Guide to Buying a Sager in Canada

I thought it would be a good idea to clarify things for everyone in Canada on the different factors involved in bringing in a Sager or any other laptop into Canada. We’ve been reselling Sagers for 7 years now and seem to run into the same questions all the time, so I put together this little guide to help people better understand the process of importing a laptop. Please keep in mind that some of the numbers such as taxes and fees may change over time so please verify what they are at the time you are reading this.

1) Price and Exchange Rates

As a Canadian reseller of US notebooks the first biggest question we get is “ Why is the price higher in Canada?” The number one reason is the US to Canadian dollar exchange rates. The price isn’t actually higher. Normally the Canadian dollar isn’t worth as much as the US dollar. On top of that any financial institution will also charge anywhere between 2% and 5% more than the base exchange rate. If $1.00 US dollar is worth $1.15 Canadian dollars, then a $1000.00 US dollar laptop will be $1150.00 Canadian Dollars + anywhere between 20$-50$ more depending on your financial institution’s rate. If you are buying directly from the U.S. you should always check what rate your bank or credit card company is charging to know how much you will actually pay. Do not rely on the current market rate as you will always pay more.

2) Shipping and Brokerage Charges

The next biggest mystery seems to be shipping charges and brokerage fees. When you are bringing in a laptop from the US it has to clear Canadian Customs. The shipper usually takes care of this for you but charges you a brokerage fee based on the value of the item. The brokerage fee is neither a tax nor a duty imposed by the government. It is a fee charged by the shipper to clear the package through customs. Most expedited shipping methods will include the brokerage fees.

Here is a list of APPROXIMATE shipping fees, brokerage fees and shipping times to most major centers in Canada for a laptop coming directly from Sager:

UPS Ground – 5 to 7 business days: $45.00-$95.00 shipping + $65.00-$115.00 Brokerage
UPS 3 Day Express (2-4 business days): $145.00-$190.00 Includes Brokerage
UPS Expedited (1-2 Business days): $170.00-$200.00 Includes Brokerage

3) Taxes and Duties

To keep things simple let’s eliminate Duties from the equation. At the time of this post and at least for the 7 years prior to it, there are and have been NO DUTIES on laptops coming into Canada.

Ok now for the taxes. This is the most confusing part that feels more like mysticism than math.
The first thing to look at is where you are buying the laptop from, the US or Canada.

If you buy the laptop from the US:

If it’s a personal purchase you will be charged the provincial sales tax and the Federal sales tax from the shipping company when you receive it. This is because the shipping company already paid the taxes to Customs Canada at the time crossed the border with the package. If it’s a business purchase the same applies, but you will be charged just the Federal Tax.

If you buy the Notebook from a Canadian reseller, they should charge you the appropriate tax upon purchase. This will vary based on your location and the reseller’s location. The rule of thumb however is simple. You always pay the federal sales tax. If your province charges Provincial Sales Tax and the reseller is within the same province (or has an office within your province), then you will have to pay the Provincial Sales Tax. If your province charges Provincial Sales Tax and the reseller is not within your province, then you DO NOT have to pay the Provincial tax.

Here is a chart of the tax rates at the time of this post:

Ontario: Federal Tax only HST 13%
BC: Federal Tax only HST 12%
Quebec: Federal Tax GST 5% Provincial Tax QST 8.5%
Nova Scotia: Federal Tax only HST 15%
New Brunswick: Federal Tax only HST 13%
Newfoundland: Federal Tax only HST 13%
PEI: Federal Tax only HST 13%
Manitoba: Federal Tax GST 5% Provincial Tax PST 7%
Saskatchewan: Federal Tax GST 5% Provincial Tax PST 5%
Alberta: Federal Tax only GST 5%
Nunavut, Yukon, NWT: Federal Tax only GST 5%

That’s it for now! Hope I have clarified some things and if anyone has any more questions simply make a post or PM me and I’ll be glad to help.

 

Very nice summary with all the important and valid points covered.
I'm sure, this will be very helpful to many Canadian buyers.
+1 Rep!

 

Wow great post, I never heard of reflexnotebook ! I've got so many companies offering the same laptop to compare -.- decisions decisions

 

i have heard about reflexnotebook in some sites, do they accept international orders?

