If a buyer refuses to pay customs duty on arrival in the USA or Canada, eBay generally considers customs and import taxes the responsibility of the buyer, not the seller. Sellers are not obligated to pay customs duties for the buyer, and eBay does not automatically penalize sellers when buyers decline to pay these fees. If the shipment is refused and returned because the buyer did not pay import charges, the seller may only be required to issue a refund once the item is returned and received in good condition; until that happens, sellers are not obliged to release funds or process refunds.
eBay does not provide specialized seller protection for cases where buyers refuse customs, but does expect sellers to clearly state "customs duty is buyer's responsibility" in listings and communicate that buyers must handle local taxes and tariffs. If your package is returned, document all tracking and correspondence for reference in any disputes. However, funds may remain on hold until either the item clears customs and is delivered or is returned to you.
Ultimately, eBay’s Money Back Guarantee and policies prioritize buyer action on duties, and sellers are protected from refund claims if the reason for non-delivery is refusal to pay customs charges. It’s recommended to update your listings and shipment notes to highlight this point, and to contact eBay with comprehensive evidence if funds remain on hold after goods are returned or tracking shows refusal due to unpaid tariffs.
If you’re facing delayed shipments or holds because of these customs issues and have done everything required as a seller, request that eBay review and release your funds, providing all details and proof of compliance with their rules.
