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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.
"knowing it is an error, "
There is no error. And that is the problem.
Many Canadians do not understand or know that books entering Canada do not benefit from the $20 exemption.
I did not make that up. For confirmation, please take a look at the official page from the Government of Canada:
http://www.cbsa-asfc.gc.ca/import/postal-postale/duty-droits-eng.html
Items that do not qualify for the CAN$20 exemption include the following:
- tobacco;
- books;
- periodicals;
- magazines;
- alcoholic beverages;
" It seems very peculiar that in Canada books are not even allowed the minimal exemption."
It is public policy, established decades ago, to protect a very small and fragile Canadian publishing industry. This is one area where Canada is very different from most other countries in the world. Large territory, small population, with a giant (USA) next door.
@afantiques wrote:
That's odd, the exact reverse of European practice where books are exempt from VAT type charges. It seems very peculiar that in Canada books are not even allowed the minimal exemption.
Does the Canadian government think the people are quite well educated enough already and more books would only spoil them?
The application of the GST to books and periodicals was certainly one of the most controversial aspects of the tax when it was first introduced in the 1991 to (officially, anyway) replace the hidden Manufacturers' Sales Tax. I don't recall the rationale for applying the GST to books and periodicals, although I do recall that originally the GST was envisioned to apply to more goods and services than it now does.
Anybody else remember these protest stamps? Pierre, perhaps? 😄
This is the only remotely substantive article I was able to come up with on books and the Canadian GST, AF. You might find it interesting reading, nonetheless:
https://www.cautbulletin.ca/en_article.asp?ArticleID=2492
It is much more than tax on books and magazines. It is a question of protecting an industry.
For example, Canadian businesses advertising in an American magazine cannot deduct the cost of advertising as a business expenses when filing their corporate taxes. Only advertisements in Canadian publications are eligible for deduction.
Etc... etc... Difficult for foreigners to understand the need for such protection.
Only in Canada, eh!.
"we're approaching this issue a bit differently"
You are correct. I am looking at the very big picture which is much more than tax.
If you want to look at tax only, it comes down to protecting the industry. With the $20 tax exemption on books and magazines, foreign publishers would be allowed to ship into Canada without the buyer having to pay tax. By removing the $20 exemption, book buyers face the same taxation, whether they buy locally or import the books or magazines. If nothing else, it helps the Canadian magazine retailers.
Back in 1989, that is a long time ago, I was invited to join the Canadian Tax Institute panel for small business studying a potential VAT to replace the old MFST or FST. Having been involved with manufacturing and imports since the 60's, I was very familiar with both. At the time, opinions were all over the place. Most businesses agreed that the old taxes had to go and be replaced by a tax levied at the retail level. It should be "revenue neutral" and not cost the Canadian consumers anymore than the old system.
My personal preference at the time and that of many other businessmen (sorry, in the old days it seems only men were invited - that may explain the mess we're in) was to tax everything consumed within Canada without exemption (but financial services). That meant taxing baby's milk, prescriptions, rents, basic foods, books, etc...
Was I crazy? No. Taxing everything would have meant a rate of 2% (or less) across the board. At 2% you minimize tax cheating by the underground economy (not worth it). The same Tax Credits would be available for low income citizens.
Unfortunately, the government did not see it that way and eventually compromised with a GST rate of 7% with a long list of exemptions. The GST rate was eventually reduced to 6% then 5% in moves that most Canadian economists think was a mistake - made for political gain. Most feel an income tax reduction would have been preferable for the economy on the basis it is best to tax where people spend instead of taxing where they earn.
"a great career ahead of you in politics."
At 70, I am happily retired, have all the time in the world to post, and do not wish to go into politics. Thank you.
"5$ pair of used socks that I love the pattern of, or a 5$ fridge magnet I find highly amusing, or a 5$ pad of stationary that I really like the paper that is used"
Those items should NOT be offered through GSP. At the beginning of the program, eBay suggested a US$50 average to American sellers to use the program because low priced items as you mention do not require the service of a trans-shipper. or consolidator like Pitney Bowes. These items can and should be shipped by USPS directly to the buyer without any tax or duty levied at time of delivery.
In this regards the program is not buyer friendly to Canadians. Most posters here have said the same thing for over three years.
"Now, what happens to this fee?"
The fee charged by Pitney Bowes ($4/$5) has nothing to do with taxes or the equivalent $10 charged by Canada Post. The fee charged by Pitney Bowes is to handle the shipment. That is why it makes no sense for sellers to use GSP for low priced items.
" Pitney Bowes should be seemingly incapable of understanding or following basic Canadian custom and taxation regulations for items valued under 20$ "
I do not get it. Where do you see the problem with Pitney Bowes?
The problem is squarely on sellers using a program they should not use for low value items.
Pitney Bowes does charge a fee to handle the shipment. It has nothing to do with charging tax.
It charges a fee regardless whether tax is collected or not.
When the program started over three years ago, Pitney Bowes would charge an "import fee" of $4/$5 representing their fee. Canadian buyers were mad because in their experience with Canada Post, no handling fee was charged if no tax was collected. Somehow many Canadians had a problem understanding the difference between Pitney Bowes fee and Canada Post fee.
So two years ago Pitney Bowes changed the way they charge their fee (not the fee itself). If the value of the item was below Cdn$ 20.00, no "import charge" would be shown as such. That somehow satisfied those that were complaining about an "import charge" on items valued at less than Cdn$ 20.00
However, Pitney Bowes does not work for free. They simply moved their fee into the "shipping charge" whenever the value was less than Cdn$20.00
At the end of the day, most Canadian buyers agree: GSP is not user friendly to Canadian buyers and should be avoided in most instances.
