New compulsory "Import Fees" from USA to Canada

[what-a-guy-2002]

Member since 2010 (632 100% feedback). I have been experiencing the new compulsory "import fees" policy on items from USA. Surprising! I am disappointed with this policy. It is a negative one on many levels notwithstanding for USA and eBay revenues, as many like myself will now be sure to be motivated to resource items outside of USA, and outside of eBay.

Also disappointing is a story I was told that USPS recently (January 28, 2013) redefined Canada from being an 'intermediary' to an 'international' country, and therefore shipping fees from the USA to Canada have risen 80%!

Must be people in rooms in the USA racking their brains on how to support the USA economy versus just printing money.

[exoteeth]

Well I had a post deleted today and the board was not down.

[marnotom!]

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@exoteeth wrote:

Well I had a post deleted today and the board was not down.

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If you received a notice from Lithium/eBay that your post was deleted and why, then, yes, it was truly deleted. If not, I'd put it down to a glitch.

Pjcdn2005 is referring to a post I made in response to Pimpbike which has disappeared too, BTW.

[exoteeth]

Oops my bad.  That post was on another thread.  I tried editing my above post but it was too late.  (Wish the window was a little greater)

[credite-rebus]

It is not compulsory. Seller's sign up for the Global Shipping Program voluntarily, but once signed up a buyer cannot buy their item without using the GSP. Tell your seller what is happening in relationship to Canadian buyers, and they will often sell it outside this system. It is done using a company called Pitney Bowes, who is not affiliated with eBay and who are independent contractors. Since many items I buy have not been charged customs, and knowing ahead of time which are exempt or will slip through because of lack of manpower, isn't possible, I tell all sellers of items I am interested in that I am not willing to buy while they are using GSP. Most U.S. sellers are not aware of the issues Canadians have with this program, so tell them and maybe this will stop. If enough Canadians tell sellers they won't buy GSP items, they will start complaining to eBay. I don't trust the numbers on this program either. I looked at two identical DVD/VHS players and one listed an import fee of $13.16 and one listed the fee as $26.43. Since both would be going to the same address, and are the same item, the fee should be the same for both.

[marnotom!]

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@credite-rebus wrote:

I don't trust the numbers on this program either. I looked at two identical DVD/VHS players and one listed an import fee of $13.16 and one listed the fee as $26.43. Since both would be going to the same address, and are the same item, the fee should be the same for both.

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But were they selling for the same price?  Remember, most of the Import Charges go towards taxes.

I found two identical DVD/VHS players with about a dollar's difference in price and the slight difference in Import Charges reflected that.

[dtgspirit]

This USA GLOBAL SHIPPING PROGRAM and its prohibitive IMPORT FEE added to an already expensive SHIPPING FEE IS OBSCENE!

As a CANADIAN EBAY BUYER----I will be changing my searches to look for items ANYWHERE EXCEPT THE USA from now on!

GOODBYE AND GOOD RIDDANCE USA SELLERS!

[dtgspirit]

This USA GLOBAL SHIPPING PROGRAM and its prohibitive IMPORT FEE added to an already expensive SHIPPING FEE IS OBSCENE!

As a CANADIAN EBAY BUYER----I will be changing my searches to look for items ANYWHERE EXCEPT THE USA from now on!

GOODBYE AND GOOD RIDDANCE USA SELLERS!

[pierrelebel]

"As a CANADIAN EBAY BUYER----I will be changing my searches to look for items ANYWHERE EXCEPT THE USA from now on!"

Most Canadian buyers agree with you.  In most instances, GSP is not in the interest of Canadian buyers. However, do not give up on all American sellers so quickly.  Many do not use GSP.

Check the listings of interest to you using the "list" view.  Listings where the seller offers GSP will show "Customs services and international tracking provided" on the search page. 

If you do not see "Customs services and international tracking provided" it means the seller does not offer GSP on this listing.

[chimera148]

Trouble is the "list" view is not always accurate either.

You would need to open the listing to see if the GSP is used or not.

Shown below are 2 different circumstances, one where the GSP is in the list view with USPS in the listing.

The other posts where the GSP is not in the list view, but in the listing.

[i*m-still-here]

That makes sense.................... the part of the post that said that buyers are opted in unless they opt out.

I've emailed a number of sellers who have told me that they did not list via the GSP even though the items are listed with that mode of shipping.

Some also have the impression that buyers can opt in or out at checkout.

This thread is titled New compulsory import fees and it's almost half a  year old now................. 

However,  the problems with the GSP are only getting worse, not better.

