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.

[fynfinds]

Import fees under ebay seller policy. This is a reply I gave an ebay seller. I find it impossible to buy products from the U.S anymore because of these fees.

Thanks for the reply. Ebay has made it very difficult for international buyers because of this import charge system. It has priced the product out of reach. With shipping charges and import charges it is too much money. Before this, most items under $100. were shipped through U.S.P.S. and sent as value around $30. or as a gift. 9 times out of ten, even if the item was declared at under $100, there would be no import fees as customs would not bother with it because it would only be a maximum of $13. for every $100. of product value. Its crazy and has detered most Canadian purchases for U.S. products thus limiting your buyers. Well thanks anyways. Kevin.

How can ebay change this ridiculous import fee. It has made it impossible to buy.

[pierrelebel]

"$100. were shipped through U.S.P.S. and sent as value around $30. or as a gift. "

Either way, that is illegal.

Importers (Canadian buyers) cannot import goods using Customs declarations offering a value lower than the real commercial value (the price they paid).  To declare and accept a "gift" when you have actually paid for the item is also illegal.

Canadian buyers are reminded that they are responsible for accepting Customs Declaration, even if the "mistake" is made by the seller.

I am not defending the Global Shipping Program which is often used by American sellers for low priced items when it should not.  However, it is plainly wrong to suggest one should have American sellers falsify their Customs Declarations so the Canadian buyers saves a few tax dollars.

Buyers who want to break the rules may do so in privacy.  To suggest it or promote it on a public forum is imprudent.

"How can ebay change this ridiculous import fee."

The "fee" is not charged by eBay.  The "import charge" you see in some listings include a $4/$5 fee by Pitney Bowes.  The rest is for taxes (and duty if applicable) going to the Canadian federal and/or provincial governments. Canada Post on the other hand charges a $9.95 handling (brokerage) fee, regardless of value, whenever taxes are charged by Canada Customs.

http://www.cbsa-asfc.gc.ca/import/postal-postale/duty-droits-eng.html

[bobf5156]

Its a scam

[ace_4420]

I suggest you stop buying from the USA. Unfortunatley, I stopped even looking for my collectables on US sites. The items I and other collectors collect are slim to none on Canadian sites. If you want cd's, cosmetics etc.. buy from Canuck sellers. Good Luck! and happy eBaying! ... Ace

[femmefan1946]

A 'scam' implies illegality.

The Global Shipping Policy charges the legal duty applicable on non-NAFTA goods. If the seller does not indicate that the item were manufactured in a NAFTA country, the item will probably either be opened and (badly) repacked or will be charged the duty as if it came from a country that does not have a free trade agreement with Canada.

NAFTA or no, any item over $20 CDN (about $18 US) will attract Canadian sales taxes.

Yes, both apply to most 'used' goods.

For this service, unwanted though it may be, Pitney Bowes charges about $5, half of what Canada Post would charge.

But it is not a scam. Everything is legal, and the only benefit goes to the Canadian Government.

If you want the Canadian government to raise the import limit to the $200 allowed to cross-border shoppers write:

The Right Honourable Stephen Harper, PC, MP

House of Commons

OTTAWA ON   K1A 0A6

You don't even have to stamp the envelope.

[arlene_v]

I'm beginning to think that the legality of some of the problems with the GSP is becoming moot. 

Just as an example, it has been reported here on numerous occasions that there is a glitch with the new item specific for place of manufacture. Response? No action after many months. Canadians continuing to buy items under the GSP paying unnecessary duty in some cases, with no recourse, no break down of payments. 

Now, read posts 3434 and 3436 on the Comments thread. 

Issues reported by a GSP seller, on the PS board and to a Rep  but nothing has been done to ameliorate the situation. 

How thin is the legal ice? 

[pjcdn2005]

I haven't really been paying attention and hadn't noticed whether or not that was fixed. Do you have an current example so that someone could mention it to the reps once again?

[arlene_v]

Sure, Pjcdn2005, here is a listing as an example: 231271879078 Seller correctly inputs Country/Region of Manufacture as United States. Here is one where the seller doesn't input that field 161339262582.

The "import charges" are virtually identical. The program is completely ignoring Country/Region of Manufacture it would appear, based on import charges. 

