eIS Canada and shipping to the USA
Summary: The discussion highlights the challenges Canadian sellers face due to changes in de minimis, which previously allowed easier access to the US market. cottagewoman outlines the complexities and volatility of tariffs, particularly sectoral tariffs affecting reselling from Canada to the US. Participants discuss the potential impact of the eBay International Shipping (eIS) program, noting its potential benefits but also the high shipping costs, especially for low-value items. marnotom! and another participant discuss the inconsistency in eIS's import fee handling and potential buyer costs. There's uncertainty around political influences, such as changes in de minimis and tariffs under current US policy, with some participants expressing hope for more favorable conditions. Overall, the group recognizes the eIS program as a lifeline amidst ongoing trade complexities, but still finds it riddled with challenges, especially for sellers of vintage and unique items.
So consensus is generally positive on the recent announcement as per the original post from today. There are those that are voicing concerns in how useful the program will be - but one thing for sure, this was brought forth by the changes occuring as of August 29 and the end if de minimis. eBay didn't need to do this for any other reason - because the situation is beyond chaotic on multiple fronts.
For the last forever, Canadian sellers have been frollicking in the daisy fields of being within a stones throw distance to the largest consumer market in the world. De minimis let us have more or less unfettered access, and we've been so lucky as compared to the rest of the world. We could even take on the role of a domestic US seller if using cross-border services if we had access.
But now the daisy field has shifted into a jungle full of poisonous creatures with land mines planted everywhere. Anybody who has run a business based on de minimis is now walking into that jungle wearing snow shoes and precious little else. Unless you have a US brokerage firm on retainer, the next phase of reselling from Canada to the US is going to be treacherous to say the least,
Everyone is focused on the IEEPA tariffs based on country of origin. Yes those are a problem for sure, but they aren't where the pitfalls lie. The sectoral tariffs are where things are going to get nasty and expensive. And they are going to be CONSTANTLY changing, with more and more sectors targeted.
It's started with steel, aluminum and copper. To being with the processed materials were tariffed - increased to 50% recently. This hit the big producers and processors and that is not good by any means. But more and more derivative products are being added, with the latest round adding over 400 new products. And those additions don't make much sense - perfumes and scents were added to the 50% steel tariff list because a retainer cap or a 1 inch long spring made of steel is used in the pump spray for the bottle.
Now to be fair, it seems that postal system shipments will only be paying the IEEPA ad valorem tariffs - sectorals are not charged. It's obvious why - these shipments, for the TIME BEING, will not be entered via the ACE electronic sytem as the UPU network doesn't have access to it. So any secondary HTS codes that cover the sectoral tariffs can't be entered - only the HTS code for the product. But you can bet CBP is working on getting postal shipments piped through ACE, and when that happens, the full gamut of tariffs will most likely be charged. As well at this point we have no idea what fees Canada Post will be charging to process DDP shipments they'll be putting in place.
As well, there is a new section 232 investigation into softwood lumber. Get ready for that to start out as certain finished wood products for construction, and then more and more derivative products added as the greed machine kicks in. They could actually add cardboard to a derivative list - it's made from soft wood. Would that make sense? No. Could it happen? Yes, So then EVERY SHIPMENT in a cardboard box could face a sectoral softwood derivative product tarrif. At oh, let's say 50%. This doesn't make any sense, but it sure as h*ll doesn't make any sense in the case of a bottle of perfume.
Sectoral tariffs are coming for semiconductors as well. Those could be very high, since blocking imports of semiconductors is high on the priority list for industry. So it'll start with the components, like IC's, microprocessors, etc - but it's such a short hop to adding every product ever made with a single transistor in it (transistors are the basis of every semiconductor, not just complex computer chips) to a derivative list. That Japanese VCR from the 1990's that was tariffed at 17,5% (base HTS tariff plus Japanese IEEPA tariff) could now jump to over 100% tariff pretty darned fast.
So let's say you don't want to use eIS for Canada. You do your research, you find out what tariff values apply to your product. You add it to your handling fee, and even though you're happy to eat the extra fees your paying eBay, this looks like it'll work out. But then your product gets added to a sectoral tariff derivative list. You go to ship it UPS or with your favorite cross-border shipper, but you didn't get the update from CBP with all the new HTS codes that were added to a sectoral tariff. Your calculation on the tariff just jumped from a hypothetical 18% to 55%. And you've got to eat it to ship your product on time. And go back and update all your listings. And pray to God this doesn't happen again.
Let's also not forget the requirements of known country of origin, manufacturer and manufacturer address when using cross border services and shipping with US domestic label services. If you don't have this information, the guidance from all the services is: you can't ship it.
For those selling products with known SKUs, that are CUSMA compliant that they have certificates for, that have a broker on retainer and can afford it, this future is navigable. For us who are everything/vintage/treasure hunter sellers with a myriad of different products, it's murky and nightmarish. The fact that eBay is putting a program in place is truly a lifeline in a very nasty situation for many of us. We can ship to a hub and be done. Will it be perfect and salvation? No. Will it let some of us keep our heads just high enough that our nostrils won't be full of water? Hopefully.
reallynicestamps
·11 months agoe.g. I took a look at US sellers with a $20US camera, EIS shipping here was $30US to $37US. Have to see how it goes with EIS Canada to the US.