[i*m-still-here]

Ooops.......... better explain myself before someone corrects me. Read the post again and what i'm saying is that the thread is almost a year old.
I know the GSP is older. :).

[dtgspirit]

Thank you Pierrelebel--and others---for your helpful feedback on my postings! 

Please Read Below --- a copy of my email to a US seller using GLOBAL PRIORITY shipping!

< start>

Hello to you again---from Canada!

I regret that I am needing to pass on your auction, as I remain concerned about the GLOBAL PRIORITY shipping --- with its added IMPORT FEE.

I checked the discussion boards, and found the following discussion thread:

The eBay Canada Community : Discussion Boards : Buying and Selling on eBay : Buyer Central : New compulsory "Import Fees" from USA to Canada

Regrettably, users posting in this thread seem to suggest that non-USA BUYERS may be required to pay this extra IMPORT FEE, when purchasing items from USA SELLERS who choose to use GLOBAL PRIORITY shipping.

Yet, in previous years, as a Canadian non-USA BUYER, I have never had to pay an import fee before, when buying from sellers who do not choose to use this GLOBAL PRIORITY shipping method.

I hope this information is helpful to you.   Please review the community threads about this, to learn why non-USA bidders may be hesitating to participate in your auctions.

Blessings to you---from Canada!

<end>

Thank you Pierrelebel--and others---for your helpful feedback on my postings!  Blessings to you!

[karbonb]

Over the years, I too have consistently received hundreds of parcels from the USA via eBay that I have only very rarely had to pay any import fees on. On auctions sometimes worth up to $600... computers, parts, cell phones, clothes... especially if the item was owned and auctioned by a private citizen (ie not an eBay store or someone who does this a  business - people who do have to claim and report taxes on sold goods, thus must charge us for them). And neither Canada Customs, nor Canada Post, has ever said squat about it. Sometimes parcels have been opened and inspected, but that's about it. I have never had a real problem with parcels arriving in good time (3 - 8 days) from any part of the USA only using basic shipping, unless either the Seller didn't actually send it, or accidentally sent it to the wrong address. I've been told by Sellers often that I get parcels from them to Canada (Toronto) faster then the ones they ship with their own country.

So, yes, I think this is a money grab by Pitney-Bowes, and I wonder if Canada Customs is even getting any of these "import fees". It looks like P-B are imposing their own brokerage fees under the guise of Canada Custom Import fees. First of all, they are charging "import fees" on auction items that are costing less than $20 (which the Canadian Customs say are duty free - see link below for specifics). Also, Canada Customs only charge a flat (processing) fee of $5.00 for items mailed into Canada to private citizens - and that is ONLY if any duties are already being charged for the parcel. The Canada Post fee of $9.95 people refer to doesn't seem really applicable in most cases - at least, I have never been charged it on parcels even worth over $100 that I've had to pay import duties on from eBay (like used cellphones or computers). I've only been charged for the $5.00 flat Custom's fee, and the specific taxes required for Ontario.

Please note: They cannot charge you import fees or taxes on the actual shipping cost itself. Applicable taxes for the actual shipping are already paid for when the postage is paid for, so that would charging those taxes twice. Therefore, any taxes required are based upon what you paid for the item only!

I have been either refusing to bid on auctions that use this shipping scheme, or have been messaging Sellers, explaining to them what has been happening, and requesting a shipping cost that ignores this program - which a few Sellers have been very happy to do, because as it turns out, the majority of this money has not been going to the Sellers themselves. They are being reimbursed by P-B for only a very basic shipping cost, and over half of the rest of the fees, sometimes two-thirds (not just the so-called "import" charges) have been going to Pitney-Bowes and possibly eBay itself. Most of the Sellers didn't even know they had been shoved into this program - or how they could opt out. They didn't necessarily want it, or found it useful. They still had to package the item and drive to a post office and wait in line to ship it out. It doesn't look like anyone from Pitney-Bowes was showing up at their place and offering to do it for them.

I recommend Canadian eBayers (and USA Sellers) call Canada Customs directly and ask them if they have been getting large amounts of import duties from Pitney-Bowes or eBay over the past ten months or so. Tell them that eBay and this shipping company has charging us Canadians "import" fees on non-taxable items worth less than $20 (Canadian). Ask them if this is legal. I've called them in the past with shipping questions and the turnover has been pretty good - haven't had to wait very long. I've included below links for Canada Customs and links to their import tariffs and to some other discussions I've found that might be helpful.

Thanks for starting discussions on this - I thought I was the only one who found it outrageous.

