Forum

Customs fees, who's responsible?
 

I have a buyer who bought a $600 item from me on eBay. The package was shipped and it was stuck in Customs in Canada for about 2 weeks. Finally the buyer was able to reach Customs about it and they told him he needed to pay $452 in taxes before they could release it. Obviously he got back to me angry that he needed to pay taxes and asks me why I declared the full value on the Customs form.

He specifically asked for "full insurance" so obviously I need to declare the value. It doesn't make sense to put a value of $10 on the package and then when it gets lost, I get $10 back instead of $600, right?

Obviously the customer needs to pay the taxes for it, but Canada Customs won't send it back to me or give it to him unless they're paid. Now he opened a PayPal dispute for 'non-receipt'. What do I do? I can obviously tell PayPal that he hasn't paid his taxes, but they will likely give him back his money and I won't see the package again because Customs doesn't return it until he paid the taxes for it, which he won't.

Is this a lost case?

HI:
I claim FULL VALUE when I use UPS- BUt, depending on the item/customer, I either pay the customs/duties taxes or we split it, or they pay it all-- it depends on the item.
_-I tell them up front.
-- When you choose split fee on "UPS"--they then "BILL" that customer, with a paper bill--which of course they normally never pay....

In your immediate case- I guess I would try to negotiate with the customer--I would also call ups customs, or whoever your carrier is--
sometimes the physical makeup of the item in question changes the value considerably--
i.e.
a jacket can be made from cotton--so a 100% cotton jacket may carry a tarriff value of $400- whereas, a poly blend, with a metal zipper combo may only be a tariff of $120.. (probably bad example--but im trying not to give away what my items are...)

Hope you get the point.. you can search for the Tariff codes right in the ups site..EXAMPLE;
4501.900.10--maybe for a leather belt, but 4501.900.11 maybe a vinyl made, with brass buckle--
They usually have 15 different pick from choices..all for basically the same item..
>> HOW DO I KNOW THIS?

>>WELL-- once i was being surcharged around the same--$400-$500 for a $150 item sent.
Once i called,complained, and did alittle investigation--I merely changed the "chemical makeup" of the item slightly--but still true--
then customs charges dropped from $450 down to like $62..

--SO MAYBE your item is NOT 100% leather--??

>> ALSO--in UPS--you can have a "Carriage Value" of $1,000.00,,,AND a Customs Value of $10-- HOW?
>> because you are sending a Commercial sample--to you--who invented it--yes-you may have $10 in RAW parts--BUT--street value is near $1000--hope this doesn't confuse you??
Best,EBHL :)

I have experienced this exact same situation....

Shipped an antique nut grinder to Canada. The customer wanted full insurance as well as the item is NOT replaceable. I filled papers out therefore with full-value. It too was held in customs for tax needed--customer did check with shipping co. as the amt. needed for taxes and was fully aware for the ins. would need the full declared value on commercial invoice.

3 1/2 weeks passed with item held in Customs--buyer must have gotten "remorse" and filed the item not received dispute with pp.

I forwarded all emails to pp--shipping info/tracking and email from Customs with info. of what was needed--accordingly, pp DID find in my favor and denied a refund to buyer under these circumstances. This was 8 mo. ago however--pp constantly changing--but definately worth a shot.

I would recommend passing along any info. you may have regarding this transcation to pp--you may be surprised...thye may just find in your favor. They seem very used to International buyers trying to get away with purchases and when held in Customs...filing disputes--seller loses product and money when buyers do this. They told me International buyers should educate themselves accordingly to customs tax/rules, before purchasing or they absorb the burden...

Hope it works out for you :)

I think it's the sellers responsibility unless otherwise noted. As a buyer once they pay you, it is your job to get the item to them. If you didnt want to pay the customs fee you should have outlined it. No one want an extra $450 bill tacked on to what they were and already willing to pay.

wrong, you should have knowledge already of buying overseas.
if you bought from an american website, they dont pay u customs. they may say "may be liable for import duties" it's 50/50

Amazes me the stupidity of an international buyer. Do they think because they
are buying from ebay they are going to be exempt from import duties?;)

International Trading

I state on my listings about import duty yet still get asked. My rule is if it is from overseas,there may be import duty.

The buyer may have been totally unaware of import duties. I was unaware of it as well until I started wholesaling. The original listing lays out the basic guideline of how the transaction will go, a contract in a sense. And all that was required of the buyer was payment. From there the seller's responsibility is to get the item to the buyer in the condition described. If you didnt state the buyer will be liable for duties, then you should cover it. So either you pay and lose some money, or dont and lose all of it.

Then that buyer is stupid. Every country in the world has tariffs, taxes and duties payable. In the example being given, the buyer asked for full value insurance of the goods to be declared. Should Canadian Customs waiver duty because the buyer did not know the rules.Should imjustme be out of pocket? I would hope that. something can be worked out.

richcollegeguy......when you go to the store and but an item, can you not pay the sales tax, because you were not aware of it?

