I wrote previously about the extortionate “brokerage” fees charged by UPS and FedEx for imports into Canada. That post has attracted a huge volume of response from other enraged people. I have learned more since then, including an interesting response direct from the Canada Border Services Agency.
If you contact UPS, they’ll tell you that you can indeed clear your package through customs yourself, but you have to do so at the customs office in the same town as the UPS depot where your shipment is being held. For me, receiving shipments into Ontario, it would either be Fort Erie or Windsor. They can’t tell you in advance which it will be. But either way, it’s a long drive.
One option that might be acceptable for some people is to use a shipping depot inside the US. You just have your package shipped to the depot. They’ll hold onto it for you until you come get it. Some of them, remailing services, will actually ship it on to you themselves, but then you may end up getting the same brokerage treatment again.
I was considering trying CBI Usa in Niagara Falls, NY. Their rates seem very reasonable, they’re easy to use, and I’ve seen mostly positive experiences reported on the web. But still, it’s a regrettable amount of driving.
I contacted Canada Border Services Agency by email to get their take on doing your own customs clearance:
I’m trying to find a way to import a package by UPS from the US. I refuse to pay their extortionate brokerage fee. I would sooner burn the money than gave it to those bastards (more colourful terms come to mind, but I’m trying to keep this polite.)
As I understand it, I have no choice but to deal with the Customs office in the town where they hold my package, which is going to be either Fort Erie or Windsor. I don’t know why that is, there’s a customs office at the KW airport 15 minutes drive from me, but there it is. But UPS can’t tell me which in advance which office the package would go through. I’d guess Windsor.
After I found out which of those two offices it was, would it be possible for me to complete the clearance process by phone, fax or Internet? It’s a simple process, right? I just give you the Harmonized Codes, you calculate what I owe, and I pay you, probably by credit card. No part of this strictly requires my physical presence. I can’t see any good reason why, in this day of high-speed Internet in every home, I can’t do this whole process in my pyjamas from the comfort of my bedroom.
If we can’t figure out a reasonable way to do this without uselessly converting another tank of fuel into greenhouse gases, then it just won’t happen. I’m not going to pay off those UPS criminals to do this trivial thing (and probably do it wrong) on my behalf. Or rather, it probably will happen, but it will happen by way of me driving to the US to pick up the package myself from a maildrop service. It’s actually a shorter drive to Niagara Falls, NY than to Fort Erie.
But it would be really damn stupid for me to have to do that. There has to be a better way. Tell me what it is.
When I said UPS would probably do the clearance wrong, I wasn’t kidding. My first ever experience with courier brokerage was some X-10 home-automation gear imported via FedEx. After I learned more about this stuff, I figured out that they had use the wrong Harmonized Codes for some of the gear. Because they basically had no idea what the stuff was, they were just looking for similar-sounding words. Fortunately, the codes they picked had the same (ie, zero) tariff rates, so I didn’t get burned that way.
CBSA’s first response to this email was unhelpful, merely referring me to web-pages about Licensed Customs Brokers, and Importing Non-Commercial Goods By Mail. Both of which I had already read, and which did not address the essential question: can I deal with customs at my local office, or by phone, fax, or email, and if not, why not?
After a long delay, I received a second rather more helpful response:
This is in response to your e-mail concerning the clearance of non-commercial goods imported by courier. It should be noted that your inquiry was originally forwarded to Canada Border Services Agency (CBSA) Client Services in Windsor, Ontario, who attempted to contact you in person to discuss your concerns. Client Services was unable to reach you, thus requiring the preparation of a written reply, and hence the delay in responding.
In some instances, an individual who has imported goods by courier may wish to pay the duties and taxes owing for a shipment released under the Courier Program rather than using the accounting services of the courier or agent. Such shipments do not have to be accounted for at the office of release, but may be accounted for at any CBSA office. In situations such as these, the courier does not automatically release the shipment to the importer, but holds the goods until the importer presents satisfactory proof that the appropriate duties and taxes have been paid directly to the CBSA. In most cases, this would be a copy of the B15, Casual Goods Accounting Document. The importer is responsible for contacting the courier to make the necessary arrangements for this type of transaction.