Border Information Service:
http://www.cbsa-asfc.gc.ca/contact/bis-sif-eng.html

Importing by Mail - Goods and services tax (GST)
http://www.cbsa-asfc.gc.ca/import/postal-postale/gst-tps-eng.html

Any item mailed to Canada is potentially subject to duty and taxes. Although the GST was designed as a tax on the consumption of goods and services within Canada, imported goods are also subject to the GST because this ensures fair tax treatment for domestic products. Therefore, unless specifically exempted, you must pay the 5% GST on items you import into Canada by mail.

If you live in New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario or British Columbia, please see the Harmonized sales tax (HST) page.

You don’t have to pay duty or the GST on the following goods that are imported into Canada by mail:

• Tips and tools

  Postal Imports Remission Order
  Memorandum D8-2-2

• goods worth CAN$20 or less; and
• gifts from family members or friends who live abroad when the gift is worth CAN$60 or less.

Foreign-registered publishers outside Canada are allowed to pre-collect the GST on printed matter only, such as books, newspapers, magazines and periodicals.

Non-printed items imported into Canada by mail from foreign-registered publishers are subject to the GST upon import.

Duty, Taxes and Handling Fees on Items Mailed to You
http://www.cbsa-asfc.gc.ca/import/postal-postale/duty-droits-eng.html

Importing Non-Commercial Goods by Mail
http://cbsa-asfc.gc.ca/publications/pub/bsf5092-eng.html

International Shipping Into Canada (Customs, Duties, Brokerage and Taxes!)
http://doesitblog.wordpress.com/2010/01/12/international-shipping-into-canada/

Canada Customs Duties
http://canadaonline.about.com/cs/customs/a/shopshipcanada_2.htm

Because of the North American Free Trade Agreement (NAFTA), Canadians do not have to pay duty on most American and Mexican manufactured items. But be careful. Just because you buy an item from a U.S. store does not mean it was made in the United States. It's quite possible it was imported into the United States first and, if so, you may be charged duty when it comes into Canada. So check before you buy and if possible get something in writing from the e-store in case the Canada Customs people decide to be particular.

Duties on goods vary widely, depending on the product and the country in which it was manufactured. Other charges and duties may also apply depending on the item, for example excise duty and excise tax on luxury items such as jewelry. In general, on goods ordered from a foreign retailer there is no assessment unless Canada Customs can collect at least $1.00 in duties and taxes. If you have specific questions about Canada customs and duties, please contact a Canada Border Services Agency office or the Border Information Service.

[dtgspirit]

What can I say --- Great Post!

Kudos to you Sir, for this helpful information!

[pierrelebel]

"So, yes, I think this is a money grab by Pitney-Bowes, and I wonder if Canada Customs is even getting any of these "import fees". It looks like P-B are imposing their own brokerage fees under the guise of Canada Custom Import fees. First of all, they are charging "import fees" on auction items that are costing less than $20 (which the Canadian Customs say are duty free - see link below for specifics). Also, Canada Customs only charge a flat (processing) fee of $5.00 for items mailed into Canada to private citizens - and that is ONLY if any duties are already being charged for the parcel. The Canada Post fee of $9.95 people refer to doesn't seem really applicable in most cases - at least, I have never been charged it on parcels even worth over $100 that I've had to pay import duties on from eBay (like used cellphones or computers). I've only been charged for the $5.00 flat Custom's fee, and the specific taxes required for Ontario."

While your post contains lots of useful information, I think it is important to correct a few comments.

1) Canada Post charges a flat $9.95 (not $5.00 by Canada Customs) for all parcels requiring collection of taxes, levied by Canada Customs

2) "import fees" does NOT mean duty and taxes only.  "import fees" include GST/HST on taxable goods valued at more than $20 but also include a fee payable to Pitney Bowes.  From many buyers who have posted satisfactory results of using GSP, the fees appear to be in the $4 to $5 area for small transactions.

3) You seem to question the integrity of Pitney Bowes remitting the taxes collected to the Canadian government.  I do not know what evidence you may have to question the integrity of a $3 billion company recognized worldwide for providing that service to tax collection government of most industrialized countries.

"Applicable taxes for the actual shipping are already paid for when the postage is paid for, so that would charging those taxes twice. "

??? What does that mean?  Canada Customs does not charge GST/HST on the shipping charge.  It is not taxable for imports. There is no tax on postage in the USA, therefore there is no such thing as "taxes twice".  I suspect you are confusing GST/HST payable within Canada on postage.

