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.

[bennett4612]

Lots of dialog in this thread about customs/taxes/import fees/etc. 

There has also been quite a bit of back and forth on the same issue, over on the "Questions about the Global Shipping Program" thread, pages 3-4 ( http://community.ebay.ca/t5/Buyer-Central/Questions-about-the-Global-Shipping-Program/td-p/149063/pa... )

Among other things, on that thread you will find some "by the book" info gathered from Pitney Bowes. I thought I would post the link here, in case it might help clarify things. It's a complicated issue for sure.

Hope it helps. 

---Ben

[marnotom!]

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@rick31797 wrote:

marnotom doesn't seem to get it, he thinks that Canada Customs charge HST and custom charges on everything we buy

from the US...

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It's strange how people have to resort to misquotes or fabrications of what I've said when in reality I've pretty much said the same thing as them.  I'm assuming you're referring to post 187 on this thread, which actually says something quite different than what you're claiming.

[jean-philippe.vert]

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@rick31797 wrote:

bought.. probably over 100 to 150 items, with no charge... now how hard is it for a guy to understand this, A guy that has no history of

living in Canada and buying from the USA.. Now that the GSP is here.. any items that Canada Customs would NORMALLY LET GO,

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It seems you know nothing about "this guy". You should refrain yourself.

About the exemption, it is more or less a poker bluff. My last 2 orders from USA (not on Ebay): 45$ -> caught at the border (small but heavy parcel), 120$ -> free to go (small parcel). There is no real logic.

[ipscanada]

The GSP has increased costs, applied charges to items exempt under Canadian law and the North American Free Trade Agreement (NAFTA), reduced the available product available that avoid the GSP, and other negative impacts that either impact the buyers, sellers, and/or the law.

[pierrelebel]

I do not like GSP and, as stated several times, American sellers often use the program for transactions outside the original intent (value over $50 etc...).  I put the blame on eBay for failing to properly educate American sellers on the proper use of the program.  eBay was too darn busy trying to enrol everyone - offering incentives to do so - without clearly thinking of the consequences.

That said...

"The GSP has increased costs, applied charges to items exempt under Canadian law and the North American Free Trade Agreement (NAFTA),"

Those words suggest you understand what Canadian tax law and NAFTA are all about.

Could you please show one example where GSP resulted in a Canadian buyer paying duty or taxes not applicable under NAFTA.  Only one will do.

[rick31797]

My last 2 orders from USA (not on Ebay): 45$ -> caught at the border (small but heavy parcel), 120$ -> free to go (small parcel). There is no real logic.

Well if you had ordered this off ebay from a seller that uses GSP, you could be assured of paying much more, the logic is, the customs are very busy and it would be impossible for them to write up every item that goes through, they also have items they need to open and check, if somebody buys a stuffed animal worth 25.00 and it goes through the xray , clean, with nothing showing up. then of course they are going to let it go..

you make it sound like you are disappointed, you were not charged a custom fee and HST... stay away from sellers using GSP.. 

[vintage_charlie_123]

Hello!

I reside in Latvia and am about to buy a rather heavy item (46 punds) from a seller in US. He uses GSP. The total of shipping+vat and import taxes is slightly lower than what i would pay if we'd use our own shipping arrangements and i would pay the taxes in the usual way here in Latvia. So it seems like GSP would be a good option, as it has extra safety for seller and buyer, etc.

BUT, as i've never bought anything through this "program", i called the authorities in Latvia to inquire, what they know about this. I called 10 info numbers - including authorities that are responsible for taxes and income, post, customs, etc. In each and every case no one had ever even heard of anything like this and on top of that, no one could imagine a scenario in which i as a buyer would be freed from the usual way of paying taxes at the arrival of a package from US. So it could happen that i pay the taxes upfront and then have to pay them again.

Am i missing something here? how can GSP promise no extra charges at delivery, if the authorities in my country don't even know anythong of the existance of such a program?

I suppose it might be GSP has contracts with some country in the european union to where they ship the package first, then it is sent from one EU country to another, in this case to Latvia, and, as it then comes from EU, i would not have to pay taxes here. That is the only scenario i could imagine. But that would actually be a pretty much illegal practice, as my taxes would not go where they are supposed to.

Maybe there is another way or explanation that i am not aware of. Maybe it doesn't travel through the usual post ways, but then the customs still should know something, right?

Please help me out, as i would like to proceed with the purchase and this issue holds it back. As i said, i would gladly take the GSP route, as financially, for this particular case, it would be the cheaper option, but how can i know i won't be charged taxes twice, when the customs in my country know nothing about it?

Thank you very much in advance!

Kind regards,

VintageCharlie

[marnotom!]

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@vintage_charlie_123 wrote:

Maybe there is another way or explanation that i am not aware of. Maybe it doesn't travel through the usual post ways, but then the customs still should know something, right?

