Buying from outside of Canada with and without the GSP

[foulger_tyson]

So I have a few questions about buying from the US or other countries outside of Canada.

(Correct me if I am wrong on any of this.)

Okay, So, with eBay's Global Shipping Program (GSP) When you buy from the US or any other countries outside of Canada, and use the GSP, that money that you pay the GSP is used to pay the Import charges, Duties, and Taxes. The seller (US) ships the item to the GSP in Kentucky, they (GSP) then process the item in Kentucky, and send it off to you, the buyer. All Fees paid! 

Well, what if the seller doesn't use the GSP? There is just the regular shipping fees. Does that cover the Import fees as well? If not, will I be required to pay the fees when my item is delivered to me at my door or when I pick it up or will I get a bill in the mail when the item reaches the border that I will be required to pay in order for the item to be released from customs?

[ypdc_dennis · Accepted solution]

GSP is only available from sellers who are located in the USA (shipped via Kentucky) and in the UK (via Staffordshire?).  No additional duty or taxes for the buyer on arrival if GSP used (all billed in advance).

Non-GSP shipments sent by courier (UPS, FedEx, etc) have duty, taxes and handling fee collected as set out by the courier (check their websites). Often collected when delivered -- and almost never paid in advance via ebay.

Non-GSP shipments sent by mail often slip through customs without duty or taxes being charged. If duty and taxes are charged, Canada Post adds a collection fee of $9.95 -- payable either when the package is delivered or when the buyer picks it up at the post office/outlet.

Canada is unusual in allowing payment when delivered by the post office -- many countries still require the buyer to get imported packages from the local customs office. 

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[foulger_tyson]

So to simplify it, If an item is shipped with the GSP then there are no fees other than the ones you pay at checkout.

If it is not shipped with the GSP, then the buyer will have to pay the fees when receiving the item.

Correct?

[foulger_tyson]

How can these fees be calculated?

[ypdc_dennis]

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@foulger_tyson wrote:
How can these fees be calculated?

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Canada Post: $9.95 collection fee, sales tax for your region, and duty (which can be 0% to over 20% depending on where made, what type of product, and new or used).  The government of Canada website has more info.

...

Couriers: Their collection fees are usually higher than Canada Post (check their websites), but sales tax and duty will be the same as Canada Post.

...

Current free limit via mail is $20 Canadian value and under. No duty, sales tax, or fee charged.

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[retroman_studios]

Most items that are assessed for fees are taxes + 9.95 CP fee. So if you bought $100 worth of items and tax was 12%, it would roughly be $12 + $9.95.

Keep in mind though, sometimes with currency exchange and certian items it might be less or more. Some items might have duty added.

When you are checking status of shipment on Canada Post site, you can sign up to receive notifications if fees are required. I haven't tried it yet, don't know if it tells you how much.

Also, just a side note regarding FedEx and DHL. FedEx will typically not collect fees up front but mail you an invoice after. DHL will hold the shipment untill fees are paid then release for delivery.

[ypdc_dennis]

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@retroman_studios wrote:
... DHL will hold the shipment until fees are paid then release for delivery.

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If Canada Post does the delivery last mile for DHL, then DHL has Canada Post collect the fees via COD (payable at the door or at the post office).

[foulger_tyson]

How would it be delivered with CP, like what company would it be shipped by in the US? USPS? Because If it was shipped with UPS or FedEx in the US, wouldn't it be delivered with UPS or FedEx as well?

How do they know how much you paid for the item?

[momcqueen]

“How do they know how much you paid for the item?”

The seller is required to complete those forms for Customs plus be truthful about value of goods.

[reallynicestamps]

Because If it was shipped with UPS or FedEx in the US, wouldn't it be delivered with UPS or FedEx as well?

Theoretically, yes.

But couriers restrict delivery to profitable routes, mostly urban and suburban.

They sub-contract rural and isolated shipments to Canada Post which by law has to deliver everywhere.
And, just to annoy those who imagine that private industry is always cheaper than government-run organizations,  it is cheaper for them to sub-contract to Canada Post (which is does make a profit and pays it to the Canadian Treasury) than it is to deliver themselves.

[foulger_tyson]

So I will pay them at delivery or pickup, it won't get stuck at the border and get a bill in the mail?

[momcqueen]

I’ve yet to hear of that happening as part of any Canadian Customs clearances process although my buyers in Germany have explained that is their experience.

[momcqueen]

Sorry, to be clear: the package is delivered and either you pay at the door to Canada Post or the courier charged with collecting the import fees on behalf of Customs or, like with FedEx, you get a bill for import fees in the mail after you have accepted that package. As a receiver, you also have a right to refuse delivery but in most (but not all) cases that voids the MoneyBack Guarantee. Exceptions apply.

[momcqueen]

No, Customs doesn’t hold it unless you’ve declared you intend to self-clear as your own broker which is a process I cannot even begin to understand much less explain.

[foulger_tyson]

So I will get a bill in the mail after I receive the package? How do I pay the bill? Post office?

[retroman_studios · Accepted solution]

Since you are asking about buying from USA, I'll make it easy:

Seller's Shipping Method

USPS - You pay when it is delivered to your door or picked up from Post Office.

FedEx - You get a bill in the mail after delivery.

UPS - You pay when delivered to your door or when you pick up from UPS pickup location.

DHL - You pay online once item clears customs. They won't deliver until you pay.

That is the basic version. Assumes you are in a city/community that is not in a remote area.

[foulger_tyson]

I am just trying to get a feel for it before I go and buy.

[momcqueen]

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@foulger_tyson wrote:
So I will get a bill in the mail after I receive the package? How do I pay the bill? Post office?

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FedEx would never send you a bill that you have to pay at the Canada Post authorized dealer counter. (Couriers and the postal service are like oil and water, they do not mix. The exception is overnight service or last-mile delivery into remote locations where one pays the other to do one part of the job. But that has nothing to do with import fees.) You'd pay by credit card online or cheque mailed like any other bill. 

Drummond summarized it best.