Canada Post import processing fee rises to $9.95 from $8.50

[ypdc_dennis]

Canada Post has collected duties and taxes on behalf of the Canada Border Services Agency (CBSA) for many years, and is paid for this service through a handling fee charged to customers. As of August 18, 2012, this handling fee will rise from $8.50 to $9.95 for all mail that has been assessed with import duties and/or taxes by CBSA.

Source:
www.canadapost.ca/cpo/mc/aboutus/news/announcements/customsfee.jsf

This makes it just over a year (middle of  2011) since the processing fee increased to $8.50 from the long time fee of $5.00 -- although (iirc) that price increase also included the ability to pay with credit card at your door (rather than just cash).

[i*m-still-here]

Something that I've wondered about, and sort of related to the import processing fees.......

A lot of ebay changes have led to my no longer longer buying much on ebay and almost all have to do with shipping hassles, but the final straw was the USPS increase in prices.

I've gone from spending over a hundred a week ............. and some weeks well over $100........  with USPS  to an average of about $5/wk for shipping.

I think they raised prices because their PO is in trouble............. but for me the cost of shipping has become so high that  I'm no longer to buy from the States.

To me it also seems like along with that the CPO is no longer letting packages cross over without taxes etc. like they used to.

Maybe that's because they're getting a little more $ for processing.

I'm not alone, and ebay isn't the only place where foreigners buy from the States........... but that's gotta hurt the POs (both of them) more than help............. 

Doesn't this all stand a very high chance of backfiring for both POs?

At least in my little corner of the universe it looks that way.

[pierrelebel]

" the CPO is no longer letting packages cross over without taxes etc. like they used to."

That is not the way the system works.

ALL incoming parcels arriving Canada through the postal system first go the the bonded area where Canada Customs (not Canada Post) decides to levy duty and tax if applicable.

Canada Customs eventually releases parcels to Canada Post for either delivery if no tax was applied or collection and delivery if tax was assigned,

Canada Post does not make tax decision.  That is done by staff at Canada Customs. 

[i*m-still-here]

Ok........... allow me to reword my post then so it's better suited............. :).

Something that I've wondered about, and sort of related to the import processing fees.......

A lot of ebay changes have led to my no longer longer buying much on ebay and almost all have to do with shipping hassles, but the final straw was the USPS increase in prices.

I've gone from spending over a hundred a week ............. and some weeks well over $100........  with USPS  to an average of about $5/wk for shipping.

I think they raised prices because their PO is in trouble............. but for me the cost of shipping has become so high that  I'm no longer to buy from the States.

I'm not alone, and ebay isn't the only place where foreigners buy from the States........... but that's gotta hurt the POs (both of them) more than help............. 

Doesn't this all stand a very high chance of backfiring for both POs?

At least in my little corner of the universe it looks that way.

[dutchman48]

It's to pay for the cars they are going to get to deliver mail.

Let's see, something comes into Canada for $25.00 and opened by Canada Post. Do they then charge you 9.95 to collect 1.25 GST. Sounds like a real ripm off by CP again.

[Anonymous]

What is worse about this processing fee is that if Canada Post make mistakes in asking for the wrong amount of $$ when I show them the receipt of $$ and they waive me from paying the duty fees but will not waive the processing fees!!  Never mind if it is on their part for making errors, they just won't waive the processing fees and that is how they are making $$$!!

Will they increase every year??  God forbids it!!  It is bad enough that we had to pay $5.00, then this increase then this new increase already!!  Sheesh!!

[pjcdn2005]

What is worse about this processing fee is that if Canada Post make mistakes in asking for the wrong amount of $$ when I show them the receipt of $$ and they waive me from paying the duty fees but will not waive the processing fees!!  Never mind if it is on their part for making errors, they just won't waive the processing fees and that is how they are making $$$!!

As Pierre explained, it is Customs Canada, not Canada Post that decides on the amount of tax to charge.If there is a mistake on the tax/duty owed, I find it hard to believe that Canada Post would just waive that amount as they likely have to be accountable to Canada Customs for that amount. For refund of a tax overpayment you usually have to apply to Canada Customs for a refund.

Also, the customs office gets the value of the package from information submitted by the seller so if the amount is is wrong. there is a good chance that whoever filled out the original customs form gave the wrong info. Either way..the item was still processed by Canada Customs so I guess that would be why you wouldn't receive that fee back.

[pjcdn2005]

I find it hard to believe that Canada Post....

I'm sorry, that was a poor choice of words as I didn't mean to insinuate that you were not telling the truth. I should have said that they are probably not supposed to do that and I would be surprised if it is done on a regular basis..

[lucash1980]

What is worse about this processing fee is that if Canada Post make mistakes in asking for the wrong amount of $$ when I show them the receipt of $$ and they waive me from paying the duty fees but will not waive the processing fees!

Do a little research.  Your fee will be refunded unless it was an EMS Priority Mail item:

http://www.cbsa-asfc.gc.ca/import/postal-postale/dispute-contestation-eng.html

Requesting an adjustment

To request an adjustment of the duty and taxes being charged on a parcel sent to you, proceed as follows:

    Complete Form B2G, CBSA Informal Adjustment Request (PDF, 36 KB). (Form B2G is printed on the back of the top copy of Form E14.)
    Send the completed form and any supporting documents — such as invoices that show the correct value of the products or other material that describes them — to the nearest Casual Refund Centre listed on the form.
    The CBSA will review your claim and process any applicable refund.
    The $9.95 charged by Canada Post will be refunded if it is determined that the goods were duty free and tax exempt at the time of importation.

