Questions about the Global Shipping Program

[kalvin@ebay.com]

Do you have questions about the Global Shipping Program? Please post here & I'll do my best to track those answers down for you!

If you have any comments about the program, use this forum instead.

Thanks,

[bennett4612]

Hi pierrelebel. 

Your initial post (#31) is quoted below, for reference. 

Apologies that it has taken me this long to respond. I reached out to a couple contacts at Pitney Bowes, and collected some information that should answer your question(s).

Here is the response that I received:

++++++++++

As it relates to CA taxation on freight services – transportation costs are not taxable into Canada.  There is Canadian tax exemption legislature (part of NAFTA) called “continuous inbound freight” which makes all transportation related services tax-free as long as goods originate in the US and do not stop in Canada for prolonged periods of time (eg; warehoused in a non-bonded facility) – hence the word “continuous”. 

This also applies to CA brokerage services: (i) since our broker is rending service to a US company; and (ii) it is part of the transportation service – it is considered to be applicable to continuous inbound freight legislature.

Additionally, for the purposes of GSP – PBI is not registered for GST/HST and we do not remit such taxes.  The service we provide is rendered (begins) in the USA, and is subject to continuous inbound freight legislature as a result.

++++++++++

Hope this helps. 

---Ben

@pierrelebel wrote:

Another question.

Did you know that the Customs Brokerage fees charged by Pitney Bowes are GST/HST taxable in Canada?

As such, the import charge may vary from province to province since different rates apply which explains why buyers in different part of the country see different charges.

The question is: why is Pitney Bowes - working under contract for eBay Inc - not giving Canadian buyers the GST/HST information as required by law?

http://www.taco.ca/Chart_for_CSCB_Members-June_25-with_NRI.pdf

---

[pierrelebel]

"PBI is not registered for GST/HST and we do not remit such taxes. "

????

Could you please take a minute and check that answer with senior management.  It does not make any sense.

Canadians are charged GST/HST by Pitney Bowes and remit GST/HST to Pitney Bowes as part of "import charges" through PayPal

[pierrelebel]

"transportation costs are not taxable into Canada. "

That is correct but that was not the question.

The question refers specifically to brokerage fees charged to buyers to arrange clearance throughCanada Customs.

Like UPS, Fed-Ex, etc... while the work of calculating duty (if applicable) and taxes may in fact be done in the USA, the service "brokerage fee" is taxable in Canada. 

For example:

http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html

[afantiques]

“continuous inbound freight” which makes all transportation related services tax-free as long as goods originate in the US and do not stop in Canada for prolonged periods of time.

I'd have thought delivery to the buyer was stopping  in Canada for prolonged periods of time.

I can see this as applicable to goods in transit, on the way to Alaska for example, but goods delivered to the customer or not what I'd call continous freight.

Possibly you could take this point back for clarification, as it seems to me the emphasised phrase above can only be read as 'in transit. Though why they'd word it like that if that is what is meant is a mystery.

Canada Post has some words on the subject.

When indicating your orders qualifies for the Continuous Inbound Freight (CIF) tax exemption the mailing must:

• Originate outside Canada and pass through Canadian Customs

• Be deposited directly into a Canada post Major Postal Facility during the hours of operation and must not be reworked in Canada prior to the deposit

• Must be delivered to Canada post by a third party carrier and not by the Mailer's (shipper's) vehicle.

The following documentation must be provided:

1. An Order document (Statement of Mailing or Manifest) clearly marked "Continuous Inbound Freight"

2. Canada Customs Cargo Control document or Driver's Bill of lading that must indicate:

   • Date

   • Shipper's Name and Address

   • "Ship From" address if different from the Shipper's address

   • "Ship To" name and address (the address where the shipping company will drop off the shipment i.e. a Canada post location)

   • Description of the goods

   • Number of items

   • Total Weight of the items associated with an Order document

   • Signatures or official Customs Stamps

     This may be why CP handles GSP items in Canada and not some other carrier.

Still waiting for the announcement about the unexplained country blocks in media catagories on ebay.com

[pierrelebel]

"or the purposes of GSP – PBI is not registered for GST/HST and we do not remit such taxes. "

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

"The import charges include applicable customs duties, taxes, brokerage, and other fees."

If, as you stated, Pitney Bowes does not remit the taxes to the Canadian government, what does it do with the amount of taxes collected from Canadian buyers?

Obviously someone fed you the wrong information.

[bennett4612]

The information gathered and posted was correct. If perhaps a bit incomplete. 

I went back to the source and asked for additional details, based directly on follow-up questions in this thread. 

Here is what I was told:

++++++++++

"PBI is not registered for GST/HST and we do not remit such taxes.

????

Could you please take a minute and check that answer with senior management.  It does not make any sense.”

