Avoiding UPS brokerage fees for US packages into Canada

[Enraged]

I recently found some new info on importing goods when shipping UPS into Canada, hopefully it can help people out. If one of the admins wants to sticky this in the for sale section please feel free.

How to pay duties and taxes for imported goods…If you are planning to have future shipments sent to you by courier from outside Canada, you do have the option of refusing the accounting services offered by the company,choosing instead to clear the goods yourself through your local CBSA office. If you choose to do this, you will not incur any brokerage fees. The two options available to you are the following:​

1. Prior to receiving your shipment, you can contact the courier company and inform them of your wish to self-clear any shipments that are addressed to you and on which brokerage fees are applicable. The company will explain their procedures to you.2. As an alternative, when a casual shipment is delivered to you, you can refuse deliveryand advise the courier company of your intention to self-clear directly with the CBSA. In this case, please ensure that you take note of the unique shipment identifier number on the package, as the shipment will be returned to the courier’s warehouse.With both options, you will need to visit your local CBSA office and provide them with specific details, including the courier’s name, the unique shipment identifier number, a description of the goods and their value so that the CBSA can correctly assess the goods. This information is usually indicated on the shipment’s invoice, which will be provided to you by the courier company. When you have paid the applicable duties and/or taxes to the CBSA, you will be given an official receipt indicating that the goods have been accounted for. You will need to present this receipt to the courier’s warehouse where your shipment is stored, in order for the courier to release your shipment to you.

Thank you for contacting the CBSA.Internet: www.cbsa-asfc.gc.ca (http://www.cbsa-asfc.gc.ca/)Canada Border Services AgencyOttawa, OntarioK1A 0L8Government of Canada – Gouvernement du Canada​

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(Some personal information has been omitted, and CBSA e-mail address also to avoid spam. Some key phrases has been highlighted by editor, not by CBSA)
​

We may conclude, that in order to self-clear goods in local CBSA office we need following:The final and proven way of how to avoid UPS brokerage fees:

- Courier’s name: UPS
- Unique shipment identifier number: UPS must provide

- Shipment’s invoice: UPS must provide

- Place where the package is being held
​

Let’s stop UPS outrageous behavior and lawlessness, and force them to obey the simple law and allow importers to self-clear without paying brokerage fees!Tell about this procedure to all people who use UPS (or other couriers with high brokerage fees) to import goods from US into Canada! If UPS will hear about it from importers hundreds/thousands times per day, they will definitely start to use new procedure.

Here is the link:http://trueler.com/2010/11/24/self-clear-shipment-cbsa-avoid-ups-brokerage-fee/

 

[IJ.]

How much are the fees?

 

[Canuckrz]

UPS absolutely ALWAYS fucks you over at the border coming into Canada. I've paid $35 in fees on a $25 used oil catch can from a member on here with the value declared as $25 and as a used car part.

And similar things have happened every other times with other items, such as the time I had something sent to my job marked specifically for me and had no mention of the business on it anywhere and they just went ahead and charged it strait to their business account. We didn't find out about the fees until the end of the month as they provided no paperwork on delivery so I had to track down all the information myself as we never have had to deal with tariffs at my place of work before. And of course they charged their usual ridiculously over the top amount.

More recently my brother had warranty service done on a turbo for his Volkswagen and when they shipped it back via UPS even though it was marked warranty they wanted to charge him $125 in fees. The interesting part is my mother called them up as no one else was home to deal with it at the time and after she talked to the UPS customer service people they cut the fee in half for her as some sort of one time only deal. Two things with that, one there shouldn't have been any charges PERIOD. Two, if the fees are something they're suppose to legally charge tarriffs on items how can they just cut the fees in half over a phone call.

Case and point, absolutely NEVER use UPS to ship something to someone in Canada. They are a bunch of thieves when it comes to charging brokerage fees.

Always ship it USPS if possible, when it arrives through Canada Post we almost never get charged brokerage fees, and that's through a government run postal service; go figure. DHL is also another good option, they generally do charge fees but they are generally reasonable. The only issue I had with DHL and brokerage fees is that they charge an excess line fee of a flat rate for every item after a certain number regardless of the items worth (it was $5 per item iirc). I got a bunch of small items for Christmas presents off of thinkgeek and they nailed me for $5 on like 8 or 9 items worth less than $7 because off the excess line fee on top of the standard fee.

 

[Enraged]

I have always been of the opinion to ship USPS, but if it's not an option for whatever reason, using UPS and then clearing the package yourself through Canada Customs is a good option. If you clear it yourself, they can't charge you brokerage fees.

IJ, the rates they charge are dependant on the dollar value of the item. They charge brokerage fees, bond fees, plus you have to pay tax on those fees. As Canuckrz stated, the fees can often be higher than the value of the item you are shipping.

Basically, if you call UPS and tell them that you are going to clear the package yourself, and they say that you can't, they are lying. They can't stop you from doing it, and they can't legally refuse to give you the info you need to clear it yourself. Canada Customs (CBSA) is not a department you want to screw around with.

