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

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).



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

They were losing money at $5, ya know that. $9.95 is still a bargain compared to what the bandit couriers charge.

You've forgotten more than you will ever know. My MIL
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Canada Post import processing fee rises to $9.95 from $8.50

How can someone loose money by charging $5 where costs is 2 minutes of labour for employee paid at $17 - $20 ?



Let's see how much CanadaPost pays their dealers: Shoppers Drugmart makes Small Packet International sale for $10 (which seems to be more labor intensive than determining  and collecting taxes on a parcel) and Shoppers gets what? A dollar, two at most ?



Still Shoppers is infinitely more profitable than CanadaPost



About the couriers. Only Ground/Standard services have brokerage fees, other services are processed for free and the UPS Standard brokerage  fee is $7 under value $40: http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html



UPS started enforcing the bond fee, 2.7% of the value, minimum $6, but they waive it if you prepay, have credit card or void cheque on file.



DHL has a flat brokerage fee of $10, used to be $7. On the other hand, DHL is able to take shipment in Asia Friday afternoon and ring your door Monday morning.



With CanadaPost there seems to be no way to get this fee waived, so effectively, they are more expensive brokers than couriers.

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

more like they are losing money delivering all the international items and trying to make it up on the import fee.  Better there then on postage rates

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

Many lower priced items are not assessed when imported and are delivered free of any charges when arriving by Canada Post. So not a big concern for some buyers.


 


If all were items were accessed and collection was strictly enforced, then it would make shopping from sellers outside the country not as attractive for buying for some items.

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

"About the couriers. Only Ground/Standard services have brokerage fees"



This may be true



Keep in mind that Ground/Standard are effectively the only categories that concern eBay users, looking for cost savings. Not many takers for "Worldwide Express" overnight, etc shipping on eBay..



And I would never be surprised by the couriers' ability to creatively manufacture extra charges out of nothing (see the hilarious $5 "invoice integrity fee" that they charge on the ups link - also look into it in depth, as there is a confusing "typo" (heh heh 🙂 ) on the first linked page and alternative explanations if you click on further)



Don't be fooled!

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

lucash1980
Community Member

Remember, you have the right to "self-declare" your packages to avoid the handling/processing fees charged by couriers (not sure if that includes Canada Post, but probably).


It involves refusing delivery and notifying the courier of your intent to self-declare/clear customs yourself.  The courier provides you with the package info/numbers and you take that to your local CBSA to clear the package, then take the approved forms from CBSA to your courier's depot and they release the package to you.


Look it up yourself, inform yourself, and deem whether the cost outweighs the hassle.  For some big-ticket items, it may be worth it to SELF DECLARE.


 


Also remember, most items valued at less than $20 are tax/duty exempt.


And most items marked as gifts valued at less than $60 are tax/duty exempt.


Plan accordingly.


 


You are welcome.

Message 7 of 60
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Canada Post import processing fee rises to $9.95 from $8.50

Maybe you should buy from local businesses and stop whining about how much Canada Post charges for brokerage fees.


 

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

 


I don't think I have been assessed customs/duty/brokerage fees more than half a dozen times in 10 years or more.  And they had many over $20 worth to contemplate when they got to the border.  I don't see that it's a major deal.

Beware of kittens with red bows, bullies in bandannas, and whining broken records.

€ Lucifleur

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

Maybe ‘local’ businesses could possibly up their business process. If local businesses have to compete with the Internet then maybe they have to become more part of the Internet and be able to take orders and fill orders in a quick and timely matter…if that’s doable depending on the business. It’s unfortunately the way the world is going. Increasingly there is a segment of the population that do not want to go out and physically shop, which means driving or taking a bus and then finding parking etc etc. Also as we all realize there is the actual cost of the item. I suppose even with brokerage fees there are items that can still save money by buying on line.





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

"If local businesses have to compete with the Internet then maybe they have to become more part of the Internet and be able to take orders and fill orders in a quick and timely matter…"


 


Let's assume for a moment that it is possible for that local business to offer the same product at the same price as the American online seller.


 


Why should the American seller have a 13% (*) price advantage by not having to charge tax - and Canada Customs inspectors routinely let parcels go without taxing them - while the Canadian business must remit the tax.


