UPS brokerage fees, and how to avoid them!

teeroy

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I've been burned by them before, and learned my lesson not to use UPS. So I only buy from the US if they ship USPS but the shipping is a lot slower and poor tracking information if any at all. The thread I started on commander doors got me investigating again and I came across this site....
UPS/FedEx Brokerage Fee

On this site it explains how to self clear your items if they are shipped by UPS, and pay directly to the gov't any taxes owed on your shipment therefore acting as your own "broker" avoiding the outrageous UPS brokerage fee. The downside is that you pretty much have to live near a Canada Borders Service Agency office (Edmonton, Calgary, or points south) to make it worthwhile. There's a lot of reading to go through, but plenty of testimonials of how it is done and what you need to do it yourself.

It also talks about Fed Ex, and how they choose to get you with their brokerage fees. They bill you after a period of time that prevents you from self clearing because they have already remitted your fees for taxes to the gov't. Lots of good info here, check it out!
 

Cyle

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Yes, but pretty sure you need to go to the airport to do it, not worth the hassle for most things. Better off most of the time to just deal with USPS. That way ups and fedex get no business at all. If you must use one of them, a lot of places now include ALL fees ahead of time, and they are pretty reasonable.

But if they send you a bill later it's the best. Because you got your item, and can negotiate with them, and tell them to go fawk themselves with their high fees and only give them a reasonable amount. They have no recourse once you have your item, they've sent it to collections on me but it will never amount to anything more then a letter and phone call. As long as you sign nothing, they just drop it off they can never put it on your credit. But I don't think any of them are doing it anymore, because they aren't collecting their insane fees when they do it.
 

eclipse1966

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when you get the "clearing" bill from either courier company you call them and ask them to show you proof that you authorized them to clear the goods for you. I have done it several times and never got harassed after. Basically they need to give you the option to have your own agent to clear it (which I have) or they do it on your behalf. A lot of people dont know this.
 

79TXL

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Wow thanks....I must have handed them over $500 in the last 2 years....
 

teeroy

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when you get the "clearing" bill from either courier company you call them and ask them to show you proof that you authorized them to clear the goods for you. I have done it several times and never got harassed after. Basically they need to give you the option to have your own agent to clear it (which I have) or they do it on your behalf. A lot of people dont know this.
that is the jist of the class action lawsuit against them as well. they act as your broker without informing you that you have a choice. even if you don't pay the bill to UPS or Fed Ex, you are still on the hook to pay your taxes on the item. is it worth it for Revenue Canada to come after you for it? not likely.
 

goodngrubby

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I ship and receive 20-30 packages a month....mainly by ups....they're a bunch of rope sucking sperm burpers. I've had more than my share of greif with them, but they're still the most viable mode of shipping for me. If you ship or receive via ups air, not standard ground, all the brokerage fees are waived. You will still have to pay gst on anything coming into Canada, and import duties if it was manufactured overseas, but the higher rate works out close to the same as the brokerage fees....plus it gets here at least a week earlier. Just my experience....I'm sure everybody else's will be different.
 

teeroy

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I ship and receive 20-30 packages a month....mainly by ups....they're a bunch of rope sucking sperm burpers. I've had more than my share of greif with them, but they're still the most viable mode of shipping for me. If you ship or receive via ups air, not standard ground, all the brokerage fees are waived. You will still have to pay gst on anything coming into Canada, and import duties if it was manufactured overseas, but the higher rate works out close to the same as the brokerage fees....plus it gets here at least a week earlier. Just my experience....I'm sure everybody else's will be different.
that's correct, no brokerage fees using UPS Expedited or air, extortion fees only apply to UPS Ground shipments. UPS Ground is a lot faster than USPS, wish I lived closer to a CBSA office to try it out.
 

OVERKILL 19

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I just just spunked in the rear today....$110 on top of my $150 shipping bill for a bender! Ba$$tereds
 

DaveB

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I'm with Teeroy...burned enough times that I just won't order anything from the USA unless they will ship USPS. I will wait the extra week. The last straw for me was a Peet boot dryer a few years ago...I think it was 95 bucks. UPS asked for 75 bucks at the front door. I refused the package and told him to F off.
 

eclipse1966

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for years anything shipped via Fedex would not be subject to this brokerage fee and they would only call you if customs pulled your parcel out of the line. UPS has been charging the brokerage fee for atleast 20 years. Unfortunately Fedex is now set up similar to UPS. Something to keep in mind, you will always be responsible for duties and taxes applicable but they have no right to charge you the actual fee to process the paper work unless they call you and get your blessings.
 

snopro

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I'm with Teeroy...burned enough times that I just won't order anything from the USA unless they will ship USPS. I will wait the extra week. The last straw for me was a Peet boot dryer a few years ago...I think it was 95 bucks. UPS asked for 75 bucks at the front door. I refused the package and told him to F off.

