posted on January 5, 2004 12:01:34 PM new
Boy am I ticked off. I sold a figurine way back in July 2003 and made an exception and shipped to British Columbia. I always specifically put in my listings, "Shipping in USA Only" but when someone bid and then asked if I would ship to BC, I agreed because it looked like a fairly cut and dry process for shipping. I shipped it FedEx, paid for shipping, sent the package off and now I get an invoice from FedEx saying that Duty, Customs and/or Brokerage Fees are due in amount of $18.00 for a package that was shipped out six months ago and that an attempt was made to collect from the consignee, however, collection has been unsuccessful - so now it's my responsibility.
What gives!!! What are they charging for? You'd think that if additional fees were due, they wouldn't have allow the package to be delivered/picked up. And what the heck is a Duty, Customs or Brokerage fee anyway? Anyone have any insight?
That's the last time I ship out of the USA again. Too much of a PIA.
posted on January 5, 2004 12:18:20 PM new
I always use USPS when shipping out of the country. Never had a problem. If I'm not mistaken, Fed-X and UPS will go after you for what they can't collect from the person you are sending the item to. Never heard of the Duty fee thing, though. I've never had to deal with it with USPS. I'm sure someone here can help you. IFWM, I'd tell Fed-X to go pound salt.
Edited to add: Did your customer pick up the package? If so, they collect the customs fees at that time. The package should not be released until the customer pays those.
posted on January 5, 2004 12:26:30 PM new
Yep Cheryl...the buyer picked up the package, gave me good feedback and I thought that was the end of that transaction.
Unfortunately, I use FedEx a lot for any items weighing over 5 lbs. because their rates are much more reasonable than both USPS and UPS. Plus my account is linked to my AmEx card as I have an American Express OPEN Small Business Network account that gives you a 5% reduction in shipping every time I use it for shipping. It has been convenient to print my FedEx shipping labels and then simply throw my boxes on the counter and leave - no standing in line. Then I just get my AmEx bill and pay it off every month.
But I may have to reconsider using FedEx. It could get expensive. Besides, they just sent a notice saying that their rates are going up. Darn it!
posted on January 5, 2004 12:29:35 PM new
FedEx and UPS charge a brokerage fee for processing the item through customs. The last time I received anything through UPS their fee was $20.00. Always use mail when sending to Canada, it saves the customer a lot of money.
posted on January 5, 2004 01:33:30 PM new
Hello
If my memory is correct, Fed Ex and UPS charge a customs processing fee, USPS does not.
Our 51 state has a nice VAT (Value Added Tax) that they may demand of the buyer as well. Many buyers try to avoid that asking that it be sent as a gift.
Anything over a pound I will not export anywhere and always use USPS which may cost more but is a lot less customs etc, hassle.
You will end up paying the charge or they will cancel your account. That said, go to the Fed Ex office ask for a supervisor and get the straight of it. David
posted on January 5, 2004 01:38:10 PM new
UPS FEE's
Entry Preparation Charges
· All rates are in Canadian funds.
· Rates do not include applicable taxes.
· Brokerage fees are not regulated by Customs. The fees are a private matter between the client and the Broker.
Value for Duty UPS Standard Service and FSB / OMD
$0.00 - $20.00
Free
$20.01 - $40.00
$6.50
$40.01 - $100.00
$17.90
$100.01 - $200.00
$26.50
$200.01 - $350.00
$34.25
$350.01 - $500.00
$38.40
$500.01 - $750.00
$43.60
$750.01 - $1000.00
$48.80
$1000.01 - $1250.00
$54.00
$1250.01 - $1600.00
$57.30
$1600.01 - $5000.00
$60.40
Each Additional $1000.00
$4.65
Disbursement Fees
Customers are responsible for payment of duties & taxes. When funds are not provided in advance by the customer,
a fee of 2.5% (minimum of $5.75) of the amount advanced by UPS will be charged.
To eliminate disbursement fees call and ask about our pre-payment or EFT options.
Additional Services
First 5 classification lines are free, each additional line:
$3.75/line
C.O.D. fee for collecting brokerage charges:
$4.25
Release on Minimum Documentation (non-UPS shipments):
$10.00 each
Import permits:
$22.50 each
CFIA (Agri) Fee:
$16.00
Duty
Items entering Canada from another country may be subject to Customs duty. Not all items will be charged duty.
Reasons for this may be because the item is classified under the North American Free Trade Agreement (NAFTA),
or the shipment is considered duty free. Another instance where an item is not subject to duty is when the item is
valued under $20 Canadian, it is then considered courier remission, or if the shipment is a gift and it is under $60
Canadian. UPS obtains all classification numbers from Fredericton brokerage. The duty charges are based on the
Canadian dollar value. The value is taken from the commercial invoice that has been provided by the shippers and
then converted into Canadian funds using the exchange rate for that given day
GST (Goods and Services Tax)
GST is a 7% Tax assessed to all goods and services in Canada, with the exception of the limited amount of goods
that qualify as GST exempt.
