eBay

splattii · ‎12-22-2018

Hi,

There's something I'd like to purchase on Ebay from a US seller that uses global shipping program. Currently the BIN is $29.97 CDN, with an offers option. If I put in an offer that ends up being $19 CDN + shipping, ebay says the import fees are $6.80 based on that offer. Is this just an error in their software and once the seller accepts the fees will be waved, or do the import fees not adjust based on offer? I should mention the $6.80 is also the import fees for the $29.97 price

momcqueen · ‎12-22-2018

That is a very good, very technical question that I do not have the answer to.

With Christmas around the corner, I don't think we'll have anyone available from ebay staff to call to the thread to answer it before Boxing Day. Can you wait a few days to find out? Or....

momcqueen · ‎12-22-2018

My assumption is that the import fees are based exclusively on the selling price of the Best Offer and the Best Offer submittal page is still showing the same amount as full price because the programming doesn't know what else to do. But that's an assumption only. I don't do enough buying through GSP to know from experience but perhaps another user can chime in who has faced this exact scenario before.

ypdc_dennis · ‎12-22-2018

@splattii wrote:
... There's something I'd like to purchase on Ebay from a US seller that uses global shipping program. Currently the BIN is $29.97 CDN, with an offers option. If I put in an offer that ends up being $19 CDN + shipping, ebay says the import fees are $6.80 based on that offer. Is this just an error in their software and once the seller accepts the fees will be waved, or do the import fees not adjust based on offer? I should mention the $6.80 is also the import fees for the $29.97 price

Prices on .COM are normally shown in US dollars -- the values shown in Canadian dollars are only ebay estimates. With the falling exchange rate, $14.20us is under $20cdn (Dec 22).

...

The import fee should adjust to the amount the item sold for -- but trusting ebay's computer software to do the right thing is another matter.

...

I've never made an offer that was accepted for a GSP item -- so have no direct experience about the final result.

-..-

marnotom! · ‎12-22-2018

@splattii wrote:

There's something I'd like to purchase on Ebay from a US seller that uses global shipping program. Currently the BIN is $29.97 CDN, with an offers option. If I put in an offer that ends up being $19 CDN + shipping, ebay says the import fees are $6.80 based on that offer. Is this just an error in their software and once the seller accepts the fees will be waved, or do the import fees not adjust based on offer? I should mention the $6.80 is also the import fees for the $29.97 price

Even BINs for GSP-forwarded items with values of less than C$20 will have import charges attached to them. Those charges are usually about US$5 and change and they go towards processing/rubber-stamping/clearance or whatever else you want to call it. You just don't see them in the "import charges" field on the listing page because they've been added to the shipping charge instead.

The "import charges" on your offer may end up being adjusted at checkout to a slightly lower amount, or they may end up reduced to zero and you'll see a higher shipping charge instead. Long story short is that if you see a reduction in the "import charges" with your approx. C$19 offer, it's not going to be a dramatic one.

reallynicestamps · ‎12-22-2018

Duty is based on the entire cost of the imported purchase.

If your bid is $19+$6.80 shipping the dutiable value is $25.80.

If the item is manufactured in a country we have Free Trade with (there are a few dozen including the European Union (CERN treaty) and much of the Pacific Rim (TPP)) , there will be no duty but there will still be sales tax and the ~$5USD GSP service charge.

GSP listings have two 'shipping charges'.

I suspect the $6.80 is the cost for the seller to ship the item to the GSP plant and that the GSP import fees are given separately. Is that also the cost for shipping to a US customer?

Which sounds dumb, but while duty and service fees are easy to work out, sales taxes vary from province to province, from $1.29 for Alberta to $3.35 here in BC.

momcqueen · ‎12-22-2018

That didn't change three to four years ago? It did for self-declared at the border, shipping no longer applied. Maybe not for mail. We could probably find the answer somewhere on the Customs link I posted a few days ago.

marnotom! · ‎12-22-2018

@reallynicestamps wrote:

GSP listings have two 'shipping charges'.

I suspect the $6.80 is the cost for the seller to ship the item to the GSP plant and that the GSP import fees are given separately. Is that also the cost for shipping to a US customer?

If $6.80 is listed as "import charges", "import charges" are what they'll be covering. Shipping charges are only separated when it comes to the PayPal invoicing, not at checkout or prior to checkout. The shipping price to Kentucky, of course, can be figured out by changing the shipping location on the listing page to US ZIP code 41025.

mcrlmn · ‎12-23-2018

The transaction is more than $20 CDN...
"$19 CDN + shipping" is your answer.

momcqueen · ‎12-23-2018

@mcrlmn wrote:
The transaction is more than $20 CDN...
"$19 CDN + shipping" is your answer.