Have you compared that to USPS advertised rates though?
https://www.usps.com/international/mail-shipping-services.htm
First Class Package starts at $17.85 USD / $23.10Cdn.
Huh.
@marnotom beat me to it.
Does eIS include import fees in their "shipping and handling " charges?
Or do buyers pay import fees on delivery?
marnotom!
·11 months agoShort answer: It depends.
Sometimes the listing will offer the buyer the choice between the two, while some listings will have only one option.
The interesting thing is that for the listings I’ve found where there is a choice, the shipping price is lower on the DDP option.
lacemaker3
·11 months agoThat is what I have seen as well. I have wondered about it.
But I expect that for eIS to the US, there will only be the DDP option.
I have a question, for those who have used eIS as a buyer ... how are returns handled from the buyer's viewpoint? Specifically: are the import charges refunded, or just the purchase price + shipping + taxes?
I know how eIS returns work from the seller's viewpoint, and I'm very familiar witth the .com policy pages on eIS. But I could not find the answer to this question there, or here on .ca.
byto253
·11 months agoI wonder if it depends on the reason. If it is a buyer's regret return I could see that not being refunded, but if it is an INS where the seller is on the hook there is a case to refund the full amount to the buyer.
marnotom!
·11 months agoInformation on refunds can be found in the US eIS's terms and conditions for buyers in a section titled "Refunds":
https://pages.ebay.com/internationalshippingprogram/buyer/terms/
lacemaker3
·11 months agoThanks. The information is incomplete, but it partially answers the question, only for the case where the item is delivered duties unpaid (DDU):
No, buyers who chose the DDU option are not refunded for the cost of duties (which were not collected by eBay in the first place). So that is not a surprise. Nor are they refunded for the amount of international shipping, or taxes except those which eBay was required to collect.
But, no information at all about refunds (of duties, shipping, or anything) in cases where the item was delivered duties paid (DDP), i.e. when the buyer paid the import charges at checkout. TBH, I expect the answer is still no.
I am hoping that someone might be able to answer this question for a DDP shipment from experience?
From the link above (I don't think this page exists for .ca yet; I couldn't find it):
iii. The following refunds may be subject to applicable set-off and deductions. For example:
flipistics
·11 months agoPlease don't give Trump any ideas!
byto253
·11 months agoEIS will make it easier, but if it works the way the current one does it will be tough to compete unless you have a very high value item so the shipping cost is not that relevant. But for the majority of items under $100 or $200 EIS it may be tough sledding.
e.g. I took a look at US sellers with a $20US camera, EIS shipping here was $30US to $37US. Have to see how it goes with EIS Canada to the US.
chicweb
·11 months agoIt depends. I have some customers who buys french canadian VHS in the states. They cannot be bought elsewhere. There's not a lot, even on eBay.
Collectors will have to pay the price if they want the items (or wait it out). So it all depends. Collectibles can still work fine with more shipping, depending on specifics (availability, competition, etc).
It all depend on the customers and what they are willing to pay for specific items.
byto253
·11 months agoAgree if an item is unique enough.
vintage_america
·11 months agoTrump next Thursday night.
“I think I may just lower De minimus to 300$.”
I’m just waiting a couple weeks before making any drastic changes. He’s so mercurial. But he also has to be savvy, because I don’t think these de minimus removals are popular with most Americans either. And the last thing he wants for his legacy is a midterm blowout followed by a Newsom blowout.
The uncertainty is deadly enough but I’m still hoping for a TACO move.
ilikehockeyjerseys
·11 months agoI don't think this is likely because the removal of the de minimis has been a non partisan issue. It started with the Democracts in 2024.
As others have pointed out, Zonos has been lobbying with the Universal Postal Union to "modernize" shipping by having a process in place for every order from every country to be DDP up front.
So while everybody was caught off guard for the de minimis removal "by 2027" to turn into by the end of the month, it seems very unlikely that this won't be permanent.
marnotom!
·11 months agoDon’t forget we’re awaiting a ruling on the constitutionality of the Trump Tariffs. Agree that duties could still be an issue even if those get mothballed, though, thanks to the elimination of the de minimis.
https://finance.yahoo.com/news/commentary-the-courts-may-soon-kill-most-of-trumps-tariffs-174331912.html
marnotom!
·11 months agoIt's been a while since I've tried breaking down eIS shipping charges, but my findings in the past were that eIS's own charges were a bit lower than the USPS counter rates. It's when the seller's own charge for shipping to Glendale Heights is added that the total shipping charge can sometimes be a deal breaker. I've seen listings where the seller's domestic shipping charge is actually higher than the eIS charge.
Sellers using the Canadian eIS in competitive categories may end up doing a bit of scrambling to get their domestic shipping rates down or may try experimenting with "free" domestic shipping.