eBay

lybr8512 · ‎07-27-2022

Just purchased shoes ($100 USD) from a seller in the US who has free shipping to Canada. Item have been authenticated and is being shipped to Canada. However, I have received an automated phone call from FEDEX advising that I need to pay duty, tax and other charges first, in order to NOT delay the delivery as scheduled. Did not see any mention of additional charges from description of this item on eBay, and also messaging to the seller have been turned OFF so cannot validate this with the seller. Is this a legitimate authentic phone call and charge? Please advise.

Thanks!

marnotom! · ‎07-27-2022

I've found a couple of messages in that vein on my voicemail a while back and my elderly next-door neighbour got one, too. We talked our way through it and came to the conclusion that it was a well-timed scam, as FedEx (or UPS or DHL or. . .) would have paperwork to back up a request for payment.

Having said that, you might end up having to pay the charges you describe upon or after receipt of the shoes, depending on the shipping method used. For listings of items outside of Canada where customs charges aren't paid at the time of purchase (i.e. items forwarded through the Global Shipping Program), there's a note below the shipping rate that reads (in pretty small print) "International shipment of items may be subject to customs processing and additional charges." If you're buying out of Canada and not paying customs-related charges at the time you pay for the item, it's a good idea to assume that you will be paying something later, and then be relieved if it turns out you aren't.

fh991586 · ‎07-27-2022

Any item going through the border will be assessed for duty or taxes. Private sales like theses usually only trigger sale taxes, fortunately. This has nothing to do with the seller, and he is not responsible for this, so no point to contact him. He would surely not include those fees in the "free shipping"!

I purchase something this year that was shipped from the USA by FedEx, and I expected something to be paid (taxes & brokerage fees) because of the high declared value (over $500). I did receive an automated phone call in advance, when the item was at the local clearing station before being admissible for delivery. I followed the steps, and I then made the payment on the phone. So it can definitely be legit. I then received an email as a payment receipt, but without any paper proof. I had to request the bill later from FedEx for the taxes & fees breakdown of this bill (which I got in PDF form).

If you don't pay in advance, there might be a delay in delivery, as they won't leave you the item without paying those fees. If you are never home, it might cause problem...

For FedEx (as for UPS too), it's easy and free to set up an account online to be able to monitor such shipping issue, and deal with the payment with an official email notice. Even if it only happens once a year...

femmefan1946 · ‎07-28-2022

We now have a duty-free allowance of $150Cdn (~$120USD) for imports from the USA, but our tax free allowance is only $40 Cdn(~$32USD).

And FedEx charges ridiculous service fees (customs brokerage fees).

The seller has nothing to do with this, only the buyer is required to know about his own nation's import fees.

How did they tell you to pay these import fees?

Usually they are collected at the door, at the FedEx office, or you are billed later out of the blue. (Seriously, FedEx are sneaky like that.)

If there is any mention of gift cards, hang up. It's a scam.

How do they want you to pay these fees if you cannot contact them or speak to them?

The sales tax is not going to be more than $18, and there should be no duty, but the FedEX fees often start at $25 or more.

femmefan1946 · ‎07-28-2022

@marnotom! -- The GSP charges import fees to cover duty, sales taxes and service fees before the seller is told to ship.

It's other couriers, like UPS and FedEx that shock us with import fees on delivery.

marnotom! · ‎07-28-2022

Yeah, I know that and you know that I know that. I just made a hash of trying to make the distinction. Thanks for the heads-up.

pjcdn2005 · ‎07-28-2022

Is the tracking number from the authentication center a FedEx number?

fergua3 · ‎07-28-2022

If you made the purchase and the seller was using the GSP (Global Shipping Program) than you have NO additonal taxes, or fees of any kind to pay, as you already paid them at time of purchase.

If the seller shipped the shoes directly to you and used a courier, in your case, Fedex then you almost certainly have taxes and fees to pay. The tax portion will be small, just GST, or HST depending on what province you live in . The fees will be BIG. Like all courier companies, Fedex charges a 'brokerage fee' for bringing items through Can. Customs. It's a charge for filling out the declaration form.

Brokerage fees vary but are usually around $35-$40 and often tack on a percentage of the customs/taxes paid. An utter rip off in the extreme. Canada Post charges 10 bucks. If the item came by air, then the brokerage fee is normally built into the shipping cost, so if you paid a big shipping cost you're probably covered. If the item is coming by ground, than you will have to pay the brokerage fee.

It is the existance of these brokerage fees that stops me from ever buying something from a seller who ships via courier and not the postal system. It is also the existance of these brokerage fees that causes me to wonder how courier companies stay in busines and why anybody uses them.

pjcdn2005 · ‎07-28-2022

If you made the purchase and the seller was using the GSP (Global Shipping Program) than you have NO additonal taxes, or fees of any kind to pay, as you already paid them at time of purchase.