Now this took a lot of looking for, but here is a listing that still uses  the old item specific "Country of Manufacture" 

360487767100 

The import charges on this one is much more in line with what one would expect with a vintage piece of costume jewelry made in the USA (ie around 13% plus HST for Ontario, and a small program fee). 

This is not limited to costume jewelry, but is happening with most new listings I see, across a wide range of  categories. 

But don't take my word for it, I might be wrong, check listings in the categories you search, and note what you see under Import Charges for items that are exempt under NAFTA that are made in the USA, Canada or Mexico and have that info input in the new item specific "Country/Region of Manufacture".  It is quite interesting. 

[arlene_v]

Sorry PJ, just a correction of my earlier post. Strike out that plus after the 13%. Should read 13% HST for Ontario, plus a small program fee.

My only excuse is that I spent most of the day in the garden, and I am now exhausted! I should have noticed that mistake. 

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@arlene_v wrote:

360487767100 

The import charges on this one is much more in line with what one would expect with a vintage piece of costume jewelry made in the USA (ie around 13% plus HST for Ontario, and a small program fee). 

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[pjcdn2005]

Thank you Arlene. Those are great examples! I don't look at gsp listings that often and couldn't remember what categories this affected.

It really is ridiculous that they added Country/Region of Manufacturer months ago and it still does not work properly. Of course they don't seem to care since they don't require that sellers put in the manufacturing country anyway.

[arlene_v]

As Murphy's Law would have it one of those listings in my example was  put on sale overnight,  231271879078

But, if you do a quick calculation it's obvious that the import charges far exceed  what I should be seeing here in Ontario (13% HST plus small program fee, usually around $5) 

I too don't look at  GSP listings often, but when I do I am surprised that this continues despite reports made here and on the US boards.  

I  think it would be a pretty simple programming fix. A simple change in  a string of code to identify a change of a field name to calculate duty. 

If MODS are reading this thread, please consider this a report of a glitch. 

[00nevermind00]

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arlene_v wrote:If MODS are reading this thread, please consider this a report of a glitch. 

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I believe that the mods work for Lithium, not eBay. So they understandably won't care.

Ebay doesn't seem to give two figs either. The reported dismantlement of their GSP support team and the integration of its members into the regular CS team seems to show that eBay now thinks that everything about the GSP is peachy and that the program works wonderfully just the way it is. I seriously doubt that anyone from eBay is even glancing at these threads anymore.

Every cloud has a silver lining: I look at all the money I've saved by buying less and less on eBay since the GSP was implemented...

[vfinterceptor]

I'll add to the thread. I have not read all 174 pages, so please pardon me if this has been said before.

I am often forced to use the "pitney bowes revenue scheme" on items not available elsewhere.

About the shipping I will say this: pitney bowes charges "import fees" on top of the shipping. This would imply some service, duties or tariffs are being paid. 

This is clearly not the case.

My packages always show up repackaged in USPS boxes or labels (let me also add I greatly appreciate some stranger opening my merchandise to root around in it and decide if they want to steal it or not) . I have examined the documents that com with them very closely. The documentation is the same as when a seller ships to me directly via USPS. There is never an indication of fees paid other than the shipping costs.

The "extra fees" clearly are not being paid at the border.

There is little or no doubt theses fees are a cash grab. Much like UPS' "brokerage fees" fro teh same few dollars regular mail charges for packages cross border.

I avoid PB shipping if at all possible. Even having preference for overseas sellers and simply accepting the longer shipping times. In fact, these sellers often offer "free shipping" on their items. Explain that one.

Pitney Bowes: forcing shoppers to go elsewhere since 2013......

[afantiques]

The "extra fees" clearly are not being paid at the border.

There will not be any marking on the package relating to the collection of import taxes. This does not mean they are not paid, simply that you do not understand the way that they are accounted for and paid.

Does it never occour to anyone the absurdity of accusing a huge corporation of a crime obvious enough for any run of the mill customer to spot it?

There is plenty of corporate malfeasance but it usually takes forensic accountants or a host of tax lawyers to detect it.

[00nevermind00]

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@afantiques wrote:
Does it never occour to anyone the absurdity of accusing a huge corporation of a crime obvious enough for any run of the mill customer to spot it?

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I think that these accusations are simply a reflection of how much those making them despise the GSP. As are the accusations of scam, money grab, etc. I don't think that anyone actually believe that someone at PB is really lining their pockets with some of the GSP money paid by the buyers, or that they are sending said money to some offshore account.

