US de minimis - possibly lowered to 100 for Express shipments? Clarity and updates, please!

[cottagewoman]

As per the following information posted on the eBay blog:

Finally, the terms of the USMCA suggest that the US will lower its de minimis threshold to $100 (from the current level of $800) for Express shipments. eBay is investigating this aspect of the agreement to confirm the countries’ intention.

I'm currently using cross-border couriers to move packages directly into the US delivery system (USPS, FedEx, UPS).  Will these type of couriers be considered 'Express' shippers, even though there is a one day delay for shipments to reach the US? 

Is this only if a shipment originates in Canada, using an 'Express' service?  Is this actually outlined in the USMCA as a true policy change? 

Clarity and help here, this could absolutely kill my business!

[pjcdn2005]

I can't answer your question but according to the announcement from ebay, the change in minimis for shipment from the US will not be changed if the package is sent by postal services...only if sent by courier.  I'm confused by that as well as I did read at one point that it would only affect express services and then someone (I'm not sure if it is specified in the agreement) said that it affected couriers only. So do couriers=express in the agreement?

It would be best to ask an ebay rep about this on the weekly discussion board, it should be open later today and close sometime tomorrow morning.

ebay announcement

 https://community.ebay.ca/t5/Announcements/Changes-to-duties-and-taxes-on-goods-imported-from-the-U...

weekly discussion board

https://community.ebay.ca/t5/Weekly-Chat-Session/bd-p/23000000073

[cottagewoman]

Thanks for your feedback!

I'm actually reading through the text in the new USMCA, and yes, a clause in the agreement states that the U.S. can lower it's de minimis threshold to an amount equal to or lower than the de minimis set by Canada. This is covered in the Express Shipment section of the agreement.

So I'm wondering if this is for any delivery service where goods cross the border without the person actually bringing it themselves, in person? There is no definition in the part of the agreement I'm reading as to what an 'Express' shipment is pertaining to de minimis. I'll try and log into the discussion board later on today.

[reallynicestamps]

@happy_pigeon

Could we keep all these questions about the new NAFTA proposal (which hasn't been accepted by Congress or Parliament yet, in any case) to one thread?

This particular question is already discussed in another.

@kh-leslie

[cottagewoman]

@happy_pigeon - can you provide a link to the other discussion? I've read through the most popular thread and all discussion is regarding the changes put in place for Canada, not regarding any possibility of a change to the U.S. de minimis.

Thanks!

[lotzofuniquegoodies]

Very curious to see a US buyers shock if suddenly they start seeing Custom Fees or Taxes when they purchase from a Canadian Seller after all these years more than likely never have seen how it affects us for our average purchase. Ship it and forget about it mentality!!

-CM

[cottagewoman]

It's mostly regarding my courier service - I courier to the US and the courier drops off my shipments directly with USPS, FedEx, UPS, so I basically ship 'domestically' in the U.S. 

If this happens (the de minimis falls to 100 USD), then that will effectively kill the couriers since the paperwork nightmare will become way to vast for them to handle, as well as the border wait times to clear formal entry, etc.

Hoping they'll be exempt, but from what I'm seeing that probably won't be the case.  This doesn't look good for Canadian sellers with a large US customer base if it comes to pass, which I imagine is most of us.  The advantage of the courier service and shipping at US rates is HUGE if you are located in an area where it is available.  93% of my sales are to the US, because I can compete with US sellers on shipping costs.  Ugh.

[momcqueen]

And what does your courier tell you? If their business rests on providing this cross-border service to Canadians, it’s in their best interest to be well-informed on the subject. I’d suggest they be a first contact if I were in your shoes.

[cottagewoman]

momcqueen - I did call them, it was definitely news to them, and my primary provider is actually nation-wide in Canada at this point. Anyways, we'll see, perhaps in the discussion board some information or details can come to light.

[pjcdn2005]

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@reallynicestamps wrote:

This particular question is already discussed in another.

---

It is? The other discussions I’m aware of has questions about the proposed minimis for Canadian Buyers and the op is asking about the proposal and how it is going to affect US Buyers/Canadian Sellers.   I suppose they are related but I think it would be confusing to combine them into one thread.

