De Minimis to end globally August 29 2025 as per executive order

[cottagewoman]

As per fact sheet issued by the White House:

https://internationaltradetoday.com/source/974484

[intimewithmusic]

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@john_koenig99   wrote"It's a big world.."@lotzofuniquegoodies wrote:

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"The issue with shipping internationally is the shipping cost. "

" As for tracked parcel that service is only available to 40 countries. "

I agree. Shipping costs and available destinations are factors particularily with items that exceed Tracked Packet dimensions.  Other factors severely limit global sales. 

1. Affluence. Who can afford to buy the typical eBay Canada widget?

2. Market demand.  Globally speaking, who wants or NEEDS a typical eBay Canada widget?

When doing the math factor in time spent, profit loss, abandoned shipments, theft risks, inconsistent Customs processing and a questionable eBay global guarantee. Given these obstacles offering free domestic shipping might net a bigger more secure profit boost rather than trying to get blood out of a sphinx.

  

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[chicweb]

I would agree with a GSP (even if it has its problems on its own). 

Also, I would agree also to add the "Duties/Tariffs" fees directly on the checkout. But I don't think that would happen. Wasn't it on the news, lately, that Amazon wanted to do that and they backed off ? (Because of the US government not happy with that decision ?).

eBay, being an american company first, I'm not sure they would have the guts to do that.

[tryubik-useonlyasdirected]

When they put on the tariff's to China, China started to ship more through Canada into the States.

The States changed the de Minimus rules a decade ago to deal with China doing something similar - taking large shipments, splitting them into thousands of little shipments, and shipping them over the border. 

It's a problem that's ongoing and yet solved. Trump is using some bull claim to divert from the fact that the tariff's on China have made it worse. 

[ilikehockeyjerseys]

"I'm suggesting eBay create a GSP that Canadian sellers can access to so that US (and international customers) can't confidently shop from Canadian sellers."

Typo, meant "can" not can't - but there is no edit function.

[tryubik-useonlyasdirected]

While I think your suggestion is being made from a "best wishes" approach, the GSP is a disaster and many people actively avoid purchasing when a seller utilizes the "service."

[lotzofuniquegoodies]

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@chicweb wrote:

I would agree with a GSP (even if it has its problems on its own). 

Also, I would agree also to add the "Duties/Tariffs" fees directly on the checkout. But I don't think that would happen. Wasn't it on the news, lately, that Amazon wanted to do that and they backed off ? (Because of the US government not happy with that decision ?).

eBay, being an american company first, I'm not sure they would have the guts to do that.

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1 major difference between Amazon and eBay is Amazon actually physically is in posession of the item being sold. eBay is not. There still would be the risk of applying tariffs inaccurately. Having it processed by customs officials with customs brokers being the middlemen for the transaction and then submitting to gov. customs officials vs the supplier handling the process, is a check and balance to make sure it is being applied correctly/accurately as per laws of each country.  (Would eBay/Amazon be aware of exceptions? Most likely not.)

According to what's attached in the link below a customer paying VAT would have to pay tariffs on the after VAT total. Basically a double tax. 

https://taxpolicy.org.uk/2025/04/02/no-vat-isnt-a-tariff-but-the-us-would-benefit-from-adopting-it/

Note 1: With VAT, (and provincial & state tax for that matter) there is supposed to be an audit trail.  Unsure if there really is with the way eBay processes VAT but that is my general opinion. Your opinion may vary. 

Note 2: A destination-based tax is not a tariff, because it applies to both locally-produced and imported goods. There are (necessarily) different collection mechanisms for foreign and domestic sellers, but the overall tax result is broadly the same.

Note 3: Why does Trump think VAT is a tariff?

One possibility is that he doesn’t understand that a domestic producer selling into the UK faces the same VAT as a US producer.

Another possibility is that he misunderstands how VAT is credited when UK businesses are exporting.

Note 4: Above link is from UK but basic scenarios described are applicable worldwide. 

[ilikehockeyjerseys]

I am not familiar with the news story that you're referring to regarding Amazon, but I don't see why eBay couldn't collect duties at checkout. They already do that for other countries that shop using the GSP program in the US.

My main point is that they need standardization across the board so that they can go to the US (and international) customers and market "If you shop from a Canadian eBay seller, you won't pay anything after checkout. You won't get a surprise payment at the door." A GSP program would be the solution to that. It won't get the entire US market back because items will still be more expensive than they were shipping Tracked Packet ($7-$20 CAD) under the de minimis. 

[38e_avenue]

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@tryubik-useonlyasdirected wrote:

While I think your suggestion is being made from a "best wishes" approach, the GSP is a disaster and many people actively avoid purchasing when a seller utilizes the "service."

