50% UPS Brokerage fee????

[kazoobers]

I bought an item that was $99.95 US. The Seller charged me $16.00 for UPS standard shipping to Canada.

The package arrived and here is a Brokerage C.O.D. due to UPS for $54.17. What a rip! The seller said nothing about additional fees due IN ADDITION to the $16.00 I paid him for the shipping. By looking under Help in eBay, I see there is nothing I can do about it.

[it*s-not-me]

I suppose Canadian sellers should be happy or indifferent to their pain, but the buyer's unhappiness reflects on all eBay sellers.

I'm not indifferent to their pain, but I have to admit I get very annoyed when a seller ships by UPS even though we specifically agreed to USPS shipping.

Still, I don't blame the seller and would not trash FB because of it.

Most of us, buyers and sellers alike, learn about UPS through experience.

I do blame UPS.

They know full well that not informing their customers about added brokerage fees is a questionable practice and results in angry customers.

Yet they make no move to correct it even though it would be simplest thing in the world to fix.

They must have concluded that not informing customers about what awaits their buyers is worth the money they make.

I guess $30++++ for five minutes work is nothing to scoff at.

[kazoobers]

Not only are UPS fees highly ridiculous... on top of that here is how your parcel gets delievered...

http://tv.yahoo.com/daytime/another-delivery-debacle-27676039.html

[tip-top.deal]

UPS may work for US inland mailing; but when it comes to Canada it's a complete rip-off. I've just made a similar experience with a customer return and refused the C.O.D. charges. Parcel went back to the brokerage office to revise the charges. Instead of taking the time to examine import or return status they finally decided to simply return it to sender. Time frame approx. 4 weeks. I was lucky to deal with an understanding buyer, who didn't file a claim with PayPal nor left a neg. feedback- but returned me the parcel a second time by USPS. It finally arrived and w/out ANY additional costs. There's NO protection from e-bay on such add. fees. They are just interested in their 9% for shipping fees - and that's the end of it!

I intend, from now-on, always to ask US sellers to ship by USPS only.

[it*s-not-me]

Parcel went back to the brokerage office to revise the charges. Instead of taking the time to examine import or return status they finally decided to simply return it to sender.

When the sender accepted the parcel back, were there charges to be paid?

I was under the impression that if a UPS items gets returned that the sender has to pay the duty/taxes and brokerage fees that you didn't paly, plus return shipping along with a hefty handling fee before they hand the parcel over.

[bj3443]

I had the same thing happen to me and refused to pay. I did a quick "google" How to avoid paying UPS fees and got a ton of great hits. Bottom line is u need to call back UPS and inform them that you "INTEND TO SELF-CLEAR THE ITEM WITH CBSA"! They are required by law to permit this. Then ask them to email or fax you a copy of the invioce!

GO to the CBSA web site and find a local office. Any CBSA office can clear an item. Bring your ID and the invoice. After paying go to the UPS warehouse (try not to smirk) and after you show them that you paid CBSA they are required by law to release the item without further charge!! Good Luck

My item was valued at $27.00 and the fee was $19.31...thats 65% the value of the item!!!! I paid under $10.00 to the CBSA!!!

[it*s-not-me]

Parcel went back to the brokerage office to revise the charges..............  they finally decided to simply return it to sender.

[/quote]

Was the shipper (your customer) required to pay return shipping and the brokerage and custom's fees you didn't pay?

[2011limey1]

That's too bad......Next time, don't EVER have sellers use UPS - USPS or nothing.  I've never had to pay (touch wood) brokerage fees - even on a watch valued at more than $200.00 when sent UPS.

A year or so ago, before I was on ebay and didn't know anything about fees, etc. I bought a framed picture that I guess had to be sent by a carrier, it was worth about $200.00 (and was large) and I was shocked that I had to pay only $20.00!.

My first buy ebay was a wonderful woman from NS who became a friend and told me all the ins and outs of buying on ebay - I was so lucky to get her as my first seller - we still keep in touch.  Her advice was the same as I've given..she is a seller, but buys too and has never had to pay for anything under $200.00 IF sent USPS. and yes, she said never to deal wih Fedex, UPS. 

