Canada Post "Brokerage Fee," because eBay didn't charge taxes

[lovebomb]

You see what it says in the title. I purchased multiple items on my eBay buyer account. I hadn't realized that since returning to eBay after a two-year hiatus, things appear to have changed. *Maybe* they've changed, because I am not sure of the details concerning the past.

Anyway... yesterday I was dinged with a $9.95 fee.

Canada Post is doing this now to some larger purchases, I was told. Though it wasn't explained why it was implied why--because with the eBay changes, Canada Customs processing at CP has increased. So someone has to pay to initiate change at eBay (deductional reasoning). I was P*SSED. Because I carefullly calculated what I was willing to spend, and the 9.95 was not included. To be clear, they charged me $9.95 fee for the privilege to be charged PST and GST by them. Then, to avoid having to return it over my objections, they relabeled it; it was thereafter referred to as a "brokerage fee". 

Pfft. 

So many systems are broken today. I can, have, and will continue to speak out on such matters.

[ricarmic]

The $9.95 fee has been there and that amount for a very long time, over a decade.

Regardless what term they put on it, its the fee they charge when they assess taxes.

The application of the taxes for incomming stuff has been hit and miss since the beginning, I've had $40 items assessed taxes and well identified and large boxed $1000 items NOT assessed taxes, there's no rhyme nor reason. Normally "small" stuff hasn't gotten assessments over the course of time. You don't mention what the item value was but the larger size/value it is the more likely it would be assessed.

I just realized I don't have personal experience with something purchased on eBay that had taxes paid on ebay that went through customs, so I actually don't know if we're liable to get double dinged for taxes on incoming shipments or not. Based on what I know is happening to international buyers I won't be surprised if we do/are...

[marnotom!]

"Casual imports" (which are most eBay Canada purchases made from sellers in other countries) have been subject to tax (and duty. if applicable) charges from Canada Border Services for decades.  Canada Border Services, however, started becoming pretty lax about assessing and charging them for lower-valued mailed purchases in the '00s.  (The official tax-free limit is C$20 but it hasn't been unusual for items valued up to about $100 to go untaxed.)  Some sort of fee from Canada Post to collect that money owing and send it along was part of the mix even back then.

There are several pages on this subject on the Canada Border Services website.  Here's one with a very general introduction.  It doesn't mention the C$9.95 fee from Canada Post but it does mention it elsewhere, if memory serves:

https://www.cbsa-asfc.gc.ca/import/postal-postale/dtytx-drttx-eng.html

[lovebomb]

Thank you, @marnotom! 

[lovebomb]

The reply button was missing on the appropriate thread, but I wanted to say that the amount of imported product was 211.00 Cad. There were GST and PST charges and the handling fee of $9.95. Just saying. It doesn't even mention the courier on the box, but it appeared to be handed from one carrier to another, as it disappeared from tracking for a few days. 

[marnotom!]

---

@lovebomb wrote:

The reply button was missing on the appropriate thread, but I wanted to say that the amount of imported product was 211.00 Cad. There were GST and PST charges and the handling fee of $9.95. Just saying. It doesn't even mention the courier on the box, but it appeared to be handed from one carrier to another, as it disappeared from tracking for a few days. 

---

The thread you're referring to is part of the "Answer Centre" which has a slightly different message interface than the Discussion Boards.  Personally, I find Answer Centre threads a pain below the tailbone to follow and respond to, so you were wise to bail out of that thread, IMO.

I try not to get too worked up about the tracking of my online purchases unless it looks as though they're going to be delayed.  Sometimes it's interesting to look it up after the fact.  I find the Parcelsapp site a good "universal" tracking site for reference as it identifies carriers and sometimes gives somewhat more complete information than eBay or a single carrier.

[pjcdn2005]

As others stated the CP brokerage fee has been around a long time.  From what I've heard Canada Customs collects more often than they used to but I'm positive it has nothing to do with any changes that ebay

sections made.

[reallynicestamps]

We still have only a $20 tax and duty free limit on imports.

But since 2020, under the new CMUSA treaty, we can import up to $150Cdn duty free and up to $40 tax free from the USA (and likely Mexico, but no one mentions that).

Then for the rest of the world, we have something like 178 different Free Trade Agreements that mean we should rarely be paying duty.

But the sales taxes remain on everything over $20.

And yes that Canada Post service fee has been around for decades. It pays for the carrier at the door or the clerk at the counter  to process the tax for your province and for the feds.

The couriers can be worse. There is an archived thread over 5000 posts long complaining that UPS charges $25 or more for Customs Brokerage on every import valued over $20.

[fergua3]

most couriers are charging $35 brokerage charges now, PLUS a percentage of the value of the item.  That is on top of what the CRA assesses for import duties and taxes.   By comparison, the $9.95 Canada Post charges is nothing.  I'm surprised it hasn't increased in all these years but it's still the same fee it was decades ago.

It's a mystery to me how couriers get away with their high brokerage charges.  I guess there are lots of people with money to burn.

[reallynicestamps]

Because private for profit companies always have lower prices and faster service than publicly run ones.

[byto253]

Which as others have outlined, is the best deal going for imported items.  Don't know if you have had anything come in from the US with UPS or Fedex ground, those fees will make Canada Post look like a great deal.  

The potential of the $9.95 and tax is something to factor in to purchases, and making sure that delivery is through the Post Office.

[chupacabra2000]

"Brokerage" fees are often a scam.  In Canada, the buyer can opt out and inform the shipper they wish to "self-clear" the incoming item, which usually requires going to a shipping warehouse or office to collect your item instead of having it delivered.  You have to request some forms from the shipper, which you sign and email back to "opt out" of your delivery.  Supposedly, US buyers are entitled to up to $800 US when ordering from Canada before duty fees are applied.  The shipper may imply that this brokerage fee is actually duty or tax, which it absolutely is not.  It's a racket in most cases.  I have "self-cleared" several items and it can be a headache and a waste of time, but I'd rather do that than pay a 3rd party an arbitrary amount anywhere from a few dollars to equal or even more than the price of the item ordered.    Do some google searching for "opt out brokerage fees", or "self-clearing brokerage fees".   It's a predatory practice and as an ebay seller, it breaks trust from your buyer to have extra fees sprung on them.  When I chatted with ebay customer service about an order that looked likely to incur this fee, the ebay rep basically told me to look the other way because it was the buyer's problem and not mine, so I found alternate shipping arrangements rather than let someone jack the cost up and make a buyer pay double when they have a package effectively held ransom.

[reallynicestamps]

I have "self-cleared" several items and it can be a headache and a waste of time,

Since the only office the shipper has may be out by the airport, and open to the public only during business hours on weekdays,  it may cost more in your time (minimum wage here in BC is 27c a minute) than the actual fee.  Another level of annoyance.