How do I collect US tax/duties without enrolling in the GSP?

[enigma-component-shop]

Hi, can someone please explain to me how I can continue selling to the US? I've had a couple of orders, and no tax was collected upfront, so I've had to cancel the orders. Do I have to enrol in the Global Shipping Programme so that all taxes are collected at checkout? I'm not keen to do that as I've heard that once you're in the GSP, it will be used for all international orders and the postage costs are significantly higher for the customer. Also, my understanding is that you cannot turn off GSP once you have enrolled, is that correct? Any advice would be most appreciated! Thanks. 

[style_wise]

It depends on the courier you're using. For example:

- If you're using Royal Mail Tracked & Signed I would add 10% item price + £1.50 RM processing fee to your postage cost.

- If you're sending from the Post Office using EVRI then you just include the Buyer's email & phone number when posting. EVRI will contact them for tariff payment before allowing the parcel out of the UK.

Perhaps other Sellers have experience of other couriers they would like to share? At the moment GSP is still turned off for USA so that's not a viable option.

[enigma-component-shop]

Hi, thanks for the info. So, am I correct in understanding, that I add the 'tax' cost to my listing price or postage cost, and then I pay that direct Royal Mail? I have an online business account with Royal Mail and they are showing that you can send items delivered duty paid, but where is the proof from the sale that the customer has paid the tax if it is swallowed by the listing price and/or postage cost? 

It just doesn't make sense. For EU transactions, customers have their tax collected at checkout and we put ebay's IOSS number on the customs declaration, to confirm that the tax has been collected. I would have thought a similar option would have been arranged with the US. 

Also, please can you tell me where I can find the information about GSP being available/not available for the US? Otherwise, I'm blindly walking into that as the only reason I would enable GSP is for US orders.

Thanks for your help.

[cobwebcottage]

I have always used GSP and it works well for me with no hassles. All tariffs and customs forms are completed for the parcels so nothing else to do but send it to the hub.

You can opt out of GSP anytime by updating your postage policies and also choose the countries you wish to send to.

Postage may be more for the buyer it works out better, and easier, for the seller and you are fully covered for loss or damaged once it has been received at the hub.

[cobwebcottage]

'At the moment GSP is still turned off for USA so that's not a viable option'.

This is absolutely incorrect.

[enigma-component-shop]

So, GSP sounds a bit more flexible than I thought. Is it possible, on the listing, to show GSP just for USA/North America and Royal Mail for Europe? Thanks.

[cobwebcottage]

I would create postage policies for both options. One for Europe with RM postage and the other for US using GSP. You can then block out the other countries on the latter. You may already know this, but name your policies so you can easily find them ie GSP for US.

You can use RM to send to US via GSP too if that is your preferred courier. You just pay a mainland postage cost to send it to the hub.

[ett1954]

A couple of notes of caution.:

First you will need to indicate on your listings the original country of manufacture; without this your item will not be shown to US buyers.  The 10% mentioned above relates to items manufactured in the UK only; virtually every other country will attract a higher tariff with certain Far Eastern countries significantly more.  You will need to adjust your prices appropriately; including of course any eBay fees these may attract if you are purchasing postage through eBay.

Royal Mail will then add the the appropriate tariff relative to the category and country of manufacture to your postal cost together with a small administrative charge when you purchase the postage.

[style_wise]

Yup, it's still mostly the blind leading the blind on these Boards with only a few Sellers sharing actual dispatch experiences. Since the tariffs are being challenged by the US Courts, even the people who tried to set them don't know what is actually going on yet.

Just to clarify, it is a 10% tariff not a tax (eBay still collects State taxes for you, as before).

,,,where I can find the information about GSP being available/not available for the US?

I just googled, Is eBay UK GPS still off for USA? But you could also use top left dropdown menu:

eBay News > Announcements

and search there. I can't keep track because it keeps going off/on this year.

So, am I correct in understanding, that I add the 'tax' cost to my listing price or postage cost, and then I pay that direct Royal Mail?

Yes in theory, but your concern about pre-paying tariffs with RM is valid. When I spoke to a Post Office employee on the first day of PDDP service to the USA, she had exactly the same question: If C&BP in the States does not have access to RM internal systems, how will they know the tariff has been paid?

On a tangential note for people who have friends/family in the States, gifts under $100 (£75) are still tariff-free.

[maturin.surprise]

Regarding the pre-paid tariff for Royal Mail postage to the US, Royal Mail have liaised with the US so that any PDDP parcel automatically confirms the tariff has been collected and forwarded on - it works, my package last week flew through and was delivered in 5 day (via RM International Tracked). The label has that PDDP logo on it.

All I do is add about 11%+50p (the extra 1% is to cover ebay's fees) to my P&P price for US customers. It's still far, far cheaper than GSP postage.

The only downside is if a parcel goes missing, which is very rare these days, you won't be able to get that tariff back from Royal Mail when the postage is refunded to you. Whereas with GSP you will get the whole lot refunded. But I haven't lost a US parcel in over 2 years, so it still works out much better to avoid GSP.

[4_bathrooms]

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@maturin.surprise wrote:

All I do is add about 11%+50p (the extra 1% is to cover ebay's fees) to my P&P price for US customers. It's still far, far cheaper than GSP postage.

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It is probably worth pointing out again that 10% is the base tariff rate that was imposed. Most items manufactured in the UK only attract the base rate but items manufactured in other countries can attract higher tariffs. Many countries that are effectively low-cost manufacturing hubs have some of the highest rates: 

India: 50%

China: 30%

Taiwan: 20%

Bangladesh: 20%

Malaysia: 19%

Turkey: 15%

Also note most goods manufactured in the EU attract a 15% tariff.

[enigma-component-shop]

Thanks for this reply. Do you then get invoiced by Royal Mail and pay for this later? Have you been invoice by Royal Mail so far, and have you been charged as expected? Thanks.

[fribblecollectables]

I sent one off this morning. 

You get charged by Royal Mail when buying a label.

The following is taken from part of my invoice for a £10 item to the US:

Recipient: *****
Postage service: International Tracked
Postage cost: £16.50
Customs and handling fees: £1.50

Item must be posted by: 08/10/2025

Payment service provider: Worldpay

I have a separate postage policy for the US. I have recently upped the cost of that policy to cover the extra charges.