Seller charged with import fees / taxes for product return - is this correct?

[jsonwg]

I recently sold an item to someone in the US and they claimed it is defective and want a refund. Aside from being pretty sure they just changed their mind and are abusing eBay's buyer-favoring system, I went ahead with accepting the return (the buyer was very rude and had very poor communication so despite trying to find out more about the issue it was clear talking would not help).

I provided a FedEx return shipping label and in the section specifying the reason for shipping I chose 'Return'.

I was under the impression that this is supposed to avoid paying taxes / fees on it again, but  instead FexEx is giving me a hefty charge (GST + PST + ROD Fee + GST/HST on the ROD fee itself).

I already paid for the GST/PST of the item back when I first purchased it, and had to pay fees to ship to the buyer, now I'm paying yet again to get it shipped back...

Is this correct or is something wrong here?

[brettjet38 · Accepted solution]

Yes, that is how it works you have to pay all the costs of getting it back, but you may be able to get a refund from Customs for taxes and duties as it was a return by filling in the back of the form you will get with the item if I am correct.

That is why sometimes it is not worth taking the item back, and "they claimed it is defective and want a refund."

So, No Returns do not mean No Refunds, unfortunately.

[brettjet38]

https://www.ebay.ca/help/selling/managing-returns-refunds/return-shipping-sellers?id=4703&st=3&pos=2...

4 min article

Return shipping for sellers

Shipping labels for international returns

Language barriers may make it difficult to purchase an international return label. If you're unsure, you can try contacting the buyer to ask if they'll purchase an international label on your behalf.

If they agree, you'll need to send funds to cover the cost. Ensure the buyer uses a tracked service, and includes signature confirmation for items with a total cost of $750 or more.

International returns and customs

If you're sending funds to cover the shipping cost, the buyer will be required to fill out the customs forms.

To ensure there are no delays with your return, provide all the necessary customs information to the buyer. Double check that your information is correct, as falsifying a customs form is against the law and eBay policy.

****Since you're the recipient of the parcel, you'll be responsible for paying any customs, brokerage, service charges or duty fees

[aviatorsparadise]

Problem number 1: Fedex.

UPS, Fedex, and others exist for profit and they look for every opportunity to get it. They will always ding you for imports. They'll charge you a processing fee and add import GST fees to justify the processing.

Postal services are government owned and therefore are not after profits and the majority of the time not charge import fees or taxes.

[ilikehockeyjerseys]

As others have pointed out, the issue is that Fedex and UPS do you the "favor" of clearing your package for you. This ensures that you not only pay an import charge but that you also pay a hefty "brokerage" charge to Fedex or UPS.

Your only option is to decide whether it is worth contacting the CSBA and seeing if you can get a refund. Unfortunately, Fedex is not going to refund you the brokerage fee, which might be the largest part of the charge. 

You have a few options to avoid this.

Use Chit Chats to send US packages where the risk and cost of return is high. Assuming you have a Chit Chats branch in your area, you can have your items returned with USPS rates and then pay Chit Chats a small fee to transport the item from the US to one of their branches. 

Use USPS for returns. You are less likely to face an import charge with Canada Post. Most importantly, their brokerage charge is only $10. 

Use a service like Shippsy. Shippsy is a sister-company of Stallion. You can have US packages sent to them. You can then either pick them up at a Canadian branch, or they will ship them back to you at Canada Post rates. Keep in mind that using a forwarding company may alter or void your seller protection. You also might not get the package back in time to verify the contents before you have to refund. 

[byto253]

Returns are not taxable.  You will pay tax on the "services" provided by Fedex.  As previously advised, best to do returns through the post office and you will not get charged for brokerage or taxes.   

[jsonwg]

Thanks all, learned my lesson about UPS and FedEx

In this case the item is almost $200 so the GST/PST alone is quite substantial.

I'm basically out $55+ for this return shipping when adding it + all the fees/taxes, absolutely unbelievable.

Not to mention that I'm probably out for the $200 item as well now if the buyer (very likely) broke it themself. I would have been better off donating it to some local charity from the beginning.

[byto253]

I have a US address for pickups that is about an hour away and holds items for a year for $5, so I can use that for returns so I am only dealing with shipping within the US.  Obviously that set up is not available for everyone depending on the location and services provided.   

It also gives me the option to have an expensive but broken item shipped within the US for a pretty low price just so that the person returning it does not get to keep the item.  I have even thought that an option would be to have it sent to a Goodwill location. 🙂