Help! ugly UPS Customs Brokerage Fees

[Hack&Lube]

I'm sure most of us who've had parcels shipped to us from the US know that parcels shipped via couriers, especially UPS get slapped with ridiculously horrendous customs brokerage fees.

That's because instead of Canada Customs processing your parcel for $5 + GST, UPS hires its own private brokerage house and hires their own brokers to do the "paperwork" and "processing" for you which ends up costing usually $50 minimum or more, sometimes even costing more than 100% of the original value of the package which is completely ridiculous.

Now, I've had a Small Form Factor computer shipped to me from the US and I specified USPS but it was accidentally shipped by the guy in a big lot via UPS. I've checked the tracking site and it's sitting in Winnipeg right now but I can almost predict a huge slap of brokerage fees on me -> and that's on top of the actual duty and taxes charged by Canada! Maybe $100 or more for a $200 package.

What are my options? I didn't realize that he shipped it via UPS from the US. Can I call UPS and refuse accepting the shipment? Does shipping it back cost either party any return charges? What can I do?

[Ace]

Nobody can act as your broaker unless you give them permission...

You do NOT need to use UPS' service. You could call Canada Customs when it is there and ask them what you need to do to clear it yourself. Or search for a cheaper broaker.

[photon]

You could call the company and have them pay for the brokerage fees. The one time I got something via UPS when I wasn't supposed to they did that.

You should also be able to refuse shipment and it will go back to the vendor for them to reship the correct way. And if they refuse reverse the charges.

[Hack&Lube]

Originally Posted by photon

You could call the company and have them pay for the brokerage fees. The one time I got something via UPS when I wasn't supposed to they did that.

You should also be able to refuse shipment and it will go back to the vendor for them to reship the correct way. And if they refuse reverse the charges.

I'm not out to get the seller. He's a pretty nice guy and thi sis just an internet transaction but he just accidentally put it in a pile of stuff for UPS to pickup. I'm not going to do anything malicious like reversing the charges.

If the fees end up to be too high, maybe I'll try to refuse the package and have it sent back. I'm wondering if it will incur any costs on either of us, I want to keep costs as low both both parties.

I came across this epinions page ranking UPS near rock bottom. It's funny.
http://www.epinions.com/bsrv-Office_...ion_list/pp_~2

-update

I hear that if I refuse the package, they'll simply take it and abandon it in their facility or throw it out unless either me or the seller pays for return shipping. Man, this is B.S., the postal system will return your package for you free of charge.

And they automatically do it, there's no way for me to call them right when the package is at customs and then do it myself. From what I've learned, you have to call in advance of shipping and tell them you'll broker it yourself. Then you go yourself to a brokerage and do the work yourself. However, it was shipped out early accidentally and I didn't have to chance to even realize or contemplate all of this before it had already left the US and now it's sitting in Winnipeg.

[Neeper]

You have the option of clearing it yourself at no cost. Call Customs and ask them how.

Or you could use who I sometimes use: Calgary Customs Brokers

[browna]

Well, all depends. I think EXPRESS international air service includes brokerage fees from UPS.

I was looking at some golf clubs from down there through Ebay, and the International EXPRESS shipping included brokerage fees. The regular ground shipping did not have brokerage fees added. Just checked the retailer again...$50 US for the EXPRESS, $30 for the REGULAR.

Maybe you'll luck out too.

[Hack&Lube]

Originally Posted by browna

Well, all depends. I think EXPRESS international air service includes brokerage fees from UPS.

I was looking at some golf clubs from down there through Ebay, and the International EXPRESS shipping included brokerage fees. The regular ground shipping did not have brokerage fees added. Just checked the retailer again...$50 US for the EXPRESS, $30 for the REGULAR.

Maybe you'll luck out too.

He sent it standard, meaning ground, meaning they'll ding you on brokerage fees meaning there's really no difference in services. How sly.

[browna]

Honestly, you should email your (extra, not part of the deal, brokerage) cost concerns to the buyer BEFORE it gets there, and tell him your concerns and see if he comes up with something as a solution, as it was, after all, his mistake.

As it sits now, he should be left negative feedback on Ebay for his error and your extra expense...most legitimate Ebayers wil do whatever it takes not to get that blemish.

[Hack&Lube]

Originally Posted by browna

Honestly, you should email your (extra, not part of the deal, brokerage) cost concerns to the buyer BEFORE it gets there, and tell him your concerns and see if he comes up with something as a solution, as it was, after all, his mistake.

