eBay Global Shipping Program

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  • #193798
    Danny M2Z
    Participant
      @dannym2z

      Prompted by some of the comments on the Noga vs. Warco? thread here are a few of my own observations.

      eBay GSP is a nightmare. What gives a 3rd party US based company (Pitney Bowes) the right to levy import duties, GST etc. on goods shipped overseas (Australia), even used goods, when one never gets charged this if shipping is selected to be by USPS? What import duties – what taxes – and what happens to the collected funds?

      Many of my friends have won the bidding on model engines from eBay U.S. only to discover that not only did the item fail to arrive, it was also relisted ebay a few days later – Pitney Bowes made the 'decision' not to ship internationally. Also nobody bothered to inform the purchaser until they wondered where their (paid for) goods had got to.

      This has also happened to friends in France, Belgium and New Zealand.

      A search for 'Pitney Bowes Scams' is quite educational.

      * Danny M *

       

       

      Edited By Danny M2Z on 16/06/2015 22:52:27

      #23940
      Danny M2Z
      Participant
        @dannym2z
        #193808
        Ajohnw
        Participant
          @ajohnw51620

          I;ve only had to use it twice and no problems. I'm not keen on the idea either largely because of the UK protectionist import duty policies. Lots of items come into the UK with the value set to zero because of these. The whole area needs sorting out especially in respect to just how much should be charged for collecting taxes. Personally I don't mind the 20% too much but might try to evade it but having paid £13 to collect a few quid in taxes all done over the internet automatically I think the whole thing is insane. It encourages people to ask for and often get false customs value to be marked on the documents.

          Pitney Bowes must be sending the funds to the correct counties customs service otherwise it would be illegal. I have no idea what they charge for the service. Things re appear on ebay for a number of reasons – some one bidding things up and winning, it happens and also sellers feeling that they should have got more money for the item. Some probably decide they don't want to fill in the export forms or what ever.

          John

          #193816
          Enough!
          Participant
            @enough

            I'm surprised the sellers still go for it (they are not obliged to ship via the GSP). Here's Page 237 of an eBay thread that's been going now for nearly two years, almost universally opposed to it.

            I personally have only purchased via that program once (a couple of years ago when it started). Since then I've only purchased from sellers who use regular USPS.

            In Canada, regular USPS shipments, while technically subject to duty/tax, rarely attract such charges for values under about $100 (and rising). Using the GPS, the shipment will be charged duty, taxes, and brokerage/ handling fees regardless, making the whole deal mostly uneconomic.

            #193817
            Danny M2Z
            Participant
              @dannym2z

              Here in Australia, there is no GST (10% Goods& Services Tax, equivalent to VAT) charged on overseas online purchases. The muppets in Canberra and local retailers whinge about it, but the bean counters reckon that the cost to collect GST on sales of less than $500 would exceed the tax income gained.

              Customs is not usually a problem for items worth less than a few hundred $.

              That coupled with the ridiculous prices/lack of service here means that many people purchase direct…..

              This for example is $69 in a local hobby shop with a 2 week wait – or 3 days from **LINK** A friend told me the delay is for the hobby shop to await their order to arrive from hobbyking!

              My mini lathe spares arrived in 6 days from Hong Kong (local distributor could not even be bothered to reply to my email for a quote), no GST and 1/2 the price that I've seen elsewhere (LMS).

              I just heard on the news that today, Australia has signed a Free Trade deal with China.

              It is not difficult to imagine that if the Govt cannot track overseas eBay/online purchases, how the hell would they know what Pitney Bowes is deducting? The invoice is NOT itemised, just shipping and handling charges + 'fees' lumped together in one Paypal invoice. Great if the item is used for income purposes, as the accountant said that a proper tax invoice is required to claim a tax deduction.

              * Danny M *

              #193821
              Roger Provins 2
              Participant
                @rogerprovins2

                Naively I bought one item that was subjected to eBay's GSP. The extra cost and delay was totally unacceptable.

                I now buy only from sellers who'll their use ordinary airmail service. If they want to use the GSP they don't get my business.

                #193831
                Ajohnw
                Participant
                  @ajohnw51620

                  I've not noticed any delay with GSP. The cheaper USPS service delivery time is variable, the faster one less so.

