Brokerage fee and import tax on Ebay Returned Item

[onlygoodthingscanada]

Please help!!! And please tell me how to pay you back for good advice!!!

10 days ago sold Italian sneakers for $200 to buyer in US. They did not fit and box was immediately sent back. Buyer did not think too much (just like me) and used UPS.

Item is in Canada now, just been released from Customs. On the phone UPS told me so far brokerage fee is CAD$72 and no import tax (at this point). They see that there is a reason for import RETURNED EBAY ITEM. I told UPS that would like to have the item cleared myself and they will phone me back with instructions within 24 hrs.

How to avoid that brokerage fee and import tax? Anyone have had similar situation before? What would you do?

[femmefan1946 · Accepted solution]

You answered your own question.

How to avoid that brokerage fee and import tax?

I told UPS that would like to have the item cleared myself and they will phone me back with instructions within 24 hrs.

You should also contact CBSA with a copy of the original invoice for the purchase. The shoes are 'returned merchandise' and there should be no duty or sales tax.

[onlygoodthingscanada]

Two weeks ago they did make me pay for another item. It was only $18 so I did not resist too much. Invoice indicated REPAIR/RETURN and they still charged me. They explain that anything that is imported to Canada has to be taxed. I am trying to find anything about Returned Items: if they are duty free or not. I just cannot find anything.

[computer-geek541 · Accepted solution]

Item being returned are definitely not taxable.  Since they were already previously in Canada, you presumably have already paid the sales tax on it.  Also, the brokerage fee is a service charge that is only supposed be charged when the contents of the package are taxable. UPS is trying to pull a fast one on you guys.

[mdf_jersey · Accepted solution]

I had a few of these myself. I wish I could remember if I sent CBSA  the information through their site or I physically sent the information to them. But anyways, if this was a return, then they will refunded the taxes that they charged. Below is where you can dispute the charges

http://www.cbsa-asfc.gc.ca/import/postal-postale/dispute-contestation-eng.html

Still waiting for the good times to roll

[melissasminis]

So did the buyer have to pay duty and taxes as well when they received the sneakers? I think they are able to import up to $200 worth item tax free in the USA, but since it's an Italian product, do they have to pay duty? Canadian's can import up to $20 worth product before being charged taxes. You are not supposed to have to pay any fees for a returned item, taxes and duty would have been paid on this item previously when it was importated into Canada, or when you purchased it to begin with, these fees were paid. I don't agree with someone having to pay tax and duty many times on one item. Never use UPS for any shipments going across the border or overseas. UPS is the worst company out there and I can't believe they're still in business. Now that I never have to see a UPS driver at my door with their hands out begging for money, I have never been happier lol.

[onlygoodthingscanada]

Thank you femmefan1946, jerseywithstats and melissas-minis-2007 for the info and efforts.

Seems to me this case is about to be resolved.

Called UPS brokers, told them will clear the parcel myself, they emailed me invoice and instructions. Ended up going to one of CBSA offices and have been given "release form". Did not have to pay even a dollar after brief explanation that it was Returned Ebay Item, also showed them buyers email to me that sneakers did not fit and therefore needed to be returned. And of course buyers evaluation of sneakers US$475 (and they paid only CAD$199) was not much of a help.

So anyways, 3 documents with CBSA's stamp has been emailed back to UPS and now just waiting for delivery. You live and learn and avoid UPS.

[onlygoodthingscanada]

Buyer did not have to pay any import tax. I sent parcel to them with CAD$100 insurance and value.

[melissasminis]

Hopefully it all works out. You sold the item for $200, but insured it for $100? Not a good idea just incase there was damage or got lost in transit. Insure your items for the actual amount including shipping costs if you charge separately for shipping, unless your shipping costs to charged the buyer are exactly what you paid the shipping company. In an insurance claim with the post office if something happened to the package, they will refund the insured amount plus shipping costs you paid.

[pjcdn2005]

Hopefully it all works out. You sold the item for $200, but insured it for $100? Not a good idea just incase there was damage or got lost in transit.

If I paid $100 for an item, sold it for $200 and insurance of up to $100 was automatically included, I would not pay for an extra $100 of insurance just in case the item was damaged in delivery or got lost. Considering neither of those scenarios happen that often, it just doesn't make sense for me to pay extra money based on the small chance that there will be a problem.

In this situation, that extra insurance wasn't needed since the buyer did receive the item.

[onlygoodthingscanada]

There is a such a slim chance that trackable parcel would get lost. I have had a few incidents when tracking just stops at some point and there is no further scan, but fortunately parcel still gets there. Have just had one to Finland: scanned at post office and that's it. Made me worried but in 2 weeks buyer emailed that received as notice from Customs to pay duty.

Insurance: it is very hard to damage shoes or t-shirt, most of them are being shipped in boxes and plastic. I do buy additional insurance when shipping let's say to Russia for items that cost more than $200.

By the way, UPS has made 2 attempts to deliver those **bleep** sneakers. I keep refusing to pay $74 and they keep coming back. Customer service has finally promised to follow up with me tomorrow and allow me retrieve parcel from one of their locations.

[melissasminis]

I don't see the point of using an insured option if you're not going to fully insure for the amount the item was purchased for. I had sold an old Mercedes grille, and the customer received it damaged, it was packed very well as I'm used to packing auto parts without problems. I called Canada Post, and they asked me if I purchased additional insurance (as the grille sold for about $175), so it does matter when it does happen.