[momcqueen]

No, the other threads definitely touch the export implications for Canadian sellers. As much as I recall of the ones in which I participated.

[momcqueen]

“....I did call them, it was definitely news to them, and my primary provider is actually nation-wide in Canada at this point. Anyways, we'll see, perhaps in the discussion board some information or details can come to light.”

In that case, I’d call back and keep asking for supervisors until I got far enough up the food chain that I found someone aware of the implications of these highly-publicized trade talks. The person working on the frontlines may not have gotten the memo yet. Management, however, cannot be unaware of the implications. Try talking to the business or regional manager in charge of your account.

[ypdc_dennis]

This  is all smoke at this point.

The United States may lower their exemption it does not say they WILL lower their exemption to $100.

You're asking shipping companies to speculate about possible outcomes they have no control over.

I'll be really surprised if anything happens before the start of 2019.

-..-

[happy_pigeon]

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@cottagewoman wrote:
@happy_pigeon - can you provide a link to the other discussion? I've read through the most popular thread and all discussion is regarding the changes put in place for Canada, not regarding any possibility of a change to the U.S. de minimis.

Thanks!

---

A number of them sprung up when this hit the news, but here are a couple of the most active/most recent:

De Minimis threshold raised

Looks like the $20 import fee may be raised to $100.

[cottagewoman]

Thanks for the links - read through them, only one small mention of the U.S. lowering their de minimis.

For all the bluster here, I can see this being a retaliatory measure since the current administration has no love for Canada, and the limit changes by Canada are a pittance with tons of red tape wrapped around them.  As well it's another opportunity to roll back previous free-market policies and to gain more revenue.

I'll still find a way to leverage the market, I'll eat the duties because the market space is just too great to ignore, if this does come to pass.  Believe me, facilitating commerce across the border will not be an end product if the de minimis is lowered- the line ups will be incredible, it'll most certainly anger everyone as the process slows down massively with inspections, paperwork management, etc.

It's just another nail in the e-commerce coffin that is closing up tightly here in Canada.  Between Canada Post rates and the protectionist policies for brick and mortar commerce, it's not an easy space to do business in here.

[femmefan1946]

@cottagewoman

my courier service - I courier to the US and the courier drops off my shipments directly with USPS, FedEx, UPS, so I basically ship 'domestically' in the U.S. 

Most of us are familiar with forwarding services.

Could you let us know what service you are using and what city they are in?

We are familiar with chitchatexpress and redstallion.

[ypdc_dennis]

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@femmefan1946 wrote:

We are familiar with chitchatexpress and redstallion.

---

Chit Chats Express can be found at chitchats.com (Vancouver area, Toronto area, Montreal, Halifax, with Ottawa in the plans)

...

While redstallion sounds like a nice name, there are actually 2 companies:

RunninRed.com (Winnipeg)

StallionExpress.ca (Toronto)

...

For Alberta there is DYKpost.com

...

CrossBordersPickups.ca (Mississauga, Markham) will also bring packages into Canada for buyers, as well as packages to the USA for sellers.

Some of these companies also offer discounted shipping for Canadian addresses.

-..-

[femmefan1946]

I'll eat the duties because the market space is just too great to ignore,

There will still be no duty on items produced in the NAFTA countries, nor on used goods and most of your items are under the possible (but unlikely) $100 duty-free allowance.

If, as I believe, this has more to do with state sales taxes, you can't pay or remit them unless you are registered with the states demanding the taxes.

Remittance is the sticking point and is why sellers are told that foreign duty and taxes are the problem of buyers.

Couriers who prepay duty are set up to remit the monies they collect for various governments.

[cottagewoman]

ChitChats is now available here in the Montreal area where I am based.

I have another service which runs 3 days a week only, as a backup- they are building they're business and aren't advertising as much at this point.  They are only available in the Montreal area, a small shop.

If the unlikely happens, my backup will be willing to work with me so that we I can still forward to USPS, FedEx and UPS, since they have alot of experience with brokerage, etc.

[cottagewoman]

Most of what I sell is used goods, collectibles, etc.  As well, wondering if freight forwarders, such as ChitChats will be exempt - that is not exactly 'express shipment' , but again, the whole definition of 'express shipment' is so vague and much hinges on that definition.