eBay

kalvin@ebay.com · ‎09-26-2013

Feel free to share your thoughts about the Global Shipping Program here.

A few questions to get the ball rolling:

What has worked well for you with the Global Shipping Program?
Any ideas to help improve the experience for Canadian buyers?
What has deterred you from buying items offered using the Global Shipping Program?
How have you managed to search for items outside the program?

Please try & keep the comments constructive 🙂

If you have any questions about the program, please post them here.

~Kalvin
eBay.ca Community Manager

kalvin@ebay.com

marnotom! · ‎03-28-2014

@snoooozyalose wrote:

Import fees for Canadians using the GSP

This is the transaction amount on a sale of a watch to Alberta Canada with a GST of 5%
Cost of item Total US $244.99
International Priority Shipping : US $13.71
Import charges: US $41.30
Subtotal =US $244.99
Shipping & Handling=US $13.71
Import Charges=US $41.30
Total = US $300.00

Now According to Canada Customs here is what the actual import charges should be on the total.
Calculation results are as follows:
Total Shipping value=CA$13.41
Total Customs Value FOB CA$273.55 This is the amount that customs value your import at.
Duty=CA$0.00
Total Import and Taxes due CA$13.68 This is the amount that needs to be paid to customs
Total landed cost CA$302.20 This is the total cost of importing,including product,shipping, insurance and import duty and taxes. at exchange rate of 1 CAD = 0.90 USD
Total import duty & taxes due: CA$13.68 This is the amount that need to be paid to customs.

Watch has an import duty rate of 5% and GST rate of 5%
Watch is duty free as NAFTA free trade agreement applies certificate of origin is not required as value is below threshold.

This is potentualy a case for defrauding the Canadian Government and the customer(s) involved. This figure was determined by talking directly to a Customs officer and sending copies of the original ebay sale.
The Customs Officer had the call directed to the supervisor in charge of that department. At which time he said that the customer should be entitled to a refund and he would forward this to the head of the departments involved. No if anything is done about it, well that I don't know.

All well and good, but I don't see anything in your calculations for the processing and clearance fees that Pitney Bowes also levies on GSP shipments. "Import charges" are more than just tax(es) and duty. Pitney Bowes doesn't do this out of the goodness of its corporate heart.

bartokk1 · ‎03-28-2014

Quite correct Pitney Bowes does as it pleases, there are items that do not qualify for the GSP program yet I constantly see sellers using the program for these items. Do not try and tell someone (the seller) that this is the case some become quite caustic or simply ignore you. I will not buy items through this program, just bought a penny board for my son its coming from Calif. fair price, even with the exchange and NO GSP! Gratuitious Sales Pitch

afantiques · ‎03-28-2014

there are items that do not qualify for the GSP program yet I constantly see sellers using the program for these items.

Eligible categories have been widened considerably since the program started, and the restrictions have been updated. (although not for a couple of months after the actual restriction change)

As ever, the confusion between the treatment of items sent as freight and items sent as postal packages continues.

toby_le_pue · ‎03-28-2014

It is amazing how many Canadians still don't understand

what free trade means.

It means you don't pay duty on most items imported into Canada.

Almost anything imported into Canada with a value of $20.00 Canadian

or more you are subject to the GST (HST) and whatever provincial tax

is applicable.

DUTY does not mean TAXES

femmefan1946 · ‎03-28-2014

It means you don't pay duty on most items imported into Canada.

Not exactly.

It means you don't pay duty on most items imported into Canada that were manufactured in a country with which we have a Free Trade agreement.

For NAFTA, which is the agreement most posters reference, those are Canada, USA, Mexico and Chile.

We do have other Free Trade Agreements, and are currently working on agreements with South Korean and with the European Union, but it is place of manufacture, not place of sale that counts.

If you buy an iPad, made in China, from a US seller, you pay duty.

