hidden fees/duties on private sales - how to reduce them

[redsnapper]

Just a heads-up but I have made a few international purchases and at least in Canada there are huge hidden import/duties charged by the shipping companies ( supposedly these are govt pass-through fees but the whole system is completely opaque so who knows ). I bought a wheel from US and 2 mos after receiving it a separate invoice from UPS arrived for 300$ in import fees. Same happened when I ordered a controller from EUCO - 100$+ ''import fee''. So the shipper will deliver the item, but at some later point hit you with an import invoice. I called UPS to complain that they cannot deliver items with undisclosed fees (these should be disclosed at time of delivery) but they just gave me the run around. I just ignored their invoice and eventually they gave up. But I also have no need of credit or a good credit rating  ( which is what collection agencies will threaten in their letters if you ignore). IMO the way to avoid this hassle is to make sure the seller indicates a low value of goods (something like used hoverboard $100). This will minimise the fees if you choose to pay them!

[VikB]

The seller is unlikely to want to lie to the Government as that'll end poorly for them if they are a business.

If you order anything to Canada from the US for example these are the fees you will pay:

1. GST/PST/HST as applicable where you live.

2. Brokerage Fees.

3. Duties.

You are always going to pay #1 & #2 on a larger item shipped by a courier company. You'll only pay duties if the product you ordered happens to be one that has a duty applied. In years of ordering stuff from the US and the UK I have paid duties a couple times.

If you order a $2000 EUC from the US and HST in your province is 13% you'll pay $260 for tax just like if you bought that EUC at a shop in your town. Then you'll pay the brokerage fee which is likely $25-$75 and varies by shipping company and by the shipping service used. 

These are not hidden charges or secret or anything. You should expect to pay them. The paperwork you get with the bill for the import charges will breakdown the costs by category.

Edited April 17, 2021 by VikB

[meepmeepmayer]

Not the first time I've heard of shipping companies making up fees and trying to blame the government. Scummy.

[RetroThruster]

I'm big into watches (dive), buying and selling, most come from overseas, I've received/sold lots of "wrist watch parts" or "wrist watch for repair" with approx $50 value:)  

[.....]

1 hour ago, RetroThruster said:

I'm big into watches (dive), buying and selling, most come from overseas, I've received/sold lots of "wrist watch parts" or "wrist watch for repair" with approx $50 value:)  

Im assuming a few of them were recieved as gifts, tho it just happened to coincide with you paying off an old debt at near the same time. Coincidence of course...

Edited April 17, 2021 by ShanesPlanet

[MR BRAD]

Hey somebody has to pay for all the “free” social welfare.... 

[meepmeepmayer]

These are not legally mandated fees, which by definition aren't hidden and you would know about them beforehand. These are the shipping companies (UPS etc.) making fees up and trying to make it sound like they're just collecting customs duties etc. That's why they generically call them "import fees" instead of saying exactly which government-mandated duties they supposedly are (e.g. VAT, ...).

They are simply lieing about the price when you pay for shipping, hide extra costs in the fine print, and hope you blame someone else ("the government") (like @MR BRAD above) when they send you an extra bill later.

[null]

When I import stuff to France which doesn't go under the radar, the shippers have specified the costs:

- VAT (20%)
- Tax handling fee (15€ fedex recently, could be worse I guess)
- VAT on the tax handling fee (love that one)

 

Edited April 18, 2021 by null

[damnbiker]

Shipping to Canada via UPS or FedEx  You have to pay GST and duties (if applicable). They will also charge you "brokerage fees" which are outrageously excpensive and based on the value of the product, not the service you receive. What they don't tell you is that you can act as your own broker and submit the documents yourself to avoid these fees. Also, if you order something from the US and it is delivered via USPS/Canada Post they do NOT charge you these brokerage fees. It is included i the price of shipping.

 

Here's some links documenting the process:

 

https://trueler.com/2010/11/24/self-clear-shipment-cbsa-avoid-ups-brokerage-fee/

 

https://www.theartofdoingstuff.com/how-to-avoid-broker-fees-just-in-time-for-online-xmas-shopping/ 

[Gasmantle]

On the subject of import taxes Fedex try to charge an 'advancement' fee of £12 for handling the taxation. I refused to pay it and requested an invoice for the taxation duty only, eventually after numerous emails and a letter from their debt collection agency I stood my ground and they eventually invoiced me minus the 'advancement' fee.

It's only a few quid but as a matter of principle I decided I wasn't going to pay it.

If you Google 'Fedex advancement fee' there a lots of people who have challenged the fee and had it waived - it seems like Fedex try it on but are aware its unenforceable so they eventually back down if you stay firm.

[WI_Hedgehog]

Many of the products from China are declared as low-value "repair parts" to avoid taxation. As a note, if your $2,500 wheel is shipped as $50 of "repair parts" and they dump the cargo container so the ship doesn't sink during a storm, you can file a claim for loss ($50).

Or say there's a container fire because a Gotway/Begoaty lights up and torches the container. You might recover $50 minus your expenses in doing so. 

[VikB]

1 hour ago, damnbiker said:

Also, if you order something from the US and it is delivered via USPS/Canada Post they do NOT charge you these brokerage fees. It is included i the price of shipping.

CP/USPS do charge a customs processing fee when you rec something to Canada from the US, but it's low at $9.95. I also find you have a better chance that a smaller parcel gets through to you via CP with no customs inspection/costs.

[VikB]

If you do manage to get the seller to grossly under value an EUC they are shipping to you keep in mind if the shipment is lost or damaged that lower value is what the shipping company is going to base any claim on.

[redsnapper]

On 4/17/2021 at 1:52 PM, VikB said:

The seller is unlikely to want to lie to the Government as that'll end poorly for them if they are a business.

If you order anything to Canada from the US for example these are the fees you will pay:

1. GST/PST/HST as applicable where you live.

2. Brokerage Fees.

3. Duties.

You are always going to pay #1 & #2 on a larger item shipped by a courier company. You'll only pay duties if the product you ordered happens to be one that has a duty applied. In years of ordering stuff from the US and the UK I have paid duties a couple times.

If you order a $2000 EUC from the US and HST in your province is 13% you'll pay $260 for tax just like if you bought that EUC at a shop in your town. Then you'll pay the brokerage fee which is likely $25-$75 and varies by shipping company and by the shipping service used. 

These are not hidden charges or secret or anything. You should expect to pay them. The paperwork you get with the bill for the import charges will breakdown the costs by category.

i disagree - i bought a damaged wheel for 300usd which was delivered np. 2mos later i get an invoice for 300+ with over 40% of that as broker fees. these fees were undisclosed at time of delivery... this is a game rigged by the carriers imo.