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.

[pierrelebel]

"there are sellers who still will not sell overseas even with GSP. So what is the program good for? "

NOT for that seller, of course.

As stated earlier, the program is for American sellers who were not shipping outside their borders but wanted to increase their business with an easy way to ship domestically (Kentucky distribution centre) without the perceived risks and costs of shipping overseas (delays, losses, Customs, etc...)

NO, the program is not for everyone.  No program will ever work for everyone.

And NO the program is not for low priced items although many American sellers continue to offer low priced items through GSP.

An NO the program was not conceived with Canadians in mind.

[pierrelebel]

"I concede - we're doomed."

Why?

Canada has a population equal to about one half of one percent of the world.  That is it: one half of one percent.  We cannot escape that economic reality.

Yet, despite being a very minor player in the world market, we live very well.  We simply have to lower our expectations at times when we deal with American businesses.  The simple reality is: we are not that important to them.

Sure they want our business - if it is easy to get.

Shopping online for Canadians is relatively easy.  However, NOT every seller using every venue will be able to respond to our needs.

When it comes to GSP, as Canadians, we should simply avoid and move on (in most instances).

[rockp5233]

Yes we saw since numerous months complain about this issue especially with the GSP program of ebay.

I'm not sur myself were those ''taxes'' are going ?... I'm working in and with the custom brokerage system (CDN & USA) and from what I see the taxes might only be charge by :

a canadian company with all the taxes registration.

or

a certified custom broker (on belhalf of a CDN company)

And ''taxes'' should not be more than 5% (GST/TPS), unless the item bought fell under a protect commodity then you will be charge a ''rate of duty''. You might need to look in CBSA website to find on what and how much ;

http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/menu-eng.html

But everything USA made fell under the Free Trade Act so no duty should be apply on the value.

For used items expedited from USA nothing other than the 5% should be apply to the value, the duty was paid when the item was purchase as a new.

... Your question in regards of ''Where goes the money'' is very pertinent !!!

[pierrelebel]

" from what I see the taxes might only be charge by :a canadian company with all the taxes registration or a certified custom broker (on belhalf of a CDN company)"

Actually, if you look a bit deeper, you will find hundreds, maybe thousands, of American companies duly registered with GST/HST collecting Canadian consumption taxes (HST/GST/PST) when shipping to Canada.  Many will also collect duty if applicable.  The best known to Canadian buyers would be LL Bean (for example).  Take a few moments and check their website.

There is a large misconception that goods coming from the USA are automatically "duty free" under NAFTA.

NOT SO.

Only goods manufactured in NAFTA countries are exempted from duty.  Taxes still apply.  It may be as low as 5% in AB but as high as 15% in other provinces.

If goods coming from the USA were manufactured overseas (China for example) then duty will be applicable on the basis the goods were made in China.  The fact they are being shipped by an American seller does not change that.

[sci-fi-female]

I buy a lot from L.L. Bean ( I am in Canada) and they always ship free. I have never been charged shipping or duty.  I assume all extra charges are built into the cost of the item.

[arlene_v]

I must admit I have to laugh when I read this huge and meandering  GSP comments thread.

It's like that movie Groundhog Day. 

Stop reading  this thread for a month, and come back,  and nothing has changed.  It's just the same old same old. Over and over.

We are just talking to ourselves at this point. Kalvin has literally  left the building.

The GSP is a nasty fact of life, part of the new eBay. The old eBay is dead.

Either contact the seller as suggested,  hit the back button, or be prepared to suck up the charges if you really want the item.

I would be very very surprised if anyone at eBay or Paypal  even reads this thread anymore.

[pjcdn2005]

They do have free shipping to Canada but according to their website, they do ask you to prepay tax and duty if applicable.

Orders shipping to Canada   L.L.Bean collects duties and applicable GST/HST/PST at the time the order is placed and remits the proper amount to the CBSA. By ordering goods from L.L.Bean, Inc., you authorize UPS SCS Inc. to act as your agent to transact business with the CBSA to clear merchandise, pay duties and taxes, and to handle any merchandise returns and refund claims on your behalf. You further waive and transfer your right to receive the actual amount of refund of duties and taxes to UPS SCS Inc. All duty and tax paid will, in turn, be refunded to you directly by L.L.Bean, Inc. We assess 0% for duty and brokerage on goods made in the US, Canada and Mexico and 19% on all other goods. Please refer to an item's description for details on where it was manufactured. Please contact us for more information. Taxes will be applied as follows for orders shipped to Canada: ON, NB and NL add 13% HST. PE add 14% HST. NS add 15% HST. For orders shipped to any other province or territory, add 5% GST. QC orders add 9.5% QST to the total, including GST.

