Taxes/customs fees on package returns to Canada
Summary: biglittleape is dealing with a high-value commercial item returned from the US via UPS, and expresses frustration over being charged the same customs taxes and duties as if it were a regular purchase. recped questions why UPS is being used, noting that proper documentation should exempt the return from duties, while sapphyres-designer-jewellery shares a similar experience and advises claiming taxes on an HST return. The complications arise because eBay automatically accepted the return, preventing biglittleape from providing a return label, leading to discussions about return shipping policies. Participants discuss alternative methods to manage returns and customs fees better, like self-clearance and post office use, though biglittleape contends brokerage fees are not the core issue. Several participants share personal experiences of dealing with UPS, specifically around unexpected fees and challenges in processing returns.
I have a fairly high value item being returned by a customer from US via UPS. I have an idea of what this would cost if it was a purchase, UPS is telling me that even though it's a commercial return I still need to pay it just like if it was a purchase. This makes zero sense to me, how can companies do business with US customers if returns are subject to same customs/taxes as regular purchases. Nothing is being purchased, it's a return for which I'll have to refund the buyer. This was a commercial business sale.
I'm a registered business with the CRA so I have a business id and tax id.
dhslk
·1 year agoSolution: use the POST OFFICE. Don't deal with Customs brokerage fees.
biglittleape
OP1 year agoThis is not a brokerage fee issue.
biglittleape
OP1 year agoI already spoke with some UPS "supervisor" today, it was a totally useless call, told me I have to pay. I also spoke with someone in brokerage. I requested self clerance, will see how this goes.
There must be a better way to handle returns. I haven't come across something this dumb in a while.
byto253
·1 year agoI had this happen to me for a return on a $130 item. At the door I told the delivery guy it was a return and should not have any duty charges - he gave me good advice to call the brokerage folks and just left a notice card as if I was not there.
I called UPS and worked my way through the phone menus until I got the brokerage folks. When I explained to them that it is a return and should not have customs fees on it they emailed me information to obtain a CBSA Form BSF715 (UPS called it a B15) which is called a "Casual Goods Accounting Document" . I had to physically go to a CBSA office that does customs clearances at the Ottawa airport, and brought printouts of all the eBay pages and messages to prove it was a return and the value. After I got the B15 form I scanned and emailed it to UPS. It took a few days for their system to process it, and if I recall correctly about a week and a half until the returned item was finally delivered with no additional charges for brokerage.
Basically I did the customs clearance myself and sent the documents to UPS. It was a saga and frustrating as my buyer had correctly marked the shipping form as a return so I should have never needed to do it. But I was not giving them $45.
Do you have the UPS tracking number? I assume you do, so I would call UPS and get to the brokerage people ASAP to get ahead of it. The person I dealt with was knowledgable and helpful. Also ask for the case # after speaking with them if it is not provided.
biglittleape
OP1 year agoThe buyer shipped it using UPS, they would not answer any messages, and declared it full value of the original order, UPS told me the value. Normally I supply a return label just to avoid mess like this. It's crazy that there's no existing system in place to handle commercial returns.
It's a >$500 USD value item so I know what UPS will charge for brokerage. I might look into clearing it myself, broker has not been assigned yet.
If it's just taxes, I'm assuming they put Canada as the product origin but who knows, than ya I guess I can claim it next year but still this is so stupid. Returns are an everyday part of business, how is there no better way to handle this is beyond me.
marnotom!
·1 year agobiglittleape
OP1 year agoeBay automatically accepted the return requet, did not ask/offer me the option to provide a label. The buyer didn't send any messages nor respond to mine.
marnotom!
·1 year agoHow would you have handled the return if you were offered that option? Who pays the return shipping according to your return policy?
biglittleape
OP1 year agoI would have offered a return label. I deal with somewhat higher value items, not $20 stuff, so I know that if I let them ship it on their own I will have to deal with what I'm dealing with now.
marnotom!
·1 year agoYou haven’t really answered my questions, though. Do your listings say you offer free returns? Where would you get the return label from given that it would have to be from a US-based carrier?
biglittleape
OP1 year agoThat is not related to the issue at hand. The issue is dealing with taxes/customs on items being returned across the border. It doesn't matter who creates the return shipping label.
barnfindparts
·1 year agoI absolutely loathe UPS they are a bordeline criminal organization in my opinion. I have encountered this exact situation on more than one occasion with them to the point where I have abandoned shipments rather than pay their extortive brokerage fees on Canadian goods being returned.
Sorry I really don't have any advice to offer. They will allow you to self clear to save on the duty but only at the port of entry which may be thousands of kilometers away. Even then they will still want their brokerage fee. Its a loophole they have been exploiting to the max for years welcome to the world of Canadian ecommerce cross border trade. Aug 29 when the tariffs kick should be fun.
femmefan1946
·1 year agoNormally I supply a return label just to avoid mess like this.
Which is the sensible thing to do.
I hope you don't intend to reimburse the buyer for the return shipping label they bought.
Especially since your policy is to provide the label yourself.
sapphyres-designer-jewellery
·1 year agoI had that happen when someone returned a phone to us from the US (via Fed Ex) they charged fees for import on the declared value, even though we had it labelled as "goods returned to Canada".
The best suggestion I can give you if you're charged the taxes, is to claim them on your HST return when you file. You will still pay the brokerage and there's nothing you can do about that if they charge that.
C.
recped
·1 year agoMy first question would be, why are you using UPS? Regardless of any tax & duty they will hit you with a bunch of fees, more if they have to payout any GST or Duty.
I have a few questions......
What is the item?
What is the country of origin?
Is UPS talking about Duties or GST/HST?
Generally if the return is properly documented there would be no duty payable but GST/HST would still apply. Since you are registered for GST you can claim any GST collected on the return as an Input Tax Credit