Who pockets the Global Shipping Program "import charges"??

[aramatic]

GSP may satisfy some sellers sending items abroad, but it's a pain in the *** for Canadian eBayers. For example, the other day I bought a calculator for US$15. The shipping was $10.85. I was happy with this and purchased the calculator, only to find I was charged an extra $6.92 for so-called "import charges". This is a scam. There is no duty on items of such little value. I think the limit is C$200. So who pockets these mysterious import charges, which sometimes are available at the time of sale and sometimes only appear afterwards? Not the seller. When I see these "import charges" (which are only calculated AFTER the auction has finished) I tend to be put off bidding. It's bad enough that the Global Shipping Program slows down delivery time by having items sent first to Kentucky and then from Kentucky to the buyer. Paying extra for this is adding insult to injury.

[dbmm-media]

customs 

[ohnojoey]

Pitney Bowes? 

[dalo4242]

Customs and the company that actually imports the item

[lintbrush*]

Canada charges import fees for items $20+ (item + shipping total)

https://www.cbsa-asfc.gc.ca/import/postal-postale/dtytx-drttx-eng.html

Those fees are paid to your gov't.  A very small amount goes to Pitney Bowes.

[fab_finds4u]

Sellers put their handling fee in the item cost or the shipping charge.  Pitney-Bowes puts their handling fee in the Import Fee.  And they don't break down or itemize the fee.   eBay explains, "when you see the Global Shipping Program logo, the listing will give an estimate of both shipping and import charges. This includes everything from processing and handling fees, to international shipping. You'll see the final charges when you confirm your delivery details at checkout, before you pay."

 Although an item may be exempt from a customs fee/VAT/GST/HST/ PST/RST, etc. and is duty-free, sometimes a handling fee is applied to process the order.  That fee is applied to the Import Fee.    Pitney-Bowes doesn't handle shipping and clearing customs and brokering shipping for free!   

So sometimes when an item isn't dutiable you'll still see an Import Fee.  It goes to Pitney-Bowes.  

[fab_finds4u]

More details on who gets the import fee money.   PayPal takes two payments from you if it's in the GSP Program. One payment is sent to the seller for the item and domestic s&h cost.  The other payment is sent to Pitney-Bowes for International shipping & import fee.   It is Pitney-Bowes that pockets anything over applicable importation fees to Canada.  I wouldn't exactly call it pocketing as that implies the money is a windfall for Pitney-Bowes.  Pitney-Bowes uses that money to run their business, pay rent, pay utilities, pay employees, etc.  

[aramatic]

Neither. And private buyers are not companies.

[aramatic]

I don't buy the argument that Pitney-Bowes deserves "import charges" to help run its business. It isn't Pitney-Bowes that delivers the item, it's the postal service. And there are no import charges on items under $200. It seems to be pure profit for a middleman that does nothing.

[aramatic]

Items of moderate value sent from the US to Canada outside the Global Shipping Program don't incur any duty or tax. It's just like sending a letter. I've only ever had to pay duty once, when I bought a shipment of tobacco worth $150 for my son.

[lintbrush*]

That is only because Canada Customs chooses not to pursue some of them, but that doesn't mean they aren't due and owing.

Pitney Bowes complies with the law.  They must or they won't be doing business there.  If the gov't chooses not to follow their own laws, that is their decision.

It would cost more money in man hours for the gov't to levy the import charges due than the revenue they'd collect.

[pjcdn2005]

Your information is incorrect in a couple of different ways.

If an item is over C$20 it can be subject to tax and duty. When an item is sent directly by mail, Canada customs rarely assesses items that low.  That means when someone from the US  uses USPS to send  me a parcel from the US that is under $100 or so, I usually don't get assessed any fees by Canada Customs. But if an item over $20 is sent using any type of commercial carrier, gst/hst is always charged  aswell as duty if applicable.  

Whether an item is duty free becasue of NAFTS has nothing to do with where it is sent from...it is based on where the item was manufactured. That means that if an item was made in China and shipped from the US, duty can be charged. Even if an item is made in the US, any item imported over C$20 is supposed to be charged gst/hst.

When an item is sent internationally by courier or commercial carrier, they usually hire a broker to assess duty and tax.  In most cases, the person accepting the parcel is responsible for those broker fees. Part of the import fees that PB charges is for brokerage fees and part if just for their part in handling the package in their Kentucky plant and then again in the Mississauga plant.  PB charges about $6, Canada Post charges $9.95 for the same service.

With that being said....I am not a big fan of the gsp, especially when sellers use it for lighter, inexpensive items but it's my choice whether or not to buy something from a seller using it.  But I do know that when taxes and duty is payable..that PB collects it and pays it to that country's government. 

[luckythewinner]

---

@aramatic wrote:

I don't buy the argument that Pitney-Bowes deserves "import charges" to help run its business. 

---

While you may not "buy the argument", you certainly contributed to the Pitney-Bowes coffers when you chose to patronize a seller who uses the GSP. 

[lacemaker3]

Import charges include brokerage fees as well as customs, duties  and taxes charged by the government.

I have bought many items through the GSP, and I have always been able to see exactly what the charges would be before I committed to buy the item. With auctions, the import charges are shown when you place your bid. With fixed price items, they are shown on the Shipping & handling tab, and you can also see them on the checkout page before you commit to the purchase.

https://www.ebay.com/help/buying/postage-delivery/changing-delivery-address-method/international-pur...

Import charges include

• Sales, goods and services
• Value added taxes
• Duties
• Tariffs
• Excise taxes
• Other amounts assessed or levied by any government authority in connection with the importation of goods into the applicable country of importation
• Third party brokerage fees (including advancement and disbursement charges and customs brokers handling and filing fees
• Penalties
• Classification charges associated with the assignment of a Harmonized System ("HS") classification code
• Charges for export compliance screening and verification and the assignment of an Export Control Classification Number (ECCN)
• Charges relating to the management of variances between the quoted import charges and actual costs.

---