🔥🇨🇦🇺🇸🚚 [URGENT] Canada USA Import/Export Trade Customs Tax Consultant – Upwork


** The Need **
Hello! We are seeking advice on whether or not we can be exempt from sales tax from our new Canadian manufacturer. We have one immediate need as we are in a dispute.

We are looking for assistance in long-term consulting as well for all of our relationships with vendors in 15+ states.

** The Company **
Packageworks.com. We design custom, made to order product packaging, and once designs are finalized, we drop ship the finished product from actual manufacturers, to our clients’ warehouses. The clients pay us for the packaging, and we pay our vendors (less our markup). We currently actively have packaging manufactured in the USA + Canada. We are a NY-Based, Delaware incorporated C-Corp, taxed as an S Corp.

** Hiring Schedule **
Ideally by Tuesday, Jan 30

** Immediate Concern **
We produced 100k envelopes with our new manufacturer in Toronto, Canada. These envelopes were produced for our client, a phone case online retailer, in British Colombia. We shipped 20k envelopes to the manufacturer’s US location in Indiana since this portion of the order was being routed to our client’s 3PL warehouse in Utah, and we didn’t want to deal with the border cross ourselves. The rest of the shipment, 80k envelopes, went to the client’s own warehouse in BC. The manufacturer oversaw and managed both of these shipments using their freight broker.

The manufacturer issued invoices to us with GST and PSTBC, which ended up being a lot…5% and 7%, respectively, totaling 12%, and we were not expecting this. We typically work with USA manufacturers, show them resale certificates, and thus have never paid tax. However, they said that this is required for all Canadian shipments.

** Questions**
1. On all Canada to Canada shipments, are all parties, whether a brand like our client, or a distributor/broker like PackageWorks, etc, are we all supposed to pay 5% + 7% on all goods? And thus if so, we should just pass this on our invoice to our client? This would not be ideal because we would have to probably put the tax on our cost at the manufacturer, which would expose our margin to our customer.

2. If we were to have produced all of these in the USA, is there some tax or some fees for shipping them into Canada? For example, for the last 2 years or so, we used to produce all of these exact same envelopes in Chicago, and still shipped a portion to Utah, and then a portion of them, the client used to pick up from our Chicago warehouse, and then organize the freight to bring them to their Canada location themselves. However, we had some issues with the Chicago manufacturer, so we moved production for the first time to Canada. Anyways, I’m not sure if the client paid tax/fees/tariffs/etc bringing them into Canada for the past 2 years… I’d rather not ask them, at least, yet, to not look like a novice.

Hourly Range: $25.00-$200.00

Posted On: January 26, 2024 23:28 UTC
Category: Accounting
Skills:Sales Tax, Tax Law, International Taxation, Goods & Services Tax, Tax Exemption Submission, Import Procedure, Freight Forwarding, Tariff Classification, Compliance Consultation, Logistics Management

Skills: Sales Tax, Tax Law, International Taxation, Goods & Services Tax, Tax Exemption Submission, Import Procedure, Freight Forwarding, Tariff Classification, Compliance Consultation, Logistics Management
Country: United States

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