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Hi, Vintage_Charlie.  Congratulations on finding the Canadian eBay discussion boards!  Nice to have another European Union member here.  🙂

I'm not an eBay staff member and as far as I know, no eBay staff member has provided a detailed explanation on how GSP items are shipped.  However, AFAntiques (from the UK) has asked a few recipients of GSP items a few questions and he believes that items shipped through the GSP are generally part of containers of freight shipments and will be cleared along with the rest of the freight on that shipment.  Customs officials will not actually see the item unless they have reason to question what's on the shipping manifest (list) presented to them.  This is generally how large commercial shipments go through customs.

Larger items generally go less expensively as freight than they do through the mail, which is likely why you're finding that using the GSP has a cost advantage in your case.

Hope that information is of some help to you.

[rick31797]

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@00nevermind00 wrote:

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femmefan1946 wrote:The GSP fee is made up of several fees.

Duty- if the item is not made in a NAFTA country. The duty varies from category to category.

Sales taxes- based on selling price. There will be a higher sales tax on a $305 item than on an $81 item. Sales taxes vary from province to province too, but that would not affect your experiment.

Pitney Bowes fee- which starts at $4.95 but rises with the value of the item shipped.

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The two items were very small, very light collectibles of a similar nature. I don't think that duty would have applied on either one but I'm not an expert. Maybe there was a "printed in + country name" mention on them, but I don't know that.

As for a $305 item being taxed higher than an $81 one, I know that, obviously. Which is why I went with the "import fees" as a percentage of the selling price. 24% to 10% is a pretty significant discrepancy! Maybe the eBay/PB fees account for all or part of that discrepancy. Maybe. But that's just the thing: we don't know, because the program is not transparent. As a buyer, I want to know what I'm paying for.

I also want to answer a couple of questions that were asked by Kalvin in his opening post.

Any ideas to help improve the experience for Canadian buyers?

I don't think the program is salvageable for many Canadian buyers. It is simply too expensive for too many types of items. From the buyer's perspective, the middleman adds nothing of value.

What has deterred you from buying items offered using the Global Shipping Program?

The price, for one. And also the fact that I don't know how my item is going to be shipped. If the package is delivered by an entity other than Canada Post and I'm not home when it arrives, then I'm in trouble because I'll have to go pick it up somewhere in the boonies and I ditched my car a while back. I don't buy stuff, even locally, to be delivered by courrier for exactly that reason.

How have you managed to search for items outside the program?

This is the really frustrating part. I buy collectibles which are often unique. More and more I find that they are offered with GSP shipping. I'm having to pass up on a lot of great stuff. If they don't already have bids, I can email the seller and ask if they'd be willing to remove the GSP. If they do have bids, I sometimes email the seller to let them know they're losing a bid and why.

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This was what i am also afraid of, being charged twice, and you know you would never get your money back through GSP or Customs...i would stay away from GSP...find another seller..

[ipscanada]

A couple of examples are any product related to amateur radio or any product manufactured in the United States. These products are exempt from duty and taxes under NFTA. Do a search, perhaps a VX7-R, any scanner receiver, or 'made in usa' item and those sellers using the GSP. These are examples of some direct violations of this trade agreement, and thus may be subject to sanction under it. "Under NAFTA, Canada, Mexico or the United States may impose criminal, civil or administrative penalties for violation of their laws and customs procedures." (source CBP DHS usa.gov)

[pierrelebel]

"These products are exempt from duty and taxes under NFTA."

NAFTA does not deal with Canadian consumption taxes (GST/HST/PST).  It handles duty, tariff and quotas.

https://www.nafta-sec-alena.org/Default.aspx?tabid=97&language=en-US

[ipscanada]

The examples I noted Pierre are exempt of the taxes you noted. You'll please pardon the simplification of this answer, however, been there, done that.

[afantiques]

In each and every case no one had ever even heard of anything like this and on top of that, no one could imagine a scenario in which i as a buyer would be freed from the usual way of paying taxes at the arrival of a package from US.

They would have heard nothing because the items would be cleared inwards and any taxes paid as a routine air-freight shipment.  Not as an individual parcel.

For the receiving country nothing noticeable happens, the organisers of the GSP shipping will have engaged local agents to take care of import formalities and final delivery.

To government agencies nothing unusual or new happens.

[marnotom!]

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@ipscanada wrote:

The examples I noted Pierre are exempt of the taxes you noted. 

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The discussion here seems to suggest otherwise.

[pierrelebel]

You know that, I know that, but some users are still confused with what NAFTA is all about.

[vintage_charlie_123]

Thanks guys, especially marnotom! for sheding some light on this matter for me! So if my country is part of the program, then there is no risk what so ever that i might end up having to pay taxes again, once the package has arrived? This is what i'm afraid of most.