No, it doesn't. Shipping cost is not dutiable.

https://www.cbsa-asfc.gc.ca/publications/dm-md/d8/d8-2-2-eng.html

momcqueen · ‎12-23-2018

I strongly suspect this is about the GSP-related programming on ebay failing to be able acknowledge Best Offers under the dutiable limit when the item price is above it. I just don't think the program is capable of thinking on its feet to that extent.

I'm tagging ebay staff to look into it but they won't be back to address the issue until mid- next week at the earliest. Can it wait that long?

tyler@ebay, can you please look into this for us? We're giving the Original Poster conflicting (and I think some incorrect) advice. He want to put in a Best Offer under the de minimus on a GSP-item and still sees estimated import fees for the item price. Is this a GSP handling fee? Or will that be waived if the seller accepts an offer for $19 CAD?

marnotom! · ‎12-23-2018

@momcqueen wrote:

The Original Poster . . . wants to put in a Best Offer under the de minimus on a GSP-item and still sees estimated import fees for the item price. Is this a GSP handling fee? Or will that be waived if the seller accepts an offer for $19 CAD?

Import charges are never waived. What I suspect will happen is that at checkout, the import charges will be reduced to zero and the total shipping price will go up by about US$5.40 instead.

I suspect the OP wants to pay no taxes and duty as a matter of principle, and they won't be paying the equivalent of tax and duty if their converted offer does work out to be less than C$20. However, depending on their location, they'll only be saving less than a toonie on top of the eleven bucks that the seller won't be getting because they still have to pay Pitney Bowes for all the customs-related stuff (even if the item is valued below the de minimis).

The GSP bot can't give a final estimate on the import charges until the buyer's shipping location is verified in checkout. That's likely why the (US?)$6.80 import charge amount still shows up at this point.

momcqueen · ‎12-23-2018

I agree this is the likely scenario but I'd still like to hear it confirmed by Tyler if he's able to do that.

splattii · ‎12-23-2018

Thanks to everyone for the answers, but here's an example where I don't have to pay duties using the GSP even though the total is over $20, because the shipping doesn't count. This auction is BIN $17.21 + $36.08 shipping and *0* import charges even though the total with shipping is $53.29, so the shipping doesn't count as part of the total for duties with the GSP;

https://www.ebay.ca/itm/Vintage-iomega-ZIP-100-drive-Parallel-Connection-model-Z100P2/123550774483?h...

marnotom! · ‎12-23-2018

I doubt there are duties on ZIP drives anyway. Just taxes. And if shipped through the GSP, a fee for customs-related stuff.

I found a similar listing for a ZIP drive with a parallel port connector that was just over the C$20 tax/duty-free limit with import charges of US$4.71 for BC, making Pitney Bowes' cut just US$3.96. I doubt any of that is disguised duty.

splattii · ‎12-24-2018

Here are two examples of the same product to explain the situation in black and white;

ZIP drive total cost = $33.73 ($21.95 USD + 11.78 USD shipping).

This has an additional GSP FEE of $6.80;

https://www.ebay.ca/itm/Iomega-Z100P2-Zip-Drive/183288260015

SAME ZIP DRIVE. Total cost = $34.72 ($8.10 USD + $26.62 USD)

This has an additional GSP FEE of $0;

Both ship via GSP, but the more expensive one has no fee.

So here's what this means: Shipping costs have nothing to do with customs and duties as some people are suggesting, the GSP is based on the sale/item price only

Anyhow, I just wanted to point this out so others understand how GSP is calculated.

Happy holidays

momcqueen · ‎12-24-2018

“So here's what this means: Shipping costs have nothing to do with customs and duties as some people are suggesting, the GSP is based on the sale/item price only.”

Except when they do. eBay spokespeople have confirmed they sometimes move import fees to shipping cost if they think it makes the listing look more palatable to buyers.

momcqueen · ‎12-24-2018

Although shipping cost is not included in the de minimus determination. As stated earlier. That’s on my link.

The question remains the same. It’s a Best Offer bug. eBay staff will return after Christmas and be available to answer it.

We need to know if there’s still a handling fee too if the item uses GSP but falls below the $20 cad mark.

marnotom! · ‎12-24-2018

@momcqueen wrote:

We need to know if there’s still a handling fee too if the item uses GSP but falls below the $20 cad mark.

We determined that this is the case a few years ago after listings for items valued at less than C$20 ceased to have "import charges" which were around US$3.34 at the time. We compared the shipping costs to similar listings with higher values and worked out that the "import charges" had been added to the shipping charge, instead. The GSP terms and conditions for buyers do state that this can occur.

marnotom! · ‎12-24-2018

@splattii wrote:

So here's what this means: Shipping costs have nothing to do with customs and duties as some people are suggesting, the GSP is based on the sale/item price only

Okay, but I don't think ZIP drives are subject to duty, anyway. Just provincial and federal taxes, which are a different animal.