It should be noted that every person who accounts for casual goods should provide, at the time of accounting and before the goods are released, a commercial invoice, current price list, bill of sale, or other similar document that describes the goods and contains enough information to enable an officer to determine the tariff classification and appraise the value for duty of the goods. In the case of courier shipments, the importer must also provide the unique shipment identifier number assigned by the courier to his or her particular shipment.
Payment of any applicable duties and taxes on casual importations can be made in cash, by money order, traveller’s cheque, bank draft, cheque, Visa, or MasterCard. Payment by debit card is also available at a number of sites.
Although the CBSA allows approved clients to transmit data electronically, this is not the case for casual, non-commercial importers such as you. Accounting for your goods must be done in person, and any monies owing must be paid at the time of accounting.
For additional information and/or clarification on accounting for casual importations, please contact Border Information Service (BIS) by telephone. You can access the BIS line free of charge throughout Canada by calling 1 800-461-9999. If you call during regular business hours (8:00 a.m. to 4:00 p.m. local time, Monday to Friday, except holidays), you can speak to an agent by pressing “0″ at any time.
Thank you for contacting the CBSA.
Now that’s more like it! Straight from the horses mouth: UPS is full of shit. You can do your own customs clearance at your local customs office, you don’t have to drive to Windsor or Fort Erie!
Here’s a forum posting where a guy (“Drehkraft”) claims to have done it (“UPS REALLY hates this.”). He even used the same Kitchener airport terminal customs office I would use. I stopped by that customs office and asked them in person if I could do it, and they said it was no problem from their end.
That said, I haven’t yet actually done this myself. It remains to be seen if UPS will throw up arbitrary obstacles (“the B15 document must be faxed to us on yellow paper between 3:00am and 3:01am.”) But there is some homebrewing gear I’ve been planning to buy, hopefully I’ll get around to trying it soon.
heres what the main article at the top says.
FedEx: The only FedEx shipping method that charges brokerage fees is “FedEx International Ground”. “International Economy”, “International Priority”, and any other FedEx package shipping method has the brokerage fees included, and you will not have to pay them.
so if i tell the seller to send the product i buy off him as a international next flight or direct-distribution, i wont have to pay ridiculous prices once i recieve the shipment right? the courier fees are included?
The customer officer wants to see the package, so you do have to goto the depot where the package is held. You can declare the package your self, but in order access the value and to inspect it.
UPS is HORRIBLE! I once ordered a $10 book from the U.S. and was charged $40 in “handling fees” from UPS. I have no problem paying the taxes or duty owed – but on a $10 item – that does not amount to $40!! It is highway robbery.
Now, I only have items shipped via USPS. I *never* pay outlandish handling fees – only the taxes owed plus $5. Simple and painless.
I hate, hate, hate the UPS.
Thank you for spreading the word. Hopefully more Canadians will realize they have other options.
I agree…I really hate UPS more than ever with a passion. If I can I try to avoid using them, but in some cases US sellers seem set on shipping with them. Just today I received a parcel marked as a gift,declared at 250 and the brokerage fee was 80 friggin bucks. I actually ended up paying the seller 75 US for the shipping and asked what service within UPS that would buy me..I know full well that 75 will buy me express..or a service that would have paid the brokerage up front..but the fool sent it standard and I had to pay the additional 80 to receive.This was the first time my money towards shipping was held hostage by a seller (feebay)..to do as they pleased as far as picking the cheapest method and to pad their pockets with some extra cash. So another lesson I learned from this is to not put your faith in a seller to do the right and legit thing when overpaying upfront for shipping..when assuming to get either an upgraded shipping option through UPSor a refund of the overcharge when the cheapest option was payed for.I got the point that this seller felt as if he was going above and beyond allowing myself..a Canadian buyer to buy his item. Damn…some people and UPS brokerage…U can suck it!!
ups is the best. if i had my way, they would be the only delivery service. on time, very cheap rates. they are the very best.
Al
Anyone have any ideas on what I should do next, they seemed to have thrown up a roadblock that I don’t really know how to get around.
Dear Gino,
Thank you for your response.
