eBay

musicyouneed · ‎10-01-2018

This was in the news tonight:

The source said Canada had also agreed to increase the “de-minimus” value of goods Canadians can bring into the country – such as through online shopping – from $20 to at least $100. But the person said Canada would still be allowed to charge sales tax – though not duties – on some of that amount.

ricarmic · ‎10-01-2018

Here's what was in the news today as the final numbers:

Both Canada and Mexico agreed to raise the thresholds at which they apply duties to cross-border purchase, another key U.S. demand. Mexico raised its so-called de minimis level to $100 from $50. Canada raised its to $150 for duties, from $20 earlier, and $40 for sales taxes.

rose-dee · ‎10-01-2018

I think for most intents and purposes, the effective Canadian de minimus has been around $100 to $125 for many years, despite the "official" $20 limit. I've done quite a bit of importing from the U.S. for the past 15 to 20 years, and rarely has anything under $100 been charged. Sometimes even parcels over $150 in value have squeaked through.

This was part of the NAFTA deal I presume? The Americans have been griping about the low Canadian limit for decades. It seems the bullying government in the U.S. finally got their way on paper at least. Canadian retailers won't be as pleased.

This will no doubt make eBay happy, as they can now get back to touting the GSP to Canadians.

amcdc79 · ‎10-02-2018

If the item was made in the US or Canada there may not have been any duty at all, no matter the amount. Duty free going up to $150 from $20 will help with a lot of small items.

The amount for tax free doubled, it went from $20-$40, at least now most items from China, and many books, DVD's etc. will no longer be stopped at the border.

I also agree with Rose, in that over the years many packages $50-100 were allowed to just go on their merry way. It's just in the last couple of years that I have noticed CBSA getting picky with charging duty/taxes on packages in the $20-50 range.

Should be interesting to see what the amount is, that customs starts charging the buyers.

reallynicestamps · ‎10-02-2018

CBSA getting picky with charging duty/taxes on packages in the $20-50 range.

I wonder if that had anything to do with the fentanyl crisis.

The money collected would, in my opinion, be less than the cost of collecting it.

https://www.glassdoor.ca/Salary/Canada-Border-Services-Agency-Salaries-E107408.htm

Even Students are making $15 an hour -- and remember the cost of an employee is usually reckoned at double his wages (because of pension, health, bookkeeping etc.).

kashka · ‎10-02-2018

From what I have been reading..only goods shipped by courier...not Canada Post?.. https://www.thestar.com/news/canada/2018/10/01/online-shopping-savings-under-usmca-wont-apply-to-can...

And this from Ecommercebytes: https://www.ecommercebytes.com/C/blog/blog.pl?/comments/2018/10/1538496802.html#comments

musicyouneed · ‎10-02-2018

So from what they are saying, by mail Canadians still will have the $20 limit if it is delivered by Canada Post. If it is delivered by UPS, the limit is $150, with taxes on items over $40.

Who thinks of these things? Can't they just make it simple?

Some politicians are brain dead and just want to make life complicated. They are trying to please everyone.

esclyons · ‎10-02-2018

yes duty and tax is fine, but when you add the brokerage fees, that is the deal breaker.

ypdc_dennis · ‎10-02-2018

Then again, that $20 may just be a sky-is-falling opinion from ebay.

From: https://www.ctvnews.ca/business/nafta-replacement-raises-duty-free-shopping-limits-for-canadians-1.4...

Under USMCA, the threshold will be raised to $40 for GST and HST purposes. Cross-border shipments by Canadians will have to be worth at least $150 before duties can be applied.

...

There is one caveat. The deal states that the higher thresholds apply to items delivered through “express shipments” – a term which is not explicitly defined.

A spokesperson for e-commerce giant eBay, says the company is concerned the term “express shipments” may mean the higher limit will not apply to items sent through standard mail.

Sounds like ebay speculation, since the post office does handle express shipments. Also, the post office has been really lax at enforcing the current $20 limit.

A possibility, is that the old $20 limit will apply to packages arriving by boat (regardless of whether the post office or a courier company is involved), while stuff by faster methods will get the new limits. Cheap shipping with duty & taxes versus expensive shipping with no duty.

-..-

marnotom! · ‎10-03-2018

@ypdc_dennis wrote:

Sounds like ebay speculation, since the post office does handle express shipments. Also, the post office has been really lax at enforcing the current $20 limit.

A possibility, is that the old $20 limit will apply to packages arriving by boat (regardless of whether the post office or a courier company is involved), while stuff by faster methods will get the new limits. Cheap shipping with duty & taxes versus expensive shipping with no duty.

