eBay

coral-223 · ‎02-01-2023

I bought an item from Australia for $15 CAD but the seller described it as a $50 item on the shipping label, which could incur me a lot of import charges that I never asked for. What should I do if this occurs? Should I refuse the package and if so, would it be returned to the seller and make me eligible for a refund? Thanks in advance.

femmefan1946 · ‎02-02-2023

On the third hand.

Sales tax on a $50 item would be between $2.50 and $7.50, while most duty is less than that (On DVDs which you seem to buy fairly often it's 7% or $3.50).

And time is money.

Is your time spent correcting the error worth more or less than $11.00 or so?

It is also possible that CBSA and Canada Post are still following a, not quite legal but very intelligent, policy of ignoring low value imports and not charging any import fees, including Canada Post's $9.95 service fee.

You can leave feedback for up to 60 days. The most effective feedback is calm and factual.

"Gave value of $50 on customs label. Actual price $15, resulting in import fees of $XX.xx because the duty-free allowance is only $20."

Canada Post and Australia Post are both members of the Universal Postal Union, established in 1874. Before then international mailing was very complicated.

so he changed his listing from $20 + $35 shipping fee for both items to $50 + free shipping for the one item ... I think that faux-$50 item price (that's technically $15 + $35 shipping) automatically got transferred onto the shipping form.

Yep.

There's the answer.

But Canada Post wouldn't know that the declared value of $50 includes the shipping fee

If there is no shipping fee on the customs form, there would be no import fees charged on it.

It will be helpful, after all this is over and before leaving feedback, to contact the seller and explain your aggravation and concern. Not only will this help you but the seller will learn something.

View solution in original post

pjcdn2005 · ‎02-01-2023

If you refuse a package you forfeit your right to use the money back guarantee. I don't think that I have ever been charged tax or duty on a $50 item but if you are, it is best to pay it. You could ask the seller to give you a partial refund to cover the extra cost that you had to pay in customs.

Or

If this was sent through Canada Post, on the back of the customs form there should be a place where you can file for a refund from Revenue Canada. You would have to send them an invoice showing that the value was less than $50.

Or

eBay may consider the incorrect claim amount as a not as described situation so if you no longer want that item it may be possible to return it using 'not as described' for the reason as the return. The seller would have to pay for return shipping.

Or

If this was sent throuh Canada Post, on the back of the customs form there should be a place where you can file for a refund from Revenue Canada. You would have to send them an invoice showing that the value was less than $50.

Why did the seller put that the value was $50?

mrdutch1001 · ‎02-01-2023

I would ask the seller why a $15 item was declared as $50 value and assess the seller's response and IF you are faced with an import charge at time of delivery THEN you will have to make a decision whether to refuse as much depends on how much YOU value having that item.

flipistics · ‎02-01-2023

What was the total transaction cost, just out of curiosity?

coral-223 · ‎02-01-2023

If this was sent through Canada Post, on the back of the customs form there should be a place where you can file for a refund from Revenue Canada.

As I said, the seller's from Australia, so it was sent by Australia Post. Are there any connections between Canada Post and Australia Post?

I don't think that I have ever been charged tax or duty on a $50 item but if you are, it is best to pay it.

Actually, anything above $20 is subject to import charges in Canada, and I heard that someone who bought a $35 item on Ebay got charged a similar amount in import duty fees!

eBay may consider the incorrect claim amount as a not as described situation so if you no longer want that item it may be possible to return it using 'not as described' for the reason as the return. The seller would have to pay for return shipping.

But I won't get my import duty charges refunded, would I?

Why did the seller put that the value was $50?

The seller was selling two items as a combo, and I asked if I could just buy one of the items, so he changed his listing from $20 + $35 shipping fee for both items to $50 + free shipping for the one item I wanted to buy, and I think that faux-$50 item price (that's technically $15 + $35 shipping) automatically got transferred onto the shipping form.

pjcdn2005 · ‎02-01-2023

If it was sent by Australia Post then it would be delivered by Canada Post.