[2011limey1]

Sorry, I meant never had to pay for the watch ($200.00) when sent USPS...not UPS.

[pierrelebel]

The Canada Customs rules require payment of tax(es) for all taxable imports valued at $20.00 and more:

http://www.cbsa-asfc.gc.ca/import/postal-postale/duty-droits-eng.html

In addition to tax(es) payable, Canada Post will collect $8.50 brokerage fee (increased from $5.00).

However, it is well known that not all shipments are assessed taxes (and duty if applicable) when coming by mail, even if the description and value were correctly declared on the parcel.

On the other hand, I remember receiving a Christmas gift by mail (declared value $30) from a company in the USA for which I had to pay taxes and brokerage fee.  It was an unsolicited gift and, as most of you know, there is no tax exemption for gifts coming from a business. 😞

[nuvistors]

Well I got caught again. I avoid UPS but this time the seller was unclear. They used ups!!!. Here's the breakdown for me:

Item = $76.48

Shipping = $32.69

Brokerage = $58.90 (includes tax on $109 - yes ups added the shipping chages to the item price = more tax!)

So value of goods = $76.48

Tax and shipping = $91.59

If this were you or me we would be charged with fraud. There are instructions to self clear your package (google) but they will lie to you and make this difficult as well.

Please spread the word and avoid UPS at all costs !!!!

No matter how you slice this... this is wrong.

You are complaing about UPS when you don'r even know the  tax rules for your own country.   Any true Canadian knows that  HST/GST is added to both the item and shipping  no matter where the product comes from.

...

...

[2011limey1]

Just ONE more thing here - I've had too much coffee methinks this a.m.  Someone posted about the $20.00 "thingy".  I know all of this, have everything printed out.  "You don't have to pay duties and taxes if your mail order item is:

Good entering Canada through mail may be subject to duties and taxes (GST,HST or PST) depending on the value of the item and whether it is a gift.

You don't have to pay duties and taxes if your mail order item is:

. a gift worth $60.00 or less; or

. worth $20.00 or less.

Either the customs guys/girls are asleep when they let my stuff in with no charge or something.

Anyway, I'm really am sorry and I know this sounds like I "told you so re UPS" but it isn't meant to be.  I just feel for you, because the amount of duty is just inconceivable.

[gry3v]

English is not may native language (and not even the second language), but I tried my best and sent to Ebay this letter today. I really hope there is someone at Ebay who is still sane and will try to change things.

Please forward this e-mail to upper levels or to the managers who make decisions about Ebays future and well-being.

I moved to NA from Europe. Back in Europe I was using Ebay on daily basis and buying-selling things from cars to pencils, just everything.
When I moved to Canada I tried to do the same, but the very first purchase on Ebay was a shock. I discovered that for items bought from US and shipped via UPS you have to pay additional so-called "custom" or "brokerage" fees. Later I discovered that not all shipping companies charge them, seems they are charged mostly by UPS. USPS and DHL definitely don't charge them.
Those charges were ridiculous, enormous and random.
Since then I simply quit shopping on Ebay.

Lately (after few years passed) I purchased a new truck and decided to do some shopping and to buy a few items on Ebay again.
I was very surprised to see that absolutely nothing has changed during the last years, that the sellers still have no idea about what is going on, and that UPS is still continuing to rip off people.
When I use Google and search for UPS and "brokerage fees" there are hundreds of results, and all people use terms like ridiculous, rip off, etc.
I noticed that everybody in Canadian forums tells the same - don't buy anything from US, buy it somewhere else, even if it is more expensive, at least there will be no additional fees.

Canadians simply don't buy things on Ebay, and seems nobody cares. Why?

I understand that you don't care about the well being of your customers.
But it amazes me that you are losing potential customers and that nobody at Ebay seems to be interested in increasing the sales, in opportunities to earn additional millions of dollars easily.
I am positive that you could fix the situation easily. At least if you warn all international sellers when they select the shipping method. A simple pop-up would suffice, a warning that choosing UPS when shipping to Canada will scare away all Canadian buyers.

