Question about Customs

Michy1215 · Jul 4th, 2008, 09:38 AM

I sold a pair of Tory Burch flats on eBay to a canadian member. I am from the U.S. When I shipped the shoes, I sent them as a value of $225 (the value of the shoes in case they got lost and I had to replace them). I never knew that the customs fee depended on the value of the item.

Well I just received an e-mail from the buyer that says this:
"I am quite upset with this transaction. I asked you specifically to put the value of $51.01 which I paid on the customs label. Instead you placed the value at $225.00 and I was charged $37.00 for custom fees on that amount. I am not pleased at all about this. Please respond otherwise I do not intend to leave a possitive feed back."

I do not recall seeing any e-mail from her requesting that but I will have to check. I definitley don't want negative feedback. I have 180 - 100% positive and I don't want to ruin that. I mean, buying a pair of brand new $225 shoes for $51 plus even 37 for customs is still an amazing deal but even so I think I'm going to be forced to pay part of the custom fees.

What does everyone think? Should I be held responsible for paying the difference in the $225 value and the $51 value? Does anyone know what the customs fee would have been if I had written $51?

I also want to note that the auction was originally not available for international bidders because I am not familiar with shipping prices and everything else. The buyer contacted me and asked if she can bid and said she has excellent feedback and pays immediately and so on. I told her I would open it up but since I am unfamiliar with the shipping costs, I would charge her extra $$ and then refund the excess amount once I get to the post office and she was okay with that.

telicious · Jul 4th, 2008, 09:47 AM

Let me get this straight, did she buy the shoes on eBay for $51.01 or $225?
If she won the shoes for $51.01 and you put down $225, then you should be responsible for the extra she paid in customs because you only declare what the person paid for, not the actual retail price of the item.

However, if she did win the shoes for $225 and she told you to mark the item down to $51.01, then you would not be responsible for the custom charges as it's her responsibility (and any buyer should know this) for customs.

If you had written $51.01 on the customs form, and assuming this was NOT a gift, she would be charged taxes (% depending on where she lived) and duties (if the shoes were not made in the USA). If you had written a gift, she would not have been charged customs... TECHNICALLY. But you know these customs people are just random these days.

HTH

Michy1215 · Jul 4th, 2008, 09:55 AM

Quote:

Originally Posted by telicious

Let me get this straight, did she buy the shoes on eBay for $51.01 or $225?
If she won the shoes for $51.01 and you put down $225, then you should be responsible for the extra she paid in customs because you only declare what the person paid for, not the actual retail price of the item.

However, if she did win the shoes for $225 and she told you to mark the item down to $51.01, then you would not be responsible for the custom charges as it's her responsibility (and any buyer should know this) for customs.

If you had written $51.01 on the customs form, and assuming this was NOT a gift, she would be charged taxes (% depending on where she lived) and duties (if the shoes were not made in the USA). If you had written a gift, she would not have been charged customs... TECHNICALLY. But you know these customs people are just random these days.

HTH

Sorry, to be clear, she paid $51.01. I never knew that sellers should mark the value at what the person paid. What if the item got lost though? Wouldn't I be held responsible and have to replace them?

telicious · Jul 4th, 2008, 10:49 AM

If she paid $51.01 for the shoes, there is no way she should pay that much for customs.

If the item gets lost, you are only covered for what she paid. The post office would need to see an eBay receipt in order to cover your loss and since she paid $51.01, you would only be covered for that amount for this particular transaction.

On customs forms, buyers are ONLY charged what they pay and therefore you should ONLY put that amount on the forms. In this case, I would tell her to try to contact the customs offices and see if she can get a refund for her fees if she provides a receipt and you tell her that you made a mistake. If not, I think it's only fair you refund her the difference in custom fees.

Michy1215 · Jul 4th, 2008, 10:53 AM

Quote:

Originally Posted by telicious

If she paid $51.01 for the shoes, there is no way she should pay that much for customs.