 

Is there a reseller in canada that do Trade-in discount on new system ??

 

Actually the company is called AET Solutions and we have been selling Sagers since 2004. Reflexnotebook is our new website as of June 2010. We were getting a lot of complaints about the old site so we gae it a fresh look.

We do accept international orders with some restrictions to payment methods to avoid fraud. PM me for details.

We actually offer trade-in discounts but on a case by case basis. PM me for details.

 

The damn HST is making it much harder to save PST for out-of-province buyers! Thank god for the separatists here in Quebec for delaying the HST

They're usually wrong on all issues but they're right on this one... although it's probably for the wrong reasons

 

If a canadian buys from an american retailer when do we pay taxes? is it when the mailman comes to the door? or will they leave the package at the nearest postal office to pay the difference?

Will they take creditcard at my doorstep or only cash ??

 

If you buy the laptop from a U.S. Reseller, the UPS delivery guy will show up with an invoice and ask for both the taxes and brokerage charges(if applicable). You are able to pay him via Credit Card right at the door. If you cannot pay him on the spot he will not leave you the package. I am unsure if they will reschedule delivery, but I do know that you can then go to the depot and pay to pick it up.

I know that Fedex and Purolator operate in the same manner.

I don't know how it works if you use the postal sevice. Though you save quite a bit on brokerage with USPS/Canada Post (roughly 5.00$ for a package of any value), we have seen delivery times go as long as 3 weeks. Also, I do not know if they have resolved this, but I remember a few years back, we were not able to track packages that crossed the border.

 

thanks novah you rock

such hard decisions ahead -.-

 

Thanks Stelio. and good luck with your decision.

 

Someone should sticky this thread.

 

I ordered mine from your shop today! I had a great customer service! Can't wait to have it! 8150-S1!

Thanks

Eric

 

Hi NovaH, I don't know if this is getting off-topic but do you intend to stock the Sager NP5170 (and/or NP5160) anytime in the near future?

Also in your original post, you explained that your prices reflect the exchange rate; since the start of 2011 the Canadian dollar has actually been better than the USD, do you anticipate that to eventually be reflected in your prices? Your current exchange rate seems to be around $0.971, which is lower than the CAD has been since September. Not that I'm going to haggle over 4c on a dollar, but I'm just curious.

 

Hi Koopmans,

We are currently prepping the configuration pages for the 5160/70. They should be up by end of day today or tomorrow.

As for the exchange rate, our last update was yesterday when we dropped it by 1.5% to 1.030CAD VS 1.00US. We update our rates once or twice a week based on our bank's rate and service charges. As I mentioned in my post, we do not and can not use the actual rate as when we trade money the bank always takes a few percentage points + fees. Also, please keep in mind that we are always negotiating with the bank for a better rate.

Thanks for the inquiries, Nova

 

Thanks Nova! I understand about the exchange rates, I just look forward to the day when Canadian prices on a whole will reflect the Canadian dollar's value .

A couple more quick questions for you. Do you have a physical store in Saint-Laurent there, that customers can enter and try out the models? Or is it only delivery-based? Also do you plan to get in the Asus N53SV-A1, and if so do you have an estimated price on it?

Thanks again, appreciate the help!

 

Anytime.

As a consumer who often buys from the US I fully understand your concerns. Believe me, If I could sell at par I would. I am sure it would improve my sales substantially

We do have a physical store, though we currently only have the NP7280 as a demo unit.

Our location is in the industrial sector and most of our clients are small to medium sized businesses, so we do not have a need for a full showroom (for now).

We are open to the public and you are welcome to come by and have a look at the 7280. We do carry the full line of Asus notebooks, so feel free to PM or Email me for pricing and details.

 

Hey NovaH,

I was wondering if we are able to completely remove some of the options when we order? I'm cannibalizing some parts (RAM and a SSD) and would prefer not to spend money on things I don't have to.

Thanks!

 

Hi Dnarg,

Anything is possible . Email or PM me with the model you are looking at and I will see what I can do.

Thanks, Nova

 

I can't seem to be able to PM or e-mail users specifically, so I just dropped an email to the address in your sig. But I was looking at the Sager NP8150, just for quick reference.

Thanks again!

 

^^ You need 6+ posts on the forum, AFAIK, to be able to PM others.