Thanks Dave! So your the reason UPS pulled out of there sponsorship of the #6 RFR Ford in Nascar this season. HaHa.
 

DaveB

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Thanks Dave! So your the reason UPS pulled out of there sponsorship of the #6 RFR Ford in Nascar this season. HaHa.
I won't tell ya what I think of the professional smash-up derby.....er Nascar I mean. Hahaha
 

jaredszakacs

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it's an absolute joke! I live 45 minutes from the border and even supplied the brokers with my tax # I ordered up about $1950.00 in parts for my shop and get hit with $97.5 tax no prob expected that, $45 shipping no prob expected that one to, then ups brokerage fee came in at $201.65 WTF!!!! I called ups to ask why i paid that much and they said it was there standard fee I told the lady $200 to type in 10 minutes of paperwork with my tax number and it costs over $200 she said yes that is standard. I'm now back to driving myself across the border and back to pick my parts up. Sorry bout your badluck teeroy these brokers are crooks!
 

SavageCanuck

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They don't call UPS the Brown Bandit for no reason.Its been years since they burned me.They got my wife good recently though as she thought she could order online without my or my sons help.I insist on USPS or most times I have things shipped to the border and then drive across and pick it up my self.The money I save on the free shipping in the lower 48 usually pays for the trip.Avoid UPS at all costs.
 

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Just ordered a new ready to bolt in head for a landcruiser from Florida, expecting to pay UPS $150 and paid $60 for shipping, if all works out as it should I'll still be saving over $500-600... Only way I could justify using Ups... I will add to the post if it looks like it'll be different than what i expected
 

Trukker

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it's an absolute joke! I live 45 minutes from the border and even supplied the brokers with my tax # I ordered up about $1950.00 in parts for my shop and get hit with $97.5 tax no prob expected that, $45 shipping no prob expected that one to, then ups brokerage fee came in at $201.65 WTF!!!! I called ups to ask why i paid that much and they said it was there standard fee I told the lady $200 to type in 10 minutes of paperwork with my tax number and it costs over $200 she said yes that is standard. I'm now back to driving myself across the border and back to pick my parts up. Sorry bout your badluck teeroy these brokers are crooks!

Mailbox in Eureka Silly ...........Then also drivers of mine that like to get gifts.
 

blar

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So who has actually cleared their own shipments? I have a shipment coming in on UPS and got a call from them asking if I wanted to pay in advanced for clearing. They quoted me $39.00 + for my $109.00 shipment. I told them I was going to clear it myself then and what I needed for paperwork. They told me I needed a B4 form and had to take it to a customs clearing agent. I did some google searches and found 2 addresses 101-3623 - 44th Avenue East & 1357A, 1000 Airport Road. Both at the [FONT=Verdana, Arial, Helvetica, sans-serif]Edmonton International Airport. Which location is it? Do I need any other paperwork besides the B4 form and vendor receipt?[/FONT]
 

blar

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I sent an email to the CBSA yesterday and they sent back the following;

You have the option of refusing the brokerage services offered by the courier company, choosing instead to clear the goods yourself at the local Canada Border Services Agency (CBSA) office. If you choose to self-clear, there are two options available to you.

To self clear, you must have some information from the courier company. You need the shipment “unique identifier number” which is the number the courier company assigns each shipment. Also, the courier must advise how you can provide them the proof you paid the CBSA duty and taxes.

Option one is, prior to receiving your shipment, you contact the courier company and inform them of your wish to "self-clear" any shipments. The company will explain their procedures to you.

Option two is, when the courier delivers the shipment to you, you refuse delivery and advise the courier of your intention to self-clear. You must record the ‘unique shipment identifier number’. The shipment will be returned to the courier's warehouse to await your clearance.

With either option, you must go to the local CBSA office to account for the goods. You provide the courier's name, the unique shipment identifier number, and an invoice from the exporter that clearly gives a description of the goods and give the value. When you have paid the applicable duties and/or taxes to the CBSA, you will be given a receipt indicating that the goods have been accounted for. The courier company must have a copy of this receipt before they release the goods.
The office address for the Edmonton International Airport Commercial Office is:
101-3623 - 44th Avenue East
Edmonton International Airport, AB
T9E 0V4

This office is open Monday to Friday, except holidays from 8 am- 4pm.

I'm going to try this and see what happens...
 

blar

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Just an update... For my $110.26 shipment UPS was going to charge me $46.72 for brokerage fee's and taxes. By clearing customs myself ended up only having to pay $5.51 for the GST.
 
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