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View Full Version : would setting up a small non-profit importing business be possible?


RavageX-9
11-30-2007, 09:14 PM
(just a note: I divide my posts into paragraphs, each with a different theme/sub-topic, so it's easy to skim over)

I've been thinking about this for a while, but I don't have much experience, so I have no idea how to even figure out how this would work.

What I'd like is for Toronto and Ottawa to have shared or ideally their own importing spots in the USA.

This would both reduce shipping costs from origins within the USA, as well as eliminate taxes AND "customs inspection" fees (especially bad with UPS and I think FedEx, who basically over-charge you for it "in order to get it through faster") You could be saving $15 taxes and $5 in shipping for a $100 item like a Music Label Soundwave.

What I'm stuck with are how to find the bottom-line costs for someone to receive and store the packages on the USA side. It SHOULD be a residential address, as "business" addresses are a real hassle. I'm not sure if that causes problems.
The thing is... if it's not a business, but an individual, how do you determine what you pay them? And how do you determine how to offer a price that will be enough to attract such a person without it being too shady? I guess ideally you want a fellow fan.

I do know that importing CAN be cheap. I've even figured out how to do it 100% legally. (not even a minor infraction) The technical legal point is that to avoid taxes while importing you must take your own items across the border. You can't take items for other people. (I'm sure if you buy a gift for someone it's fine, but if that 2nd person is paying for the item it's not fine.) Now if you want it to follow that rule, all you do is get a van, and get all your "customers" to take a road-trip across the border to personally take their items. Slightly inconvenient, slightly more expensive, but time/convenience is money, and I've been inconveniencing myself for years to save money like this.

There are other details to work out like how to determine no one abuses the system. You don't want scalpers burdening the system with inflated piles of stuff that they lie about the value of, and then the border decides they want to check everyone's receipts from now on to make sure no one's over the limit. (maybe they'll do that anyways with such a large group that looks somewhat like a business with lots of merchandise)

Oh, some of the things I've figured out but not all the details of are things like sellers (either eBay or large online stores) who will not take payment from Canada. It's apparently completely legal for a Canadian to have a US bank account, with a US address. I want to find out if it's possible to get one without taking the trip personally to the USA. Someone told me my TD Bank might have such a service.

Please feel free to add what you know about any of the legalities or how to do any of the steps here.

RedOktobre
11-30-2007, 11:28 PM
To be "non-profit", you usually have to be a registered charity. A charity doesn't pay taxes.

If you don't want to go this route, then you have to form a "co-operative".

In the end, I feel that the amount of administrative paperwork would make your venture not worthwhile.

Importing stuff across the border is a headache for businesses. Many small to medium sized business hire a "customs broker" to deal with duty, regulations, and customs when you import things across any border.

RavageX-9
11-30-2007, 11:34 PM
To be "non-profit", you usually have to be a registered charity. A charity doesn't pay taxes.

If you don't want to go this route, then you have to form a "co-operative".

In the end, I feel that the amount of administrative paperwork would make your venture not worthwhile.

Importing stuff across the border is a headache for businesses. Many small to medium sized business hire a "customs broker" to deal with duty, regulations, and customs when you import things across any border.
Ok... what if it's not a business? Is that what a co-op would be? And that would still require too much "administrative paperwork"?
Seriously, I go through zero paperwork when I cross the border. Why is there suddenly a problem when half a dozen people do it in the same vehicle?

RedOktobre
12-01-2007, 01:00 AM
If it's not a business, then you have to declare it at the border and pay duty, PST, and GST.

http://www.cbsa-asfc.gc.ca/new-neuf/advisory-avis/2007-09-28-eng.html

If you travel outside Canada for over 24 hours, you can bring back certain amount of goods tax-free.

RavageX-9
12-01-2007, 08:27 AM
If it's not a business, then you have to declare it at the border and pay duty, PST, and GST.

http://www.cbsa-asfc.gc.ca/new-neuf/advisory-avis/2007-09-28-eng.html

If you travel outside Canada for over 24 hours, you can bring back certain amount of goods tax-free.
Right. I just wanted to know if it was somehow different than when I normally do it.

So a non-profit business could import ... how much tax free? but the paperwork is so much that people usually hire someone to handle it for them. and that it's expensive. Do you need them constantly, or just a one-time thing?

and if it wasn't a business, we would be limited to how much each person could bring across the border based on the length of the visit.
ah. I'm so used to going there when I have somewhere to go, that I didn't realize it might not be as easy for an importing road-trip. to stay there 24 hours for up to $50 Canadian worth of stuff, or 48 hours for $400. 7 days is $750.
That looks a little bit less convenient. I wonder if enough people would be interested in that low-budget method.

I still don't know how to find someone to receive packages, and how much it would cost. and would a non-profit business be able to receive packages to a residential address, or is that "fraud"?

you know... my mom works in Revenue Canada. :> I bet she could tell me how a non-profit organization like this could work. she's a librarian, not a lawyer, but who knows...

RedOktobre
12-01-2007, 02:41 PM
A non-profit business may not have to pay income taxes, but they still may have to pay duty, GST, and PST when they bring things across the border.