I guess that if you're a third party running what can be construed as a parasitic, unneeded service, you have to be ready for the hyperbole.

[Anonymous]

How the hell do they calculate those duties? I'm from Canada and if I go shopping across the border all I have to do is pay 13% GST tax for bringing my purchases back to Canada. Now here on Ebay it's almost 30-40 % of the item's cost, and that's on top of shipping! Also for items up to 60 dollars you don't have to pay duty at all, yet Ebay charges them anyway? It used to be so easy - if there's a duty to pay - you just pay it when you pick up your item at the post office. And most of the time, unless an item is more than 100 bucks they just let it go. Now Ebay charges you upfront and it is waaaaaay more that it is supposed to be. Sorry, I'm just venting because I think it is extremely unfair. 

[izzyizzy0]

Could you please explain then why there is a charge on .999 silver and .999 gold imported into Canada through the GSP? Both items are HST and DUTY exempt. So by your calculation the GSP charge should be $4-5.00. I was just looking at a 5 oz. .999 silver coin for $225.00. Import fee is set at $34.35. On a duty and tax free item. I assume ALL sellers are listing improperly?
The other glaring difference is that most Corporate sellers do not use the GSP. I assume they know the regulations.
The other thing that makes no sense is when a seller posts shipping USPS to Canada in a medium flat box for $21.25 it actually goes to Kentucky - correct? How much less is Domestic USPS than International? About $15.00 less. Where does that money go?
Hence this is why you see the words scam and rip-off. There are many loopholes in the construct.
People get emotional and that is why they say certain things. No emotion here - just factual statements. I look forward to your response and from other "defenders" of this program.

[pierrelebel]

"Could you please explain...."

No.  There are a lot of miscalculation and misinterpretation that cannot be explained.  Earlier this year, I noticed several listings with American made maple syrup being charged GST/HST and duty. 

We in Canada all know that maple syrup is considered "basic groceries" and not taxable as such.  Yet the guys and gals with MBA paper on their wall at eBay in California argued that they knew better!

It is unfortunate and a shame that we cannot have a dialogue with the folks at Pitney Bowes who administer the program.  It has been suggested several times but the suggestion ignored.

Way back in 1999 and 2000 when Billpoint, owned by eBay,  was the payment service recommended by eBay.  PayPal was the largest competitor.  Yet, eBay allowed designated (and well informed) representatives from PayPal to answer inquiries on the eBay Payment Board (as it was called at the time).  That was well before eBay acquired PayPal.

"from other "defenders" of this program."

???

Who are they and where are they?  I have not seen any yet. 

"People get emotional..."

That is quite correct.  That may explain why some posters feel that anyone explaining some aspect of the program or contradicting a misguided statement are "defenders of the program".  I have not seen any.

When a well informed and experienced poster replies to a post suggesting that items coming from the USA are tax exempt under NAFTA, that poster is not a "defender".  Simply someone trying to shed some light on the problem.

There are real problems with the program.  There is no need to create false problems or artificial ones.

Similarly when someone else suggests that "used" goods are not taxable, it is not "defending" the program to point out that, in law, there is no difference in Canada concerning the taxable status of "used" or "new" goods.  A new car is taxable, so is an old one.  Value Village correctly charges GST/HST on used clothing sold through their store.  That statement is certainly not meant to "defend" eBay's misguided program. Etc... Etc..

[figbrowmar]

      I  will no longer purchase anything attached to Global Shipping.  I came here on a budget of $300.00 and ended up exceeding that by over $100.00 in extra fees.  I couldn't believe it.  Then to top it off at least two of my items were misdirected and took extra time for delivery.   Also considering closing my ebay account due to this.

[pjcdn2005]

The other thing that makes no sense is when a seller posts shipping USPS to Canada in a medium flat box for $21.25 it actually goes to Kentucky - correct? How much less is Domestic USPS than International? About $15.00 less. Where does that money go?

If the seller has a shipping charge for buyers in the U.S. then a portion of that $21.25 goes to the seller. The remainder goes to PB for the international portion of the shipping. 

In case anyone is wondering...if a seller was to ship a medium flat rate box directly to Canada, the shipping cost would about $40. But of course the gsp is not using USPS between Kentucky and the border.