Shopping Discussion

Disputing custom charge of 61% of item value.

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  • Aug 1st, 2013 5:24 pm
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Member
Nov 18, 2006
448 posts
5 upvotes
Mississauga

Disputing custom charge of 61% of item value.

I purchased a second hand designer bag in USA from eBay and upon receiving my delivery notice card, I noticed the amount owed to Canada Post is $401.16

I purchased the bag for 650 USD so i have no idea how the customs fee amounted to such a ridiculous number. It's the first time this has happened to me so if anyone can give me tips on how to deal with this issue, that would be greatly appreciated.

Thanks!

EDIT: item was shipped via USPS priority mail and bag is Made in U.S.A
16 replies
Sr. Member
Feb 9, 2011
883 posts
131 upvotes
Montr
there is not much you can do if you already accepted the package, theres always a risk of getting custom on item an they probaly valued the bag as if it was new

i beleive your out of luck
Member
Nov 18, 2006
448 posts
5 upvotes
Mississauga
I haven't paid yet. I just received the delivery notice card to pick up the package tomorrow.
Deal Guru
Mar 20, 2003
10476 posts
656 upvotes
New-Brunswick
Maybe you can call Canada Post? I'm surprised, I was expecting to see UPS because that's the game they play, but Canada Post usually charges taxes so 13% along with no doubt a nominal handling fee.
Member
Nov 18, 2006
448 posts
5 upvotes
Mississauga
i gave them a call and unfortunately they cant do anything as canadian custom controls the fee.
Deal Fanatic
Mar 21, 2002
6826 posts
1482 upvotes
Manitoba
All customs fees are determined by Canada Customs, collected by the carriers (Canada Post, DHL, UPS, FedX etc) and forwarded to customs. Any dispute over charges you have to deal with Canada Customs or whatever they call themselves these days.

IF the handbag was actually made in US then it should fall under Free Trade and the duty would be zero and just taxes PST/GST/HST would apply. From the amount being charged however it looks like that was based on it being made outside of North America. Not very many handbags are made in the US.
Deal Fanatic
Sep 16, 2004
9779 posts
2050 upvotes
Toronto
You may not be willing or the seller may not be cooperative but if it were possible, I'd just return to sender.

One of the reasons many are buying COD is because of such scenarios where they are not sure what duties to expect or brokerage fees.
Deal Addict
Aug 27, 2011
3048 posts
322 upvotes
Toronto
woof wrote: All customs fees are determined by Canada Customs, collected by the carriers (Canada Post, DHL, UPS, FedX etc) and forwarded to customs. Any dispute over charges you have to deal with Canada Customs or whatever they call themselves these days.

IF the handbag was actually made in US then it should fall under Free Trade and the duty would be zero and just taxes PST/GST/HST would apply. From the amount being charged however it looks like that was based on it being made outside of North America. Not very many handbags are made in the US.
Yep, if you're getting charged so much there's a couple things that are probably going on:

(1) The value that was listed for the bag is less than what customs believes the bag is worth.

and

(2) The bag is not made in the US, which would be 17% + HST.
Deal Fanatic
User avatar
Dec 4, 2009
9333 posts
5629 upvotes
The bag was probably assessed at the MSRP, not as a 2nd hand bag.
"I'm a bit upset. I've been grab by the back without any alert and lubrification"
Lucky
Sr. Member
Feb 9, 2011
883 posts
131 upvotes
Montr
Toukolou wrote: The bag was probably assessed at the MSRP, not as a 2nd hand bag.

this,

you can contact canada custom to make them adjust the price or have the item sent back to the shipper
Deal Fanatic
Mar 21, 2002
6826 posts
1482 upvotes
Manitoba
tutchio wrote: this, you can contact canada custom to make them adjust the price or have the item sent back to the shipper
Assuming of course that the seller allows returns. It's usually stated in the auction details.
Member
Nov 18, 2006
448 posts
5 upvotes
Mississauga
Thank you Becks! Do you know how long it takes for customs to reassess the item and send it back? My girlfriend's birthday is in 2 weeks and I'm worried it would not arrive back in time.

I don't mind paying up front and waiting for the adjustment but at $400 I'm worried something might go wrong and reject my adjustment. I have screen capped the auction and it contains pictures with the tag showing its made in the U.S.A, I also have the PayPal transaction invoice. Is this enough evidence for customs?
Deal Addict
Jan 19, 2006
4624 posts
1064 upvotes
Vancouver, BC
RichsAccount wrote: Thank you Becks! Do you know how long it takes for customs to reassess the item and send it back? My girlfriend's birthday is in 2 weeks and I'm worried it would not arrive back in time.

I don't mind paying up front and waiting for the adjustment but at $400 I'm worried something might go wrong and reject my adjustment. I have screen capped the auction and it contains pictures with the tag showing its made in the U.S.A, I also have the PayPal transaction invoice. Is this enough evidence for customs?
Just thinking beyond the $$$... if it's a gift, maybe you should check it first?
You said you only got the delivery card, so you don't have the bag yet. If you go the reassessment route, you can get some or all the money back, but you'll be late with the gift. If it takes a while, you can also lose out on any chances of retrun and refund (assuming seller allows it). So if there is something wrong with the bag, you'll be stuck with it.

Back to the $$$. That is unusually high for a $650 item. Are you sure you read it right/delivery person wrote it down correctly? If you called and verified the amount, then I'm guessing a combination of things might have happened: seller declared MSRP on shipping form, or he/she declares a ridiculously low value, CBSA doesn't believe the declared value (whether it's declared properly or not) and opens the package up (you'll have to see if the box has their tape over it), and finds no transaction record (seller doesn't include the invoice or shipping label with value of the sale), so they look up the MSRP and charges the appropriate tax and duty .
Deal Fanatic
Oct 26, 2008
7022 posts
2907 upvotes
Victoria, BC
Some U.S. sellers put a very high value, like $1,500, on the USPS Customs sticker because they erroneously think if it is lost in transit they will get that high value reimbursed.

And they might have neglected to fill in the country of origin. Put those two together, and you'd be assessed about $400 in duty plus tax.

If you have the money on hand, best to accept the package, ensure it's as represented, and then apply for the CBSA refund based on your ebay receipt.

It will take at least 4 weeks, but they will honour your ebay proof and refund you about $300.
Member
Aug 12, 2006
381 posts
153 upvotes
If the seller included the original tags with the bag (and a lot of sellers of high-end designer bags keep the tags as proof of authenticity) and customs opened up the package - bingo.

On a designer bag forum I frequent this scenario comes up occasionally in the ebay forum. Customs sees a $2000 price tag and charges based on that and not the $500 the buyer paid.

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