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Are you sure? I buy a lot from the US, and I am rather happy seeing the seller is enrolled into the GSP. 

[lotzofuniquegoodies]

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@ilikehockeyjerseys wrote:

I am not familiar with the news story that you're referring to regarding Amazon, but I don't see why eBay couldn't collect duties at checkout. They already do that for other countries that shop using the GSP program in the US.

My main point is that they need standardization across the board so that they can go to the US (and international) customers and market "If you shop from a Canadian eBay seller, you won't pay anything after checkout. You won't get a surprise payment at the door." A GSP program would be the solution to that. It won't get the entire US market back because items will still be more expensive than they were shipping Tracked Packet ($7-$20 CAD) under the de minimis. 

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@ilikehockeyjerseys 

VAT and State/Provincial tax are known entities (%'s). Tariffs can vary by country plus can change, like in the example of USA's Orange Hair and his moodswings at any given moment. How would amazon and eBay be on top of applicable rate changes at all times?

This is why  CBA etc(Official Gov. employees)  can do and does physical inspections for anything requiring a formal entry or they see the need. They can do them for anything, at their discretion.  Businesses, if they import regularly, would have dedicated brokers on record as shipments arrive. Individuals do not. Why CP/USPS clear on your behalf. (For comparison if you ship with a courier (Fedex)  the shipment is cleared by Fedex unless otherwise noted. Unfortunately there is no way with eBay labels to select this critical tidbit.  (Having your own broker usually gets you a discount for processing.) One can only imagine how much eBay etc would get away with charging if they were involved in the process. Why as a buyer I wouldn't be big on eBay being involved in this end of transactions and why I and others refuse to use eIS. See attached on why you should have your own broker. 

https://cscb.ca/en/what-customs-broker-why-do-you-need-one

CP charges 9.95 CAD for the process and USPS has been (was) charging 5.35 USD for years per dutiable item. Clearing on your behalf.  Couriers charge substantially more. See 712.3, 712.4, 712.5. and how it relates to USPS. 

https://pe.usps.com/imm_archive/html/imm_archive_20090511/imm/immc7_002.htm

Exception:

https://pe.usps.com/imm_archive/html/imm_archive_20090511/imm/immc7_003.htm#ep28899

Anyone interested in doing a deep dive on items passing through the USA  to another country or via a US freight forwarder and how they are now getting handled going forward? 😟 I know in the past I have shipped to freight forwarders on numerous occasions. Technically the goods are just passing through. 

[marnotom!]

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@lotzofuniquegoodies wrote:

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According to what's attached in the link below a customer paying VAT would have to pay tariffs on the after VAT total. Basically a double tax. 

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Don't you mean that VAT is paid on the after-tariff amount?  That's how it works in Canada, at any rate.

[ricarmic]

I'm fortunate that my store will be closed until a couple weeks after Aug 29th, and of course threats usually aren't what actually happens.

My plan when my store reopens is that I will of course keep an eye on the news here as I always do, but I'm not going to implement anything significant up to the "catastrophic" solution until I've personal continued negative experience in terms of higher costs, frustrations, losses as a result of whatever actually happens. I've no idea how the customs manpower can handle the workload, even if it does get implemented, as has happened in the past the reality might cause a back off.

I mentioned in earlier threads that I've worked out contingency plans, I am adding another now to extend my store shutdown here depending on what is/n't implemented.

As I've said before, being semi retired now makes this less traumatic for me than folks needing a full time income from it. My thoughts and concerns are with them.

[lotzofuniquegoodies]

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@marnotom! wrote:

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@lotzofuniquegoodies wrote:

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According to what's attached in the link below a customer paying VAT would have to pay tariffs on the after VAT total. Basically a double tax. 

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Don't you mean that VAT is paid on the after-tariff amount?  That's how it works in Canada, at any rate.

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Not according to that link. It's something I never really considered. If you wanted to you could print out the whole link. Only 39 pages. I found it to be a very good explanation/un biased explanation of the general to do all this is causing.

It's similar to the calculation and shipping. With CP via USPS the tax should be on the item value total. With couriers its based (tariffs) on item total plus shipping. Probably why with eIS the add on amount is so much higher when compared to what buyers see when orders get filtered through CP directly. 

[lotzofuniquegoodies]

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@ilikehockeyjerseys wrote:

I am not familiar with the news story that you're referring to regarding Amazon, but I don't see why eBay couldn't collect duties at checkout. They already do that for other countries that shop using the GSP program in the US.

