Comments about the Global Shipping Program

[kalvin@ebay.com]

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.

[ralph01.2009]

No, it doesn't happen using the postal system. When I order goods from California through USPS/Canada Post It goes from California to Richmond BC. When I order through GSP it goes from California to Kentucky . Then Toronto. Then Richmond.

When I order Through USPS it goes through customs. When I order through GSP it goes through a brokerage firm. They add their cost on and I have to pay it when my package arrives. There is NO BROKERAGE FEE through USPS/Canada Post.

I've bought stuff from china and shipped through the postal system that takes less time to arrive than the GSP takes from the US. Sometimes more than 2 weeks faster and again, NO BROKERAGE FEES.

This has nothing to do with duties and taxes.

[marnotom!]

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@ralph01.2009 wrote:

No. The biggest issue here has nothing to do with taxes or duties. It's the fact that you are paying for an item to be shipped an extra 1500 miles on average (which can't be cheaper than direct shipping) and a border brokerage fee that is not incurred using USPS/ Canada post.. All anyone, I think most, would ask for is a choice instead of none. Until it changes, I'm done with eBay global shipping sellers period (followed by a period):catsurprised:.

I will add that although the GSP is not a dishonest fee, it is an added fee that can be avoided if you don't use the program and the overall shipping cost may be less due to the distance the package needs to travel. Duties and taxes are expected costs for items not covered in NAFTA.

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For what it's worth, I'm on Vancouver Island and if I were to mail a letter to the person across the street from me it would be sent across Georgia Strait and over to Richmond (Vancouver) for processing first, then back to the Island before reaching my neighbour.

I kid you not.

Another for what it's worth, while postal imports may not be subject to brokerage charges, per se, they are supposed to be charged a C$9.95 charge from Canada Post for collecting and remitting any taxes and duty that may be assessed and charged by Canada Border Services.  And items covered by NAFTA are subject to taxes, and sometimes duty, too.

Just puttin' that out there.

[pjcdn2005]

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@ralph01.2009 wrote:

No, it doesn't happen using the postal system. When I order goods from California through USPS/Canada Post It goes from California to Richmond BC. When I order through GSP it goes from California to Kentucky . Then Toronto. Then Richmond.

When I order Through USPS it goes through customs. When I order through GSP it goes through a brokerage firm. They add their cost on and I have to pay it when my package arrives. There is NO BROKERAGE FEE through USPS/Canada Post.

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You prepay any brokerage fee with GSP. When you receive the package you should not have to pay anything.

As Marn pointed out, Canada Post does charge $9.95 as a service fee when they have to collect taxes or duties for a package. But in many cases, Canada customs does not assess any taxes or duties even though the item may be taxable or have duties on it.

[mwc1942]

"But in many cases, Canada customs does not assess any taxes or duties even though the item may be taxable or have duties on it."

Perhaps we all should not be mentioning that as often.  Next thing you know GSP lobbyist will be in Ottawa saying "see look at all the  that duty thats not being collected .... join in our cause ..... enforce your custom laws .... help us make money."

[marnotom!]

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@mwc1942 wrote:

Perhaps we all should not be mentioning that as often.  Next thing you know GSP lobbyist will be in Ottawa saying "see look at all the  that duty taxes thats not being collected .... join in our cause ..... enforce your custom laws .... help us make money."

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I don't think we have much to worry about here.  The reason why there's officially a $20 threshold on most postal imports is because a long time ago, it was determined that it would cost more than the taxes/duty assessed to collect those charges.  While the threshold hasn't changed, it's likely that the volume of mail entering Canada coupled with the costs for labour and paperwork don't make it worthwhile to collect the taxes/duty owing on mailed items worth somewhat more than $20.  But since taxpayers aren't footing the bill for collecting and remitting taxes/duty owing on items sent by other shipping methods, the $20 rule stays on the books.

[afantiques]

, the $20 rule stays on the books.

In Britain a dog licence cost 7 shillings and 6 pence when introduced, at the time that was a day's wages. When it was abolished the amount was 37  pence (reduced from 37 1/2p when the halfpenny was abolished) and would buy a loaf of bread.  Legislative inertia.

[mwc1942]

"I don't think we have much to worry about here".

Really didn't expect anyone to reply, a chuckle or two maybe but a reply never.

[bobenis]

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@marnotom! wrote:

Another for what it's worth, while postal imports may not be subject to brokerage charges, per se, they are supposed to be charged a C$9.95 charge from Canada Post for collecting and remitting any taxes and duty that may be assessed and charged by Canada Border Services.  And items covered by NAFTA are subject to taxes, and sometimes duty, too.

Just puttin' that out there.

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I too am on Vancouver Island 

Also the only time CP will charge you the $10 handling fee is if they have to pay duty and or taxes on an item as imposed by Canada Customs otherwise nothing is owed as CP doesn't pay anything on your behalf.