 


Is this fair to Canadian businesses and their employees?


 


(*) percentage may vary depending on product and province of buyer.

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

Is this fair to Canadian businesses and their employees?


 


No, obviously not. First of all one would have to talk to Harper about that. Secondly as you can appreciate, that would mean that every parcel would have to be opened and checked by customs and every person would be hit up for taxes. This would result in several things:


a) Most likely the need for more employees.


b) More paperwork and probably a slow down in the parcel getting to the buyer.


c) It would definetly put a crimp on international sales and trading at which point whoever is the PM would have to answer to the other countries involved, especially our largest trading partner the USA.





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

"Most likely the need for more employees"


 


That is not a bod thing.  It would put some people to work! And their wages and benefits would be more than covered by the taxes being raised.


 


"probably a slow down in the parcel getting to the buyer"


 


Yes, there may be another day or two added to the delivery time.  Is this a bad thing if it encourage buyers to buy at home?


 


"put a crimp on international sales"


 


Not really.  In the big scheme of things, mail order coming into Canada through Canada Post for individual consumers represents a very small fraction of overall international trade.  The Chinese would be the last one to complain since most the the goods shipped directly to consumers from China are not really genuine but copies of the "real things".


 


Looking at the USA, already many (maybe most) large suppliers exporting to Canadian consumers are duly registered with GST/HST and properly charge the tax to buyers at time of purchase..

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

Advantage of local is quality control (you see what you are getting), local customer support (you just come back) and speed. Local businesses are often more pricey.


 


People buy all kinds of knick-knacks over internet but the real economy stays always local. Just think how much you spent last week/month for personal internet purchases and how much for local (including groceries, cars, gas, supplies).


 


If you put a booth in the mall, you can triple your internet prices. I know I can get that widget from China or USA for half the cost and I will still buy it from you in the mall.

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

That is not a bod thing. It would put some people to work! And their wages and benefits would be more than covered by the taxes being raised.


 


So that would mean we would make money in one hand and then hand it out in the other?


 


Not really. In the big scheme of things, mail order coming into Canada through Canada Post for individual consumers represents a very small fraction of overall international trade.


 


I think that depends on the item. That is often the problem with ‘stats’ they generalize and are not very specific.


 


Is this a bad thing if it encourage buyers to buy at home?


 


I don’t shop on-line other than the occasional rare item I buy off here…..however I have looked at some items to be found on-line and compare them to what I can get in a local store and the selection on-line is much Larger. That is a major advantage for people buying off the computer as opposed to buying locally.


I was looking for a sander a couple of weeks ago. Went to my local store and they did not have what I wanted.....actually they didn't have much at all. How long would it take to get one in?…..about 2 weeks. Out of curiosity I did an on-line search and found I could have one within 4-5 days and it would be 86 dollars less than buying locally….as well as delivered right to my door. But……..being the good Canadian that I try to be……..I did several long distance calls…..found one an hour away…..drove there and back, just to buy ‘local’. Not a lot of people will do that. But that was a semi big ticket item. When it come to items like DVDs, CDs, clothing, kitchen items and countless other products…..more people are finding that buying on-line is the way they want to go in this new world of retail.  





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

Since Canada Post is looking at delivering mail 3 times a week. How hard would it to train the letter carriers to process the taxes on parcels coming into the country from outside the country.


Imo if they're too stupid to do both jobs. They don't deserve union wages.


 

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

lucash1980
Community Member

being the good Canadian that I try to be……..I did several long distance calls…..found one an hour away…..drove there and back, just to buy ‘local’. Not a lot of people will do that. But that was a semi big ticket item.


 


You have to factor in your time to hunt for a local store, the time to call them and the two or three hour round trip, plus gas.  Unless you need the item THAT day, or the local store is offering a super deal (which they probably weren't), you end up saving nothing and it's a waste of your time.



I'm willing to pay 15-25% more for the convenience of getting an item immediately from a local store (not an hour away) with great customer service...HOWEVER, more often than not, I plan my purchases, factor in duty/tax + processing fee + shipping, and order online if it's cheaper.

