This new Duty for Canadians buying items from the US that's now on most items

[rdmidd]

This Duty Fee that's now appearing on most US items for sale to Canadians .  Is against E Bay policy. E Bay clearly states that The responcibility of paying duty  is the Buyers not the seller. So lets stop it now. Reason .We are being charged duty on items that are not taxable, the prices quoted are often more than the bid price but on the actual assumed value  .  The brokerage fees are higher than the product.in some cases. If and when we pay tax on an item We should pay duty on the bid price not on shipping charges & assumed value for  insurance purposes. This is done by us at any CDN Post office who charges us stated duty on value +$5 service charge. Roy Middleton

[leanniefaith]

well, I just had my first experience with this new money grab.  when I contacted'my seller, she said it did not show on her side of the invoice.  But she did say that she also had a complaint from a buyer in the UK, for the extra charge.  I paid 7.37 on a $30 item.  So between this duty and the shipping, I paid more for those than I did for the item.

And I won't be doing it again.  I will only shop with sellers that are not involved ink this new plan.  Îf I am going to be charged duty, it will be directly to a canadian collector (canadapost etc.)

Too bad for all the good sellers that do their best to run their business and Ebay keeps throwing up these obstacles.

[marnotom!]

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@leanniefaith wrote:

well, I just had my first experience with this new money grab.  when I contacted'my seller, she said it did not show on her side of the invoice.  But she did say that she also had a complaint from a buyer in the UK, for the extra charge.  I paid 7.37 on a $30 item.  So between this duty and the shipping, I paid more for those than I did for the item.

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Given that if Canada Border Services got its hands on the item and charged you the taxes (and possibly duty) owing, Canada Post would have charged another C$9.95 for processing and collecting those taxes, so $7.37 is actually a bargain if you're prepared to accept the possibility of your item being assessed taxes by the feds rather than by a corporation.

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@leanniefaith wrote:

And I won't be doing it again.  I will only shop with sellers that are not involved ink this new plan.  Îf I am going to be charged duty, it will be directly to a canadian collector (canadapost etc.)

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Fair enough, but I wonder why there has to be a "never again". If you found the charges so objectionable, why did you buy the item in the first place?

[afantiques]

If you found the charges so objectionable, why did you buy the item in the first place?

This also puzzles me about "I bought a GSP item" posts. No one has ever come up with an answer.

[portfelt]

I believe the main reason for the decline in import items from the USA being taxed by Ottawa is the political party who is in power at the time.  The Liberals like to tax and spend while the Conservatives are more prudent and find that the program cost of nailing every purchase over $20 is costing more to administer than it brings in, so why bother.  This country is far behind the US when it comes to freedom to shop across the border. The GSP is a liberal minded policy that is protectionist in the extreme like a one-way Iron Curtain.

[marnotom!]

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@portfelt wrote:

This country is far behind the US when it comes to freedom to shop across the border.

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Not really.

http://taxes.about.com/od/statetaxes/a/use-tax.htm

[leanniefaith]

I also sell on Ebay, but was not going to join this program, so did not read all the ins and out.  We have sites close to the border that we can have items shipped from companies that do not ship to Canada.  I assumed incorrectly, that this program was the same type of thing.  

I have paid duty ONCE, and I paid it to Canadapost.  How much is Ebay getting of this duty that I am paying to Pitney Bowes.  I don't need a broker to handle my $30. purchase and who is the decision maker on duty free items, or is there no such thing as NAFTA anymore.

If I had fully understood this new feature, I would not have bought the item.  And why does my seller not know what I am receiving on my invoice.  This was not her fault, and I paid immediately, but I will not buy from a seller using this service again.

For those that said they don't understand, the above reply is why.

[marnotom!]

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@leanniefaith wrote:

For those that said they don't understand, the above reply is why.

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I'm afraid your post has left me even more confused.

[leanniefaith]

I don't know why you are still confused.  I am a Canadian that has bought  hundreds of things on Ebay.  I have paid duty ONCE.  Now if I buy with any participant of this new program, I will be charged duty EVERY SINGLE TIME.  Who is deciding whether these items are duty free?  Anyone?  Hundreds of items are duty free.  Is Pitney Bowes going to go through every package, check its contents and apply the duty, or are they going to look at the price, where it is going and apply the duty, no matter what????

If the Canadian government decides I should pay duty, I will pay it.  But as already mentioned, Ebay says it is not their responsibility for duty and taxes, and yet they are now getting involved.  I buy lots of things from U.S. department stores, and have yet to pay duty on anything I have bought.

So that is why I will not purchase from any seller listed on that program.  And from discussion with my seller, she doesn't know what they are doing.  She was shocked that two of her customers had different invoices than the one she sent.  Who is adjusting those invoices?  EBAY.

[afantiques]

Hundreds of items are duty free.