As it's Canada Border Services' responsibility to enforce the de minimis for casual imports sent through the mail and assess and charge taxes and duty, I'd expect it would be business as usual unless CBSA staffing levels are increased.

https://www.cbc.ca/news/opinion/canada-usmca-1.4845494

femmefan1946 · ‎10-03-2018

@ypdc_dennis

A possibility, is that the old $20 limit will apply to packages arriving by boat (regardless of whether the post office or a courier company is involved), while stuff by faster methods will get the new limits. Cheap shipping with duty & taxes versus expensive shipping with no duty.

In other words, a slap at cheap personal imports of Chinese goods, which should go over well with both Canadian retailers, including online retailers.

Again, items made in countries like the USA and Mexico are duty-free in any case.

Oooooooh!

And the European Union,

And Israel.

And Costa Rica.

And the new TPP- Australia, Brunei Darussalam, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam. (What do we buy from Brunei?) (( I forsee lots of cheap TPP wines in my future.))

Wow-- look at this list!

https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/index.as...

We have a Free Trade Agreement with Gabon! And Hong Kong! And Mali!

ricarmic · ‎10-03-2018

Prior to now, my personal experience with application of the de-minimus has been that it is very unpredictably applied.

Generally smaller sized boxes/parcels get through uncharged regardless of value.

Even very large (ie 28 KG boxes the size of 2 xerox boxes) valued at $1,000 come through with no taxes being charged, probably 25% of the time!

All these packages are properly marked with proper customs forms identifying the actual value.

Unless something changes, the "new rules" won't likely make any difference from what I'm seeing anyway!!

However, time will tell!!!

bpl521_sell · ‎10-04-2018

Yes, and something sells fishy, because the couriers are notorious for gouging customers with outrageous brokerage fees, disbursement fees yada yada. The tax and if there was any duty was not the pain.

So as I understand it a courier company is still likely to charge you brokerage and disbursement fees if the value is over $40.00 as they need to collect the tax and duty.

"Canadians will now have to remember and manage three thresholds - $20 for postal shipments, $40 for tax on courier shipments, and $150 for duty on courier shipments.

reallynicestamps · ‎10-04-2018

While I agree that the courier's brokerage prices are very high, I'm not sure they are not justifiable.

Canada Post charges $9.95 and all they are doing is getting a signature and handling the payment.

For their $25(+) the couriers are doing the assessment for duty and tax, which with mailed shipments is handled by CBSA, in addition to the signature and remitting payments.

Plus they make a profit. Likely substantial.

The only 'cheap' courier is PitneyBowes of beloved GSP fame. And thier fee is about U$5.00. But they are shipping pallets of packages on a manifest, not handling individual packages like UPS or Canada Post.

But that is speculation...

pjcdn2005 · ‎10-04-2018

From the ecommerceBytes article: "Canadians will now have to remember and manage three thresholds - $20 for postal shipments, $40 for tax on courier shipments, and $150 for duty on courier shipments.

Most packages around $20 don't get charged now so I would be surprised if Canada Customs is suddenly going to start accessing them. Plus, I thought someone had pointed out earlier that the $40 was for express packages...I don't recall it specifying just couriers. I believe that anything sent first class from the US is treated as xpresspost here is perhaps those packages will count as having the $40 minimus?? If the gsp is sent here via some type of courier...would that change the minimus??

reallynicestamps · ‎10-04-2018

On a $21 import, duty would be somewhere between $1.05 and $3.15.

A CBSA officer makes ~$1.66 a MINUTE.

It's a ridiculous waste of taxpayer money to collect sales taxes on low value imports.

On a $150 import sales taxes could be as much as $22.50, depending on province. Collecting that just barely breaks even.

marnotom! · ‎10-04-2018

I haven't seen any reference to the $40 limit being applicable to anything but couriers.

I suspect that limit was put in place to give couriers a bit of a break when it comes to processing and collecting taxes on modestly-valued casual imports.

If I find out differently, I'll post a link to that information, but the way I see it, mail is mail, courier shipments are courier shipments.

tyler@ebay · ‎10-05-2018

Howdy everyone -

@happy_pigeon made a post about the USMCA earlier this morning. Thanks!

Tyler,

bpl521_sell · ‎10-05-2018

Not sure if I buy that, in this age I suspect there is little if any paperwork. Couple years ago I was dinged heavy for brokerage fees and other fees . I called and asked for copies of the documentation that was prepared because they were as they say acting as my broker. They could/would not. Yes, I am sure there is some infrastructure cost in computers etc, but not to justify the expense they charge.

kashka · ‎10-05-2018

Well...I guess I will just keep not buying from the US. Mind you the exorbitant shipping costs made me quit long time ago..used to be good years ago but when sellers used to use First Class (i think it was called?) and costs were reasonable.No sense buying something when shipping costs more than the item.