UPS FEES ON CANADIAN PURCHASES

Started Dec 16, 2017 | Discussions thread
ForumParentFirstPrevious
Flat view
Island Golfer Veteran Member • Posts: 3,377
UPS FEES ON CANADIAN PURCHASES
1

If you plan on buying something from Canada, you might want to be aware of "Brokerage Fees" many carriers are charging. UPS is one carrier that does this routinely. Usually, what happens is that your Canadian seller picks a Canadian shipper to ship your item to you. Unbeknownst to you (the buyer) the Canadian shipper contracts with UPS to deliver your item to your USA address. This gives UPS the opportunity to tack on an additional fee for clearing your item through Customs (something your seller, or your seller's shipper could do; but, doesn't). This additional UPS fee is termed a "Brokerage Fee".

The brokerage fee is the fee you pay UPS to clear it through customs for you. This is different than duties which is the amount CBP charges you to bring something into the country. So for example, say I ask a friend to bring me a bottle of Canadian whiskey back from Canada. He brings the bottle back and tells me it cost him $35. I give him $40 and tell him to keep the change for your troubles (that $5 tip is the "brokerage fee." ) Then, the next time my friend goes back to Canada; I ask him to bring me back a Canadian laptop. Let's say the laptop costs him $1000. He brings it back and tells me, "the laptop cost me $1000 and they charged me a duty of $150". I owe him$1,000 + the duty of $150 ($1150), but since he did me a favor, I give him an extra $20 for bringing it back for me. The $150 is the duty but the $20 tip is for his trouble of bringing it back into the USA; and filling out the minor paperwork for Customs (a "brokerage fee"). The brokerage fee was paid for his service; regardless of how much duty was paid on the item. UPS has its own chart for determining what it will charge you for their "brokerage fee". However, it is not based on the minuscule paperwork they routinely fill out when picking up items from customs at the border. Rather, they base it on the amount that is the item's declared worth. And, it's a lot! On a $1685 lens I just bought, UPS would not release it to me until I paid them $91.96. Had I been aware of this ridiculous additional charge, I would have negotiated it into the purchase price with the seller. Alternatively, I would have insisted that either he pay it; or clear it through Customs, himself. Or, at least find a cheaper USA carrier for his delivery (I do not believe that the USPS charges a Brokerage Fee; although, I'm not certain).

Anyway, now that you know, be sure that you factor it into your next out of USA purchase.

-- hide signature --

truview

ForumParentFirstPrevious
Flat view
ForumParentFirstPrevious
Keyboard shortcuts:
FForum PPrevious NNext WNext unread UUpvote SSubscribe RReply QQuote BBookmark MMy threads
Color scheme? Blue / Yellow