If the item gets lost, you are only covered for what she paid. The post office would need to see an eBay receipt in order to cover your loss and since she paid $51.01, you would only be covered for that amount for this particular transaction.

On customs forms, buyers are ONLY charged what they pay and therefore you should ONLY put that amount on the forms. In this case, I would tell her to try to contact the customs offices and see if she can get a refund for her fees if she provides a receipt and you tell her that you made a mistake. If not, I think it's only fair you refund her the difference in custom fees.

I emailed her back and apologized and said I would refund her the difference but I couldn't find any website that shows how to calculate fees. Does anybody know where I can find that? I will also suggest to her contacting the customs office

stylefly · Jul 4th, 2008, 11:42 AM

She would have to pay 5% GST and whatever provincial sales tax applies to the province she lives in. If the shoes were made in North America, no duty will apply- otherwise, anywhere between 4-28%. If it had been marked at $51 and as a gift I can almost guarantee she wouldn't have had to pay anything.
I do apologize but I think you should refund her the money. The value is what she paid for it, not what you think it would be to replace the shoes. If she gets a written statements from you indicating that you were confused about how to mark it and that she only paid $51, and she sends that with her Paypal receipt showing that this is true in an envelope attached to the box back to Customs (she has to check the box that says to return to Customs to appeal charges) then they will rerate it and send it back to her with the correct amount. Be careful though as a lot of times they don't bother and just return the package to the sender as if it was refused.
It might just be easier to refund the difference at this point...?

Jill · Jul 4th, 2008, 11:48 AM

well technically the buyer is responsible for ANY customs fees...so i doubt she would win if she filed a dispute.I dont blame u for listing the retail u paid on them but it should always b disussed when shipping out of country.If it WASNT discussed,then i beleive u arent liable.

stylefly · Jul 4th, 2008, 11:55 AM

Quote:

Originally Posted by Jill

well technically the buyer is responsible for ANY customs fees...so i doubt she would win if she filed a dispute.I dont blame u for listing the retail u paid on them but it should always b disussed when shipping out of country.If it WASNT discussed,then i beleive u arent liable.

In this case, she (seller) is the retailer and the buyer is the customer so the price that taxes are based on is limited to only the transaction they completed, not any other ones. For example, let's say I sold a bag to someone and she paid $50 for it. Suddenly, a celebrity is photographed wearing it and it becomes a total collector's item- and the average sales price on **Bay, etc. jumps to $500. Seller can not then turn around and place the value as $500 on the Customs form as market value is completely unrelated to actual cost paid by the buyer!
She would lose if the buyer pushes this issue as she did not declare the package correctly.

To add another example, one I deal with every day: let's say I have a huge sale in my store which takes the price of a few items to lower than my original cost. When I ship the items out of Canada, I have to declare the value paid by the buyer, not what it originally cost me to purchase the goods.

telicious · Jul 4th, 2008, 02:58 PM

I agree with StyleFly.

Also, just make sure she can provide you with proof of customs payment. If you sent it through USPS, it should be a little grey form that was given to her when the package was delivered to her. I would ask for a copy of that before you refund her.

jjyounger · Jul 4th, 2008, 03:37 PM

The insured value should always be the amount of the winning bid of the auction. If a seller is willing to sell a pair of shoes for $51, that should be the amount of the insured value, no matter where they are being sent, and regardless of what the seller believes the actual value to be. You just want to be sure that if the item does not arrive, you can refund the auction price to the buyer.

pursendipity · Jul 5th, 2008, 01:31 AM

If your buyer still has the customs form, she can fill out the form on the back to have the fee adjusted (thru customs.)
I once bought a purse on eBay that I paid $50 (or so) and the seller did not mark any value on the customs form. So customs opened the box, the purse still had its original tag ($225 or so) and that is what customs used to calculate my fees. I filled out the form on the back of the customs slip, included a printout of the ebay auction and a note explaining what happened. And a few weeks later got a refund cheque from customs.
I didn't even have to send back the whole box and purse to customs, just the form, eBay printout and a short note.

pursendipity · Jul 5th, 2008, 01:34 AM

Quote:

Originally Posted by Michy1215

Sorry, to be clear, she paid $51.01. I never knew that sellers should mark the value at what the person paid. What if the item got lost though? Wouldn't I be held responsible and have to replace them?