I am not over emphasizing, you can do some quick research online and you will notice yourself - Canadians avoid buying on Ebay, they don't buy from US, because UPS are charging horrifying and ridiculous fees.

And you can simply correct this, by educating your sellers, by telling them to make the correct choice.

You don't have to fight UPS or to make them your enemies, they will realize themselves sooner or later that they are doing something wrong, they cannot simply continue what they are doing.

With internet the society is becoming more educated, and people don't swallow just everything anymore, they don't want to be fooled anymore.
There are many new reports online, which tell the ugly truth, eg. this website:
http://trueler.com/2010/09/13/ups-brokerage-fees-total-scam-fraud-cheating-avoid-it/
and many other identical postings.

I hope you will use some common sense and we all can finally benefit from your efforts - Ebay will increase the income drastically, buyers will buy more items from the states, Canada and USA will establish a better and healthier economical relationship, and the list goes on.

Sincerely,

gry3v,

one of many former Canadian Ebay users, who turned away from Ebay just because of UPS.

[pierrelebel]

gry3v - Like you English is not my first language.

However, if I may be candid, you are wasting your time telling eBay that UPS is a bad partner for them.

eBay is an American company with most of its experience based on what happens in the USA where UPS provides an excellent service at competitive prices.  It is the shipper of choice for many American sellers and UPS fee table is incorporated within the eBay calculator..

The problem arises when Canadian import goods and have to pay a brokerage fee to clear the goods at Canada Customs.  For most services, UPS does NOT, let me repeat that: does NOT charge any brokerage fee to clear shipments through Canada Customs.  The fee is only charge when using the cheapest UPS ground (Standard) Service.  The same applies with other courriers.

Canadian buyers who do not want to use UPS can simply ask the seller to ship through USPS (some sellers will refuse).  Shipments sent through USPS will be handled by Canada Post with a much lower brokerage fee (only $8.50).

"one of many former Canadian Ebay users.."

???  Your feedback rating shows you are still buying regularly on eBay.  And that is a good thing! 🙂 .

[nifty*thrifty*17]

I still have the letter from UPS showing I owe them $39.95 for a shipment that had zero duty due. That's right, almost $40 for them to tell me I owe NOTHING! Great, eh?!

I have purchased numerous items from the US, *ALWAYS* via USPS, and only been dinged twice for duty/brokerage/taxes, so I'd say I'm still ahead.

[pocomocomputing]

It costs the same amount of time to find out you owe nothing or something. It still needs to be processed.

Part of you $40 was GST/HST/PST which should have been collected by Canada Customs/Canada Post if it had gone through USPS. But many items go through Canada Customs/Canada Post without any assessment when they should.

On a different note. Related to this topic.

There is a double standard going on here. UPS and other couriers have to process shipments according to the Canada custom laws in effect.  They have to do it or get into trouble with Canada Customs. Every shipment has to processed correctly and all paperwork correct for review if needed one day.

Now items going by USPS though Canada Customs and collected by Canada Post has a different standard.  Canada Customs seemingly is unable to process the mail volume they have to handle and let a lot of items go through without even looking at them to determine any assessment. Canada Post is not to blame if items are given to them to deliver without an assessment of taxes and duties.

So for many Canadian buyers they are accustomed to getting their imported items in free of any charges because of the lack of enforcement by Canada Customs through Canada Post.

Why is Canada Customs that process mail not held up to the same standard as the courier companies?  Should Canada customs not be punished for not collecting the taxes and duties they are supposed to? Why are courier companies and other importers held to different "perfect" standard? Why do they have to have proper paperwork done?

In defense of the courier companies high fees, they have to process all items sent through them. Every one. So they have people, computer systems, record keeping, bonded warehouses to maintain, etc. They have to do it all properly and be accountable for it and it takes manpower, time and money to do this. So they charge for it.