We cannot facilitate the request for customers to clear their shipments at any other location than our Canadian ports of entry. In other words, we cannot transport a shipment and / or paperwork to a customer in Calgary, when their shipment is importing through our Winnipeg port of entry, for the following reasons:
Even though UPS is a bonded carrier, we restrict in-bond movements to the first point of arrival. (One of our UPS Canadian ports of entry.)
UPS provides carrier and brokerage services – not in-bond transportation services as the cost associated with the service usually becomes more than the freight and brokerage fees combined.
The process to fax paperwork to an alternate customs office, allowing a customer to clear their shipment at a location other than one of our UPS Canadian port of entry, is not feasible, practical or cost effective for both UPS and our customers for these following reasons:
Additional fees associated with this type of service are generally beyond what customers are willing to pay. (Service fees, administrative costs etc.)
There would be substantial delays in the clearance of shipments involved with this service.
The self-clearance process requires the customer to have a working knowledge of Canada Customs’ practices and procedures including the completion of a B3 – Canada Customs Coding form, HS classification regulations – not to mention the time associated with completing all the steps required.
Ultimately, it would be at the discretion of Canada Customs of whether or not they would provide a stamped release to the customer. There could be instances where a licensed broker would be required.
I sincerely apologize that I am unable to assist you further at this time.
Please contact us if you need any additional assistance.
UPS sucks. I just received a gift from US, my friend put value of 100 USD, I end up paying almost CAD50. Over $40 is UPS brokerage fee. Go through post office will be much better. Never use UPS!
Fuck UPS and their fees.
I have approx. $1000.00 of kitchen cabinets that I would like shipped from OHIO to Ontarion and suggestions regarding a carrier
I have approx. $1000.00 of kitchen cabinets that I would like shipped from OHIO to Ontario any suggestions regarding a carrier
UPS tried to gouge me with a very high brokerage fee. I told them to send it back, and what, would it cost them to do so. I also asked what would happen to the brokerage fee on the return trip and was told that it would be voided. They would not reroute to a friend in the US. I told them send it to UPS Buffalo and mail it. No they would not. So I told them to stuff it. Keep them on the phone long enough and they will relent. This is now the fourth time that I enjoyed a waiver (3 of 4 times) or reduction (this time to half the brokerage fee), each time was told by UPS customer service that it was a one-time consideration. Argue with the pr%!#ks.
Where I have a choice, I use the USPS — be sure that you tell the shipper to use the US POSTAL service otherwise, if the line is bad or they are on autopilot it goes UPS not USPS. At the post office, I pay the tax, and take home the package. Nice.
I have started telling us sellers to send USPS or we wont do business, they usually do. Yesterday one seller sent UPS despite promissing to send USPS, so I rejected the UPS package and sent it back for a full refund.
FUCK YOU UPS!!
I was charged $80 for a $200 item.
Never again. From now on I will tell seller to ship USPS or I won’t accept package.
UPS IS REALLY BUNCH OF THIEFS – AVOID THEM
I ordered an item from USA to Canada with ebay
Price item: 155 $
I also paid 18 $ for shipping
When i received item, I also need to pay Brokerage C.O.D. due: 62 $
I to agree with all of you,UPS charged me $30.00 brokerage fee on a $70.00 item, my total fee was $56.00.I Layed into thier brokerage department.I wrote the UPS guy two checks one for my taxes and duty, and one for the brokerage fee. I have stop payment on the brokerage fee check, I already told UPS thats what I was doing. The girl who works there was trying to tell me repeatidly that the brokerage fee is seperate to the shipping costs,I was so mad I screamed at her saying you can call it what you want and put bows on it ITS STILL A SHIPPING FEE you did nothing but bring the package to me.I cant believe after having so many complaints and angry Canadians why has no one taken them to court for fraud.They collect money from the shipper than collect money from the shipee there has to be a law about it.I know for a fact Cashloans has a class action suit going on for the exact same thing ,the money that is borrowd from them is way more than taxes on a $70.00 item. UPS will be brought to their knees I will not let this go lets get them CANADA!!!!!! And I don’t mean write a letter ,let them feel the pain through their wallets LOL!! .
