If you are a small business in canada no doubt you paid fair share of brokerage fee’s to courier’s like UPS, FEDEX, DHL in the past year. UPS being one of the all out worst. Doing Cross Border deals with american wholesaler’s is mostly just a way of life for most canadian small businesses, but it can hurt the pocketbook very fast depending on who you use. Drop shipping is another big problem. When you drop ship from a american wholesaler to your customer in canada they end up with a nice little UPS brokerage bill.
Here is a list of the fee’s charged by UPS to you or your customers. Why do they charge 7 dollars on a 20 dollar item and then 63.75 on a item over $1000? If it was just one item at that value it would be the same amount of paperwork right? Something is not right… Well lots of people would agree with the unfair fee’s of UPS that currently have a on going class action lawsuit.
| Bond Fees |
| Customers are responsible for payment of duties and taxes. When funds are not provided in advance by the customer, and UPS must post a bond to allow UPS shipments to be released in advance of payment to the Canada Border Services Agency (CBSA), a fee of 2.7 percent (minimum $5.85) of the amount advanced by UPS will be charged. To avoid bond fees call 1-800-PICK-UPS and ask about our EFT plans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Now how do you avoid paying UPS’s brokerage fee’s? In the meantime, if you have an item on the way via UPS and want to avoid brokerage fees, get the tracking number from the seller, call UPS, and tell them you want to broker it yourself. When the item arrives, pick up the waybill and paperwork from UPS, Head over to your local Canada Customs (usually near by), they’ll process it, stamp the forms, and you can return to UPS and pick up your package.
Quick List of What you will Need:
- WayBill
- Invoice of Goods (to prove the value of your delivery)
- Some ID
- Don’t Forget Money ( You will still need to pay tax/duty charges)
Thats it now you can avoid UPS’s brokerage fee and bond fee… and whatever else they tack on. Get all your paperwork stamped at customs, head back to UPS show them and away you go. Do not wait until UPS delivers your package to you! Also, make sure your seller knows that the declared value is ONLY the amount you paid for the item (not including shipping), and take your proof of the amount you paid with you to ensure you aren’t overcharged on duty and taxes by Canada Customs. From what i understand this only works in some provinces but i don’t know that for a fact. Some of it has to do with where it enters the border. I was told a few years ago by UPS that in Halifax, Nova Scotia you can not self clear. Something about the package going through Quebec and i would have to clear it at that customs office. I don’t know if that was just a bunch of bullshit or what. I don’t use ups anymore and try to avoid them.
Now if you have to deal with UPS since thats who your American supplyer uses and they are drop ship everything direct for you. As a business you can setup brokerage account with UPS and have the charges sent to your account. This way you can give your customer a all included price and they won’t have to pay a 60/70 dollar brokerage fee at the door plus taxes etc. I find myself this is the best way to go. Even if you have to tell your customer a bit higher price somewhat hiding the brokerage and taxes. Atleast you won’t get a nasty phone call or email from them complaining about the brokerage fee’s when you can’t do anything about it. This is a way better system and saves a lot of headache in the long run. I am pretty sure you can use another bonded broker to do the same thing but it may slow things down a little.
I will covering next on doing your own brokerage when using truck freight companys. So don’t worry i did not forget that route. This was just to more or less just to cover small packet brokerage and using drop shippers located in the usa. On another note I was wondering if anyone knows how much someone in the brokerage department of UPS makes? I would guess around 15/20 dollars a hour myself and i would think they could clear about at the least 10 items a hour. What do you think are we getting hosed?
January 19th, 2008 at 3:02 pm
It took me an hour to leave my office, and I work downtown, to go to all three stops, and then be back here. But i did get everything i needed and avoided paying the 40 dollar brokerage fee.
January 19th, 2008 at 8:08 pm
I HATE UPS!!! I kinda feel bad for the UPS guy that says OH YEAH you have a COD brokerage fee for $125 dollars. Who wants to break that kinda news at every stop of the day! Not me
January 22nd, 2008 at 11:53 pm
someone told me now that fedex was getting worse for the same thing? I hope not fedex always seemed to be reasonable with their brokerage costs.
