eBay

Anonymous · ‎01-31-2013

I just bought a musical instrument accessory on eBay, US$29.99. The import charge levied by Pitney-Bowes (who have some sort of shipper/warehouse/fee collector relationship with eBay) was almost US$10. 30% of the cost of the item. Outrageous.

I would like to know how Pitney-Bowes configures this, what the formula is. If I were to buy a used saxophone from the US and have it shipped to Canada, in addition to the shipping costs, would I have to pay P-B US$200.?

I won't call this a scam, but it sure stinks.

What would help is a full, thorough explanation from someone about why the fee is collected, where the money goes, and why the fee is not "up front" in the item advertising.

marnotom! · ‎07-28-2013

Um...why did you take that statement so personally when you weren't even mentioned?

Having said that, I can sort of see your point about "expectations" but while I'm not generally "rule happy," I do think that while that $20 limit is on the books, we have to set our expectations accordingly unless we like nasty surprises. I still think it's more useful to see untaxed items as "bonuses" rather than "givens" or even "the norm". Viewing them as a "given" just sounds entitled to me. I'm not saying that you necessarily have this entitlement complex yourself, but some observers may read your statement "Some may consider it a bonus............ but I don't" and wonder.

The way I see it, if you buy an item, expect to pay tax on it unless the seller isn't licensed to collect tax or there's some other exemption on the books at work. Seems pretty straightforward to me. Even "tax free" sales by stores aren't really tax free. You're still paying taxes; it's just that the item is discounted by the amount you'd be paying in taxes if it were full price.

Did you know that 40+ U.S. states officially charge "use tax" on out of state purchases? That means that if someone buys something off eBay from another state (or any out of state purchase, really) the state treasury may want to see the equivalent of state sales tax paid for it. The problem is, the means of collecting this tax are on the honour system and many if not most residents of those states are unaware of their obligations to pay it. Would you call tax-free purchases made by buyers in the United States to be the norm simply because the majority of purchasers don't get off their tuckuses and pay it?

i*m-still-here · ‎07-28-2013

I Don't know if this has changed during the past few years, but Canada used to be on an honor system as well.

That is, at one time I shipped mainly within Canada and even though I didn't charge PST when shipping out of Province the buyer was supposed to remit the PST voluntarily.

Thing is, I don't think anyone was even aware of it.

I've often wondered whether the States bothers to collect taxes and duty on the items over $250 I ship down there

No one has ever mentioned it to me and when I ask about they are not even aware that there is such a thing.

When I've asked US friends about this I've been told that they never collect.

It's not just Canada that tends to waive this tax.

Has anyone ever heard of the US collecting taxes on eBay items shipped from Canada?

gamesupplyco · ‎08-16-2013

I read somewhere that eventually Ebay isn't going to have any customers.

gamesupplyco · ‎08-16-2013

The way of the future is Craigslist. I buy most everything on Craigslist. I only purchase via Ebay/U.S when sometime is not within 100 KM's of my local area and ready to be picked up without any fees/shipping/taxes/etc. I don't even see any bargains on Ebay anymore. It's all businesses charging taxes, handling fee's, shipping, etc. Once all of the fees are added up I'm often paying retail prices for broken, dorito finger covered used **bleep**. Ebay needs to find a way too keep up.

pierrelebel · ‎08-16-2013

"I read somewhere that eventually Ebay isn't going to have any customers.'

I read that too. In the "Mad" magazine. On the other hand, I know better than to believe everything I read. Always consider the source and its credibility

pierrelebel · ‎08-16-2013

"I buy most everything on Craigslist"

eBay is thankful to you since they own about 25% of Craig's List (and have three members on the board of directors).

pierrelebel · ‎08-16-2013

"Has anyone ever heard of the US collecting taxes on eBay items shipped from Canada?"

Unlike Canada and most countries in the industrialized world, the USA does NOT have a national consumption sales tax (GST/HST/VAT or whatever you want to call it). Maybe they should have a similat consumption tax; it may help take them out of the financial mess they are in right now with their ever growing national debt.

gamesupplyco · ‎08-16-2013

Geez, I wonder why they infiltrated Craigslist? They saw a better product and were worried that they'd miss out on getting a piece of it. I'm not sure why Ebay would be thankful when they do not profit from my buying/selling on Craigslist. They wanted to get a piece of Cragslist so they could eventually shut them down. Anyway, I don't really have a problem with Ebay, I still use it, but it's not nearly as good as it was 10-15 years ago. I seriously have a hard time finding competitively priced items.

dipmicro · ‎08-17-2013

@Anonymous wrote:
What would help is a full, thorough explanation from someone about why the fee is collected, where the money goes, and why the fee is not "up front" in the item advertising.