And if the package had been lost, you would only be responsible for refunding her the $51.01 that she had paid you, not another pair of shoes.

Ask if she can try what I suggested in my above post. I live in Canada and it worked out great for me!

Michy1215 · Jul 5th, 2008, 04:35 PM

Quote:

Originally Posted by pursendipity

If your buyer still has the customs form, she can fill out the form on the back to have the fee adjusted (thru customs.)
I once bought a purse on eBay that I paid $50 (or so) and the seller did not mark any value on the customs form. So customs opened the box, the purse still had its original tag ($225 or so) and that is what customs used to calculate my fees. I filled out the form on the back of the customs slip, included a printout of the ebay auction and a note explaining what happened. And a few weeks later got a refund cheque from customs.
I didn't even have to send back the whole box and purse to customs, just the form, eBay printout and a short note.

She emailed me back and said she called customs and she needs the form that was on the box but she said she cant find it and asked if i can send her a copy. I dont remember ever getting a copy back when I mail it. Was I supposed to?

redney · Jul 5th, 2008, 05:24 PM

^^

you should have received a copy of the customs form you completed at the Post Office when you posted the package.

northerndancer · Jul 6th, 2008, 05:57 PM

It looks like your buyer was charged 13% plus an $8.00 Canada Post handling fee. This would be right for Ontario (PST and GST) and would be close to right for most other provinces except Alberta. If you had shown the correct value of $51.00 she would have been charged $14.63 - again 13% plus a handling fee. If you refund her $23.00 that sounds fair.

Jul 4th, 2008, 09:38 AM	#1
Michy1215 Member	Question about Customs I sold a pair of Tory Burch flats on eBay to a canadian member. I am from the U.S. When I shipped the shoes, I sent them as a value of $225 (the value of the shoes in case they got lost and I had to replace them). I never knew that the customs fee depended on the value of the item. Well I just received an e-mail from the buyer that says this: "I am quite upset with this transaction. I asked you specifically to put the value of $51.01 which I paid on the customs label. Instead you placed the value at $225.00 and I was charged $37.00 for custom fees on that amount. I am not pleased at all about this. Please respond otherwise I do not intend to leave a possitive feed back." I do not recall seeing any e-mail from her requesting that but I will have to check. I definitley don't want negative feedback. I have 180 - 100% positive and I don't want to ruin that. I mean, buying a pair of brand new $225 shoes for $51 plus even 37 for customs is still an amazing deal but even so I think I'm going to be forced to pay part of the custom fees. What does everyone think? Should I be held responsible for paying the difference in the $225 value and the $51 value? Does anyone know what the customs fee would have been if I had written $51? I also want to note that the auction was originally not available for international bidders because I am not familiar with shipping prices and everything else. The buyer contacted me and asked if she can bid and said she has excellent feedback and pays immediately and so on. I told her I would open it up but since I am unfamiliar with the shipping costs, I would charge her extra $$ and then refund the excess amount once I get to the post office and she was okay with that. __________________ signature too large Last edited by Michy1215; Jul 4th, 2008 at 09:45 AM.