[pierrelebel]

Yes, if you check the fine print you find a $15 charge for taxes and duty (if applicable).  You will also notice:

"*By ordering goods from L.L.Bean, you authorize UPS SCS Inc. chosen by L.L.Bean to act as your agent, and to transact business with the Canada Border Services Agency (CBSA) to clear your merchandise, account for duties and taxes, to return merchandise to L.L.Bean, and prepare and submit refund claims on your behalf for any merchandise that you return. You understand that the CBSA will send any refund of duties and taxes that were paid on the returned merchandise to the broker, and that you will obtain the refund directly from L.L.Bean. Further, you also authorize the customs broker to endorse any refund cheque issued by the CBSA in your name, so that L.L.Bean can be reimbursed."

[rockp5233]

Find this on LL Bean website :

*By ordering goods from L.L.Bean, you authorize UPS SCS Inc. chosen by L.L.Bean to act as your agent, and to transact business with the Canada Border Services Agency (CBSA) to clear your merchandise, account for duties and taxes, to return merchandise to L.L.Bean, and prepare and submit refund claims on your behalf for any merchandise that you return. You understand that the CBSA will send any refund of duties and taxes that were paid on the returned merchandise to the broker, and that you will obtain the refund directly from L.L.Bean. Further, you also authorize the customs broker to endorse any refund cheque issued by the CBSA in your name, so that L.L.Bean can be reimbursed.''

... Any duty charge must be done by a certified custom broker... Some big companies are doing what we call ''Inhouse'' brokerage but they still need to be a certified custom broker by CBSA.

Yes that is what a mean by ''USA made'' items, they fall under the free trade act.

Finally about ''If goods coming from the USA were manufactured overseas (China for example) then duty will be applicable on the basis the goods were made in China.  The fact they are being shipped by an American seller does not change that''... the duty charge should be only the difference (if a positive difference exist) between the duty when importing in USA and the exporting to Canada by the American seller, that is call ''Duty Drawback''....

but we may have a looooonnnng discussion on this, only few American companies apply this rule correctly.

Cheers,

[pierrelebel]

"It's like that movie Groundhog Day. "

You are quite right!

[sci-fi-female]

I have not been on eBay for a while and I am trying to figure out the extremely high cost of global shipping. When I look for an item I look only in North America. Today I was browsing through listings and did NOT click North America I did click on lowest price + Shipping and went through many many pages that all offered FREE Shipping from China (one was from Afganistan) the bids I saw were low 0.01 how can a seller from CHINA offer free shipping on such low priced items. As a buyer I feel scammed.

[art-in-the-making]

When it comes to GSP, as Canadians, we should simply avoid and move on (in most instances).

We could also hope that this would represent an opportunity for Canadian sellers to pick up the slack.

[pierrelebel]

"an opportunity for Canadian sellers to pick up the slack"

Good point!

[mater721]

"When it comes to GSP, as Canadians, we should simply avoid and move on (in most instances)."

My conceding was the discussion... on if sellers will profit.

Thought the gist was that GSP will become even more prevalent to Canadian buyers than it currently is.

So, if more and more US sellers "adopt" it, there will be fewer for me to deal with, until eventually, there are basically none.  That's where I see the "doom".

Pretty much all I buy on ebay is $80 or less.  So if GSP takes over, I'm done.

[pierrelebel]

"GSP will become even more prevalent to Canadian buyers than it currently is."

Here we are going to the world of conjecture.  Personally I expect that many American sellers, not fully aware of what GSP is doing to their Canadian sales, may in fact move to exempt Canada from GSP.

I also expect - I know I am a dreamer - eBay to set up functions within its listing tools to prevent (or at least discourage) American sellers from listing with GSP low value (under $50 or $100) items than can easily be sent through the postal system.

So, the way I see it, in the not so immediate future, we will see some (many - not all ?) American sellers once again welcoming Canadian buyers for direct shipping while eBay makes moves to encourage the same sellers to ship directly, avoiding GSP.

And eBay will do it because it benefits them.

It will not happen overnight.

[pierrelebel]

At the end of the day, American sellers will decide what they want, what is most important to them:

1- Canadian business

or

2- The extra protection (feedback/DSRs) given to them by eBay when using GSP

Their choice.