"I have been either refusing to bid on auctions that use this shipping scheme"

I totally agree with you. Most Canadian buyers correctly refuse to purchase most items from American sellers requiring GSP.  While the program may be advantageous to many American sellers wishing to sell outside their borders, it generally works against Canadian buyers in most instances.

[pjcdn2005]

Your post does make some good points and I'm sure that many here agree with some of them. However, not all of your information is complete or correct. All of the information is available in posts on the boards.

It looks like P-B are imposing their own brokerage fees under the guise of Canada Custom Import fees. First of all, they are charging "import fees" on auction items that are costing less than $20

You won't see any charge under import fees for items under $20 now, they did change that. Most (or all?) of the time that charge you were seeing was not for taxes, it was a $3+ handling/service fee. That fee is now added on to the shipping charge if the item not taxable.

Also, Canada Customs only charge a flat (processing) fee of $5.00 for items mailed into Canada to private citizens - and that is ONLY if any duties are already being charged for the parcel. The Canada Post fee of $9.95 people refer to doesn't seem really applicable in most cases

There used to be 2 fees that Canada Post charged if they had to collect for taxes but that was changed at least a year ago and the only fee is for $9.95. There is no $5 fee.

as it turns out, the majority of this money has not been going to the Sellers themselves. They are being reimbursed by P-B for only a very basic shipping cost, and over half of the rest of the fees, sometimes two-thirds (not just the so-called "import" charges) have been going to Pitney-Bowes and possibly eBay itself.

The sellers are not reimbursed by PB and do not need to be. Part of the shipping charge on GSP items is a what the seller charges his domestic customers to send the package to the center in Kentucky. When the buyer pays, the seller receives that amount. If the seller ships for free within the U.S. then of course they do not receive any of the shipping fee. The other part of the fee is for international shipping charges and goes to PB.

I recommend Canadian eBayers (and USA Sellers) call Canada Customs directly and ask them if they have been getting large amounts of import duties from Pitney-Bowes or eBay over the past ten months or so

Why would you think that the taxes are not being given to Canada customs? There are many businesses in the U.S. that collect taxes and/or duty ahead of time and I'm sure the Canadian government is well aware of which businesses do that.

Tell them that eBay and this shipping company has charging us Canadians "import" fees on non-taxable items worth less than $20

As explained earlier, it was a handling fee in most cases and the situation has changed since then.

[pjcdn2005]

Geez Pierre, you beat me at posting again! 🙂

[fatstraty]

I bought a 900 dollar guitar last night and the import fee came to $377!!!! I had to cancel the transaction. That amount is easily double what Canada Customs would have charged me. I called ebay and supposedly they "forward" the money to Canada Customs so I don't have to pay any duty or HST - yeah, right. It is part of their very badly conceived Global Shipping thingy. You can bet I will be buying less on ebay from now on!!!

[pierrelebel]

OK - I am not sure why you cancelled the transaction.

The listing shows a value of US$ 1,800 and import charge of $377 (based on a price of $1,800)

The rate of tax (GST/PST or HST) depends on your province and will be in the 12% to 15% range except AB.

Rate of duty on guitar depends on the country of manufacture, not the country where you buy it from.  If made in China, 3% applies; from Taiwan 6% . It appears most guitars are made in Taiwan or China.

So $377 does not seem that much out of range based on a value of US$1,800

Since that amount was shown in the listing, why did you cancel?

If the tax and duty calculation had been made on $900, not the $1,800 shown in the listing, they would have been reduced automatically.

And yes, Pitney Bowes (not eBay) collects the duty and taxes from you and remit to the Canadian government.

[karbonb]

1) No... I'm sorry, but it is you who are incorrect. They are indeed still charging import fees for many auctions that are worth $20 and less. Just because you yourself aren't seeing them doesn't mean it isn't happening. I am seeing them quite regularly.

2) I said that I have not been charged the $9.95 flat fee - only the $5.00 - which if you check the Canada Customs own website or call them, you will see is indeed still current. It actually doesn't even make sense that Canada Post would be imposing or request it (although, yes it on their website), as they are a separate governmental agency here than Canada Customs - even a different Union.

3.I brought up the point about the Sellers not receiving this money because from reading the many comments about this, a lot of people are blaming the Sellers for gouging them over shipping. I was making the point that it is not them, but this program - which many Sellers aren't sure how to get out of, if they had ever agreed to enter it to begin with - that needs to be contested.

By the way, do you work for Pitney Bowes, or eBay or such? It seems you spend a lot of time defending this program.