If you overpay or send the item back you can claim the amount paid from Revenue Canada. I'm not sure but I don't think that you are refunded the fee that Canada Post charges ($9.95) for collecting import fees.

marnotom! · ‎02-02-2023

@coral-223 wrote:
Actually, anything above $20 is subject to import charges in Canada, and I heard that someone who bought a $35 item on Ebay got charged a similar amount in import duty fees!

It's the luck of the draw whether an item sent by mail that's valued at more than C$20 will be assessed and charged taxes and duties, but the odds are likely in your favour that CBSA will give your item a free pass.

msau4301 · ‎02-02-2023

The seller was selling two items as a combo, and I asked if I could just buy one of the items, so he changed his listing from $20 + $35 shipping fee for both items to $50 + free shipping for the one item I wanted to buy, and I think that faux-$50 item price (that's technically $15 + $35 shipping) automatically got transferred onto the shipping form.

I think I've read that duty is charged on total transaction of the order so that would be $50 whether $15 + $35 or $50 + 0. As others have said wait until you see what happens when it arrives, there is a good chance there will not be anything due. I know when eBay charges tax to the buyers it is on the total with shipping. Since the semi-recent internet sales tax I feel maybe customs hasn't been quite as strict (at least what I've seen delivered to myself and my family) since taxes have to be charged at time of sale. I haven't however bought anything from Australia so not sure if it is different.

marnotom! · ‎02-02-2023

@msau4301 wrote:
I think I've read that duty is charged on total transaction of the order . . .

That may be the case in some countries, but it's not in Canada. Duty just applies to the item's declared value. However, taxes are based on the item's declared value plus the calculated duty, so maybe that's what you're remembering.

The good(ish) news is that there are a lot of items out there that aren't subject to duty.

coral-223 · ‎02-02-2023

I think I've read that duty is charged on total transaction of the order so that would be $50 whether $15 + $35 or $50 + 0.

But Canada Post wouldn't know that the declared value of $50 includes the shipping fee (as sellers typically don't include the shipping fee into the declared value), so it would add $35 shipping fee on top of that price, charging me import fees based on a total transaction fee of $85.

femmefan1946 · ‎02-02-2023

On the third hand.

Sales tax on a $50 item would be between $2.50 and $7.50, while most duty is less than that (On DVDs which you seem to buy fairly often it's 7% or $3.50).

And time is money.

Is your time spent correcting the error worth more or less than $11.00 or so?

It is also possible that CBSA and Canada Post are still following a, not quite legal but very intelligent, policy of ignoring low value imports and not charging any import fees, including Canada Post's $9.95 service fee.

You can leave feedback for up to 60 days. The most effective feedback is calm and factual.

"Gave value of $50 on customs label. Actual price $15, resulting in import fees of $XX.xx because the duty-free allowance is only $20."

Canada Post and Australia Post are both members of the Universal Postal Union, established in 1874. Before then international mailing was very complicated.

so he changed his listing from $20 + $35 shipping fee for both items to $50 + free shipping for the one item ... I think that faux-$50 item price (that's technically $15 + $35 shipping) automatically got transferred onto the shipping form.

Yep.

There's the answer.

But Canada Post wouldn't know that the declared value of $50 includes the shipping fee

If there is no shipping fee on the customs form, there would be no import fees charged on it.

It will be helpful, after all this is over and before leaving feedback, to contact the seller and explain your aggravation and concern. Not only will this help you but the seller will learn something.

flipistics · ‎02-02-2023

@msau4301 wrote:

I think I've read that duty is charged on total transaction of the order so that would be $50 whether $15 + $35 or $50 + 0.

I was trying to look this up yesterday. While I'm not positive, it looks like cost for duty purposes is supposed to be essentially for the item only when sending to most countries but it's for the total transaction if sending to the USA. I would assume that's probably where the issue came from. I'm not anywhere close to confident on that, but I think I'm understanding it correctly.