I’m an Canadian ex-pat in the UK. I ordered about 100 dollars of clothes from the states plus 30 dollars to ship it. They only asked for 10 pounds but that is still more than 10 percent. I paid the customs portion and no more. They have sent me loads of letters telling me I owe them and that they will try to collect the debt owed to them. I haven’t heard anything for ages though so I assume they can’t do anything if you don’t pay.
The LEAST EXPENSIVE SOLUTION:
One: You’re not going to get around paying taxes to the Canadian government. If materials ship are manufactured goods originating within NAFTA countries they are exempt from duties. You still pay GST and PST. If say the same item comes from Germany you may pay 30% Duty, plus your GST and applicable PST.
Two: The brokerage “fee”. This is where the courier makes their gravy. They pay out the duties if applicable and taxes, then charge you threw the nose for providing this service.
Three: How to avoid paying Large brokerage fee, remember the taxes and duties you are going to pay, the difference is $5 for the privilege or $50 on top of the duties and taxes. Simple: Have your sender ship it by their local mail service, i.e. US Postal Service, Deutch Post, whatever. Usually cheaper than a courier for the same level of service and because of International Postal Agreements, it comes in and is cleared through by CBSA at a Canada Post center. They charge a flat fee, like $5 or $8 for this, the taxes and duties you still pay, but not the $20 to $30 fees I’ve paid with the courier companies. The courier companies in some case ship through Canada Post to clear the customs and back into their system. Cut out the middle man. Besides your “taxes” have already paid for CBSA, why pay twice? Go Postal! Seriously…
CANADIANS, LET’S VETO UPS! Seriously, the only way to defeat a large, money-hungry company like this is to take away the money. DO NOT order USP, PLEEEASE. We are all clearly fed up and angry so let’s band together and refuse companies that only offer UPS service. It sucks for the nice US companies who don’t know about the exorbitant brokerage fees and it sucks for us potentially missing out on a product but something must be done here! NO UPS FOR CANADIANS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
If you have a CBSA office reasonable close to you, than you can pay the duties and taxes your self and avoid the brokerage fee. Here is how:
A courier need your permission to represent you as a broker. The authority for this is found in D1-6-1 http://www.cbsa.gc.ca/publications/d…d1-6-1-eng.pdf
“4. Any person who proposes to transact business with CBSA as the agent of another person is responsible for ensuring that the proper authority has been granted. The written authority is often referred to as an agency agreement or a power of attorney.”
This means of course you always have the right to clear your goods yourself or using any broker you want. Generally couriers get permission to act as your broker when you sign for the goods, in fact the LVS (low value shipment) regulations specifically allow for them to do this, however they also give you the right to decline to use them.
Now I should mention the information I am referencing for this post is only LVS courier casual goods. That means the goods have to be valued at under $1600 Canadian and not be controlled, prohibited or regulated by an act of Parliament. To qualify as Casual the goods have to be for the personal use of an individual and not be commercial goods.
We find the regulations for LVS courier goods in D 17-4-0
http://www.cbsa.gc.ca/publications/d…17-4-0-eng.pdf
“1. The Courier Low Value Shipment (LVS) Program streamlines the reporting, release and accounting procedures for certain goods imported by courier. Couriers authorized by the Canada Border Services Agency (CBSA) to participate in the program may have qualifying goods released by presenting a cargo/release list to the CBSA. To qualify under this program the goods must:
(a) be valued at less than CAN$1,600; and
(b) not be controlled, prohibited or regulated by an Act of Parliament”
So what does LVS mean?
from D17-4-0 again
“11. The cargo/release list for authorized participants of the Courier LVS Program is to be used in place of individual cargo control and release documents for goods valued under CAN$1,600. The list must be presented to the CBSA by the courier before or as soon as the shipments arrive in Canada. It must contain a concise description of the LVS qualifying goods so that the border services officer can determine the admissibility of the goods.”
So the courier gives customs information on the goods they are bringing in to Canada.
Next if the goods are not being released at the office they enter Canada at they can move inbond to the office of release. This is important to note because UPS will often argue that the goods have to be released at the office of arrival but this is not true and we know it is not true because the LVS regulations tell us so.
