per tin: $54.63 / 5 = $10.92


So it looks like about $30 tax is the max you should be paying for 5 tins at 24g each (are you in Quebec?).

Another thing to note on E14 is "BOX 21 MESSAGE" - the ones that say "Opened" are usually close to correct, the ones that say "Not Opened" are usually outlandish. Also check "BOX 4 CLASSIFICATION" to make sure that it's "2403-99-10-10 Tobacco - Snuff", the CBSA gets this wrong too.

I would probably check those things, and if there is a mistake, send the package back to CBSA for a reassessment (no charge for this). Assuming you want the snus and are willing to pay the tax, the worst that can happen is that they correct their mistakes and you pay $29 instead of $56. Good luck!

[BudSpencer]

And there we were feeling sorry for you!!

At least you get to have BANNED IN THE USA product.

I should have kept that info then :-> I hope it doesn't get banned here too anytime soon, that's my favorite. In fact, I love the GROV SNUS about as much but the LS can looks better in my opinion. I didn't know it was banned in the US, I guess it has to do with the PACT act.

I sense that my sympathy level dropped a bit around here

[BudSpencer]

I think the package that was charged $56 is probably a mistake. I don't know if GST is added on top of PST or vice versa, but I did some quick calculations for Quebec:

5 cans in package
Value $20
Weight = 5x24g = 120g

Duty: $2.8925 x3 = $8.68
PST+GST: ($20 + $8.68) x 0.125 = $3.59
Tobacco Tax (Quebec): 120g x 0.103 = $12.36
Handling Fee: $5

Total Tax: $29.63

Total Cost: $20 Snus + $5 Shipping + $29.63 = $54.63
Cost per tin: $54.63 / 5 = $10.92


So it looks like about $30 tax is the max you should be paying for 5 tins at 24g each (are you in Quebec?).

Another thing to note on E14 is "BOX 21 MESSAGE" - the ones that say "Opened" are usually close to correct, the ones that say "Not Opened" are usually outlandish. Also check "BOX 4 CLASSIFICATION" to make sure that it's "2403-99-10-10 Tobacco - Snuff", the CBSA gets this wrong too.

I would probably check those things, and if there is a mistake, send the package back to CBSA for a reassessment (no charge for this). Assuming you want the snus and are willing to pay the tax, the worst that can happen is that they correct their mistakes and you pay $29 instead of $56. Good luck!

Thanks a lot, I'll try to have it reassessed. Its worth a try.

[tom502]

I am a big Bud Spencer fan.

[BudSpencer]

I am a big Bud Spencer fan.

I would go to the theater to see his movies with Terrence Hill when I was a kid in the 80's. I love his double slap Ah the endless fights were so entertaining.

[BudSpencer]

I've asked the post office clerk to have the package reassessed by the customs, I'll let you know the result.

[Snarfblat]

That's cool, good luck. Did you notice where the mistake was on the form?