 

[DOUBL3 D]

If you guys need things shipped internationally please inbox me and I can help you guys.


Sent from my ADR6425LVW using Tapatalk 2

 

[IJ.]

What happens if you drive across the border to collect it?

 

[destrux]

Sorry to say, this is why I don't ship to Canada anymore. I've had people angry with me over those fees even though I shipped it exactly the way they asked.

 

[Dan_Gyoba]

I have stopped using US vendors who insist on shipping via UPS only, both for personal and business purchases.

The last time that I used one particular vendor who assured me that they'd use USPS Global Express, I ended up paying UPS $73 in "brokerage and taxes" on an item with a declared value of $45. (I actually paid $52 CAD for it, which included shipping cost.) If I hadn't needed the item right away, I'd have refused delivery. I have refused delivery on some items where the "brokerage and taxes" was more than I'd have paid to go buy an item at a local retailer, and told the wholesaler that I wouldn't be using their services anymore.

 

[DOUBL3 D]

We ship DHL express to Canada all the time and it is expensive

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[Enraged]

If you guys read that link, it's actually pretty easy to avoid the brokerage charges.

If you live near the border IJ, there are lots of companies that simply recieve and hold packages for you. You simply drive across, pick them up, drive back. Declare them with customs, and 9 times out of 10 if you are honest, you won't even pay tax. There are some companies that will even receive your package from UPS, and then import the package into Canada, and do it for next to nothing.

Since I live on an island I can't just easily drive across the border, but there is a local business that flies in packages from the US and lets you clear them yourself.

My reason for posting this info is for people to be aware that they are not obligated to pay the UPS brokerage charge. Taking a few hours out of your day can save you a bunch of money.

 

[IJ.]

No probs, was just wondering, we have a free trade agreement with the US so don't pay Duty on anything under $1K, also less fees over $1k if it's made in the USA but you have to jump through hoops to make it happen, last UPS shipment I paid their fees without thinking, next one came with another carrier and I had to do the whole Customs/clearence BS, ended up handing it to a Broker to clear as my time/stress level was worth a lot more to me
(retarded tarrif legislation written 100 years ago made it almost impossible to calculate)

 

[DOUBL3 D]

Ian, we ship stuff to Australia all the time. I work for a 3PL that handles freight and small package stuff primarily for the performance industry. If you're looking to ship or receive without the headache let me know and we can help you out.

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[IJ.]

Ian, we ship stuff to Australia all the time. I work for a 3PL that handles freight and small package stuff primarily for the performance industry. If you're looking to ship or receive without the headache let me know and we can help you out.

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Thanks I'll keep that in mind

Last shippment I screwed up and didn't factor in a Trans tune (software via e-mail) on the invoice, that bumped it over the 1K limit and it turned to shit from there....

 

[DOUBL3 D]

Cool cool. I'm actually trying become a vendor here on SM, our goal would be to provide discounted freight and shipping services for members here. I won't hijack the thread tho, if anyone needs any info just PM me

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[IJ.]

Cool cool. I'm actually trying become a vendor here on SM, our goal would be to provide discounted freight and shipping services for members here. I won't hijack the thread tho, if anyone needs any info just PM me

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Have you applied to be a Vendor??
(can't see anything in the Mod Forum)

 

[Enraged]

We have free trade with the US as well, but we have to pay provincial and federal tax on packages. The brokerage charge from UPS is simply the cost of their services for filing the customs paperwork. It just happens to be completely ridiculous. Canada Post charges a $5 handling/brokerage fee IF they go through customs (because most of the time they just go through without any customs).

 

[DOUBL3 D]

Have you applied to be a Vendor??
(can't see anything in the Mod Forum)

No, I was unaware of the process (haven't looked into it yet). I was just going to PM Mike

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[Grandavi]

I do a ton of cross border shipping (from US to Canada). Anytime I use USPS.. free... anytime I use UPS.. minimum 60.00 fee.
I always ask my shipper to use USPS.. and if they use UPS.. I decline the purchase, unless USPS cant ship due to size.

My bodykit from Shine Auto cost me about 8 hours of time trying to do my own brokerage, but because my company name appeared it screwed it all up for me. I had to pay 165.00 brokerage on top of 200.00 shipping for 600.00 worth of parts.

Lived... learned...

 

[Dan_Gyoba]

@IJ Canada has free trade with the US and as such we don't pay a tariff on goods but the brokerage fee charged by UPS is barely short of robbery. It doesn't happen with other couriers' so I can't see why they charge so much
. Unless other companies are charging more up front (though they don't charge nearly as much more)

 

[ttsupra2503]

I live in Kelowna and UPS just tried to charge me 50 dollars for brokerage for 350 bucks of parts and bearings from driftmotion. Due to reading this thread I declined and chose to be my own "broker" and can pay the provincial taxes and pick up my item.

Thanks to the OP for alerting me about this stupidity. I never get charged for using fedex with rock auto... i guess I have to thank rockauto for being awesome and choosing a good courier.