Again from D-17-4-0
“16. When Courier LVS goods arrive in Canada at an office other than the office of release, the in-bond movement of the shipments to the office of release is permitted, provided that the entire container or load is moved inland.”
So the courier following these regulations moves your LVS parcel in bond eventually to a distribution centre near the importer. At this point the goods have not been accounted for, that is no duties and taxes have been paid yet, and the courier can not release them to the importer until they have.
So now the goods are in the UPS warehouse near your house and they bring them to your door. Lets see what the D 17-4-0 says about what happens next.
“Release and Accounting
54. Once the CBSA releases the casual goods, the courier delivers the shipment to the importer. The duties and taxes owing are paid by the importer to the courier. Afterwards, the courier or its agent accounts for the goods on an “F” type entry which is presented to the CBSA before the 24th day of the next month, with the duties and taxes payable by the end of that month.”
Ah so you pay the courier your duties and taxes (and brokerage fee), receive your goods and then the courier goes ahead and acts as your broker and pays the duties and taxes with an F type entry the next month.
So what happens if you decide you don’t want to pay the duties and taxes and brokerage fee to the courier? Surely the regulations state that the goods have to go back to the office of arrival right? and you have to pay the duties and taxes at that office right?That’s what UPS told my friend. Wrong.
D 17-4-0
“56. If an importer wishes to account for the goods himself or herself, the courier does not release the shipment to the importer but holds the goods until the importer presents satisfactory proof that the appropriate duties and taxes have been paid directly to the CBSA. The importer must note the unique shipment identifier number and contact the courier to determine where the goods are held in a bonded warehouse until the release is effected.”
So the courier hangs on to the goods which are still in-bond at their warehouse. The courier must provide the importer with information as to where the goods are, what the unique shipment identifier number is (they would have provided this to customs earlier as part of the cargo/release list noted in section 11). Now you the importer can take that information along with a bill or invoice from the shipper to your nearest customs office and get a B15 done for free. Customs will do all the work. Take that back to UPS and then as noted in section 56 of D17-4-0 they must release the goods to you.
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Now simply put if a courier, say UPS, arrives at your door and you refuse to pay the duties and taxes, you want to do this:
Ask them where the goods are going now, which will be the nearby warehouse. (they may threaten to take them back to the border warehouse but this does not make sense from a economical sense on their part, is not supported by the LVS regulations and even if they do you can still clear your goods at the office closest to you)
Next ask for the unique shipment identifier number.
Print out a copy of the invoice from the shipper (most online shippers email this to you if not request a copy after you place your order)
Take these three pieces of information with you to your nearest CBSA office and ask for a B15.
Return to UPS with your B15, which will show you paid your duties and taxes and receive your goods.
If they give you any kind of hassle print out a copy of D 17-4-0 to support your right to clear the goods yourself and show that the goods do not have to be accounted for at the border entry office.
Armed with this information my friend was able to get a number from UPS that he brought to customs and was able to get UPS to accept a B15 and release his goods.
Hope folks that are forced to use a courier find this useful. Knowledge is power. By the way all the customs regulations can be found on the CBSA website at http://www.cbsa.gc.ca/publications/dm-md/menu-eng.html
UPS charged me a $35 “brokerage fee” on a $45 item. The total cost of shipping + brokerage fees was 130% the actual value of the item. WTF?
I’ve only used UPS once for cross border shipping and it was pretty epic fail. Charged a $60 broker fee for a $150 gift. Since then, I only ask for USPS between US and Canada shipments to avoid any fees depending on the value thresholds (20/60 with ‘gift’ marked)
Thank you for this post and the post on LVSinfo. It has saved me money and (hopefully) will result in my package being delivered tomorrow. With the above info in front of me I managed to have the $33 brokerage fee (on a $40 DVD + $15 shipping) waived (just this one time, they said).
My conversation was almost verbatim what is posted above, though I had the additional barrier that the customer service rep continually said she was sorry but she didn’t have a unique identifier for the package, only a tracking number. I tried to argue that if it was imported, there HAD to be a unique identifier number assigned by customs. I eventually asked for her supervisor and am going to pay a mere $2.04 in taxes when they redeliver. I am holding my breath that all’s well that ends well…
Thank you again for this info –I wouldn’t have had a clue what to do.