• As part of the transaction, the buyer is granting PBI a power of attorney to authorize a CA customs broker to clear goods on behalf of the consumer / consignee – and remit duty and tax to the CA gov’t on behalf of that party.  This is consistent with most non-collect-on-delivery (incoterm DDP) cross-border retail transactions.
• PBI is acting as an agent on behalf of the consumer/consignee to arrange the importation of goods and payment/remittance of related fees to the Canadian government through a licensed customs broker
• As a result, there is no need for PBI to be registered with the CA gov’t for the purposes of remitting CA tax because it is technical the consumer/consignee remitting such taxes
• See Buyer Terms & Conditions for more context http://pages.ebay.com/shipping/globalshipping/buyer-tnc.html

“Canadians are charged GST/HST by Pitney Bowes and remit GST/HST to Pitney Bowes as part of "import charges" through PayPal”

• To simplify the cross-border transaction, PBI estimates what we refer to as “Import Charges” at the time of checkout.  Upon completing the checkout, the buyer remits funds to PBI via PayPal.  Goods are imported by the licensed CA customs broker, who remits these charges to the CA government and charges PBI, PBI pays the customs broker on behalf of the buyer – which is why there are no consequential Collect On Delivery fees or income tax filings after the transaction.
• Canadians are charged duty and applicable taxes by PBI at the time of checkout as part of Import Charges, along with other fees and charges (See buyer Ts & Cs)
• The important thing to note is that PBI is providing a service which facilitates the cross-border transportation of goods, and the importation of such goods on behalf of the buyer – PBI does not import or resell goods and is not responsible to file Canadian taxes for this service on behalf of PBI
• The buyer through an power of attorney is authorizing a licensed customs broker to calculate the true duty and tax for such goods, and remit them to the government on behalf of the buyer --- not on behalf of Pitney Bowes

++++++++++

[pierrelebel]

Thank you Ben for your post.

My first reaction was to call my Member of Parliament to verify the legality of the information provided as it flies against everything ever published by the Canadian government.  As linked before, there is a legal requirement by whoever collects GST/HST to provide detailed information including GST/GST registration number.  I will get back to you once I hear from him.

[2222cindyw]

he also changed the shipping  after i tryed and  tryed with help from ebay rep. now he wont deal with canada just shows what he is all about, just another  well deserved neg. just like the p.b. global shipping.

[thedarko2]

I have won an item on eBay . The seller has the item to be shipped via the globle shipping. I have requested to have it ship another way , which the seller is willing to do , but he doesn't

know how to change this. Can you update  me

with instructions or a way in which to proceed .

Thank you

[afantiques]

The only way to do it is to cancel the sale formally and relist as a Buy it Now with the shipping specified as FCMI or whatever.

[i*m-still-here]

thedark2......... go to your purchase history and find the item.

On the right side you'll see "more actions."  Click there and the first option is "request total."

Click that and the seller will be able to send you an invoice for shipping without the GSP.

[pierrelebel]

Hi Ben

Was advised this morning my MP is in Ottawa dealing with the Senate scandal; then he is going to the Conservative Party convention in Alberta.

Hopefully will hear next week.

[anguscoinshop]

Last week i phoned ebay re my last purchase with GSP, i mentioned there was no reciept for duty and tax paid and i did mentioned i need an official receipt, there are two main component missing in this thing, name and tax #. They emailed me what they called a proof of import report. Here's a copy of it, my personal info are covered up. There's nothing legal about that document. I already phone my acountant and legal team.

Since ebay wont issue a proper receipt, i now have to go to the CRA for my next step.

This GSP doesn't look correct, why not end it now ?

[0andrew0]

If a seller has offered to ship to Canada using GSP however their listing does not show an estimated shiping cost, how do I obtain a shipping quote?

[marnotom!]

---

@0andrew0 wrote:

If a seller has offered to ship to Canada using GSP however their listing does not show an estimated shiping cost, how do I obtain a shipping quote?

---

If the listing does not currently state GSP shipping, the listing needs to be cancelled and relisted with the GSP in order for the process to work.

[brao2011]

Hello,

Need some insight on how this works- I made a purchase from a US based seller on October 11, and the shipping was done through the global shipping program to be delivered to Milton,Canada. The seller shipped it to the ebay address on October 15, and the tentative timeframe of receipt was supposed to be by Oct 25. However, the last update recorded (as of today) is as of Oct 18 and it says "Processing at US Shipping Center" Erlanger KY 41018. 

I contacted the seller and he confirmed that he had shipped priority to the ebay address and he was trying to obtain information from ebay/post department. However, there is no further update on the tracking beyond Oct 18th. 

Should I be concerned? what are the next steps? Please share your suggestions.

Thanks!

[afantiques]

Just forget it till it turns up. Tracking for the international part of GSP deliveries is extremely poor, usually, it seems, nothing appears till after delivery.

[bennett4612]

Hi 0andrew0.

Quick addition to what marnotom! already posted.

A GSP listing will show estimated costs on the listing itself, and then actual costs on the checkout page. 

If you are still not seeing estimated costs on a GSP listing let me know via Private Mesage and include the listing details.

Hope that helps.

---Ben

[brao2011]

Thanks for your response. It is still not updated. What is the usual timeframe that I would need to wait until I raise a dispute resolution? Or are you suggesting that I just wait for some more time?

Appreciate your inputs!

[marnotom!]

My guess is that it will arrive sometime within the week.