Wasn't there an invoice attached with your bill ? All couriers show what portion is tax and what is their sticky fingers.

Btw. the solution is extremely simple. Most of that money stays with brokers and similar companies like Pity Bowels. The government only gets $3.90 off that $10 you paid. Email has been around since 1980 and credit cards have been invented in 19th century, and CBSA is perfectly capable to asses the tax using their ubiquitous MISC code and email invoice the recipient (assuming email is known) and PO would release your parcel upon proof of payment to CBSA without involving itself in the transaction. It does not take $9.95 to look at the parcel and calculate 13% so government should stop this scam for good.

dipmicro · ‎08-17-2013

My proposal to CBSA:

1) Create a website where Canadian residents could register with CBSA

2) Registered mail recipients would use their CBSA account # in their mailing address

3) CBSA would bill the account, recepient would get notified, pay electronically and carrier data center is notified that shipment was cleared by CBSA.

Simple. Clean, Saves taxpayers hundreds of millions of dollars they can spend on more taxable goods. Almost everyone wins.

sunray0 · ‎09-22-2013

sunray0 · ‎09-22-2013

Hi,
I stopped bidding on any item that has import charges, it's a scam as far as I can tell.
How?
I bid on a used item ( fishing reel) , and I won, import charges was 70$ $ , shipping 25 $,
On arrival I paid 35$ tax (reel was 280$).
Normally I pay shipping and taxes....done that hundred time.... I usually avoids ups bc of borkarge fees . USPS doesn't seem to charge that.
So what is import charges. eBay running now like a retailer , not more fun bidding. Actually few items will be cheaper buying from Internet store directly just bay shipping and taxes

pierrelebel · ‎09-22-2013

"import charges was 70$ $ , shipping 25 $,
On arrival I paid 35$ tax (reel was 280$)."

Something went wrong with that transaction. It has nothing to do with being a "scam".

If you paid "import charges" and the seller shipped to Pitney Bowes as directed, you should NOT have to pay any tax at time of receiving.

Check with the seller to ascertain that he actually shipped to Pitney Bowes as instructed, not directly to you. Check the Canada Customs Declaration. Does it show the seller as shipper? or Pitney-Bowes (as it should)?

Then contact Customer Service at eBay and they will guide you to receive a refund for the unwarranted charge.

Frankly, I suspect the problem is the seller shipping directly to you instead of PB. This type of problem has been seen many times before.

dipmicro · ‎09-23-2013

What address do seller receive on the sales record when GSP program is used ? It was my understanding the seller receives the PB address, and not the buyer's address, so how can seller ship to wrong address at all ? The seller should not even have the buyer's actual address anywhere on the record.

pierrelebel · ‎09-23-2013

" the seller receives the PB address, and not the buyer's address,"

That is correct. The seller is provided with the buyers name and Pitney Bowes address on the shipping label when payment has been made.

However, there are many other ways for the seller to obtain the buyer's actual address.

stevephinn2012 · ‎09-25-2013

hate to say it's a SCAM but it's a SCAM!

watching an item I was interested in right now auction is at $24.99 with an "import" charge of $8.65. This item is MADE in Canada so , there should be no "Import" due but maybe Taxes "IF" CP actually catches it on the extra $4.99 value.

I would like to know if EBAY is dipping there hands into that pot also? They charge a selling fee on the shipping portion of sales--is this considered a shipping "fee" also??

pierrelebel · ‎09-25-2013

Taxes (GST/HST/PST) apply on the full value of a taxable item, not only the portion over $20.

For more information, please check:

http://www.cbsa-asfc.gc.ca/import/postal-postale/duty-droits-eng.html

stevephinn2012 · ‎09-26-2013

$24.99 times 13% = $3.25

AGAIN if you read you would see where I mentioned that the product being sold is Actually made in Canada so NO duty. Yet EBAY is charging $8.95 import fees.

Even if you want to be WRONG and say Taxes is also due on the "shipping" portion $24.99 + $17.99 = $42.98 X 13% =$5.59

I do hope the Canadian Government is keeping good track of all this BONUS (because in 90% of the cases they would never see it) that "should" be coming their way!!

pierrelebel · ‎09-26-2013

As stated many times on many threads, and as explained on eBay.com on the progran, "import charges" include taxes AND a handling fee charged by Pitney Bowes. That "handling fee" is generally lower than the $9.95 charged by Canada Post when taxes need to be collected on a postal parcel.

Shipping charges when coming from outside the country are generally not taxable. Shipping charges originating within the country generally are if the products are taxable.

I am not "defending" GSP - I still think it is ill advised for most Canadian buyers and most transactions - but let's try to keep the information factual.