It does not seem fair to the buyer what they charge but we do not know what it costs to do all this processing. It may seem like a lot to charge for the time they spend but there is overhead to pay for. 

If so much get through Canada Customs that is over the $20 limit, why not just have a $100 or $200 personal limit and try to collect on those items over that limit. Better to have a realistic personal exemption limit and enforce it than the free for all Wild West show that exists now.

The supposed reason for the low limit is to protect Canadian businesses that must charge sales taxes and pay duty if they import the same item. So the unenforced $20 personal exemption limit is a paper (rather paperless) tiger without any real effect on supporting domestic business in Canada.

Even if the $20 was raised to $100 or $200, would that help speed up Canada Customs and enforce the law? What is the reason for the lack of enforcement? Canada and the provinces are losing out on a lot of tax money that is not being collected.

The real issue is the shipper not knowing that there might be a large fee charged to the buyer when they receive their item.  The sellers need to be educated somehow and the buyers have to learn too. How to do this is difficult. So this topic comes up over and over again as new buyers and old get hit with these higher charges.

[kazoobers]

In defense of the courier companies high fees, they have to process all items sent through them. Every one. So they have people, computer systems, record keeping, bonded warehouses to maintain, etc. They have to do it all properly and be accountable for it and it takes manpower, time and money to do this. So they charge for it.

What? Do you work for UPS? I don't care if they employ 100,000 people, have a million computers, 5,000 warehouses, and whatever else. There is NO reason whatsoever that they should be charging 50% of what an item is worth for their stupid fees. They are crooks... plain and simple.

[nifty*thrifty*17]

Nope, no tax due at all! It was all "entry prep fee", "bond fee", and "merchnadise processing fee". I know they're a business and have huge overhead but you have to agree it is a little ridiculous to charge someone $40 to say you don't owe us anything, no? Just in the interest of good customer service/relations, why not waive the fee when the total due is zero? It would go along way to stemming the overwhelming tide of negativity towards UPS.

[verite_jewelry]

Stop using UPS, maybe they will get the point.  They are still charging insane brokerage fees on ground packages.

[comicgeek74]

I've been burned few times from UPS and FedEx with their brokerage fees.  I still remember one case (with bad  taste!) when one seller on ebay decided to use UPS without my knowing - I won one bicycle part which was vintage handlebars. That piece was worth only $10 but UPS slapped a $45 whopping fee on top of shipping cost! It come to almost $60 total for a $10 item ... ridculous!

Of course, I had to pay as I need handlebars for my project. Learned a tough lesson. Then there is another story ... I won a computer part from eBay ( from USA) and the seller never informed me that she was using FedEx to ship this item.  I told fedex that I refused to accept the package bacuase they wanted almost $40 charge.  That is for a $40-ish item!  Naturelly it went back to the seller.  Some many days later I got an email from the seller, said that I should pay for the fedex charge because fedex actually made her to pay for the returned item back to her.  I told her as it was, I don't have this item in my hands and I choose to refuse pay for brokerage fee - based on the fact she never informed me how it was mailed. Period.  I lost my $40 anyway - better than out almost $90 in the end.Did got a letter from FedEx demanding the same thing ... unbeliviable (laughing)! Sent them back with proof and that ended that.

So, lessons learned and I decided to set my own U.S. shipping account close to border and had most of my parcels sent there. In the last 6 years I think I saved many hundreds of dollars on brokeage fees or custom fees. I become my own broker and delcared at the border line whenever I go to pick up my parcels there.

Never again these cursed scum couriers with crazy brokeage fees!! Only postal services - USPS or Canada Post (bless them!)

[pierrelebel]

" That piece was worth only $10 but UPS slapped a $45 whopping fee on top"

Something is incorrect here.

UPS does NOT charge any brokerage fee for shipments with a value under $20. For items with a declared value between $20 and $40, the fee is $7 (lower than Canada Post)

In case you have missed it earlier, let me offer once again a link to UPS brokerage fee table:

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

I suspect the story had more to do with a seller showing an inflated value for Customs purposes.