Expensive brokerage fee for UPS?

[scnble65]

My package arrived today via UPS, and I was told that I have to pay $460 in brokerage fees.

I received a call the other day from UPS asking for my permission to clear the package at the border.
They said I could either use UPS as a broker or find some other broker.

So I said UPS and asked them how much it might cost. The operator said about ~$20... so I gave him the OK.

If I had known that it would be as much as it was, I would have answered differently.
I've ordered many things online and cross border but this has never happened.

Anyone have any input...? Might there have been another/ better option here? What can I do now?

Thanks!

[silverpinups]

How much was your package? 460.00 in brokerage fees would be a very expensive item.

If the Seller is using UPS for shipping then it's guaranteed that you will pay Duty and Taxes on any amount with a declared value of 20.00 or more.

[pierrelebel]

Take a look at the UPS fee schedule:

https://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html

Now, duty (if applicable) and taxes (GST/HST/PST) are the same whether you clear the parcel yourself or through Canada Post or UPS.

The difference is in the brokerage fee, COD fees (if you have not prepaid the taxes) and disbursement fees.

How much was the value of the item you purchased?  Where (country) was it manufactured?  Which province do you live in?

[scnble65]

Thanks for the response.

About $3500.

Yes, I understand.

The problem is more the way UPS answered my question.
Now that I've done some research, it seems that UPS has a history of misleading/ misinforming (or not at all informing) clients when it comes to import charges...

[silverpinups]

You could have refused their brokerage services and saved money by brokering the item yourself by going down to UPS and getting the paper work and heading down to the customs office in your city.

Then you bring back the completed paperwork to UPS and they release the package to you... 

[i.am.vivian]

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@scnble65 wrote:

My package arrived today via UPS, and I was told that I have to pay $460 in brokerage fees.

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On a $3500 item to Ontario that amount sounds like mostly tax.  Brokerage fees and taxes owed  are 2 completely different things.  Buying outside Canada is not a way to avoid tax you would pay locally because the parcel gets assessed coming in.  You get a page of information that explains what all the charges are and you will be able to see from that where all the money went.  

As for what you can do now?  Pay it.

[momcqueen]

If I recall correctly, UPS has a sliding scale for brokerage fees based on the value of the item. Like it's x per cent for items valued up to $200 Cad and x+y per cent on items from $200 CAD to $500 CAD and so on. Then brokerage fees get more expensive as the cost of the item rises.This stuck in my mind because I once had to pay EXTRA to UPS because the seller over-declared the value of the item. I'd paid, like, $195 Cad for it and he declared it to be worth $200. To him the extra $5 meant nothing but to me it added another $50 to my bill for brokerage fees. I was annoyed. But it taught me to be very accurate with my own declarations as a seller. 

[momcqueen]

(Maybe it was an extra $40. I don't remember exactly what extra amount it was but it was enough to make me mad.) 

[femmefan1946]

So your $3500 import cost you $460  in duty, sales tax and brokerage fees.

As pointed out most of that is sales tax , then duty, then brokerage.

You could have refused their brokerage services

Always important to remember.

and saved money

But not always true.

Our local UPS Stores are basically open 9-6:30 weekdays. Difficult for most workers.

Saturday is 10-4.

These are stores and I am not sure if you actually would have to deal with the terminal out by the airport if you were doing your own brokerage.

If the fee is $25 would you earn $25 or less during the time you spend brokering on your own?

Sometimes it is cheaper to hire someone to do work rather than do it yourself.

[momcqueen]

That reminds me, UPS made headlines today in my hometown (Winnipeg) in a bad way. I started a new thread for it because I didn't want to take this topic off-subject. It's a terrible thing. I feel sick for the people involved. https://community.ebay.ca/t5/Seller-Central/UPS-TOSSES-HEIRLOOM-ART-NEWSTORY/m-p/348584#M66901

[pierrelebel]

"was told that I have to pay $460 in brokerage fees."

It appears to me that $460.00 is tax only (HST 13% in Ontario) with ZERO brokerage fee.  Please see link to UPS fees posted earlier.

Most likely the item was shipped through UPS Express where UPS does NOT charge a brokerage fee.

You may have to pay a small disbursement fee (for UPS to pay taxes on your behalf) of a few dollars.

It appears to me the problem was a misunderstanding of the terms. No point in blaming UPS in this specific instance. We all have to pay taxes (GST/HST)

[scnble65]

Thanks. 
Ill pay and ask them more about the breakdown when they get here. Yup, no use crying over spilled milk.

As for blaming, sure I was blaming -- they already had a poor reputation to begin with. Since they were already known to lie and mislead clients, I wanted to inquire about it. If this hadnt been the case, I wouldnt have asked for your input here. 

Thanks for your responses.

[silverpinups]

Your right, I was thinking along the lines when I was a fulltime Bonded Auto Broker. I used to handle my own brokerage, I had Tax numbers, GST/PST.

I was restoring a 1970 Pontiac GTO which at the time that had antique status (25 years or older). The only thing I would pay for was the GST on any packages.

Since I ended up selling the GTO in the USA, I was refunded all of my GST.   

So it was very financially worth while for me to broker my own goods..... but this is a completely different scenario.