New compulsory "Import Fees" from USA to Canada

[what-a-guy-2002]

Member since 2010 (632 100% feedback). I have been experiencing the new compulsory "import fees" policy on items from USA. Surprising! I am disappointed with this policy. It is a negative one on many levels notwithstanding for USA and eBay revenues, as many like myself will now be sure to be motivated to resource items outside of USA, and outside of eBay.

Also disappointing is a story I was told that USPS recently (January 28, 2013) redefined Canada from being an 'intermediary' to an 'international' country, and therefore shipping fees from the USA to Canada have risen 80%!

Must be people in rooms in the USA racking their brains on how to support the USA economy versus just printing money.

[grandogranto]

It just show how some sellers are completely naive about what happens to their customers.

There should be no doubt that they are losing buyers and revenues.

Why hasn't eBay commented on this highjacking...

[pierrelebel]

"Why hasn't eBay commented on this highjacking..."

Actually, the folks at eBay.ca have.

Please take a look at post #1 (question) and post #2 (answer from eBay)

http://community.ebay.ca/topic/Weekly-Board-Hour/June-5th-Weekly/4000009126?start=0

[pierrelebel]

You can also look at today's discussion (once again the question was at post #1)

http://community.ebay.ca/topic/Weekly-Board-Hour/June-12th-Weekly/3000009788?start=0

[rosscd57]

I am thinking about buying a guitar on eBay. I looked this morning and found that the shipping was in roughly two amounts - $60 and $200. It did not take me long to figure out that the $200 amount was using the Global Shipping Program and the $60 dollar shipping was good old United States Postal Service.

So I just jumped over every GSP seller and concentrated on those shipping USPS.

Those guys are losing sales.

[chimera148]

You can also look at today's discussion (once again the question was at post #1)

http://community.ebay.ca/topic/Weekly-Board-Hour/June-12th-Weekly/3000009788?start=0

Thanks for asking the questions Pierre, hopefully we will have answers soon.

Many imported products are duty free if manufactured in the US or Mexico.

I wonder if the GSP is charging Canadians duty on some products manufactured in other countries.

[pierrelebel]

"I wonder if the GSP is charging Canadians duty on some products manufactured in other countries"

Most likely, if the items are dutiable. 

Let's face it, folks may not like the extra fees but the fact remains that Pitney Bowes is an international expert on tariffs, duty and taxes.  I trust that their calculations are correct at least 99% of the time. They know the rules, they know the rates.

The real problem, the way I see it, is the lack of information from Pitney Bowes on the costs of the service. Too many Canadians assume (we all know the meaning of the word) that "import charges" mean "duty". That is not and has never been the case.

[chimera148]

Yes, I agree the import charges should be itemized, and some of the charges could be debatable, everybody makes mistakes. The posts 277 and 278 come to mind.

[chimera148]

On the other hand, just seeing how the program has been designed and implemented causes me any lack of trust.

[crafty_cat_lady]

"Why hasn't eBay commented on this highjacking..."

Actually, the folks at eBay.ca have.

Please take a look at post #1 (question) and post #2 (answer from eBay)

http://community.ebay.ca/topic/Weekly-Board-Hour/June-5th-Weekly/4000009126?start=0

And the eBay person replies: "Simply put, GSP is a US programs aiming to help US sellers sell their items on the global market. It was not designed with the Canadian buyer in mind."

So it wasn't designed with the customer in mind. How are US sellers supposed to sell their stuff if all this program does is piss off their customers?

[synetech]

As a Canadian buyer, I am finding it impossible to bid on anything from the US anymore. Not only has the shipping cost gone up, but there are now import charges on top. Even the Canada Post has raised its rates, so after years of using eBay I am pretty much done with it and may as well close my account (the end of eBay Bucks for Canada just adds to the motivation to stop using eBay).

The Global Shipping Program is confusing because it says that it helps sellers to ship at competitive rates, yet all of the listings I have seen that use it are still showing drastically higher shipping costs (200-300% higher) than last year. So as far as I can tell, no matter what, it will cost a LOT more to buy from the US.