If "grandpa local shop" can't get his butt online to advertise his wares, I'm not going to go looking for him.  It's a free market and if that's his business model, good luck to him.

Companies like Live Out There (a brick and mortar store+online in Calgary) have gotten the message and offer free shipping and returns.  MEC is also getting on board with a low $50 minimum purchase for free shipping.  I don't think twice about ordering from them. I will either order both sizes and return the size that doesn't fit (with free returns) or I will try on the product in my local brick and mortar store and order online.  I know people call me evil for using the local store just to try on stuff, but I am clear about my intentions and offer the salesperson a chance to match (or come close) to the online sale price.  If they don't want to compete, that's their problem, good luck to them, but I think it's fair to show them the advertised sale and offer them the chance to match it or make an offer.

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

lucash1980
Community Member

Sorry to take the discussion off topic...back to:

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

Once your item has been identified by customs, you are paying the tax regardless. No arguments.  But is the increase to $9.95 fair?  Is it worth your time and make you angry enough to go to the CBSA and self-declare the package yourself?  The answer for most people is no.  Now, the UPS or FedEx courier charges where they charge a percentage of the value? That adds up and may be worth your time to self-declare.

Is the increase fair?  What is the $9.95 for?  Is it strictly for sending the info to CBSA, is it for collecting the taxes for CBSA? Does any of it go into delivering the package? Because that would be double dipping--the sender has already paid for delivery.
I called Canada Post but the attendant who "helped" me was clueless and didn't even know Canada Post charged a handling fee.  I had to open a service ticket to get further info on the process.  Likewise, I called CBSA and the attendant couldn't tell me what the fee covered or whether CBSA was taking a cut. She could only confirm that Canada Post collects duty/tax on behalf of CBSA.
http://www.cbsa-asfc.gc.ca/import/postal-postale/menu-eng.html
Canada Post "presents" the item to CBSA, who check and verify the contents for tax/duty purposes. And by "presents" the Border Security Officer is in the same depot and the documents are electronic, so the amount of effort and manpower is minimal.

I agree with ilurk that Canada Post is changing the way they do business. Your letter carriers are now doing double/triple duty delivering parcels and more promo/ad material than ever and the delivery days are being cut back.  Eventually, you may have to pick up your mail/parcels from the local post office--and I'm totally fine with that if it saves me a few bucks.  Heck, I already have to do that when I miss a delivery (which is often)! So they might as well just mail me the notice when it arrives.
Does anyone know what exactly the $9.95 covers?

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

I know people call me evil for using the local store just to try on stuff, but I am clear about my intentions and offer the salesperson a chance to match (or come close) to the online sale price.  If they don't want to compete, that's their problem, good luck to them, but I think it's fair to show them the advertised sale and offer them the chance to match it or make an offer.


 


I have a customer who is just like you. I try and match and come close. I made a point of getting to know him and find out where he works.


I refuse to deal with his company and I've told all my friends about him and where he works.


 

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

You have to factor in your time to hunt for a local store, the time to call them and the two or three hour round trip, plus gas. Unless you need the item THAT day, or the local store is offering a super deal (which they probably weren't), you end up saving nothing and it's a waste of your time.


 


I’m well aware of that. Problem is……I live in the country and even the closest town doesn’t have much of a selection that can be found in a larger city. The situation arises that small town stores can’t carry a large stock and end up with dead stock on the shelves and dead stock is dead money. I know a store in London with dead stock in a dying business and all the guy does is complain and complain. He would do better to get better stock and clean up his store and even do some dusting because customers do their own complaining about what it looks like.


 


If they don't want to compete, that's their problem, good luck to them


 


On-line companies are different that local brick and mortar stores for many reasons. You can’t compare the two. It is unfair to try and especially feel that the local store is doing it just because they don’t want to ‘compete’.


 


As for someone attacking someone who tries to get a deal at a store and discredits them to others in order to hurt their business…..that’s despicable…..and dangerous.


In many places in Europe few transactions are done without trying to ‘make a deal’. Sometimes it works, sometimes it doesn’t. That’s called …….life. People accept that and do not try to damage the reputation of others. It seems to me that some people would never be able to exist in any other culture for long.





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