Tips on cross-border shopping

With the loonie ahead of the US dollar lots of Canadians are heading south or making on-line purchases to get ready for the holidays. But before you shop - make sure you have all the information you need to make the best out of our stronger dollar. You need to consider three different parts of the purchase. Once you have calculated the cost of each part of the purchase and you are still ahead – happy shopping!

Tip #1: Compare prices.
If you are purchasing an item that is readily available at home understand what the price of the item is at home before you cross the border. Then compare the cost of the item in the US in Canadian dollars and make sure you are saving enough.

Tip #2: Check the exchange rate.
The exchange rate that you hear on the news is not the exchange rate you will pay – typically a bank or merchant will discount the rate to cover their costs.

• If you are using Canadian cash understand the exchange rate the merchant is giving. If the rate is not high enough your savings may be gone.
• If you are using a credit card make sure you find out the exchange rate your credit card company is going to give you on your transactions.
• If you are using the internet – consider using a service like Pay-Pal (www.paypal.com) to pay for your purchases. Often their exchange rate is better than what a bank will give.

Tip #3: Crossing the border.
Whether you are shopping in person, from a catalogue or on-line the items you purchase in the US need to clear the US – Canadian border and there is an expense associated with this:

• For same day shopping excursions there is no personal exemption so every purchase is processed for tax and possible duties - at the very least shoppers will need to pay GST.
• Goods made outside of North America may also have additional duties applied.
• If you are shopping from a catalogue or on-line there are shipping costs and usually a charge to have the shipping company clear the border on your behalf.

A final note - be prepared for delays. If shopping in person be prepared for significant wait times and line-ups to clear customs at the border. Recently on weekends some crossings have reported a 3 hour delay. If you can go on your shopping trip during the week you may have a faster processing time. Canada Post and Customs have also reported a significant delay in packages coming through the mail system due to the increase in volumes. Both agencies have suggested that if shopping on-line or through catalogues make sure you make your purchases early so they arrive for the holidays.