My oh my, our education system is definitely failing....The children of the world must be pretty ignorant to think that there no such thing a duties/taxes.

Try telling a police officer that you should not have to pay a ticket because you did not know it was against the law to not wear your seat belt....

AGREED..with ALL points.. BUT-- $400 duty on a $600 item-- alittle Ridiculous--agreed?

We had a girl from Bulgaria work at our restaurant several years ago- she left her personal laptop behind.
I decided to send to her- I used ups. She gets a call- they wanted (the Bulgarian Customs)- $750 to claim her laptop.. Now this is a College kid, she Prob only spent $999 on it--how are they entitled to $750?
>> I ended up western union the $750 to her--so she would not be out, as i felt the customs people were just out to keep her pc..but i felt- what a RIP OFF!
(Come on--75-80-% duties and tax??)

Definitely agree on the $400. There is something wrong with that. Customs officers are not always perfect and make mistakes....This amount needs to be disputed by both the buyer ans seller....

Somewhere, it is obvious a mistake got made......


Also, there are customs brokers that help in situations like this..so, imjustme, do a Google search and find a customs broker. They should be able to help clear this up.....

Sorry, I was not more helpful earlier.....

Should be about 22% right ??


About $132 ?

My cousin works for customs, in NYC ...he told me to put "Reapair under factory warranty" for high ticket items. When customs check it, theres no way for them to be able to tell if its broke or not. It's always worked for me, not saying it will work 100% of the time...but I sell high price items also, never had a issue

A & A Contract Customs Brokers - Customs brokerage, freight forwarding, warehousing, customs broker services


TRY THIS LINK TO A CUSTOM'S BROKERAGE

if you ever receive packages from china you will learn the ways of their ninja tactics. They can get a truck through customs without fees or delay. I have been buying from china for about seven years now and about 30 packages a year and have only had one stopped and had to pay customs fees.

Let me share Modee's secret. His items go overseas in funeral caskets.;)

Who wants to bet that the customs officer started his career with ebay?:rolleyes:

u joking lol?? Im quite gullable :p

Are you in the UK? because here in the states customs fees are almost non-existant.

Not knowing about sales tax or wearing a seat belt is quite stupid. The comparison can not even be made. We grow up with this in everyday life. But to those that never really purchase things online, let alone internationally will most likely not be aware of this. We all know you go to th post office and oay stamps to send something, who'd of ever thought you'd have to pay to receive? Maybe this person was used to people declaring them as gifts?


It's 100% the sellers fault for not stating this. I know us sellers have to stick together, but the seller is wrong in this case! You wrote the listing, not the buyer! The listing is like a purchase order/contract. Surprise charges just cant be sprung! Sorry!

And, to add to this... a buyer told ME that there is a hogher chrge on UPS deliverys than on USPS deliveries. thus I ship USPS. Have no idea if this is true or not. what say you all???

usps global express is the best hands down shipping from the usa internationally.

Recap
 

Let's look at the original statements made by imjustme
"The buyer asked for FULL value of the item to be put on the form" and not a
lower figure. The seller complies with the buyer's request and sends the item.

Canadian Customs hold the parcel and assess a high amount of duty. Everyone is annoyed. The buyer got what he asked for, an item shipped with full value coverage. Now it would be between the parties including customs to resolve the matter. Seller & buyer might need to co-operate.
I support the seller. It does not matter that the buyer did not know what to do. The seller does not need to hold the buyer's hand. As an example,
who would buy an auto without KNOWING THE DAMN* FACTS about it?

And yes, FEDEX & UPS charge much higher rates than USPS. They might have
quicker delivery times but there is a cost.


*slaps own wrist but damn stays.*

I agree 300%

A couple of things about international shipping. UPS and fedex will always asses and collect customs. Myself previously when sending stuff to Canada via UPS they delivered the items but tacked the customs fees onto my UPS account. If you use them and don't want to pay customs you must mark the item to something that is non dutiable. _ different with the PO, but you don't get tracking unless you spring for express.

The Canadian point of view...
 

Okay, just a little light on this subject for it seems like we are going all over the place.

First: The tax subject here imposed depends on the province. Let's look at Ontario for I am most familiar with that one. Basic brokerage fee for crossing the boarder, $5. GST and PST 12%. If you ship through USPS then that is all they will charge on the package's declared value.

Second: When shipping UPS you will also get a brokerage fee of 20-30% of the value of the item. That is what makes the world go around.

Third: Fedex charges up too 30% of the value for brokerage fees.

If the item is shipped USPS and the buyer is home when they try to deliver it they will be requested to pay CASH for the fees and taxes prior to getting possession on the item. If they are not home then they will have a delivery notice telling them to pick up the item at their post office with the total amount due for the taxes.

