Is there a tarrif when buysing goods from Canada?
The North American Free Trade Agreement (NAFTA) applies to goods originally manufactured in the US, Canada, or Mexico. Therefore, there should be no duty on; e.g., a US Gibson, a Mexican Fender, or Canadian Godin. Also, there is a "Mailman" provision in the US Customs Regulations that allows for goods up to $200 US Dollars value to be shipped free of duty, regardless of country of manufacture. However, once you exceed the $200 value, the entire amount becomes dutiable; e.g. a Korean Epiphone valued at $200 would be free of duty, but a $400 Japanese Jackson would be assessed duty on the entire $400. I don't have access to a Tariff Schedule, but the duty rates on musical instruments are fairly low-I believe between 2.5% to 7.5% of the value. Call you nearest U.S. Customs and Border Protection office to verify the rates.
I am not sure why Pete got charged for shipping that module. It is made in a non-NAFTA country, but Canada Border Service Agency (CBSA) also has a provision similar to the US "Mailman provision. Perhaps CBSA's "Mailman" Provision is not as generous as the US equivalent; e.g. only $100 Canadian Dollars. Therefore, with the exchange rate, if Pete delcared a value of $100 US Dollars, duty would be assessed on the entire amount of $115 Canadian dollars. It sounds to me like UPS may also have charged him "Customs Brokerage Fees" as well.