If you buy Girandello chocolate, made in San Francisco, you do not pay duty, even though the raw materials come from non-NAFTA countries.

snoooozyalose · ‎03-28-2014

All well and good, but I don't see anything in your calculations for the processing and clearance fees that Pitney Bowes also levies on GSP shipments. "Import charges" are more than just tax(es) and duty. Pitney Bowes doesn't do this out of the goodness of its corporate heart.

LOL me either and that's because NO WHERE on my PayPal transaction does it say Pitney Bowes service charge. All it says is "Import Charges" and here is the definition of "import Charges"

(A tax collected on imports and some exports by the customs authorities of a country. This tax is used to raise state revenue. It is based on the value of goods called ad valorem duty or the weight, dimensions, or other criteria of the item such as its size. Also referred to as customs duty, tariff, import tax and import tariff. )

No where do I see Pitney Bowes surcharge in the definition and either way why should we pay for that? We didn't ask to use their service. That should be on the seller. But I didn't post my statement to start argument of who's right and wrong. I just posted to prove a point and I think I've done that; so this is where it ends for me.

Thanks for the comments!

marnotom! · ‎03-28-2014

@toby_le_pue wrote:

It is amazing how many Canadians still don't understand
what free trade means.

It means you don't pay duty on most items imported into Canada.

Or it means that duty is reduced compared to other trading nations, not necessarily eliminated.

The US lumber industry's attempts to keep hammering Canadian softwood lumber exports with duty and the various retaliatory measures employed should be evidence that free trade doesn't necessarily eliminate duty.

marnotom! · ‎03-28-2014

@snoooozyalose wrote:
All well and good, but I don't see anything in your calculations for the processing and clearance fees that Pitney Bowes also levies on GSP shipments. "Import charges" are more than just tax(es) and duty. Pitney Bowes doesn't do this out of the goodness of its corporate heart.
LOL me either and that's because NO WHERE on my PayPal transaction does it say Pitney Bowes service charge. All it says is "Import Charges" and here is the definition of "import Charges"
(A tax collected on imports and some exports by the customs authorities of a country. This tax is used to raise state revenue. It is based on the value of goods called ad valorem duty or the weight, dimensions, or other criteria of the item such as its size. Also referred to as customs duty, tariff, import tax and import tariff. )

No where do I see Pitney Bowes surcharge in the definition and either way why should we pay for that? We didn't ask to use their service. That should be on the seller.

What you've got there is a definition of "import charges" but it's not the definition used in the terms and conditions one agrees to when committing to purchase an item shipped through the Global Shipping Program.

"Import charges": this Program Fee consists of charges associated with the customs service described above and is comprised of the following variable amounts: sales, goods and services, and value added taxes, duties, tariffs, excise taxes, and other amounts assessed or levied by any government authority in connection with the importation of goods into the applicable country of importation (but excluding income taxes) ("Commodity taxes"); third party brokerage fees (including advancement and disbursement charges and customs brokers handling and filing fees); penalties (but excluding any customs duties, taxes, surcharges, fines, penalties, or other charges which may be imposed on you by customs or tax officials after a GSP Item has successfully cleared customs and been delivered to, or made available for pickup at, the delivery address that you specify); classification charges associated with the assignment of a Harmonized System ("HS") classification code; charges for export compliance screening and verification and the assignment of an Export Control Classification Number (ECCN); and operational expenses associated with short-term loss recovery and the management of variances between the quoted Import charges and actual costs. Note: at eBay's discretion, applicable classification and export compliance charges, third party brokerage fees, and operational expenses may instead be included within the Shipping amount that is quoted to you.

http://pages.ebay.ca/shipping/globalshipping/buyer-tnc.html

I agree that it seems a bit odd that we should be paying to make an eBay seller feel that their life has somehow been made easier by sparing them the onerous process of shipping a 500 gram package by mail to Canada, but it is what it is, and paying those charges is what we agree to when we commit to purchasing an item that's being shipped through the GSP.

