Tariffs on David Mary Customs?

[David Mary]

UPDATE: Upon further research, if I switch to Fedex, I don't have to prepay tariffs. I can also include a certificate of origin for my goods declaring them as originating in Canada, and thus being exempted from tariffs under the CUSMA. However, customers may still receive a bill after the fact from Fedex for brokerage fees, and I cannot say for sure how much that would be. But I can say that one package I sent to the USA through FedEx which had 20 knives in it the receiver got a bill for $40 a few weeks later.

Also there is no guarantee that US Customs will not deny the application for preferential tariff treatment, in which case the receiver would still be required to pay a duty, and/or tariff before receiving the package. However, according to my research this is not a common occurrence as long as the Certification of Origin paperwork is valid and complete. As such, this appears to be the best path forward to minimize added costs for those I serve in the USA, at least until the CUSMA is up for revision in July 2026.

So for now, instead of adding a "prepayed tariff" line in my invoices, I will add a "fedex shipping" line, which is going to be less than what the prepaid tariff would have been.

Spoiler: Archived

Just wondering if your prices would be affected and how.

Going forward, my prices will need to include the tariffs that the US government requires to be collected on all goods entering the USA from Canada. I already price my work about as competitively as I can, so an increase in what customers from the USA pay is unfortunately unavoidable at this time.

I don't even know if this tariff will be applied to your products . Or how it works in practice .

Below is a screenshot of the "create shipment" process on Canada Post's website. As you can see, tariffs will be collected from the sender before the package is allowed to enter the USA, in fact before Canada Post will even create the shipment.





So for now, this means there will be an additional line item for "Tariffs" in my invoices.

Hopefully the whole issue will disappear .

Agreed.

 

[David Mary]

Please see the above update.

 

[David Mary]

Another update: Looks like my research was incomplete. My previous understanding was that when raw materials having a specific HS Code are transformed into something with a different HS Code, that tariff treatment would be according to the new HS Code of the product. Having shipped two packages with FedEx so far, I have received emails from FedEx logistics asking for further information, specifically about the steel that the product was made from.

Dear Client,

As part of our compliance with international shipping regulations and FedEx documentation standards, we are required to declare the Country of Smelt and Pour for all applicable metal components included in your shipment.
Please find below the relevant details:

Country of Smelt and Pour (Steel) / Smelt and Cast (Aluminum)
When shipping goods containing steel or aluminum, U.S. Customs and Border Protection (CBP) requires importers to declare the origin of the metal processing. This is part of compliance with Section 232 regulations, which impose duties based on the country of origin for these materials.
Steel Requirements
•     Required Info: Country of melt and pour
•     Definition:
o     Melt: Where the raw steel was first melted from ore or scrap.
o     Pour: Where the molten steel was cast into its initial shape.
•     Why It Matters: Steel melted and poured outside the U.S., Canada, or Mexico may be subject to 25% duties under Section 232.

Aluminum Requirements
•     Required Info: Country of smelt and cast
•     Definition:
o     Smelt: Where the aluminum was refined from bauxite or scrap.
o     Cast: Where the aluminum was shaped into ingots or other forms.

Best regards,
XXXX XXXX


XXXX XXXX | FedEx Logistics |

I am going to complete the information they are requesting and update again here once I know the results of the process.

 

[David Mary]

TLDR: At this time in my research it appears the tariffs will be only on the value of the steel (if the steel originated outside of the USA, like AEB-L for example) and not the value of the entire knife.