[maggiebvintage2010]

Duty drawbacks can be claimed on previously-imported duty-paid products that are re-exported.  As an example,. LL Bean imports to USA a container load of jackets from China, then sells them individually by mail order.  Some of them are purchased by Canadians - let's say 10%.  Within 4 years of first importation (a Canadian rule, may be different in other countries), these re-exported jackets are eligible for a duty drawback.  Since LL Bean is both the original importer, and the final exporter, they (their Customs Broker) complete a claim form and provide the required supporting documentation, including proof of import and each exportation of a jacket.  If other parties were involved, and could be eligible, a waiver from each is required, and a paper trail showing who bought what when and from whom - i.e. only 1 party may claim a duty drawback.

This is an old practice, and well used by importers/exporters who either have in-house customs brokerage, or an account with a brokerage firm.  Most Canadian and American companies who import/export are well aware of the program and use it to maximize profits.

A consumer in Canada would not be eligible, and Canada would not be interested in only charging any difference between what the US government originally collected, and what our duty rates are.  The consumer did not pay the original duty, and is not eligible for any  duty drawbacks.  The Canadian government did not receive a cent of the original duty and is interested in receiving 100% of all applicable duties and taxes.  The company that paid the original duties, and/or any other legally interested buyers/sellers in the USA, are the ones who receive the drawbacks of originally paid duties.

[iain12340_2]

Personally I find it extremely expensive, too many people trying to get a slice of the cake. I avoid sellers using the GSP program. I always thought eBay was about saving money and having a good customer experience. The GSP contributes nothing in either of those directions it merely lines Pitney Bowes pockets and a little commission to eBay no doubt.

[00nevermind00]

Arlene's Groundhog Day analogy is a perfect description of what these two threads have become. Kalvin did in fact confirm during a Weekly Board Hour a while ago that no one from eBay reads these threads anymore. Which makes me kind of wonder why the merging of all GSP threads continues, since that was supposedly done for the benefit of the GSP people in the US...

---

@pierrelebel wrote:

"GSP will become even more prevalent to Canadian buyers than it currently is."

Here we are going to the world of conjecture.  Personally I expect that many American sellers, not fully aware of what GSP is doing to their Canadian sales, may in fact move to exempt Canada from GSP.

I also expect - I know I am a dreamer - eBay to set up functions within its listing tools to prevent (or at least discourage) American sellers from listing with GSP low value (under $50 or $100) items than can easily be sent through the postal system.

So, the way I see it, in the not so immediate future, we will see some (many - not all ?) American sellers once again welcoming Canadian buyers for direct shipping while eBay makes moves to encourage the same sellers to ship directly, avoiding GSP.

And eBay will do it because it benefits them.

It will not happen overnight.

---

Actually, it may not happen at all. Ebay seems to be moving in the exact opposite direction from your very sensible suggestion. If you read the US Selling board, a number of sellers have reported receiving an email from eBay advising them that their listings would automatically be opted into GSP as of October 3rd. That's tomorrow! I think it follows this announcement from the Fall Seller Update:

http://pages.ebay.com/sellerinformation/news/fallupdate2014/selling-across-borders.html

Obviously eBay doesn't give a hoot about what Canadian and other international buyers think of their pet program. They want US sellers to sell to us and they think we're so desperate for US goods that we'll pay anything.

[reallynicestamps]

You could take the time to read the other 3892 posts on the subject of the Global Shipping Program.

The US sellers are the ones setting the shipping cost to Canada.

Pitney Bowes is setting the 'import charges'.

The Canadian Government has not changed the maximum value for postal/courier imports which has been set at $20 for decades.

If this is a problem for you write:

The Right Honourable Stephen Harper, PC, MP

House of Commons

OTTAWA ON K1A 0A6

It is not necessary to stamp the envelope.

The third party, PitneyBowes, has contracted with eBay, to process duty and taxes for the 178* countries that eBay sellers can ship to. All the seller has to do is ship to PB's Kentucky plant with cheap Confirmation of Delivery and that done, his responsibility ends.

The buyer doesn't technically pay duty and tax, so no receipt is due. What PB does is calculate the applicable duty and more important sales taxes, adds in a small service fee (Around $5) and pays the Canadian governments out of the money they collect.

Is the amount they collect too high? Sometimes, probably. Too low? Sometimes , probably.

Do they make money? Doubtless, that's what most businesses prefer.

Does the Canadian government make money? Absolutely. And it's money that costs them nothing to collect, unlike CanadaPost items. CPO and CBSA have come to the conclusion that it makes no sense to assess and collect duty and tax if the cost of collecting is higher than the amount collected. couriers like PB and UPS have no such luxury.

*My mistake. That should be 173. EBay sellers cannot ship to countries that are embargoed by the USA.