sagidan · ‎03-28-2014

As a Canadian I am outraged that eBay allows US sellers to ship using GSP. What happened to NAFTA, agreement among Canada US and Mexico:

According to the North American Free Trade Agreement, there is no duty to be paid if the goods are for personal use and "the goods are marked as made in the United States, Canada or Mexico, or the goods are not marked or labelled to indicate that they were made anywhere other than in the United States, Canada or Mexico."[2]I just checked one seller and here is what he is offering for shipping service: US $15.27 for tracked shipping + US $128.65 using global shipping program. Canadians receive the item and pay the applicable HST taxes. This program is illegal and should be removed. Who ever is running GSP, is acting as a customs officer inside the USA, not at the border and is actually removing NAFTA out of the picture! Canadapost now has some outfit who is collecting the duty for them and they are not employed by canadapost! Of course a lot of Canadians are not buying from sellers who force this GSP on us. Any comments?

jpdjb5 · ‎03-28-2014

Every US sellers will be soon assimilated with the Global Shipping Program ! Resistance is futile ! They are eBorg !

007steveb16 · ‎03-28-2014

You're making a lot of assumptions rather than asking the proper questions to seek out the truth.

mwc1942 · ‎03-28-2014

According to Canada Border Services Agency:

No duty is payable on goods imported for personal use, if it is marked as made in the USA, or if there is no marking or labeling indicating that it was made somewhere other than the USA........ PERIOD.

No Duty = No Brokerage Fee.... PERIOD

Only fees payable on entry to Canada is Goods and Service tax of 5% plus applicable Provincial sales tax plus approx $10.00 postage fee for handling, if collected by customs which is rare if delivered by mail...... PERIOD.

soprano10us · ‎03-28-2014

I have been a Member of Ebay since 2002 with the experience of over 400 successful transactions and 100% feedback rating throughout. I am absolutely sick to death of this new "GLOBAL SHIPPING PROGRAM" and how its forcing Canadians to pay through the nose for so called "importing fees" which Canada Customs doesn't even bother charging for when sent regular US Postal Service.

Im sure this forum and everywhere else for that matter is filled to the gunwales with complains from Canadians about this "MONEY GRAB" being shoved down our throats by EBAY!! The unfortunate thing is...EBAY has isolated themselves from feedback, as i have not found any way possible to complain to them...I've tried calling customer service but I'm sick of explaining the issue to someone who doesn't give a monkeys about my problems and don't have the intestinal fortitude to pass the complaint up the line to higher ups...

Now i understand ebay likes to give the excuse that the "Importing fees" are brokerage fees for the rip off company they contract out to to do their stealing from Canadians....if I'm paying such a ridiculous shipping cost and the importing fees to boot i would at least like to have the item couriered to me within 48hrs...but no...it comes regular snail mail anyway.....go figure???

Recently i inquired on an item that was a "Buy it now" for $9.99 and the shipping was $17.99 which in itself was totally unreasonable because there was no weight or size to the item and if shipped USPS in a regular bubble envelope one item would have only cost maybe $7.00 in reality....so i wanted to buy 3 of these items for $9.99....now all of a sudden the "Global Shipping" jumps to $24.99 with an additional $14.99 for an "importing" fee....so why in the name of all things mighty am i going to hand over $40 some dollars to Ebay or whom ever it goes to send 3 items that would cost $10 or less if stuffed in an envelope and dropped in any US Mailbox??

I know this post will most likely be removed by Ebay or their Forum Admin cohorts....but maybe on the very slight chance someone might see it and know how seriously we as buyers are being reamed up the backside.

GLOBAL SHIPPING MUST STOP IMMEDIATELY!!!!

femmefan1946 · ‎03-28-2014

plus approx $10.00 postage fee for handling, if collected by customs which is rare if delivered by mail...... PERIOD.

Well,no.