Note: The $9.95 charged by Canada Post will not be refunded on EMS - Priority mail items, and the CBSA will not refund any broker's fees or shipping and handling costs.

[pjcdn2005]

Thanks for clearing that up although it sounds like they will only refund that fee if the item was sent first class.  I find that most of the first class mail items that I receive are delivered without any taxes being charged, but that priority and express packages usually are taxed unless the amount is below $20.

[lucash1980]

The reason why my prices are what they are is because I require a minimum margin to pay the cost of keeping a brick and mortar store open.

I understand that you have overhead, but you also have storefront and visibility.  Make your property work for you.  Find out why you're not getting any foot traffic and walk-in sales, make your shop a welcoming place, make the people so welcome that they feel obligated to buy something.  So many shopkeepers just sit behind the till and wait.  Get out there and peddle those wares!

I could run an online store out of my basement and pay virtualy no overhead.

I could maximise my profit and set it up so that it would be a one man operation and wouldn't need any employees.

There is no reason why you can't be doing both.  If it's in the store, it should be online.  At the VERY least, your website should have an easily searchable list of all the products you sell--regardless of whether they are in stock.  If I can see you carry it and you're local, I will at least call you to confirm and possibly order it in.  If I don't see it on your website, I'm not going to call around to you and 10-15 other stores asking for it.

For example, I'm looking for arborist's dyneema throw line in the GTA, I Google for arborist supply stores and find Universal Field Supplies http://www.ufsupplies.ca/    their product list is in the form of shiny PDF documents that take forever to load with my high speed internet.  It's better than some stores (who have just an advertising website), but it's still half-assed. I have to flip through their virtual catalogs to find what I want (if they have it).  Meanwhile, Google is showing me 3 other Canadian vendors who are selling it online.

I'm not trying to rip the way you do business, but I'd like to help give you insight as to what I do and expect as a modern-day customer.

[ilurkthereforiam]

There is no reason why you can't be doing both.  If it's in the store, it should be online.

I can't be in two places at the same time and to give you the price that you desire I cannot do it out a brick and mortar and make the margin to run a profitable business.

We have a website and use it instead of yellow pages advertising.

[prior-of-verity*shake-hands-with-your-devil]

can't be in two places at the same time and to give you the price that you desire I cannot do it out a brick and mortar and make the margin to run a profitable business.

 ‘two places’? The computer is a few feet from the door and that’s where most of the day is spent. There is no reason a person can’t do both in store, retail and internet sales.

The website, …..why no email address on it so people can email or text you if they are looking for a product?

There are other things on the site I would change……..just to be helpful.

[i*m-still-here]

This thread is sort of jumping all over, but there are many recent changes which will affect the way Canadians buy on ebay, and one of them is related to "Import Processing."

It used to be that US sellers shipped items with FCI shipping and the labels were filled out by hand.

It was rare for those items to get nailed for taxes and processing fees.

That was as true for items valued at $21 as it was for items values at $1,021.

Now, FCI shipping can be bought online and it's no longer much less costly than upgraded methods are.

So........ two things.........  FCI items are more clearly declared more often now........

and upgraded methods which always were clear are used more often now as well.

That means that we're now having to pay taxes and processing fees (and in some cases duty) on many more items.

That's one thing..........

That alone should put a damper on international purchase in the near future.

BUT it also makes returns a lot of work and much more complicated.

I've filed for getting the taxes back in the past and the paperwork was very time consuming.

I'm not sure it was worth the time it took................... even at minimum wage.

I just received an item I'd like to return but I paid an extra $25 in taxes and processing fees.

I'll probably end up keeping it because of that, but I'm not at all happy with the situation.

Just on more reason not to buy on ebay USA any longer.

[prior-of-verity*shake-hands-with-your-devil]

This thread is sort of jumping all over

LOL….true, as many do.

The bottom line to me is whatever you buy you have to buy right and then calculating in the costs for shipping and taxes……is it still worth it? Sometimes it is, sometimes it’s not. That’s life.

[bb_cool_stuff]

LOL....true, as many do.

Naaaah, not us.

There is a huge increase in shipping costs with the US sellers in my category. The good buys just don't seem to be there since the beginning of the month. Hopefully that will change in time.

I'm sure there are still great items we can turn, we just have to dig a little deeper. Time consuming but could still be worth it. As usual we have to source out other options. Businesses have to do that everyday.

Like Deacon mentioned whatever you buy you have to buy right.

Inuk, Elmwood mentioned previously calculate the FVFs on the price you hopefully want to sell the item for. That will determine if the item is cost friendly.

[123flavors]

It is called GREED. Period.

[pierrelebel]

"GREED."

???

That goes back several years ago... and Canada Post is still losing money.

[valve37]

$9.95, why that's cheap! Try UPS or Fedex. 

[islandbugs3]

It's not the tax but the 10 dollar processing fee that's killing me. I ordered 4 phone covers for 28.00 each but they were shipped individually so they cost me 40.00 extra in processing fees. That's just fricken outrageus. 

[islandbugs3]

How are they losing money. Canada post has to process the package anyway and they are being paid for that with the postage. They are just slapping an extra fee on there and collecting it at pickup.