 

AVOID UPS AT ALL COSTS

I paid $49 fees on a $200 CPU purchase. Taxes were $10. The rest went to some fat cat.

 

I agree, UPS charges ridiculously high brokerage fees. Fedex charges a much more reasonable amount, I think less than half of that.

Which is why I always try to avoid UPS at all costs. I usually ask for Fedex if it has to be sent buy express courior.

 

From experience, brokerage fees are pretty standard across the board, but please correct me if I am wrong because it would be great to save people money if we can.

The express shipping methods to Canada always include the brokerage fees and we find them to be very consistent in delivery times. A Canadian reseller should also be able to take care of all the paperwork in a way that all taxes are paid upfront and there should be nothing to pay when the laptop arrives.

Of course it is up to the customer which carrier they choose to ship with.

 

Hey I have a quick question incase of a laptop return back to the states:
What happens to the taxes that you paid to the UPS guy at the door?
Do I file a claim with the tax agency or UPS to return those taxes?

 

In a case where you return the laptop, UPS will not give you back your taxes since they are a middle man. You are responsible for your claim, which will have to be made with Revenue Canada. I believe,it's on the form at the time that you file your taxes. I would ask an accountant to be 100% sure.

 

so no matter which reseller i buy from or which ever shipping company i choose i will end up having to pay a large fee?

 

Thanks Nova =]

@danny6o4
When the UPS guy comes to your door there will be a brokerage fee. For Ontario it is 13% of the price you paid to your reseller (Other provinces may have a different tax rate)

 

Not necessarily. Depending on the shipping method. If you choose Expedited/Express/Prority, the brokerage fees will be included and the only thing you have to pay is the taxes. You can still pay the taxes to your reseller right away , so that you won't need to worry about it when the system arrives.

Brokerage fee is not taxes. It is a separate fee a broker charges for handling the paperwork when your package is being processed @ Canada customs.

 

Whoops I knew that.

In a shipment of mine from the states I missed the first delivery from the UPS guy. He left a note that wrote Brokerage fees $15.50, I was stumped because I opted for a shipping option that covered the customs fee, but instead they just put the taxes in the same field. (I should have been more clear Sorry -.-)

 

does anyone know if Prostar is a good reseller?
im on their site and it seems like they are offering free ground shipping to canada. anyone know if that would include the brokerage fee as well?

 

Ground shipping doesn't include brokerage fees.

 

Most US resellers will never include brokerage fees when they ship ground.
Plus don't forget there will still be taxes to be paid also.

Mark

 

Hey, I'm interested in buying a laptop from this company.
I'm currently living in Toronto, Ontario. As my budget does not allow me to spend greater than CA$3000, I was wondering how much would the Sager NP8170 with a subtotal of CA$2,609.00 cost. (Taxes, Shipping and any other expenses involved.) Also the method of delivery I plan to use is Canada Standard.
If possible please tell me any way I can save money in this order, like promotions and such.

Thank you for taking your time to read and reply!

 

Hi Kris,

Ground shipping is roughly $40.00. You also need to add brokerage charges if you are shipping ground which is $80.00 and since you are in Ontario, you would need to add HST which is 13%.
The regular price total would come to roughly $3083.77

Please contact me via Private Message or email me(check my signature) and I will gladly go over some rebates with you.

 

Fortnax was able to get me my laptop shipped to me in Calgary via USPS instead of UPS. That will incur no brokerage fees as brokerage fees are charged by the private brokerages contracted by the couriers. If you ship via USPS, it is processed by the Canadian Border Services Agency. The actual shipping fee was lower than UPS as well.

Of course, that is a problem right now with Canada Post on strike but if you can wait until they get back to work, it might be cheaper for you.

Keep in mind both resellers actually get the notebook shipped from Sager in California to you so go with whomever gives you the best deal. Contact Fortnax and Reflex directly to see which one works out better for you and what discounts you might be able to get.

 

Though we do offer USPS as well and it is true that USPS only charges the 5$ customs clearance fee, we do not normally recommend this shipping method. We have often seen long delays in delivery times and packages being caught at the border. Once it took over 4 weeks for the laptop to arrive whereas with UPS the delivery times are more or less consistent.