January 25th, 2008 at 5:19 pm
I just receieved a package today (delivered UPS) that had a value of 30 bucks, and they dropped a 20 Brokerage fee on me!!
Now, I never recieved a phonecall or anything asking if I wanted THEM to clear the package (don’t they usually do that? or is that only for orders over 1500?) SO, should I be able to somehow retreave my twenty bucks, because I was never notified?
February 8th, 2008 at 12:57 pm
When ordering online request that the seller ship via FedEx or DHL. Tell them if the package arrives via UPS it will be returned to sender.
UPS is the only shipping company with so many crazy extra fees…
Simply do not use UPS
Do not accept packages shipped via UPS EVER
UPS will destroy your credit report and charge your credit cards extra fees beyond what they even tell you at the door or on the phone, when you contest, they will send collection agencys!
February 18th, 2008 at 4:25 pm
I just cancelled part of an order I made with a business in the US. Although the website showed everything I wanted was in stock, they shipped it in 3 parts - so 3 lots of UPS brokerage fees. I cancelled after i received part 2. I usually don’t order from businesses that ship UPS - and I tell them why - but I ask if they will ship using the USPS. I still pay a brokerage fee, but it’s reasonable not extortionate. I urge everyone who orders from the US to do the same - let people know you won’t buy their stuff if they use UPS. Clearly UPS doesn’t want the business or it wouldn’t charge so much.
March 3rd, 2008 at 12:59 pm
I just went to the Canada Customs office at 1 Front st. in Toronto.
They confirmed that one can broker their own shipments and not pay UPS, Fedex, etc. the ripoff amounts they charge.
I was told to wait for the parcel to arrive and then take any paper work and a proof of payment to the Customs office to clear the shipment.
I was advised when the courrier delivers the package they may also choose to withhold it until one provides proof of payment. (duty etc.)
I would think that if the shipping is paid at the point of origin they have to deliver it whether you choose to pay them the fees or process it yourself at a lower rate through a Canada Customs office.
I’ll report back when I try this out in a week and half or so when my item arrives (Fedex) from the USA.
March 27th, 2008 at 7:12 pm
Does this have to be cleared at point of entry? In Ontario is this Fort Erie for UPS ground?
Or will they ship it to a warehouse nearest to your location?
June 5th, 2008 at 6:55 am
Some lady at UPS Canada told me I have to the point of entry (where ever that will be) if I want to clear/broker the item myself. This seems incorrect. I have paid for shipping to my door, not just to the point of entry. I will follow up once I find out more.
June 19th, 2008 at 9:23 am
anybody here know of a good site to find more info on truck brokers? I\’ve got this site bookmarked and im gonna keep checking it out, but i still would like to find a site that covers truck brokers a little more thoroughly..thanks
October 23rd, 2008 at 9:51 pm
in september i received this package from china and ten days later, i got this letter from TNT express (canada) telling me to pay the canadian brokerage fee. when the people from TNT came to deliver the package, they didn’t tell us that we had to pay or not.so exactly what is a canadian brokerage fee?
March 30th, 2009 at 10:30 am
the same situation to jeff……
I have to pay $51 for a package only values $60!!! so ridiculous!!
This package is send from my mum.for some clothes..why would i pay so much money? my mother already for the delivery fee.
TNT’s line is always busy…i can’t get the person to talk!
I won’t pay the amount of services charge until i find what head it is!!!!
May 22nd, 2009 at 5:15 pm
I bypass UPS ALWAYS! Right now we’ve arranged shipping for a $3,000 tool. They wanted to ship UPS and we said no. They are sending it by truck to Victoria BC. The Canadian arm of the trucking is Canadian Freightways. Cdn Freightways has a “bonded depot” (I think that’s the name). They call us and we go and clear the tool at customs ourselves. If we allowed UPS to ship this, it would cost us at least $200 but I know their fees are higher. I went to their site and it’s confusing. I do know I purchased a $40 item and they charged over $40 to clear the darn thing! Never again. I called a regular broker in Vancouver and they said they charge a flat $70 to clear items at customs.