Wrong import charges to Canada. Global Shipping Program

[au-jjau-t1r5jxz0q1]

 I'm in Canada, and bought a used automotive part for U$325 from the USA. I'm being charged U$49.04 in import charges

I can't find in any way why I'd be charged U$49.04 in import fees. It's a used part, and from a NAFTA country so I'd be paying tax, which at 13% to Ontario would be a U$42.25 import fee. If it were not NAFTA, I'd be paying 6% import fees and 13% tax, which would be U$61.75.

This is through the Global Shipping program. Why am I being overcharged and what can I do about it. I'm already being gouged on the shipping costs (sending the item in the wrong direction before it comes to me so it can get to Kentucky), and now knowing that the import fees are a scam too is really dis-satisfying. 

[lady.stark · Accepted solution]

GSP also charges a "handling" amount on top of the taxes. So that's why there is a small difference (US $6.79 in your case). If it had been shipped directly to you (assuming it was assessed taxes at the border), Canada Post would have charged you C $9.95 for handling.

[au-jjau-t1r5jxz0q1]

My U$42.21 shipping and handling should cover the handling part...

GSP is such a scam

[lady.stark]

No, because taxes are $42.25. Handling costs are on top of taxes.

[au-jjau-t1r5jxz0q1]

I paid U$42.21 shipping&handling, then U$49.04 import charges

[au-jjau-t1r5jxz0q1]

Had eBay NOT charged me any import fees, Canada Customs would have charged a lower amount

[lady.stark]

Shipping and handling are for the shipment part: it covers shipping in the US from your seller to the GSP hub and then the shipping cost to forward it to you.

So no, it doesn't cover the administration fee for import charges.

[lady.stark]

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@au-jjau-t1r5jxz0q1 wrote:
Had eBay NOT charged me any import fees, Canada Customs would have charged a lower amount

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Nope. They would have charged you the 13% taxes + the administration fee.

[au-jjau-t1r5jxz0q1]

Misread something you said. Edited.

[au-jjau-t1r5jxz0q1]

It's crazy that the GSP adds a handling fee on top of my shipping handling fee. I've never had to pay more than what was included in shipping and handling+duties/taxes without using the GSP

I feel like I'd been scammed by eBay, and really don't want to ever use the GSP again

[lady.stark]

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@au-jjau-t1r5jxz0q1 wrote:
I've never had to pay more than what was included in shipping and handling+duties/taxes without using the GSP

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Please remember that Canada Post also charges $9.95 on top of taxes when you pick-up your parcel at the Post Office (or directly to the mailman if you are at home).

So in summary:

Your $49.04 includes 13% taxes of $42.25 + an adminstration fee of $6.79

With Canada Post, it would have been the same amount - converted in Canadian dollars at the exchange rate when the package passed through costoms.

Your $42.21 covers shipping from your seller to the GSP hub (if there was any - you can verify that by going back to the listing, and changing the country to USA with 90210 as zip code - it will tell you if domestic shipping was free or if it cost something)

It also covers shipping from GSP hub to you.

I agree that shipping directly may have been better. Or maybe not. It depends on the size of the package and weight (big and heavy packages cost a lot to ship).

It also depends if the seller would have used USPS or a courrier like UPS, Fedex. Courriers are the worst.

GSP works very well for some items. Just some items. 😉

[m-banfill]

Iyu say that canada "would" charge you a handling fee, that is incorrect the difference between canpost and GSP is that GSP wins every tine! Whereas with canada post you "MAY" get charges. Quite the difference. But it does work wel for some itema

[reallynicestamps]

Nope.

GSP/ Pitney Bowes is doing more than paying the non-existant duty and Sales Taxes. It is also  handling the paperwork for you.

Canada Post charges $9.95 for this.

UPS/FedEx and other couriers charge $25 or more.

It's crazy that the GSP adds a handling fee on top of my shipping handling fee.

The usual charge is around $5USD .

Our British members call shipping and handling "postage and packaging" , which is a little clearer.

So your seller charged you a fee for packaging and posting to KY.

GSP charged you a fee for wrangling the paperwork and hauling your purchase across the border.

[au-jjau-t1r5jxz0q1]

So the only rip off was the shipping cost itself. It could have been done for half the price that i paid. Good to know. Still not a fan of GSP and will in the future ask sellers to not use it. I'd have saved money letting Canada post and Canada Customs deal with it directly. I did the math based on what I've found out here, GSP still charged me about C$9.95. Literally half the shipping charge was it getting sent in the wrong direction. 

I've never found a person locally who supports GSP, and now with all this information in front of me, I now have solid grounds to have an informed reason to dislike it. Thank you all for answering

[lady.stark]

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@m-banfill wrote:
Iyu say that canada "would" charge you a handling fee, that is incorrect the difference between canpost and GSP is that GSP wins every tine! Whereas with canada post you "MAY" get charges. Quite the difference. But it does work wel for some itema

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I also said "if" the package was assessed at the border. But being a US $325 item, I'm pretty sure it would have been. Mainly because the seller would never ship something of this value by First Class Mail International. He would have insisted on Priority Mail. And PM is more often than not assessed at the border.

That being said, an auto part must be quite heavy no? Unless it's a small part? Packages over 4 lbs *must* go Priority Mail anyway with USPS.

[lady.stark]

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@au-jjau-t1r5jxz0q1 wrote:

So the only rip off was the shipping cost itself. It could have been done for half the price that i paid.

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Depends on the weight of the item with all the packaging. Was it heavy?

What do you mean by "I've never found a person locally who supports GSP"? I'm not quite sure I understand 😉

[reallynicestamps]

It's interesting to learn how much USPS Internationl Tracked rates actually are.

https://postcalc.usps.com/?country=10440

But let's face it , no Canadians actually like the GSP.

[au-jjau-t1r5jxz0q1]

My item is about 16lbs. It's not big, but it is definitely heavy

Here in Canada we never had to pay so much for things from eBay before companies started using the GSP. And locally means people around me. I've never heard someone excited that an item was shipped with GSP, only people who hate it for the added shipping times, and added costs. It's quite disliked

[lady.stark]

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@reallynicestamps wrote:

But let's face it , no Canadians actually like the GSP.

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I might be the exception then, because I do like it when it's used properly. 😉

[lady.stark]

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@au-jjau-t1r5jxz0q1 wrote:
My item is about 16lbs. It's not big, but it is definitely heavy

Here in Canada we never had to pay so much for things from eBay before companies started using the GSP. And locally means people around me. I've never heard someone excited that an item was shipped with GSP, only people who hate it for the added shipping times, and added costs. It's quite disliked

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Well, in that case, depending on the size of the box, using USPS, it would have cost between US $45.95 and $69.40 for Priority Mail (First Class is not available because of the weight). More if using a faster service (or a courrier).

The first cost is for a very small box (13-5/8" x 11-7/8" x 3-3/8"   OR   11" x 8-1/2" x 5-1/2"). So the price you paid is quite reasonable IMHO (in my humble opinion).

Thanks for the explanation, I understand better now.