We have also seen issues with USPS tracking since it is only offered on their more expensive shipping methods.

You are absolutely right Electric, with the strike I don't even think USPS is currently shipping to Canada.

 

I am considering buying the Sager NP5175 from reflex notebook. I live in Toronto, Ontario. The total came out to be $1,374.46 (in my cart), is that the final price I need to pay? or is there going to be another fee i have to pay when it gets here. Another thing is, I live in an apartment, and the shipping office takes care of parcels, does that affect anything?

 

There will be a brokerage fee to pay of $74.40, but we will handle everything for you upfront. When the package arrives there will be nothing to pay.
I do not see the shipping office being a problem since there won't be a collection at the time of delivery. Our shipment will require an adult signature however.

 

Does that mean you are covering the brokerage is included in their purchase price? Why not ship via a method that does not incur brokerage fees? Originally Aikimox could only offer me UPS as well until I convinced him otherwise I probably saved $75 and I recieved my laptop within a week.

 

Hi Electric, we do not cover brokerage. We calculate it after order placement and notify the customer before processing the order. We give the customer all options and ship via the method the customer chooses. We also offer different shipping discounts depending on the method chosen.

We have always offered USPS and I am sure you had no issues with USPS, however, we have had orders stuck at the border for 3 weeks with USPS, with no way of knowing what is going on. Yes eventually you receive the order, but it does happen and it is quite frustrating. I would rather let a professioanl broker do their job and clear my package quickly, but that is just my opinion.

That being said if the customer chooses USPS we tell them it's at their own risk and we do not guarantee delivery times.

I think the USPS vs UPS debate is a matter of personal opinion and personal situation. As long as people understand both options clearly they can make an informed decision and that's all that matters.

 

So, just so I understand this fully as I'm currently in the market, if I were to order a laptop:

• Shipping is calculated at time of purchase
• Taxes are calculated at the time of purchase
• Brokerage is calculated AFTER time of purchase
• I make a second payment to you to cover brokerage
• I pay nothing additional at the door

Any way to calculate the brokerage pre-purchase? I'm not a huge fan of hidden costs...

 

Hello, everythingisablur,

You are right about everything except we will only charge you once. We will send you a final total which will include the brokerage. After you accept the total we will then process the payment. You will pay nothing when the laptop arrrives.

You can calculate the brokerage very easily by checking the value of your configured unit before shipping and tax. Then check the following link for the brokerage fee which will apply on you configured unit:

UPS: Rates for Customs Clearance into Canada

 

So upon checking out of my shopping cart, I'm not paying for it immediately at that point?

Do I include the price of additional warranty coverage?

 

That's right. You will not be paying anything until the final total is confirmed with you.

Yes you do.

 

Thanks NovaH, that helps clear things up.

Now with respect to warranty coverage, while I'm on the subject, how does that work with customs, shippers, and brokerage? If I have the Reflex Hassle Free option, all shipping to you and back is prepaid. What if it has to go back to Sager?

If I don't have the Reflex option, I pay for shipping, but is that shipping to you, to Sager, or to both if the issue warrants it?

If it's shipped back to Sager, is there more of the UPS dog and pony show? Being warranty/repair coverage, I'm sure I wouldn't be re-taxed on it, but would I have to pay brokerage again?

 

Withe the Reflex Warranty, you do not have to pay shipping to anywhere. We will cover all shipping charges incurred should the laptop need to be returned to us or Sager.

If you do not take our warranty option you will have your warranty with Sager. We will still help setup the return for you and make sure you get the best possible service(advanced replacement, phone support, etc.).

There will be no brokerage to pay on warranty returns to Sager since it has no commercial value at that point(meaning it's not going back and forth as a sale).

 

So you can't ship it via Purolator or FedEx?

I might contact you Novah to get more details. I am still unsure on which reseller to buy my Sager from.

 

We can ship with any shipping method you like.

 

I am interested in buying a NP8130, but I have an old SSD and spare HDD, would I be able to purchase with no main drive, and with an empty caddy (no optical drive). Would that reduce the price at all for some savings?

Also what shipping option is the cheapest ~ no brokerage, ground cost, etc to Toronto?

Thanks for any help, I'm looking to buy a laptop ASAP as I am selling my old laptop next week and need one for data analysis