As it sits now, he should be left negative feedback on Ebay for his error and your extra expense...most legitimate Ebayers wil do whatever it takes not to get that blemish.

Of course, but this was a legitimate mistake from a seller that actually paid for the original $20 US shipping out of his own pocket because he was a few days late. I've contacted him but I won't expect him to do any more than he's already done. It's a genuine mistake. It's a shame that such goodwill on both sides of a transaction will be harmed so much by UPS.

[photon]

Heh, I only meant the reverse charges as a last resort if the seller got snarky over it.

But I'd outright ask if they'll pay the extra brokerage fees. It was his mistake and he should be responsible regardless. If not then maybe he'll split it with you?

[Bill Bumface]

Break it.

They will give you back money to pay for the brokerage, and the item. Then you can buy a new one. The one time UPS actually did break something I got, they didn't even look, I just phoned them and they sent money.

Normally I'd feel suggesting this is wrong, but those ****ers are rip off artists.

You might get lucky, I've had brokerage be as low as $35.

I'm pasting a post off of another site so that you can read up on another option:

There are a lot of posts on xxxxxx about UPS. Duty, GST and specifically brokerage fees seem to be the largest area of complaint.

Unfortunately, the opinion that brokerage fees are a 'scam' or 'ripoff' are largely formulated on ignorance of the process. They are very lucrative for the companies doing the brokerage work, that I would conceed. But they are not a 'racket'. Duty and GST are unavoidable, however, I will point out a way to 'cheat' on duty a little bit, if you wish to try. (See end of post)

DUTY AND GST (OUCH!)

"Other" shipping companies are still required to charge the same things for Duty and GST. Duty charges vary depending on the type of item you are importing. These are fixed percentages based on the amount and classification of the item. Please note that your government has established the rates applicable - not some shipping company. Duty and GST are not charges the shipping company is making up - they are actually charges from Canada Customs. The shipping companies merely collect this from you because they incurred these charges when they cleared the packages for you.

BROKERAGE FEES TOO... (UGH!)

The only variance in what you will pay to import your goods will be brokerage fees. But likely you will still pay brokerage fees of some level while it may vary from shipping company to shipping company. You may also find it increases based on the quantity and value of goods imported.

So, for all those people who don't understand how to NEVER PAY BROKERAGE FEES AGAIN, this post is special for you. Read on...

POWER OF ATTOURNEY

First, shipments to businesses are different than shipments to individuals. When you ship via UPS, UPS has a little thing called Power of Attourney over personal shipments. This gives them the ability to automatically clear your package through customs. They fill and file the paperwork, and charge you a brokerage fee.

For businesses, Power of Attourney is not automatically given to UPS. So, UPS will contact the business asking who the broker for the company is. Large businesses will likely have a brokerage company do the work. OR the business can fill out a form which will give Power of Attourney to UPS for purpose of clearing the package(s) through customs as another option.

THIS IS WHERE IT GETS IMPORTANT

Whether your shipment is a personal thing, or a business thing, you have the option of "Self Clearing". What this means is that you are going to have to do the filling and filing of the paperwork yourself. In the case of a personal shipment, you MUST notify UPS as soon as you have the tracking number that you intend to self clear. In the case of a business, they will contact you - at which point you indicate you are going to self clear.

SELF CLEARING - THE BASICS

Once you have indicated that you are going to self clear...when your package 'arrives' at your shippers warehouse, they will prepare the necessary forms for self-clearing. You must then go to your shippers warehouse, and pick up these forms. You won't even require a pen! The forms are filled out already with the necessary information from the computer. So, off you go...

Once you have the clearing forms, you must then proceed to Canada Customs. (It's just off 32nd Avenue, N.E. - you turn left just before Staples, then right, then right in to the parking lot). This is handy, because pretty much all the shipping companies have warehouses just minutes away from this location.

Keep in mind you must be the person who the shipment is to, or you must be an individual with Power of Attourney over the Company if it is a business shipment.

Once you are inside, you will find a computer - and a book. The book contains all the line codes you may require to understand in order for you to fill out the forms correctly. Kind of like doing your taxes! (Same idea). When you have entered all the information, which will usually include ports of exit and port of entry, method of shipment, costs of goods, classification of goods, importer name, shipping costs, etc. The computer will then print out the finalized forms which will indicate how much you must pay in Duty and GST for your imported goods.

They have agents there who will then have a quick once over of your information, and then you will proceed to pay what you owe at the cash desk.