The item was sent by the seller to the authentication program. I don't know which service that program uses to send items to Canada but it is definitely not the gsp.

fh991586 · ‎07-28-2022

For your information, I had to pay more than $100 in taxes on my purchase, but the amount paid to FedEx as a brokerage fee was only $10, as stated on the bill. That's really an honest rate IMHO!

femmefan1946 · ‎07-28-2022

It is also the existance of these brokerage fees that causes me to wonder how courier companies stay in busines and why anybody uses them.

It seems likely that the brokerage fee is actually what it costs the courier --allowing for a profit on the work, because that's the point of having a business.

And couriers make their money on the shipping cost plus the profit on envelopes of documents, which require no brokerage.

CBSA was famously ignoring 93% (their numbers) of low value imports because it was too expensive to pay customs officers to assess and collect duty. Customs officers get paid 73c+ a minute.

but the amount paid to FedEx as a brokerage fee was only $10, as stated on the bill.

I wonder if the pandemic surge in online /international buying made them rethink their previous charges.

$10 is about what Canada Post charges.

marnotom! · ‎07-28-2022

@fh991586 wrote:

For your information, I had to pay more than $100 in taxes on my purchase, but the amount paid to FedEx as a brokerage fee was only $10, as stated on the bill. That's really an honest rate IMHO!

Do you have a FedEx account? That may help reduce the charges. Also, I think the various and sundry fees FedEx charges on a shipment to Canada are dependent on the shipping method. The more expensive the shipping service, the more likely that customs fees are folded into the shipping charge.

lotzofuniquegoodies · ‎07-28-2022

@marnotom! wrote:
@fh991586 wrote:

For your information, I had to pay more than $100 in taxes on my purchase, but the amount paid to FedEx as a brokerage fee was only $10, as stated on the bill. That's really an honest rate IMHO!
Do you have a FedEx account? That may help reduce the charges. Also, I think the various and sundry fees FedEx charges on a shipment to Canada are dependent on the shipping method. The more expensive the shipping service, the more likely that customs fees are folded into the shipping charge.

@lybr8512

Re: Fedex customs charges

All shipments that are imported into Canada are subject to duties and taxes assessment by the Canada Border Services Agency (CBSA). The duty rate varies depending on the type of product and the country where it was manufactured. The amount of duties and taxes for an item primarily depends on the item's value in Canadian dollars and the purpose for the shipment such as a gift. In addition to the duty, tax may also apply (e.g., GST, PST, QST, and HST).

The ROD (Reimbursement on delivery) fee applies to recipients with no FedEx Express account number or poor payment history. This fee is collected from the recipient at the time of delivery, in addition to any duties and taxes that may be applicable. If the item is duty-free and tax-exempt, then this fee will not be charged. For more information on this fee, please visit fedex.ca/ancillary.

The Disbursement fee applies when a duty/tax invoice is issued by FedEx Express. FedEx Express pays the duties and taxes owed to the Canada Border Services Agency on your behalf and charges the Disbursement Fee for this service. The fee is based on the total amount of the duties and taxes advanced, and will be billed to the party designated to pay the duties and taxes. For more information on this please visit fedex.ca/ancillary.

What are some customs clearance charges I can expect.

It depends on the contents, value and origin of the shipment. You may be charged the following:

Duties and taxes
FedEx Reimbursement on Delivery Fee or Disbursement Fee
Ancillary charges, if applicable. For more details, please visit fedex.ca/ancillary.

If you are the recipient or designated party for payment of duties and taxes and do not have a FedEx account, or your FedEx account has a poor payment history, then the following options are available to you.

Pre-pay by credit card: Call FedEx Customer Service at 1.800.GoFedEx 1.800.463.3339 with your tracking number.
Pay by cash, cheque or credit card at the time of delivery.

If a shipper or third-party is responsible for the payment of duties and taxes, but does not have a FedEx account, or has a FedEx account with poor payment history, then the shipment will be held at the FedEx destination station until payment arrangements are made.

-Lotz

https://www.fedex.com/en-ca/shipping-services/international/import.html

reallynicestamps · ‎07-28-2022

@lybr8512

Pre-pay by credit card: Call FedEx Customer Service at 1.800.GoFedEx 1.800.463.3339 with your tracking number.

TL/DR - Appears to be legit and you can safely pay by phoning the number @lotzofuniquegoodies found for you.

fergua3 · ‎07-29-2022

yes, $10 brokerage charge is reasonable. Was it shipped by air not ground? As i said in my post it's ground shipping that has the expensive brokerage fees. If it was shipped by ground, then $10 is very reasonable. A year ago when i contemplated a Fedex shipment i was told the brokerage charge would be $35.

fh991586 · ‎08-01-2022

Yes, I have a FedEx account, even though I don't use it for shipping. Since it's free, I thought it would help streamline the process for receiving items. That's why I recommanded it in my previous post. I would not be surprised it's the reason for this small brokerage fee! It was sent via FedEx International Economy (not Ground), the cheapest air option.