I have cochlear implants, for artifical hearing I sent my processors to Ontario to be repaired and calibrated using Fed Ex. I was told there might be a charge at customs but not about the brokerage fee or document. Got the broker’s document to FedEx Toronto to take care of customs. These are prothetic devices for hearing – medical equipment. I put a value on them of $8,000.00 – $4,000.00 each. Do they charge me a type of sales tax? They were shipped Temporary Import.
Does anyone have any ideal how much my fees will be?
I shipped priority and my next day delivery has so far taken 4 days to be delivered. Any guess on once they are repaired how long it will take for them to be shipped back to me – I enclosed return box, airbill with FedEx acct. number along with commerical invoice.
uuh – i should have checked the web before ordering some lights in the us for my canadian summer home. nearly 400 dollars brokerage fee for 1000 dollar items and at least ups did everything wrong at the customs as they declared a too high value.
f*** UPS – do not use UPS. UPS is highway robbery par excellance.
Another options for larger items is to use a company like A&A customer brokers. They will still charge you, but they have rates that are much more reasonable than Fedex and UPS.
Another story from hell: product is made in Canada!, but it is shipped from US (long story)… anyway, for a US$160 product (and with free shipping), brokerage fees + HST = $57.76. I missed to ask for USPS shipping as it is usually shipped from canadian warehouse.
Anyway, following the excellent advice from “LVSinfo” I phoned UPS. It took me 25 minutes of arguing over the phone as they kept saying that it has to go back to Ft. Erie and that I can not clear it anywhere else but there. I have asked the lady who was apparently in “brokerage” business for a long time if she had a copy of D 17-4-0 so we can go through it together while on the phone but she did not have it in fron of her. Anyway, as I was not going to pay them brokerage fees as I have never authorized UPS to act as my broker to which even she agreed, finaly I told her to send it back to Ft. Erie and I will pick it up there with my B15. Oh, she did not know what “unique shipment identifier number” was, so I was going to use tracking number for that anyway and get my B15 at Pearson….
So this is when she told me that “this time only” UPS will waive brokerage fees and charge me only GST+PST…
So I said this is LAST time I used UPS ever, so there will never be another chance for them to do that…..
I had no experience with UPS system.
I bought item of app.$1000 on ebay from US seller, and today I got the delivery notice that I need to pay $208.99 for brokerage fee. I can’t believe!!! Now I have no option, but pay the fee to get my package. I hate UPS! This is why it was so hard to find US seller who is willing to ship the item to Canada.
I had no experience with UPS system.
I bought item of app.$1000 on ebay from US seller, and today I got the delivery notice that I need to pay $208.99 for brokerage fee. I can’t believe!!! Now I have no option, but pay the fee to get my package. I hate UPS! This is why it was so hard to find US seller who is willing to ship the item to Canada.
Remember – if its brown, flush it down!
UPS markets themselves very aggresively to Americans. Therefore many American companies use UPS exclusively. I find US companies do not understand global trade very well. UPS always tells them the complaints they are get are “duty”. We all know this is BS. Canadians have not paid duty on American products since 1992 when the Free Trade Ageement came in. UPS loves to charge huge brokerage fees and file them as “duty” on the invoice.
I will not shop with anyone who ships UPS. That simple. One company I deal with insisted on it for a large wholesale order once. UPS delivered it without issue. Strage. Then they charged a “duty” of $300 to the shipper. He checked the box saying he was responsible thinking this meant for the shipping fees. The fake duty was just that – fake. I have a dedicated broker and all my info was on the shipment. So that US merchant learned the hard way and finally gets it. Its not us Canadians or “duty” – its UPS being lying scumbags.
Similar to Fedex International Economy / Priority, the UPS Worldwide Expedited or Worldwide Saver does not charge additional brokerage fee because it is included in the price. The final cost of shipping using these 2 service should be a lot lower than using UPS Standard, which has the brokerage fee and handling fee tagged onto at a later stage. But then of course if the retailer can ship via USPS I will use that instead – only CAD$5 handling fee + taxes, nothing can beat that.