USD $1100 Tariffs - Buyer refused package from UPS

[andresme89]

I have been doing some research about my current situation as a seller. Back in Nov. 27th I sold a GPU (computer part) here on eBay to an American buyer. I almost didnt post it for USA buyers, only Canada, but I figured if someone over there really wants it (and is willing to pay THEIR tariffs for it) they can buy it. 

Anyhow, after he bought it, I shipped it with UPS. couple days later, the tracking number shows theres USD$1100 worth of goverment fees due (tariffs). buyer acts surprised. sends  me an ebay message saying, hes not gonna pay the tariffs, they are too much (I agree, they are outrageuos) and he's just going to refuse the package. Okay, cool. I call UPS and since they act as a broker, I'm require to pay the tariffs if I want the package back. Worth noting, two UPS agents told me over the phone, I pay the tariffs since the buyer didnt. a Third agent mentioned the tariffs were disputed and waived, so is coming back to me with no tariffs due. so now, i dont know what to believe. I was under the Impression UPS pays the goverment in advance and get their money back from the importer. seems unlikely the goverment will just reimburse UPS, but maybe?

Also, I talked to ebay. I sent the package with a signature required, the buyer himself had to tell the driver he refuses the package (which he did). The tracking number (label bought on ebay) shows the package was refused by receiver and its on its way back to me. Ebay mentioned, the buyer, by doing this, waived his money back guaranteed. I also have his message saying he is going to refuse the package because of the tariffs.

on an ebay message I did mentioned to the buyer (before knowing I might potentially be on the hook) that if he gets the item back to me, Im okay giving him a partial refund - shipping costs. 

Questions:
- Am I right to partially refund him but withhold shipping costs + $1100 worth of tariffs that I may or may not have to pay? I would hate to refund him and weeks later get an invoice in the mail. UPS telling me yes and no tariffs, didnt help much. This is my biggest fear
- Since eBays policy and the supervisor I spoke to mentioned he has waived his MBG, and I am not required to refund him anything. Do I just keep it all? and potentially the card as well? seems harsh, I sold it for CAD$2500. I did mention to the buyer I might be liable for his tariffs if he doesnt accept the package, but he did it anyways. He did try to Scr*w me after all. 

Any other advice you might have that can help me make the best decision will be highly appreciated!

[gaming-canada]

You need to refund him fully unfortunatelly, I had same situation i deducted shipping only even after ebay representative told me i can keep all but i didn't(i knew he can do chargeback), i refunded all minus shipping and he opened the case, ebay ruled in my favour, after he appealed and ebay ruled in his favour and took the funds from me for shipping, I called complained it didnt work...so i lost selling fees for that part...

Also he always has option to do credit card chargeback and then so its better to refund all eBay rules fall in water...

As for the tarrifs you will need to have call with UPS to explain that its returning and wasn't exported.

[andresme89]

Can I ask? Did eBay mention why they sided with the buyer?  the ebay agent who talked to me kept quoting their policy and why I did everything right and im not obligated to refund him.

Im aware of chargbacks as well. How can eBay give you advice and show you policies that they may or may not follow? Even if eBay sides with me and the buyer does a chargeback, eBay will try to get their money from me, correct? even after they told me im okay to keep it lol in that case, they should pay out of their own pocker, but of couse, little guy always loose.

The amount of conflicting information im getting from UPS and eBay makes a tough situation even harder to navigate. 

And  just to be clear, Im mainly trying to protect myself from the tariffs. Not completely take the guy for a ride, even though he created this mess.

[dinomitesales]

Personally, if I was in your situation, I wouldn't be providing any sort of refund. As you've noted, the buyer has voided their eBay Money Back Guarantee by refusing the shipment. If they open an "INR" case they will lose. If they open a chargeback with their credit card then eBay is supposed to have your back. It's not your problem.

I'm assuming you haven't received the item back? If you do receive it back then maybe consider giving them a refund less the cost of shipping/duty. We don't know how this is all going to play out - even UPS is confused. But it's entirely possible that months from now you could have those duties debited from your eBay balance (assuming you purchased the UPS label through eBay Labels).

[andresme89]

Thanks for the helpful reply. I havent received the item yet, and of course, its moving very slow, if any at all. (its been at the same warehouse for 4 days now). I did hear returned or refused items take lower priority, and on top of that, the busiest time of year is upong us. Theres a good chance i might not see it until 2026. 

You are right, I talked to others on reddit and some people did mention getting billed, for the tariffs, 3 months after the fact. I did purchase the label through eBay labels. So yeah, the most generous I can afford to be to him is a partial refund taking all associted shipping costs + the tariffs from his original purchase amount. Nobody can really point the finger at me as the bad guy, and I basically take insurance in the high likelihood I get a bill in the future.

What a strange loophole UPS has open the door to though. My wife ordered something from USA with fedex. They delivered the item to our door, and 2 weeks later a bill in the mail. This way, you dont have the option to "refuse" the item you imported. you just get your bill for your imported goods. Thanks to my current experience, I believe this is a better way to handle it. 

[marnotom!]

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@andresme89 wrote:

My wife ordered something from USA with fedex. They delivered the item to our door, and 2 weeks later a bill in the mail. This way, you dont have the option to "refuse" the item you imported. you just get your bill for your imported goods. Thanks to my current experience, I believe this is a better way to handle it. 

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The buyer/importer can refuse to pay the bill from FedEx, though, and then FedEx turns around and bills the seller/exporter as per FedEx's terms.  The exporter is the one who's on record as having paid for the shipping service in the first place, after all.

This may seem nitpicky or trivial, but it's an important consideration when using standard shipping services such as those offered by UPS or FedEx:  The carrier actually pays the tariffs and applicable duties.  The item can't make it across the border unless they're paid in advance.  What the buyer/importer gets charged for is what the carrier paid in tariffs and duties and various fees associated with advancing those fees and processing the item for customs.

[andresme89]

yeah thats fair and it does make sense to me. otherwise, I could technically ship you something with high tariffs and now you are on the hook for them. I wonder if these companies could look at purchases made as prove that someone requested goods to be imported to them, and billing the importer with proof that they requested the package via a purchase. But I suppose that would take time and resourcers. easier to just do what they do now.