My main point is that they need standardization across the board so that they can go to the US (and international) customers and market "If you shop from a Canadian eBay seller, you won't pay anything after checkout. You won't get a surprise payment at the door." A GSP program would be the solution to that. It won't get the entire US market back because items will still be more expensive than they were shipping Tracked Packet ($7-$20 CAD) under the de minimis. 

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@ilikehockeyjerseys 

If there was a Canadian eIS type program where would the sort hub be? Would this seriously affect transit times if hub was in east and seller was in west? What about the shipping charge to hub variance. Combined shipping? Not permitted items? Most of us are aware of how much less it currently costs to send to the USA vs the left coast if you happen to be on the right. Tracked to USA vs Canadian expedited/Expedited lite to hub? Extra handling and risk of damage?

[easoss]

Reading the comments in this thread and my eyes are glossing over. Maybe I'm a dummy, but eBay for me was a way to sell interesting things, make a few dollars and keep me out of trouble (just kidding there). I packaged items, hand wrote all my labels, went to the PO and it was simple and easy. It was fun, it isn't fun anymore. And the combination of uncertainty and basic pettiness of a certain president makes it unbearable for me. I'm slowly going to switch my items to Canada only shipping as my store subscription is finished at the end of the year. I guess a 26 year run, thousands of items sold was pretty good in the end. 

[cottagewoman]

ChitChats just announced their last run for de minimis will be August 28.

[dache_us]

Don't need a broker for that. Most of these companies will likely self file through third party software. Type 11 does not require a bond (only items that fall under FDA or etc., compliance). 

[dache_us]

I think most of these third party cross shippers will find solutions through CBP entry type 11. It was designed for low-value imports and got beefed up recently. I think they'll likely consolidate orders, then ship them out on the US side and unpack. Operate sort of like a 3PL service. DYK already checks packages and reseals themselves.

They are shifting the burden to the transportation companies and expecting a informal entry, while increasing fines to disincentivize bad actors. But I think they just want the tariff revenue more than to actually onshore manufacturing for cheap goods. Trump said he doesn't want to make socks, but chips and etc. 

[cottagewoman]

Read the full executive order. Bonds will be required for each entry.  Yeah and FDA - they revoked low value shipments not requiring data. So now every utensil, cup and saucer, plate, coffee maker, etc will need required FDA data per type.

No more fun reselling folks.  Party is over.

[ilikehockeyjerseys]

Just a note, I've been using GSP interchangeably, I'm aware that it's now slightly differnet and called eBay International Shipping. So If I call it GSP, we're basically talking about the same thing, a standardized international shipping program handled by eBay.

It's never going back to the way it was in terms of being able to easily and informally ship a package to the USA with tracking for $7-$20. Print a label through eBay, include a bit of info, and you're done. That market is over with.

The suggestion of a GSP isn't meant to say that such a program would be a perfect substitute for the way it was before the de minimis. It will be more expensive, and the input costs will be higher. But it would still create value for Canadian sellers if it simplifies shipping to the US and opens up other international destinations that they otherwise would not ship to, even if it doesn't bring back the same volume of business from the US as we were previously accustomed to when we could print a Tracked Packet label for $10. 

[intimewithmusic]

@easoss 

  I like your style! Your items are out of the ordinary and carefully chosen. Your 1952-54 "Body Parts Catalog" should have sold within an hour. Who knew it was a Ford? From the red drippy background I was expecting actual body parts AKA "organs".  We can all use new livers. I like your story. Here's mine.

  I started in 1969 in brick n mortar placing drumsets in window displays for a mall store that sold organs,  Farfisas, Kimballs, and a few Hammonds. Alice Cooper and Black Sabbath dominated the radio.  There was no Kimball "Play By The Numbers" sheet music for "Dead Babies" or "War Pigs".  Sales slumped not due to tariffs but due to the fact Kimball had no "War Pigs" button. The  owners decided it was time to branch out into drums. Did I mention this was an INDOOR shopping mall next door to a chain restaurant? Acoustic guitars or recorders would have been my choice. Hence my "Inna Gadda Da Vida" drum demos didn't go over well with the neighbours. That said I did meet my future wife as a result.  Drummers get all the chicks. 

    Ironically, a decade later, while putting myself through Grant McEwan's percussion program I found myself selling Farfisa organs inside many of Edmonton's shopping malls. Yep that was me. Sorry about that. Don't shoot the organist. I played a mean boogie woogie while pushing all of those color coded buttons. In lieu of my 26 minute "Da vida" drum solo I gave customers a bouquet of flowers upon delivery of their new organ. I never sold a single organ to a man. Organists get all the chicks. 

    @easoss   Thanks for sharing your story. I'm with you. eBay Canada is letting us down.  Your widgets deserve appreciative homes as do mine and the rest of sellers. Let's hope for change.