Once you have paid what you owe, your papers will be stamped "cleared". You return to your shipper with these papers, and they will retrieve your packages. You have just brokered your own packages, and have avoided brokerage fees completely.

SOUNDS LIKE TOO MUCH WORK

Then pay the damn brokerage fee and don't bitch!

AS PROMISED, CHEATING THE SYSTEM

All goods imported in to Canada have different DUTY rates applied to them depending on the type of good. Even within the automotive realm, duty rates are not all the same. For example, importing a flywheel, may have a higher duty rate than say, 'automative transmission components' - now, you're just a silly chump filling out the forms, so if you know which areas require less duty, you can 'work' the system slightly to allow a lower rate of duty to be applied to your imported goods. You're only going to save a few percentage points. But it can be done. Uhm, and if for some reason what you are doing gets questioned, you'd be like But more often than not, you're not going to be questioned unless you are completely re-classifying the goods.

Cheating the duty by a couple percentage points isn't the point of this thread. Completely removing brokerage fees is the point!

Hope some people find this helpful. If brokerage fees annoy you, this the way to avoid them. If you think it's easy, power to you. If you think, my god, why would I do that? Pay your brokerage fees but at least understand the process so you know what it is you are paying for...

Enjoy

[FlamesKickAss]

thats awesome thanks man, i just emailed UPS now

[ken0042]

I also think the seller should be held somewhat accountable; especially if USPS was specified as the shipping method.

Honest mistake; perhaps. However last time I made an honest mistake in thinking the speed limit was 60 and not 50, I still had to pay the speeding ticket.

[shane_c]

Darn brokerage fees. I've stopped ordering anything from the states because a few years ago I had ordered an exhaust system from a company in the states and it kept getting bounced back and forth across the border for a few weeks and then eventually returned to the company. I then cancelled the order and a few weeks later I got a bill from UPS for duties, brokerage fees, etc for around $150. I called to explain I didn't even get the part and they returned it to the company. Still they wanted me to pay up. They then sent me further letters threatening legal action and to send me to a collection agency unless I paid up. After SEVERAL calls they finally reversed the charges.

[habernac]

I got a t-shirt shipped from the US, came by DSL I think. Got an invoice from them about a month after I recieved the item, I think it was for about $20 for a "brokerage fee". I threw it in the garbage. It was essentially doubling the price of a damn t shirt. I haven't heard from them since, pretty sure they won't waste a collection agency in order to get $20.

[FlamesKickAss]

I emails UPS after seeing this thread as I have something coming from the states that I bought off of ebay. I asked wha kind of fees they charge for brokerage but luckily my item is under $20 so there are no fees. I will keep that email just incase though i think.

[Hack&Lube]

Strange update, the package arrived in Winnipeg on the 11th...According to tracking since then it's made it's way to FREDERICTION NEW BRUNSWICK! Yes, it's gone in the completely wrong direction to the wrong coast.

The seller also got a phone call that the parcel can't be cleared and that it's being returned to him. I hope I can convince UPS to refund the original shipping cost.

[jam26]

I wish I took the time to read this thread when it was originally posted. I ordered a DVD and was appalled to find out the brokerage fee is $40. That's more expensive than the DVD. Man....

[algernon]

Anybody know if purrolator will try to fack me over? I ordered a camera from the stes on ebay shipped through them... The snowboard I ordered is coming trough USPS.

[redforever]

Originally Posted by Hack&Lube

I'm sure most of us who've had parcels shipped to us from the US know that parcels shipped via couriers, especially UPS get slapped with ridiculously horrendous customs brokerage fees.

That's because instead of Canada Customs processing your parcel for $5 + GST, UPS hires its own private brokerage house and hires their own brokers to do the "paperwork" and "processing" for you which ends up costing usually $50 minimum or more, sometimes even costing more than 100% of the original value of the package which is completely ridiculous.

Now, I've had a Small Form Factor computer shipped to me from the US and I specified USPS but it was accidentally shipped by the guy in a big lot via UPS. I've checked the tracking site and it's sitting in Winnipeg right now but I can almost predict a huge slap of brokerage fees on me -> and that's on top of the actual duty and taxes charged by Canada! Maybe $100 or more for a $200 package.

What are my options? I didn't realize that he shipped it via UPS from the US. Can I call UPS and refuse accepting the shipment? Does shipping it back cost either party any return charges? What can I do?

I have never paid brokerage fees when ordering from the US and delivery is by UPS, and I live in the country. I much prefer any orders from the States to be delivered that way. I live in the country, UPS is fast, they come rite to my door, I dont pay a cent.