Brokerage Fees

[whatnerds]

I just recently purchased from items, around 50.00 and paid 25.00 for shipping (heavy items), but the US seller shipped UPS and now they left me a door knocker for the package as I was not home. They want 33.00 in Brokerage fees, do I have to accept the package. In the end I paid more for shipping then the items. Thanks.

Sukh
(Dream About Comics)

[whoscloset]

No you don't have to accept the items. If you don't they will be returned to the sender. You may end up with a neg however.

[whatnerds]

The seller already left feedback to me, Thanks.

Sukh
(Dream About Comics)

[coxengines]

Oh, another buyer that found out the hard way LOL!

Never, ever have stuff shipped by courier from the USA unless you are prepared to pay such brokerage fees. Canada Post only charges $5 in brokerage fees plus, when you ship via regular post, customs is hit and miss (about 50% in my case). With couriers it's 100% they collect for customs and then their fee on top of that... Exception: $20 declared value or less as there are no taxes to collect for customs.

In your case it depends what the seller stated in his/her listing. If they offered USPS and sent UPS, you can likely hold them accountable as they misrepresented shipping.

If they stated UPS up front, well, you probably should have educated yourself before buying - sorry!

Xena

[westernstargifts]

Canada Post only charges $5 in brokerage fees

Canada Post doesn't charge brokerage fees. They charge $5.00 per box handling fee no matter what size the box.

[whoscloset]

Canada Post doesn't charge brokerage fees. They charge $5.00 per box handling fee no matter what size the box.

Actually...the $5.00 is their fee to collect and submit the applicable taxes on your behalf...regardless of the value of the shipment.

[sageleafkids]

I find that brokerage fees are a terrible scam, as UPS and other couriers make a lot of money on these fees.

For larger shipments, depending on where you live in the country, you can self clear your items (I don't think UPS will give you an option on smaller shipments). In western Canada, UPS Ground clears customs in Vancouver or Winnipeg, depending on where the shipment is coming from. UPS will NOT send the shipment in bond and therefore the shipment must clear customs at that point. You are stuck with UPS brokerage or another brokerage firms (which I found to be more expensive unless using them often), unless you live near these centres.

UPS Air typically arrives at most major centres in Canada. These are the shipments you can clear yourself.

I live in Calgary, and found that if the shipper will only ship by UPS, then I happily pay the extra to ship by air, because the money I save in brokerage fees more than make up for the extra money in shipping.

For larger shipments, UPS will call you and ask if you want them to be your Customs broker. If you live anywhere near their bonded warehouse, you can clear customs yourself. Tell UPS you are going to do this, go to their warehouse and get the shipping documents. Bring them to the nearest Canada Border Services Agency Office, pay the GST and any duties that are owing, and go back to the UPS warehouse with the Customs clearance.

It takes a little time, but I find it is well worth the $75 or so that UPS charges in brokerage fees for shipments worth more than $1500.

Just my thoughts...

[whoscloset]

Wow! Great info sageleafdesigns. Thanks. 🙂

[coxengines]

Okaaayyy... we shall from now on refer to this fee as a "handling" fee. Sounds better anyhow... LOL!

And, yes, it is their fee to collect and remit the taxes. It's the ones that I pay $5 for them to remit $2.10 that make me chuckle but, hey, that's the way it is.

As to the courier brokerage fees, no, they are definitely not a scam. UPS is a legitimate business and their services and fees are clearly published (well, sort of clearly..). If a customer does not like what they charge, then they should not be using their services and complain later.

I sometimes use couriers for outgoing shipments but rarely for incoming from out of country. USPS is the way to go, the added benefit being that only about 50% of my shipments even get flagged by customs = savings towards my bank account.

Xena

[treasure-pot]

Part of the eBay User Agreement is that, as a buyer, you acknowledge that you are responsible for all importation charges. That includes brokerage, duties and taxes. UPS is notorious for having high brokerage charges. Regardless it is the buyers responsibility.

Bill
treasure-pot

Co-Author of

[whatnerds]

I talked to UPS they said commerical address's pay brokerage fee even if marked as a gift, I proved to them that I live at a Residental area etc, and they took of the brokerage fees, because it was mark as gift to me.

I have always known about the brokerage fees, but never thought 50% would be the damage to me. Thanks.

Sukh
(Dream About Comics)

[westernstargifts]

I used to buy wholesale from a company in the U.S. For the first few years they used UPS. The shipping was a little high but the goods were cheap so it was worth it in the long run. They looked after the brokerage fees and I never had any problems. Then UPS introduced the dimensional weight factor and the cost to import my goods went sky high. Although they were light weight, they were big and bulky.

The wholesaler then started sending them by DHL to the border and then by Canada Post. I would receive as many as 6 or 7 very large boxes at a time. Canada Post would not leave them unless all of the taxes, duties and handling fees were paid in full when delivered.

That should not have been a problem. However, when they went through Customs at the border, the agents never seemed to look at the invoice or notice that the boxes were labeled "1 of 6" and "2 of 6" and so on. They would then charge the total amount owing on all 6 boxes "for each box". I would have to pay 6 times the proper amount and then it was up to me to recover the over-payments from the separate agencies. That never happened with UPS.

I do have a question though. I want to sell some bulky items using my other user id. At the UPS store they told me that UPS is the most economical way to ship them (go figure!) Most of them will likely go to the U.S. It might be the cheapest way to ship but I want to ensure that my customers don't have to pay an arm and a leg either for brokerage & customs fees. Any suggestions on the best way to ship?

Judy

[recped]

Shipping to the USA, UPS do not charge a brokerage fee until the value is over US$200.

AT that point these fees kick in.

http://www.ups.com/content/us/en/resources/advisor/customs/fees.html?WT.svl=SubNav
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