GLOBAL SHIPPING PROGRAM MUST MUST BE DESTROYED!! SELLERS UNAWARE OF FEES BEING CHARGED TO BUYERS!!

[martinoantiques]

So far this new global shipping centre is doing nothing postive for me, so far I have not had any good experiances with it. If I like an item and the seller opted to use the program, Im looking at additonal fees, on top of shipping, so sometimes its a 50$ item with international shipping of 12$ bucks, and then the fees for the Global Shipping Program is like 14, well over 20% in charges... now thats crazy if you ask me, secondly you can't opt out once you sign up for it, so its optional but they don't tell you what happens to the buyers! 

Biggest problem Ive just learned, in my situation where Im In Canada and I want something from the US, I get quoted internatioal shipping from a seller, and usually over 10$ however, its domestic to ship to the centre, and the centre already takes its cut... so the seller pays 2.50$ only gets 2.50 for domestic small from the order, and the remander of the shipping that was charged to me for international goes to the Global shipping program along with the 20%+ in charges.. Do you follow me...

Recently I bought a 50$ item, seller had a 12.37$ shipping price, and the Global Shipping fees worked out to 14.35$ 
( I got my item, it said 2.50 on the package for amount paid for shipping ) also in the receipt from the Online order states the buyer only took 52.50 total, and the extra 9.87+14:35 ( and what did they do? nothing they took the package that was already with my address on it, looked at it, and then mailed it themselves again to take a fee... .This is got to stop, I'm sure someone has already made a million dollars just in these fee's in the last few months... so please get some hype going about this, maybe it will stop..

sad thing is though, the sellers don't know there items are getting less money because the buyer accounts for global shipping fees.... some people are not even selling items anymore because of it, a 1,000$ dollar item costs 50$-100 to ship and now its an extra 225$ for the global program... come on!!! please help.. 

Please Comment with you're user ID and Date of Sign Up- See if we can't petiton this thing off. 

Martinoantiques- 2012

[pierrelebel]

Hundreds of posts - mostly complaints from buyers like you - can be seen on the Buyer Central Board:

http://community.ebay.ca/t5/Buyer-Central/bd-p/23003

The $2.50 you have seen on the package, is what the seller paid to have the parcel shipped to the Pitney Bowes Distribution Centre.  The extra $9.87 is the shipping costs from Pitney Bowes to you.  The extra $14.25 is made of taxes (13% HST for you in ON) and a small brokerage/handling fee (about $5).

The tax would have been the same (14% HST) coming by mail directly from the seller to you and the parcel assessed by Canada Customs and a $9.95 fee would have been charged by Canada Post.

[pierrelebel]

PS - Your listing does not indicate of you are GST/HST registered.

If you are, as you know, you recover the full amount of tax paid as Input Tax Credit (ITC).

[aurelc123]

I totally agree with you.  I make it a point not to purchase anything from anyone that is using this shipping program as the cost is outrageous.

Only on rare occasions have I ever payed import fees.  I'm talking 1 out of 20.  Now you want me to pay it every single time???  Come on.  This program sucks and US sellers are definitely loosing out on business and I know I'm not the only one that feels this way.

US sellers out there,  if you have not opted in this Global shipping program yet....  Don't....  You will lose out on sales....  I guarantee it.

[aurelc123]

"The extra $14.25 is made of taxes (13% HST for you in ON) and a small brokerage/handling fee (about $5).  The tax would have been the same (14% HST) coming by mail directly from the seller to you and the parcel assessed by Canada Customs and a $9.95 fee would have been charged by Canada Post."

This is where you're wrong.  It's not the same... as the fee you talk about is usually only payed 1 out of 20 transactions.  I like the odds of not having to pay the extra $19.25 you refered to.  Thank you.  I refuse to buy from anyone using this program.

[marnotom!]

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@aurelc123 wrote:

This is where you're wrong.  It's not the same... as the fee you talk about is usually only payed 1 out of 20 transactions.  I like the odds of not having to pay the extra $19.25 you refered to.  Thank you.  I refuse to buy from anyone using this program.

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So how do you feel about having to pay sales taxes on every single item you purchase from a store?

[16blythest]

To aurelc123.

Never make the mistake of telling Yoda The Wise One, He who knows All, that he is wrong !

What insolence!!

Don't you know he's ALWAYS right !!

[recped]

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@pierrelebel wrote:

If you are, as you know, you recover the full amount of tax paid as Input Tax Credit (ITC).

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One problem with that.....purchases through GSP don't come with an itemized invoice showing the GST/HST as a seperate line item. Therefore not possible (legally) to get an ITC.

[raemsbrian]

If I buy something in the United States I do not pay GST...so why am I forced to online? Stop trying to support EBAy and Pitney Bowes...they are both **bleep** and I no longer purchase anything from the US, period.

This system is garbage, as are the recent fee increases. Keep sucking up, you are doing good.

[pierrelebel]

"purchases through GSP don't come with an itemized invoice showing the GST/HST as a seperate line item. Therefore not possible (legally) to get an ITC. "

Of course it would be much easier if Pitney-Bowes provided the information as required by Canadian laws.  eBay is aware of the problem, a large number of posts over the last several months (both on eBay.ca and eBay.com) have raised the issue, all to be ignored by eBay staffers and management.  It is getting frustrating trying to communicate with eBay when facing a stone wall.

That said, Canadian HST/GST registered sellers can still claim their ITCs by manually calculating the portion of the "import charges" which is GST or HST and expensing the difference as brokerage or handling fee. 

The actual paperwork is only required at time of tax audit.  It would certainly not be a problem for audited sellers since the amounts were paid although it may become a huge red flag on both eBay and Pitney-Bowes if seen often enough by CRA. 