Jul 4th, 2008, 11:42 AM	#6
stylefly Recessionista Location: Canada Eh	She would have to pay 5% GST and whatever provincial sales tax applies to the province she lives in. If the shoes were made in North America, no duty will apply- otherwise, anywhere between 4-28%. If it had been marked at $51 and as a gift I can almost guarantee she wouldn't have had to pay anything. I do apologize but I think you should refund her the money. The value is what she paid for it, not what you think it would be to replace the shoes. If she gets a written statements from you indicating that you were confused about how to mark it and that she only paid $51, and she sends that with her Paypal receipt showing that this is true in an envelope attached to the box back to Customs (she has to check the box that says to return to Customs to appeal charges) then they will rerate it and send it back to her with the correct amount. Be careful though as a lot of times they don't bother and just return the package to the sender as if it was refused. It might just be easier to refund the difference at this point...? __________________ Always 20% off all clothing and handbags with coupon code PURSEFORUM at www.stylefly.ca and free shipping at www.constylement.com

Jul 5th, 2008, 01:31 AM	#11
pursendipity Member Location: Canada, eh	If your buyer still has the customs form, she can fill out the form on the back to have the fee adjusted (thru customs.) I once bought a purse on eBay that I paid $50 (or so) and the seller did not mark any value on the customs form. So customs opened the box, the purse still had its original tag ($225 or so) and that is what customs used to calculate my fees. I filled out the form on the back of the customs slip, included a printout of the ebay auction and a note explaining what happened. And a few weeks later got a refund cheque from customs. I didn't even have to send back the whole box and purse to customs, just the form, eBay printout and a short note. __________________

Jul 4th, 2008, 09:47 AM	#2
telicious ♥	Let me get this straight, did she buy the shoes on eBay for $51.01 or $225? If she won the shoes for $51.01 and you put down $225, then you should be responsible for the extra she paid in customs because you only declare what the person paid for, not the actual retail price of the item. However, if she did win the shoes for $225 and she told you to mark the item down to $51.01, then you would not be responsible for the custom charges as it's her responsibility (and any buyer should know this) for customs. If you had written $51.01 on the customs form, and assuming this was NOT a gift, she would be charged taxes (% depending on where she lived) and duties (if the shoes were not made in the USA). If you had written a gift, she would not have been charged customs... TECHNICALLY. But you know these customs people are just random these days. HTH

Jul 4th, 2008, 10:49 AM	#4
telicious ♥	If she paid $51.01 for the shoes, there is no way she should pay that much for customs. If the item gets lost, you are only covered for what she paid. The post office would need to see an eBay receipt in order to cover your loss and since she paid $51.01, you would only be covered for that amount for this particular transaction. On customs forms, buyers are ONLY charged what they pay and therefore you should ONLY put that amount on the forms. In this case, I would tell her to try to contact the customs offices and see if she can get a refund for her fees if she provides a receipt and you tell her that you made a mistake. If not, I think it's only fair you refund her the difference in custom fees.

Jul 4th, 2008, 11:48 AM	#7
Jill	well technically the buyer is responsible for ANY customs fees...so i doubt she would win if she filed a dispute.I dont blame u for listing the retail u paid on them but it should always b disussed when shipping out of country.If it WASNT discussed,then i beleive u arent liable.

Jul 4th, 2008, 02:58 PM	#9
telicious ♥	I agree with StyleFly. Also, just make sure she can provide you with proof of customs payment. If you sent it through USPS, it should be a little grey form that was given to her when the package was delivered to her. I would ask for a copy of that before you refund her.

Jul 4th, 2008, 03:37 PM	#10
jjyounger Judy Location: Memphis, TN	The insured value should always be the amount of the winning bid of the auction. If a seller is willing to sell a pair of shoes for $51, that should be the amount of the insured value, no matter where they are being sent, and regardless of what the seller believes the actual value to be. You just want to be sure that if the item does not arrive, you can refund the auction price to the buyer.

Jul 5th, 2008, 05:24 PM	#14
redney Lovin' Life!	^^ you should have received a copy of the customs form you completed at the Post Office when you posted the package.

Jul 6th, 2008, 05:57 PM	#15
northerndancer Member Location: The Cool Cool North	It looks like your buyer was charged 13% plus an $8.00 Canada Post handling fee. This would be right for Ontario (PST and GST) and would be close to right for most other provinces except Alberta. If you had shown the correct value of $51.00 she would have been charged $14.63 - again 13% plus a handling fee. If you refund her $23.00 that sounds fair.