Moreover, the Import Charges field in the Shipping Calculator not only shows a high price, but it says it is ESTIMATED. What the hell is that‽ Just randomly adding a large fee for the heck of it?

Well that’s it; no more eBay AT ALL. I’ll have to stick with Kijiji from now on. Unfortunately the changes made this year completely screw over anybody who is poor or lives in a small enough town to render local classifieds useless.

Bye bye eBay.

[synetech]

As a Canadian buyer, I am finding it impossible to bid on anything from the US anymore. Not only has the shipping cost gone up, but there are now import charges on top. Even the Canada Post has raised its rates, so after years of using eBay I am pretty much done with it and may as well close my account (the end of eBay Bucks for Canada just adds to the motivation to stop using eBay).

The Global Shipping Program is confusing because it says that it helps sellers to ship at competitive rates, yet all of the listings I have seen that use it are still showing drastically higher shipping costs (200-300% higher) than last year. So as far as I can tell, no matter what, it will cost a LOT more to buy from the US.

Moreover, the Import Charges field in the Shipping Calculator not only shows a high price, but it says it is ESTIMATED. What the hell is that‽ Just randomly adding a large fee for the heck of it?

Nobody is going to pay taxes and duties for a piddly, USED item worth only a few dollars (used items mean it and the taxes have ALREADY BEEN PAID!) We can buy them from each other in person without having to pay tax or duties, so I don’t see why we should have to do it online.

Well that’s it; no more eBay AT ALL. I’ll have to stick with Kijiji from now on. Unfortunately the changes made this year completely screw over anybody who is poor or lives in a small enough town to render local classifieds useless.

Bye bye eBay.

Everybody should use eBay as little as possible and use local classifieds like Kijiji, eBay Classifieds, Craig’s List, etc. as much as possible instead.

[bluewee23]

I haven't read all of the pages, but I would like to point out that the new GSP charges high import fees on products that are made in the USA (Allen Edmonds shoes) and due to NAFTA would not be charged duty when shipping to Canada. This is Ebay fraudulently collecting fees that would never be charged in the first place. 

[pierrelebel]

"This is Ebay fraudulently collecting fees that would never be charged in the first place. "

Maybe you should have read all the pages on this thread.

You would have learned the "import fees" charged by Pitney Bowes (not eBay) have nothing to do with "duty" in most instances.

NAFTA does NOT eliminate the consumption taxes (HST/GST/PST) that Canadians must pay when purchasing taxable goods domestically or from outside the country. NAFTA deals with tariff (duty rate) and quotas, not taxes. A link to the text of NAFTA was supplied earlier. Please read it carefully.

Importing, like driving a car, is NOT a right, it is a privilege.  To drive a car in Canada, you need a driving license.  You must pay a fee to get one. Importers (buyers) are required to clear the imported goods through Customs and pay all relevant taxes. That process also includes in most instances a brokerage fee - that is the responsibility of the buyer.

Most Canadians - including eBay.ca staff - agree that the recently introduced GSP does not benefit Canadian buyers.  But let's keep it in perspective.  There is no fraud here.

[servicesinfosl]

All items imported into Canada that have a value of less than $20.00 are NEVER acessed any import charges (Canada Post, UPS and FEDEX). This is why many people request sellers to illegaly declare the item is less than $20 when it is actually higher to save import charges.

Take note that I have already discussed this with eBay on past purchases and eBay did rule in our favor confirming that Canadian Import Law. We were asked by eBay to request the seller to reimburse the import charges and the seller can then deal with Global Shipping Program to get their money back.

The Global Shipping Program should conform to the destination country's laws. BTY, I have had 2 bad experiences with this illegal practice. The last one tonight, item cost was $3.50 USD. I was charged $13.44 USD for shipping PLUS another $3.34 USD for "Import Fees". I agreed for the shipping, but the Import Fees should not apply. I consider this is illegal. It's almost the price of the original item!