Maybe that is what is needed to have eBay and PB finally do what they are required by law to do: get CRA on their back!

[rose-dee]

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@pierrelebel wrote:

Maybe that is what is needed to have eBay and PB finally do what they are required by law to do: get CRA on their back! 

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Odd that the U.S. counterpart (IRA?) hasn't done just that by now -- maybe next year?  

I do wonder how eBay/P-B is legitimately accounting for all those collected charges when they are lumped in with Canadian tax amounts. 

[rose-dee]

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@rose-dee wrote:

I do wonder how eBay/P-B is legitimately accounting for all those collected charges when they are lumped in with Canadian tax amounts. 

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Oh, I forgot -- the money is in Switzerland, the home of the free. 

[pierrelebel]

"Odd that the U.S. counterpart...."

The US Internal Revenue Service (IRS) does not care since PB is collecting and remitting foreign taxes; nothing to do with US taxes.

I am confident PB internal accounting is satisfactory.  That is not the problem.  The problem is reporting to buyers with detailed breakdown of duty (if applicable), taxes and service fee being charged and GST/HST registration number if taxes have been charged as per Canadian regulations:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/bspsbch/itc-cti/nvc-eng.html

[aurelc123]

I don't mind paying sales tax to the store because I know where it's going.  This on the other hand?????  Is it going to our hospitals, schools ebay or Pitney Bowes????

[rose-dee]

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@pierrelebel wrote:

"Odd that the U.S. counterpart...."

The US Internal Revenue Service (IRS) does not care since PB is collecting and remitting foreign taxes; nothing to do with US taxes.

___________________________________________________________________________

But if P-B is not providing a breakdown showing its fee portion v. Canadian tax portion, how can it be properly accounting to the IRS?  In other words, because there is no breakdown, isn't it possible P-B could effectively "hide" a large portion of its income, claiming the amounts collected were, to a much greater extent than reality, due to the Cdn government?  

I would think the IRS would care - perhaps being the first year of the programme they haven't yet found out. 

Or are you saying P-B must be keeping an accounting of this breakdown somewhere, it's just not visible to the individual buyer who is paying P-B?

[pierrelebel]

That is correct.  I am confident the accounting at PB is adequate.  In other words, they properly breakdown their expenses and revenue.  That is not and has never been the problem.  It is not a case of fraud.

From a Canadian perspective (and I suspect other international buyers) it is a matter of PB taking a shortcut by not properly giving detailed information of all the charges as required by Canadian laws and eBay not doing anything about it.

[onebigdave]

I have bought many items on Ebay and had them shipped from the US to Canada with NO problem. I ordered one item (a pair of used boots) with the GSP and was amazed that Import duties were applied as this item is exempt. There is no way to complain to eBay although they sent me a questionaire and I complained there to no action. I figured they may have fixed this Pitney Bowes cash grab so ordered a used shirt (also exempt) and ended up paying import fees again. Pitney Bowes just charges fees on everything with no recourse for the customer. It is a BAD program. In future I will only buy from sellers who will ship USPS and I will take my chance with Customs.  

[tobyshitzu]

why would you think used clothes and boots are exempt?  They are among the highest duty items at 18%.  Add a pair of shoes that seem a good deal on US amzn and see how high the price is when you checkout with the import charges added

[femmefan1946]

If I buy something in the United States I do not pay GST...so why am I forced to online?

You pay when you import the item into Canada. There is a "drive over the border " exemption of $200, I believe. I haven't been to the States in years.

You do pay US taxes on the item you are importing, even when you drive in. Those are not refunded when you leave the country.

I ordered one item (a pair of used boots) with the GSP and was amazed that Import duties were applied as this item is exempt.

http://www.cbsa-asfc.gc.ca/travel-voyage/dte-acl/est-cal-eng.html

On a $100 pair of boots, for a returning resident of Ontario and boots made outside the NAFTA free trade zone, you would pay $30.52 duty.

Used goods are not exempt from tax or duty.

Some charities like the Salvation Army Thrift Store are not required to collect taxes.

[comicgeek74]

I could use some advice about a problem I now have.  Last month (before Christmas) - I sold 2 items to a gentleman in Australia.  When I found out how much to ship one oversize parcel with 2 items combined inside. I was pretty much freaked out at the prices by Canada Post or UPS/Fed Ex.  The buyer don't like this either and asked me to try find a shipping company that can offer a better price.

So, as a seller ... I went above and beyond what was not supposed to be. Found one local shipping company called WorldCargo near the Vancouver aiport, inquired about the price on the parcel. They said $250 approx (with tax) and I passed this info to the buyer.

The buyer accepted and did the paperwork with the company direct. Paid the shipping cost with HIS credit card. I had none to do with shipping cost on the invoice ... I only request be paid for the items alone. I got paid for that.  I did drop off the parcel at WorldCargo office and got the signed form to show they did got the parcel with eBay item number listed.

Ok, fast forward later ... I got next message from the buyer saying he was shocked to learn he have to pay customs duty fee to get the parcel in Australia. It was said to be $500!  Naturally he said he refused to pay and will fight with them thru customer dept.  At the moment the parcel is still "hostaged" by the customs dept there!

So, I ask you here ... what can I do to protect myself from something happening?  The buyer hasn't yet open a dispute with me - since this is between him with customs on this problem.  But the fact he can't get his items IS the problem.

If the $500 customs duty fee isn't paid ... the custom dept said they will destory the goods on the spot when the 60 days expired by waiting.  It's now little under 30 days since.

I'm now working in gathering more statements from WorldCargo and seeking legal advice about international shipping.  I don't want to pay that much and high price... I could be taken out close to $1000 total lost above. (the items value+shipping+customs)!!