Also, is the GSP shipping the safest for both the seller and buyer compared to other options - when arranging your own shipping through the post, insured and with tracking?

I tried to make sens of the guidelines and info about GSP on eBay, but there's quite a bit of info and it is hard to be sure, as there are some "exceptions" and "penalties" and some other phrases that imply that i could end up being charged additional funds.

One last thing - the priority shipping quote, which is quite a bit lower than any other options i would have when arranging my own shipping, includes the shipping from the seller to the US GSP central? Meaning: once i pay for the quoted shipping and taxes, there is really no chance of any additional charges later on? (provided i am shipping allowed goods, i get the package as soon as i am notiefied that it has arrived, etc.)?

Thanks again!

VintageCharlie

[bennett4612]

Hi Vintage Charlie.

As is usually the case, the Community has provided some excellent advice. I thought I might also add some additional info and links.

For future reference the regular (US) message boards are probably a better source of info about the GSP, since it would be a US seller that would offer the GSP. Start here and peruse the topics -- http://community.ebay.com/t5/Community-Help-Boards/ct-p/12002

As far as eligible countries, you'll find the list here (scroll about halfway down the page to "Eligible countries") --

http://pages.ebay.com/help/sell/shipping-globally.html

You can always read up on how it works from a Buyer's perspective at the Buyer Terms & Conditions page -- http://pages.ebay.com/shipping/globalshipping/buyer-tnc.html

And finally, for some general FAQs, try here: http://pages.ebay.com/sellerinformation/shipping/globalshippingprogram/update_faqs.html

It is also worth noting that,as far as protections go, buyers (and sellers) get the same protection with the GSP as they do with non-GSP transactions. As a Buyer in the GSP you are also protected in cases where an item is lost or damaged during international transit. 

Hope this info helps. 

---Ben

[marnotom!]

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@vintage_charlie_123 wrote:

So if my country is part of the program, then there is no risk what so ever that i might end up having to pay taxes again, once the package has arrived? This is what i'm afraid of most.

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I never like to say that "there is no risk whatsoever" with anything as there's always the possibility--even a slight one--that things can go wrong.

I don't know what eBay discussion board other Latvians generally post on, but if you find it you may want to ask your question there. Your fellow Latvians would probably be able to give a better answer to this question than I could.

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@vintage_charlie_123 wrote:

Also, is the GSP shipping the safest for both the seller and buyer compared to other options - when arranging your own shipping through the post, insured and with tracking?

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Depends on what you mean by "safety" and since the shipping of GSP items is contracted out to a multitude of carriers, the answer is likely also going to depend on what carriers are involved in the transport of your item from Kentucky to you.  There are likely going to be at least three, possibly even four different carriers for your item as it works its way to you.

In terms of the seller's liability should something go wrong, the GSP claims that sellers have no liability for the shipment once it is successfully shipped to the Global Shipping Centre in Kentucky.

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@vintage_charlie_123 wrote:

.

One last thing - the priority shipping quote, which is quite a bit lower than any other options i would have when arranging my own shipping, includes the shipping from the seller to the US GSP central? Meaning: once i pay for the quoted shipping and taxes, there is really no chance of any additional charges later on? (provided i am shipping allowed goods, i get the package as soon as i am notiefied that it has arrived, etc.)?

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According to section 3, paragraph "d" of the terms and conditions for buyers using the GSP:

...your payment of the GSP Item price and quoted Program Fees during checkout represents the total amount of Shipping and Import charges for a GSP Item to be purchased, shipped to the delivery address specified by you, cleared by customs, and delivered to (or made available for pickup at) the delivery address that you specify.

It then goes on to say that if it turns out you were overcharged, you won't receive a refund (even if you ask nicely).

Again, I'm cautious and I don't want to say that you won't see extra charges along the way, but the terms and conditions page suggests that once you've paid, that's it.  What happens in practice is another matter entirely.  Again, see if any of your fellow Latvians have had experience using the GSP.  They can give you better answers based on actual experience.

[vintage_charlie_123]

Thanks!

No one in Latvia really knows anything about this - at least on none of the usual suspect forums.

I read through quite a lot experience reports on the GSP - enough to be sure i will never use it. Many people report that Pitney Bowes open every package (instead of x-raying it), take the packaging materials out, crush or repackage the packaging boxes in order to save weight and volume. when the items arrive damaged, which is no surprise after such a "treatment", it turns out that the package wasn';t even insured and the buyer is totally screwed - one has absolutely no control over the process. I'm surprized that this is still offered, as there are many points that are dubious at best and by the laws of many other countries pretty much illegal.

Thanks for the info, i'm glad i read into this far enough to keep away from GSP and Pitney Bowes.

Regards,

VintageCharlie

[vintage_charlie_123]

Thanks, but, i preferred to ask around in a country where the buyers reside that have the "privilege" to experience the GSP service, not just the sellers that are always in the role of the sender.