[pjcdn2005]

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@servicesinfosl wrote:

All items imported into Canada that have a value of less than $20.00 are NEVER acessed any import charges (Canada Post, UPS and FEDEX). This is why many people request sellers to illegaly declare the item is less than $20 when it is actually higher to save import charges.

Take note that I have already discussed this with eBay on past purchases and eBay did rule in our favor confirming that Canadian Import Law. We were asked by eBay to request the seller to reimburse the import charges and the seller can then deal with Global Shipping Program to get their money back.

The Global Shipping Program should conform to the destination country's laws. BTY, I have had 2 bad experiences with this illegal practice. The last one tonight, item cost was $3.50 USD. I was charged $13.44 USD for shipping PLUS another $3.34 USD for "Import Fees". I agreed for the shipping, but the Import Fees should not apply. I consider this is illegal. It's almost the price of the original item!

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They aren't doing anything illiegal. In the situation that you are referring to, the $3.50 is the minimum charge that is charged regardless of the value of the item. It is a handling/processing fee..not a charge for tax or duty.

For lower cost items,the gsp is often more expensive than if the seller had sent the item direct to you. It's too bad that not all sellers realize that and opt out of the gsp for that item. You can ask them before you buy if they will do that..or you can find someone else who sells that item and doesn't use the gsp..

[tristfan]

I've read through most of the board here but was hoping someone could answer my question as I did get through a large part, but not all the posts, and might be missing something.  A family member and I share this account and although he uses it frequently, I haven't for awhile.  I just discovered the import fees the other day and am disgusted.  With the incredible hike, I don't think I can afford to use eBay anymore since the shipping ends up coming to more than the item in the end.  My question is, is there any way we can avoid the import fee outside of shopping through Canadian sellers?

[chimera148]

You can avoid the GSP listings and go to a US seller not using the GSP. The GSP listing looks quite different and will have import charges. Here is the same shirt listed with and without the GSP fees.

[chimera148]

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@tristfan wrote:

  My question is, is there any way we can avoid the import fee outside of shopping through Canadian sellers?

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You might ask the GSP seller to opt out of the program if no bids or offers have been made. It can take up to 72 hours to opt out. 

[lordoflight]

This is more overhead from ebay and 3rd parties wishing to cash in.  As a longstanding ebay member and buyer, I'm now purchasing outside of ebay, within ebay only from vendors who DO NOT use the P-B shipping option.  Any item I purchase from the states is either delivered to a cross border holding location for pickup, or I use USPS without any 3rd party intervention.  Good luck with this Global Shipping option, hope ebay montiors sales stats and sees them drop...  Make sure your vendor knows of this before you purchase and suggest they relist without the global shipping option. You would think a reduction in international shipping costs would be at hand considering the state of the global economy, not an increase...

[marnotom!]

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@lordoflight wrote:

This is more overhead from ebay and 3rd parties wishing to cash in.  As a longstanding ebay member and buyer, I'm now purchasing outside of ebay, within ebay only from vendors who DO NOT use the P-B shipping option.  Any item I purchase from the states is either delivered to a cross border holding location for pickup, or I use USPS without any 3rd party intervention.  Good luck with this Global Shipping option, hope ebay montiors sales stats and sees them drop...  Make sure your vendor knows of this before you purchase and suggest they relist without the global shipping option. You would think a reduction in international shipping costs would be at hand considering the state of the global economy, not an increase...

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I do find it interesting that some users of a site that encourages commerce are condemning eBay and PB for trying to create a profitable service in the first place.  Of course they're trying to "cash in".  It's called finding an opportunity where there's a perceived (accurately or not) need, trying to fill that need and making money at it.  Isn't that what eBay sellers themselves do?

Once buyers and sellers figure out how the GSP works and doesn't work, I think a lot of this hysteria will pass.  Remember, the eBay marketing of the GSP focusses largely on how to make international shipping as "easy" as domestic shipping, playing on the apprehensions a lot of U.S. sellers seem to have about international sales.  At no point have I seen it brought up by the marketers that it's also supposed to make shipping less expensive than using the postal system, although for higher ticket / heavier items there seems to be a potential savings for the buyer.