Any shipper can charge any fee for handling. Sometimes this is called a service fee as it is by Canada Post. Sometimes it is called a customs brokerage fee as it is by UPS and other couriers, who charge $25 and up for their efforts. (Search for UPS you will find archived threads thousands of posts long, reaching back a decade on this very subject.)

Or it could be called an import charge as it is by Pitney Bowes/GSP who seem to charge about $5 for ascertaining and remitting the appropriate amounts to the Canadian government and getting the parcel from their Kentuck plant to your doorstep.

or if there is no marking or labeling indicating that it was made somewhere other than the USA........ PERIOD.

I'd like to see that as a link to their website, not a report from a customer service clerk.

femmefan1946 · ‎03-28-2014

TLTR.

Canada actually only allows us to import $20CDN value before duty and sales taxes become applicable. Most shippers including Canada Post charge a fee for customs brokerage/ import fee/ service fee.

Canada Post and the Canadian Border Services Agency have been ignoring small and low value (under $100-$150) imports for some years now. It costs more to levy the taxes than would be collected. A burst of common sense.

But private companies cannot ignore the law. The Global Shipping Program is run by Pitney Bowes. Their charge appears to be less than Canada Post ($5 instead of $10) and much less than other couriers like UPS($25 up).

The GPS also applies to any exported purchase. Not just to Canadians.

The GSP was never meant as a benefit for buyers.

The purpose of the GPS was to persuade provincial and xenophobic American sellers to expand to international markets. It offers protection against foreign claims of non-delivery and late delivery a huge fear of these nervous sellers.

And the purpose of persuading those sellers to expand was that eBay's sales were flatlining and getting US sellers into the international market seemed like a good way to improve the situation.

Keep in mind that buyers are not eBay's customers. Sellers are paying eBay fees to list here, to sell here and to ship from here. About 20% on average of every sale goes to eBay from the sellers.

mwc1942 · ‎03-28-2014

Post refers to items AFTER they get to the "CBSA" in Canada. Even if items were ordered direct from seller and shipped via USPS, same conditions apply. Small items shipped "USPS" from US sellers come straight to bidder/purchaser bypassing Canada Customs all together. No extra fees or charges, only cost of the shipping from seller. Rec'd small packages items from Florida to western Canada for under $4-5. No hassles what so ever.

"I'd like to see that as a link to their website, not a report from a customer service clerk"

Check under the Canada Border Services Agency or read up on the North American Free Trade Agreement, its all there.

Under GSP terms & conditions, Item 3,b,ii "Import charges" it states in part, variable amounts with "duty" being one of the variable amounts, assessed or levied by any government authority etc. If the item is for personal use and there is no import duty from Canada customs, how can GSP charge for any amount of duty. No duty has been assessed by the Canada customs?

And now we have Global Shipping Program where once we had lots of great US Sellers.

marnotom! · ‎03-29-2014

@mwc1942 wrote:

Under GSP terms & conditions, Item 3,b,ii "Import charges" it states in part, variable amounts with "duty" being one of the variable amounts, assessed or levied by any government authority etc. If the item is for personal use and there is no import duty from Canada customs, how can GSP charge for any amount of duty. No duty has been assessed by the Canada customs?

I'd like to see a link as well because I can't find squat on the Canada Border Services website about this. Right now, I'm speculating that just because duty isn't assessed on the item doesn't mean that the item isn't subject to duty otherwise.

It probably has something to do with Canada Border Services not generally physically inspecting postal imports. If the item is from the United States and there's no information on the customs form to indicate otherwise, the item is treated as though it's manufactured in the United States and goes duty-free.

The freight agents for the GSP can't make those sorts of assumptions.

marnotom! · ‎03-29-2014

@mwc1942 wrote:

And now we have Global Shipping Program where once we had lots of great US Sellers.

Those "great US sellers" likely haven't crossed over to the dark side and adopted the GSP unless they've found it's actually a more appropriate way to ship their merchandise. What's likely happened is that they're now a lot harder to find in search results.