                  The UK's rather low tax free limit is purely down to certain types of retailers winging – in fact when £15 was announced the words we think this will do it were used. Seems £18 didn't. The Channel Island's privilege 's have also been messed with but one item I bought just sailed through for some reason.

                  Ebay seems to be helping gov's collect their taxes according to one US seller. Sellers can now print labels for export directly and it also prints the value on them. I sometimes explain the problem purely down to the collection charge. Many sellers will help or used to. Some people worry about insurance values – read what's covered and where.

                  John

                  #193835
                  Michael Gilligan
                  Participant
                    @michaelgilligan61133

                    For reference: here is HMRC's guide

                    The biggest catch is that when they introduced the £15 threshold on the value of the item, they also made the cost of shipping subject to VAT.

                    Thus: £14.99 plus £100 shipping will clear OK, but

                    £15.01 plus £100 shipping will be charged VAT on £115.01

                    [ I am not certain what happens if the value is exactly £15.00 ]

                    MichaelG.

                    #193855
                    Ajohnw
                    Participant
                      @ajohnw51620

                      I just bought something under GSP that I really need so not much choice. I can only find them in the US. According to the price I would expect to have to pay tax – none was charged. If I do get charged I will be after a hefty ebay voucher. Total cost for a £17 item about £28 so this seller charges fairly fair shipping costs. Some don't.

                      Last time I looked I gave up trying to understand HMRC's guides, they referred to bits and pieces all over the place. Also 2 confusing items. One around £150, tax less than expected and charges lower than usual, another around £250 the same. Both were when the limit was £18. One item also had import duty the other didn't. Telescope in one case and a microscope in the other. The telescope was interesting – very special price in the US and some other countries – no signs of any price changes here and less bits and pieces to go with it. I asked a US small normal retailer I just found on the web to order it for me and ship it on. He also checked it over and was prepared to send it back if not as expected. There are all sorts of options if some one really needs something.

                      John

                      #193856
                      Hopper
                      Participant
                        @hopper

                        For any packages coming into Australia, if the total value of the goods AND shipping is less than A$1,000, you do not have to pay any duty, or tax, or GST of any type. If they try to get you to pay for this before they ship, don't pay it.

                        Edited By Hopper on 17/06/2015 12:43:23

                        #193925
                        Neil Wyatt
                        Moderator
                          @neilwyatt

                          It's a good one charging VAT on imports from outside the EU. I can't quite see where in the EU the value is being added…

                          Neil

                          #193926
                          Michael Gilligan
                          Participant
                            @michaelgilligan61133
                            Posted by Neil Wyatt on 17/06/2015 21:11:38:

                            I can't quite see where in the EU the value is being added…

                            .

                            At the point of entry into this country.

                            … They're Cunning Devils at HMRC

                            MichaelG.

                            #193938
                            Ajohnw
                            Participant
                              @ajohnw51620

                              People who sell things add value Neil or so they say but I have never figured out the reason why. Maybe add value means push up the price and make a profit doing little worth while in many cases.

                              John

                              #193943
                              John Stevenson 1
                              Participant
                                @johnstevenson1

                                OK work this one out.

                                 

                                I'm VAT registered and I charge a customer VAT, he pays it and then I pay it to the HMRC so I'm an unpaid collector.

                                 

                                Now the PO, Fedex, DHL etc bring something into the country for which they get paid and VAT is due which they claim off me which is fine but then they want £10 / £12 / £15 ' handling fee '

                                 

                                Why can't I charge a handling fee to collect the VAT for HMRC ??

                                The PO, Fedex etc are business who have to pay VAT, just the same as me and can't charge HMRC but they want to charge me, as a customer a handling charge ??

                                Edited By John Stevenson on 18/06/2015 00:11:49

                                #193965
                                Michael Gilligan
                                Participant
                                  @michaelgilligan61133
                                  Posted by John Stevenson on 18/06/2015 00:10:26:

                                  OK work this one out.

                                  I'm VAT registered and I charge a customer VAT, he pays it and then I pay it to the HMRC so I'm an unpaid collector.

                                  Why can't I charge a handling fee to collect the VAT for HMRC ??

                                  .

                                  Because HMRC wrote the rules

                                  MichaelG.

                                  .

                                  Edit: … on the subject of HMRC writing the rules: Anyone thinking of starting-up might find this news item of interest.

                                  Edited By Michael Gilligan on 18/06/2015 09:19:21

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