AT NO TIME IS THE PACKAGE RETAINED AT THE BOARDER FOR TAX PAYMENT

UPS does the same thing but with higher costs. Fedex delivers the parcel and then records delivery. Once done they then bill the receiver of the parcel for the taxes. If the taxes remain unpaid for 30 days they then bill the shipper.

Buddy has probably seen the delivery notice with the amount due and not picked it up. It usually will be returned to you as undeliverable in 10 days.

Doug

richcollegeguy....if you grew up in the US and did not know about tariffs, then please take a moment and learn about them. Also, lighten up a bit and do not take things so seriously. I intended no harm or insults....

My points were not stupid. It is quite amazing to me that everyday people can live in the United States and not be aware of tariffs.

Seriously, do not get so offended and actually learn from people with more years experience. Tariffs have been a part of life in the US since the Boston Tea party. Simply listen to John McCain or Barak Obama for one day. I hope NAFTA would ring a bell to all people interested in imports?

Every country in the world imposes tariffs... Your statement that tariffs are almost non-existent in the US is also not true. Now, I will grant that you might get stuff through customs without being charged, but that is simply luck of the draw. Do a "google" search on the harmonizied tax code and you will see 1500 pages of tariffs....pretty much on every good imported to the US.

The US congress will lower or raise import taxes based on many economic factors, such as wanting favorable status with the Chinese, or protecting the corn farmers in the US.....

No need to get defensive.....We all make mistakes every day.....I made a big one today....I woke up...

I wasn't trying to be nasty. Trust me. i wasn't. It's just that the general population isn't aware of these things. It could have been around for a while but not widely known. Such as most of my school friends didn't know that right before classes you can receive EXTRA free financial aid alloted to other students who dropped out at the last minute.

I never said tariffs were non-existant. Nor did I state or imply in any fashion your points were stupid. Im just saying the buyer was not aware of duties and most likely neither were you. Else you would have warned the buyer. 9/10 no one wants to pay close or more in shipping or duties then the item itself.

Thats all man no hard feelings.

imjustme is the seller who spoke of the problem. TMIles2564 gave good information . But what is a big worry from a seller's point of view is the possible ignorance of a buyer. A seller alway has to 'watch' for buyer stupidity.

as long as it keeps you busy and you're happy helping people, what more else could you ask for but to hang out with all of us ebay haters?

Modee.....When I travel to Thailand, its the same thing. A lot of work to gather stamps for VAT refunds...

To really talk about saving money, drive 10 mph slower, turn up your thermostat 5 degrees, etc......

I think we all have different ways to save.....

DO NOT open the door on what the "average US citizen knows... unless you want a total nervous breakdown. Most Us citizens think they just celebrated the end of the Revolutionary War.... not the day we declared our independence. The Treaty of Paris declaring the war over was not signed until 9/13/1783. When I realized {after substituting in public school} that I seemed to have "forgotten" this, well, set me to wondering what else I had "forgotten". ALOT!!! Oh, I might add that after one week of substituting in Public Schools, I quit recycling.... trust me the end of the world is NOT coming to an end because of TRASH!!!!!!!

The buyer seems to think I'm responsible for Customs fees :D Here is what he responded a while ago to the PayPal dispute:

Must of attended public school in the USA.

Yes, imjustme, they're right. You have to pay.

?HUH? The buyer does not know how to buy an item from overseas so the seller must wear the customs duties? I do not agree with that.
Just say, this buyer has done this before and is trying a scam, should the seller still be responsible for duties?

Are you my buyer? :D

How is the buyer right? Its common knowledge that if you buy from overseas then you pay the tax. But i make sure put that in big bold letters in my listings. What i find odd is Canadian customs not releasing the item?? I have never heard of this before as someone mentioned earlier once it is delivered and the person isnt home or doesnt accept it, its sent back to the office where it sits for about 10 days and then automatically sent back.

This happened to be a about a year ago, i got a camera for about $150 and tax was $100. It was ridiculous and the seller agreed. I didnt accept it and it was sent back to the seller i lost a few dollars because of restocking fee as it wasnt his fault for the tax. That was that. Buyers these days callously open disputes without reason.

I contacted Customs and didn't hear from them yet. Maybe they think I'm too far away to bother with :(

HI:
1.) Paypal def. KNOWS BETTER
2.) Maybe this particular buyer is ignorant to the customs/taxes/duties..

this is a very hard lesson.. I'm GLAD ive never had one .. Ive shipped prob. 2,000 pkgs overseas in my time. NEVER one like this..

Sorry- you were the ultimate guinea pig..
BUT- Im GLAD we're all here sharing/networking.. I'l be sure to add a disclaimer to my overseas emails after this..

WHAT I dont understand--is how do the large volume sellers from Hong Kong/China ship to US--so cheaply? I cant ever match their rates??

Look at HK seller Tomyana.. nice guy--have bought many things from him, just last week a band for my vintage watch..