Important Points:
GST is assessed on the duty paid value.
Example:
Value: $100.00 CAD
Duty: $12.00
Duty Paid Value: $112.00 (Duty + Value)
GST = $7.84 (Duty Paid Value x 7%)
PST (Provincial Sales Tax)
Canada Customs currently only levies PST (Provincial Sales Tax) on Non-commercial shipments importing into the
provinces of Manitoba (7%), British Columbia (7%), Ontario (8%), and Quebec (7.5%). The PST when applicable is
also levied on the Duty Paid Value.
* Note: There are certain Harmonized Classification Numbers in determining duty, that require that PST be
charged on the item regardless of the destination province.
PST is calculated on the Duty Paid Value.
Example:
Value: $100.00 CAD
Duty Amount: $12.00
Duty Paid Value: $112.00 (Value + Duty)
GST: $7.84 (Duty Paid Value x 7%)
Importing into Ontario (8%)
PST = $8.96 (Duty Paid Value x 8%)
HST (Harmonized Sales Tax)
HST is a combined sales tax (7% GST and 8% PST) levied on non-commercial shipments importing into Canada
with a destination address in the provinces of New Brunswick, Nova Scotia, and Newfoundland. When applicable
the HST is calculated at 15% of the total Duty Paid Value.
· HST is not charged on Import Freight Collect.
· HST is not charged on the Brokerage Fees.
HST is charged on the Duty Paid Value.
Example:
Value: $100.00 CAD
Duty: $12.00
Duty Paid Value: $112.00 (Value + Duty)
HST = $16.80 (Duty Paid Value x 15%)
posted on January 5, 2004 01:48:02 PM new
Sorry CTA!
I don't think that you have much recourse, but by all means, contact the customer. Despite what FEDEX says, they might have not contacted the customer.
I am well experienced in this matter, and AS A RULE, when shipping to Canada, only use USPS (the Post Office), and you will never have a problem.
It's that simple.
UPS & FEDEX are running a racket. There have been many news articles on that. Before UPS bought the brokerage division, they never charged a "brokerage" charge.
In any case, it is not a reason to ignore the Canadian market, as it certainly increases business & bids.
posted on January 5, 2004 02:27:50 PM new
I do a good bit of international shipping. On the back of the awb in small unreadable print it states if the importer (the buyer) does not pay the applicable assessed duties it falls back to the shipper (seller) to cover the costs. Unfortunately these courier companies don't do the customs duty collection prior to delivery like the USPS does. Average time from item delivery to the first customs duty invoice due notice is 6 weeks after delivery. It leaves a lot of people scratching their heads. Your seller hasn't paid up, that's why they are hounding you.
If you don't pay, FedEx will turn it over to a collection agency making your life miserable. Your best bet is to call someone in FedEx accounts and raise cain, cry, whine, whatever it takes. They may reduce their brokerage fee but the customs duty assessed on the item must still be paid.
Your pretty much stuck but there is a possibility you can get the bokerage fee waived or reduced. Contact your buyer to see if they have acutally been contacted by FedEx. Possibly they will go halves with you.
I'm sorry you got burned. Its a cruddy situation for you.
posted on January 5, 2004 02:37:53 PM new
I would always use USPS outside of the US - and this is the primary reason. I've done lots of international sales and NOBODY has ever asked that I ship via fedex or UPS
posted on January 5, 2004 07:37:53 PM new
I always ship with the USPS anyway. I mark
the customs form "Gift". As far as I'm
concerned, I am giving them the item, and
they are giving me a gift ($) in return. :^)
Only problem I've ever had was once the
Canadian customs people thought my decimal
point was a 1 and tried to charge the person
an outrageous amount for duty. They paid
and wanted me to cover it. I laughed and
told them to work it out. I wrote $15.00
and they thought it said $15100 and charged
them for $151.00 value ($40.00 if I remember
correctly). Too strange. $40.00 duty on a
$15.00 video tape! AND THEY PAID IT!!!
---
"Cannot say. Saying, I would know. Do not
know, so cannot say". -- Zathras (Babylon 5)
posted on January 5, 2004 08:28:13 PM new
When mailing a package to Canada by USPS always include the EOA notice from eBay, then there won't be any dispute as to what the price of the auction is. By the way we are not sending gifts we are sending merchandise. From what I understand Gifts do not pay custom fees and since you sold the item you now have lied on their custom form and that is a no no.
posted on January 6, 2004 07:37:03 AM new
zathras11..First time you get a pissed off customer or a transaction gone wrong. You might receive a GIFT from the authorities.
Failure to complete the form
properly can delay the mail or inconvenience the addressee. Moreover,a
false, misleading, or incomplete declaration can result in the seizure
or return of the item or can result in criminal or civil penalties. The
U.S. Postal Service assumes no responsibility for the accuracy of
information that the sender enters on the form.