But only items under Can$20 are TAX free. You are not paying Duty, you are paying the sales tax charged on domestic Canadian sales, and technically chargeable on imports.

The fact is,  this tax is now rarely collected on US/Canadas postal packets but it is legally collectable and that is what the GSP has to do.

Simple answer, don't buy from sellers using the GSP.

[marnotom!]

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@leanniefaith wrote:

I don't know why you are still confused.  I am a Canadian that has bought  hundreds of things on Ebay.  I have paid duty ONCE.  Now if I buy with any participant of this new program, I will be charged duty EVERY SINGLE TIME.

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I'm still confused because I have no idea why you purchased the item if you found the charges so objectionable in the first place.  There's links on the listing page explaining how the Global Shipping Program works and the shipping and import charges are right on the listing page.  Why would you buy the item?  Are some first-time buyers of GSP items thinking that those charges somehow don't apply to them because they've managed to buy so many items tax-free from the U.S. in the past?  Or are they being led astray by explanations from sellers who don't understand how the program works?

[iloveukraine2003]

I have contacted sellers several times, asking why they are adding this charge/fee/tax on top of the price. Once an  Item was 45$, fee was 21$ !! plus shipping!. the seller had no idea of what was going on. She did not even know what I was talking about.

I refuse to pay these enormeous fees: We have NAFTA! 

I now drive to the border US/Canadian  to a UPS store. Pay less shipping, often even FREE shipping, only a 5 $ holding fee to UPS.  Each time, I declare the items I have bought at Canadian customs. NEVER have they made me pay any sort of import fee or even tax ! My purchase was over 200$ each time.  I never cheated.

I really wonder where all that money goes.

[iloveukraine2003]

I always tend to avoid any item sent with  UPS. 

USPS is best.

[iloveukraine2003]

A seller, after I mentioned this horrendeous tax - which he was not aware of of course - , suggested we do the transaction "outside" ebay.

Is this where we are going ? 

[pierrelebel]

"I declare the items I have bought at Canadian customs. "

The rules are very different when you bring back goods from the USA with you (high duty and tax exemption) and when they are sent by mail (or courriers).

When received by mail, the exemption is only $20. Otherwise if the item is taxable, tax (GST/HST/PST) may be levied and becomes payable at the post office or upon postal delivery (in addition to their $9.95 administration fee whenever tax has to be collected - regardless of amount).

For more information from the Canadian government on the subject: http://www.cbsa-asfc.gc.ca/import/postal-postale/duty-droits-eng.html 

As far as NAFTA is concerned, it deals with duty (tariff), not taxes.  Most items imported from the USA are "duty free" if manufactured in the USA.  However, Canadian consumption taxes (GST/HST/PST) still apply for taxable products if over the exemption limits.

[iloveukraine2003]

in my case it said that the import tax will show at check out.

I had to caoncel the transaction explaining the seller that I was not aware  of the huge tax involved. he did not understand either.

suggested we go it "outside ebay".

Sometimes the exact amount appears on the item. Maybe when it is a Buy it now option?!

By auction....you never know when you start bidding.

this is what I assume...

[iloveukraine2003]

thanks for the explanation! 

but at the end of the day... this scheme is not working for anyone. Growing frustration on both sides.

So if you can....find a place in the US close to the border to have your items shipped (for free or  a few $s),  go once a month across the border, have lunch and make yourself a nice day !

BTW...I bought a pair of USED skis on ebay. The program  would have charged me 45$ fee on used  skis !!!  so of course I chose to ship within the US and got  free shipping.  And no fees.  I saved 100$ driving 45 minutes.

[pierrelebel]

" this scheme is not working for anyone."

That is correct.

eBay did a poor job explaining the program to American sellers.  It should not be used by sellers selling low priced items (under $50 according to eBay) or those usually shipping by lettermail or equivalent.

[marnotom!]

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@iloveukraine2003 wrote:

I have contacted sellers several times, asking why they are adding this charge/fee/tax on top of the price. Once an  Item was 45$, fee was 21$ !! plus shipping!. the seller had no idea of what was going on. She did not even know what I was talking about.

I refuse to pay these enormeous fees.

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Just to add to Pierre's excellent post, there's "learn more" links to further information on the Global Shipping Program on the page for the listings that state that it's being used. It explains that it's not the seller that's charging the taxes and fees. Since the seller only collects the monies for the item and the amount they charge for shipping the item to the Global Shipping Center in Kentucky, they likely don't know what international buyers are paying to have their items shipped to them.  The seller doesn't send out the invoice.

Then there's the issue of some sellers finding themselves "using" the GSP and not being aware that they're opted into the program in the first place.

As far as the fees being "enormous," it depends on what you buy and if you're accustomed to paying the taxes to which the item is subject.

[kh-leslie]

Please post all comments about the GSP here: Comments about the Global Shipping Program

Please post all questions about the GSP here: Questions about the Global Shipping Program