[bobenis]

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@marnotom! wrote:

I don't think we have much to worry about here.  The reason why there's officially a $20 threshold on most postal imports is because a long time ago, it was determined that it would cost more than the taxes/duty assessed to collect those charges.  While the threshold hasn't changed, it's likely that the volume of mail entering Canada coupled with the costs for labour and paperwork don't make it worthwhile to collect the taxes/duty owing on mailed items worth somewhat more than $20.  But since taxpayers aren't footing the bill for collecting and remitting taxes/duty owing on items sent by other shipping methods, the $20 rule stays on the books.

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Actually the laws have changed with a larger allowed amount being brought back from the US by a Canadian within a shorter time frame so along with that change has come an open and larger allowance as to purchased items via mail entering Canada as well.

Anything under $200 is not charged taxes or duty and so far I have not had to pay a penny.

Just had some guitar pickups arrive valued at $203US and nothing owing, left in my mailbox.

[afantiques]

has come an open and larger allowance as to purchased items via mail entering Canada as well.

Anything under $200 is not charged taxes or duty and so far I have not had to pay a penny.

Can you cite any official source for this statement.?

[marnotom!]

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@afantiques wrote:

has come an open and larger allowance as to purchased items via mail entering Canada as well.

Anything under $200 is not charged taxes or duty and so far I have not had to pay a penny.

Can you cite any official source for this statement.?

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I think the poster may be thinking that laws and procedures governing shopping trips to the United States apply equally to purchases of items from the United States (or elsewhere) made by mail or similar carrier.
 

[afantiques]

I agree, people are easily confused by all this.

[ralph01.2009]

I'm not going to let this go. no matter what the positive people post. at the border, they add a brokerage fee when you  use the gsp service. A brokerage fee not a duty  or tax.

[pierrelebel]

"A brokerage fee not a duty  or tax."

That is correct.

Technically, Pitney-Bowes does NOT charge a brokerage fee.

Every transaction, regardless of size, is assessed a Pitney Bowes "handling fee" (typically about $4/$5 for transactions under $100). In contrast, Canada Post charges $9.95 fee every time duty or tax is assessed on a parcel, regardless of value. If a $50 parcel is charged 5% GST in AB ($2.50 tax), CP will charge the recipient $9.95 handling fee for a total payable of $12.45 at time of delivery.

For transactions under Cdn$ 20, that Pitney Bowes "handling fee" is incorporated with the shipping charge and no "import charge" is shown nor charged.

For transactions over Cdn$ 20, that "handling fee" is incorporated with the "import charge" together with duty (if applicable) and consumption tax (GST/HST/PST) with different rates depending on the province of the recipient and taxable nature of the product.

Unfortunately, as stated repeatedly earlier, the system was not designed to handle those small transactions.  Sellers have been told not to use the program for sales averaging US$50 or less but many American sellers do not pay attention to those details.

[90runner]

I to have been burned by GSP and I no longer buy from sellers that use GSP and have started to use other shopping options. But after 143 pages one thing is becoming clear Ebay is making millions, breaks they're own rules and they don't care that we as buyers are getting screwed.

[marnotom!]

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@90runner wrote:

I to have been burned by GSP and I no longer buy from sellers that use GSP and have started to use other shopping options. But after 143 pages one thing is becoming clear Ebay is making millions, breaks they're own rules and they don't care that we as buyers are getting screwed.

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Interesting perspective.  The way I see it, eBay isn't making much on each GSP sale in referral fees.  Rather, it got itself involved with Pitney Bowes' GSP scheme because they felt it was a good way to increase the volume of international sales on the .com site.  The component of the GSP "import charges" that go towards something other than taxes and duty is typically around four or five bucks (as Pierre recently stated) and most of that is going to go to various sub-contractors who process the item for customs purposes.  Seeing that Canada Post does less than these subcontractors and charges ten bucks for what it does do on the seemingly rare occasion when it does do it, four or five bucks seems like an acceptable deal to me.  

You state that eBay is breaking its own rules.  Can you elaborate on this point?

[mwc1942]

" the system was not designed to handle those small transactions. "

Why would eBay not then automatically exclude the additional charges under a minimum value of say 100$ - 150$, much like they do when not showing import charges for shipping items to Canada with value of 20$ or less,  should be simple enough. 

????? 

Has anyone noted that some non-GSP seller have increased their shipping costs to Canada.   A reflection of the GSP shipping rates, perhaps.

[pjcdn2005]

ralph is saying that if you use the gsp you will also have to pay a brokerage fee when the package is delivered to you...that isn't true.

Ralph if you have made a purchase through the gsp and then had to pay extra money when the item was delivered then it is possible that the seller sent the item to you directly rather than through the gsp. If that is the case, then you are owed money.

[pjcdn2005]

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@mwc1942 wrote:

" the system was not designed to handle those small transactions. "

Why would eBay not then automatically exclude the additional charges under a minimum value of say 100$ - 150$, much like they do when not showing import charges for shipping items to Canada with value of 20$ or less,  should be simple enough. 

????? 

Has anyone noted that some non-GSP seller have increased their shipping costs to Canada.   A reflection of the GSP shipping rates, perhaps.

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It is probably a reflection of the increased USPS international rates. They are quite a bit more now than they were a 1 2/3 yrs ago.

[mwc1942]

 " that duty taxes thats not being collected" 

Pointing out errors or omissions is one thing adding to what was said is a different matter.