UPS fees to ship parts to Canada

[euro518]

Hello all. I thought I should share this with everyone, although it is more applicable to shipments within NA it is a great example of buyer beware.

My most recent internet purchase from the US arrived via UPS. I chose UPS because it was listed as the least expensive on the online shipping form. To my surprise there was a $54.35 + GST brokerage fee. Although this was not made obvious on the order page, I [obviously] did not read the fine print (actually it was a minute link at the bottom of the page entitled "Shipping and Returns"). So, I am the one at fault. For the record, my order totaled $318.31 US + $15.92 GST not including brokerage fees

I sent UPS an email in this regard. Their reply: "UPS is a licensed customs broker and we are able to clear your shipment through customs at a very competitive price. Our brokerage fees are up to 30% lower than most major brokers."

I also emailed the retailer that I purchased the parts from in the US. The owner sent the following to me in an email: "Also, for Canadian delivery I always recommend using USPS (United States Postal Service) vs. UPS. USPS will cost slightly more upfront, but you will not incur brokerage fees on your end. UPS is usually slightly less for freight, but they charge very steep brokerage fees."

Too bad he wasn't the one handling my order. Lesson learned.

I then visited the UPS site to check what their brokerage charges would be and then asked for a breakdown of my charges. I figured that I should pay $44.25 but I was charged just over $54. Here is their reply:

Dear Kevin,


Thank you for your reply. The following is the breakdown of import charges on your Brokerage COD, based on the customs value of $ 318.31 CAD:

COD CHARGE $4.25
This is a UPS fee, to cover the cost of collecting the funds in this manner.
COD GST TAX $0.21
The Goods & Services Tax on the COD fee.
BOND FEE $5.85
Bond fee is a UPS fee for UPS having to pay duty and/or taxes to the government on behalf of the importer.
ENTRY PREP FEE $ 44.25
Entry preparation charges are a fee for UPS processing the paperwork for a package to clear Customs.
BROKERAGE GST $ 2.51 (The Goods & Services Tax on the Brokerage charges.)
CUSTOMS GST $15.92 (The Goods & Services Tax on the Canadian value of the goods.)

TOTAL $72.99

So, UPS is charging $4.25 to collect their own brokerage fee since I paid for my items and shipping by Visa online before anything was shipped. The Bond fee of $5.85 is a fee for UPS to pay the GST on my behalf. The GST came to $15.92. In summary then, I was charged, on top of the brokerage fee of $44.25, another $10.31 in fees and GST on fees. For the record, I checked with USPS and they would not have levied any other charges, save for GST which came to $15.92, a savings of $57.07!

Kevin

[euro518]

[BenW]

Kevin,

The same applies to parcels sent from and to any other destination. UPS charges a hefty brokerage fee which isn't very obvious when you go on their website. It happened to me twice when ordering items from the US, but now I do remember this fact quite well and choose either DHL or some other service instead.

Cheers,
BenW