Automatic Import Brokerage

[dipmicro]

Anyone can comment on based on what Canadian legislation can a carrier assign brokerage charges without consent?

I normally pay my UPS and DHL brokerage invoices no problem. Few weeks ago I received invoice from TNT, where value for customs was $22.24, GST on goods $1.12, brokerage fee $25 and brokerage fee GST $1.25 totalling $27.37.

Replied with check for $1.12 and message that I disagree with brokerage charges that were disproportional to customs value and billed without previous consent. Shipping documentation contained my phone number yet nobody attempted to obtain that consent. I got collection notice and decided to dispute it, not because of $25, but because in my opinion the practice of auto-brokerage, although widely accepted in the industry, may be actually illegal.

And question for those who have some legal experience - what legislation allows anyone act as someone's agent without previously obtaining Power Of Attorney authorization? When I was opening UPS brokerage account, I did actually, provide POA for the purpose of clearing my imports.

[surplusdealdude]

I think you're whistling in the wind and yelling at the wrong people.

It's apparent that the seller shipped the goods with TNT and he was acting as your agent when he did so.

He should have checked with you, truer, but the carrier wasn't at fault for that.

In fact, they likely did you a favour, as the alternative would have been to ship them "in bond" which is incredibly expensive ( the fee for the bond is at least $80 alone).

And, of course, if it had been UPS, charges would have been higher.

So stop being a PITA with them and pay the bill.;-)

[pierrelebel]

"if it had been UPS, charges would have been higher"

Not really. Take a look at their fee schedule through this http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html

For a shipment with value under $40, the UPS brokerage fee is $7.00 (plus disbursement plus COD fees)

[recped]

If you wish to choose the broker you need to tell your supplier so that they can instruct the shipping company.

[futuretech_liquidations]

Looks like you need to get a call into your shipper and have a discussion with then about the best way for them to ship your goods to you.

Most times a good telephone conversation between you and the shipper can prevent further surprises down the road.

All carriers will try to charge any and all applicable fees when handling your goods as this is how they make the bulk of their monies.

Also feel free to call CBSA and speak with an agent to get a better understanding yourself of the types of charges you might incur on the goods you are importing and especially the proper codes and description you should be using on the forms that accompany your goods.

Now use this new found information to educate your suppliers shipper to make sure he preps your future commercial invoices the way you want them to be filled out as this information will be used to levy the and and all charges you may incur on those goods.

A simple addition error could mean a big difference in what you are charged - well worth the investment of your time and a few phone calls.

Good luck

TIM @ FTL

[dipmicro]

Everyone, thanks for the replies. Who is interested, check this out, good readable and condensed overview of similar: http://www.poynerbaxter.com/UPS/2009%2006%2004%20Judge%20Goepel%20re%20certificaiton.pdf

Registered/courier communication is probably going to cost me multiple times than stop being a PITA with them and pay the bill ... My lawyer once told me - you are right, but getting justice is not always practical. Now ... lemme get on that TNT blacklist, perhaps I may start something good 😉

[surplusdealdude]

TNT is a good company - I've used one of their divisions for a customer for years.

But you have to give them a chance to do the job for you, and you didn't.

Besides, they are one of the largest transportation companies in the world.

Now, play nice with them.:-D

[surplusdealdude]

dipmicro,

That link isn't a decision on the merits of the case - it's a procedural motion dismissing the attempt to have the action certified as a class action.

So it basically means squat as far as proving anything.

Given what the plaintiff is trying to prove, I wish him luck, but likely he's going to lose, since UPS's procedures are the same as the entire industry and "common procedures is likely to win the day for UPS.

They're going to spend a lot of money to get nowhere.

[dipmicro]

That link isn't a decision on the merits of the case

Link was shown for overview of the legislation involved, nothing else.

How carrier can sell door-to-door service if the purchase of additional service is required for the completing of it?

TNT is a good company

Company who charges brokerage fees higher than total value of goods and government levies? Hmm, hardly.

What's stopping the broker to ask for $1000 for the service? How about $10,000? There got to be point where importer consents.

[surplusdealdude]

How carrier can sell door-to-door service if the purchase of additional service is required for the completing of it?

If you mailed a $70 parcel from the States to Canada, the customers might ask the same question of you when they had to pay tax and clearing charges.

Everybody that uses a common carrier is assumed to know that crossing a border requires a clearance.


TNT is a good company

Company who charges brokerage fees higher than total value of goods and government levies? Hmm, hardly.


It cost $27 for clearing. The amount of the item is irrelevant, it's the cost of doing the work.

You're sounding just like customers that get a deal on the product, then complain that the shipping is too high.


What's stopping the broker to ask for $1000 for the service? How about $10,000? There got to be point where importer consents.

Import brokers are subject to the limits of their published rates and industry standards. If you ever did run across someone that charged $10,000, you could defeat their claim in Court on the basis that it was unconsionably high.

OTOH, if the item had come in under bond, you very well could be looking at the $1000 area. I shipped a small skid of stuff to West Virginia and the Border broker was just horrible - the shipment would up going in bond.

Cost the customer $1500 just in clearing fees, more than the shipment was worth.

So, you see, TNT really DID do you a favour.