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.

[canuckchat]

No, you would be correct ... Canada Post negotiated the $5 flat fee ... and UPS, FEDEX, DHL, etc. are all courier companies who must use broker items across an international border and charge for this, as they are, after all, businesses.

[deev_hutch]

No, I disagree. The UPU sets service standards, and also sets terminal dues and transit services for cross border mail (essentially facilitates payment of cross border POSTAGE RATES) I cannot find anything on the UPU site that would lead me to believe that this organization has anything to to with the business of brokerage. Please pint out a link if this is not correct.

It looks like the Universal Postal Union does not have anything to do with how Canada post or private companies deal with brokerage of goods. Brokerage is a separate business from delivery of goods. Most customs brokers are not in the business of delivery. UPS acts as a delivery service AND a broker. Canada post acts as a delivery service (and works within the UPU for the delivery aspect of their service) AND a broker. Canada post CHOOSES to charge a flat rate of $5 for the brokerage service. UPS CHOOSES to charge a sliding scale for the brokerage service, depending on the cost of the item.

[deev_hutch]

canuckchat:

Please show me a link that indicates that Canada Post "negotiated" a $5 flat fee with anyone (UPU included). Do you think that Canada post has to remit the brokerage fee to anyone? No they do not. It is a fee for service. The brokerage fee of $5 goes to Canada Post. In the same way, the large sliding scale, not-very-well-advertised, large brokerage fee goes to UPS. They did not have to "negotiate" this fee with anyone either, since it is a charge for service.

[canuckchat]

.... you stay at Motel 6 you pay $43/night ... you stay at the Hilton, you pay $279/night ... businesses have the choice of what they charge ... no matter what you or anyone else thinks or says, they all have the right to charge what they feel the market will bear ... as long as the market is bearing the $43/night for Motel 6, they will keep charging it ... as long as the market will bear $279/night for the Hilton, they will charge it...

[canuckchat]

Also ... you can not march into the Hilton and wave your arms and rant and rave that they are thieves and ripping you off if they charge you $279/night because after all the Motel 6 only charges $43/night therefore just WHO do they think they are charging you those ripoff prices of $279/night??

[canuckchat]

Courier companies and postal services use customs brokers to get packages processed through Canada Customs at the Canadian border. Fees for that service will be passed along to you.

Canada Post automatically applies a $5.00 processing fee ($8.00 for Priority Post) for each package to clear Canada Customs.

Customs brokers fees for courier companies vary, but are usually a good deal higher than the Canada Post fee. Some courier companies may absorb the custom brokers fees (including them in the courier service price), depending on the level of courier service you have selected. Others will add the customs brokers fees on top and you will have to pay those before you can get your parcel. If you select a courier service for shipping to Canada, check whether the level of service provided includes customs brokers fees. If it is not mentioned on the shopping site you are using, you can check the service guide on the individual courier company site or call the local number of the courier company to find out their policies.

http://canadaonline.about.com/cs/customs/a/shopshipcanada_2.htm

[deev_hutch]

Yes canuckchat, you are correct for the most part. However, you address my only point, which was that Canada post did not "negotiate" their $5 brokerage fee.

You are right that people need to check into the courier service first.

Your "Hilton" - Motel 6" analogy is not a bit off. The brokerage service offered by Canada Post and UPS is IDENTICAL. The other problem (the one that irritates people most) is that the UPS brokerage is not clearly explained by UPS, either to the shipper or to the receiver (as evidenced by all the complaints we see here!!) This is the nub of the problem. So, your comparison might be better as follows:

You need a motel and there are two, side by side (motel 66 and motel 55) They are identical in almost every way, and they are both advertising "stay one night for $68.00". You stay in motel 55. When you go to pay in the morning, the bill is for $126.00. "what the heck?" you say. "oh", the clerk says, "your stay was $68. The rest is for the cleaning fee. Didn't you read the fine print on the bottom of our webpage? Tough noogies for you!" You then find out that their competitor, motel 66 also has a "cleaning fee" but it is only $5.00. You are now irritated.

[deev_hutch]

Sorry, first sentence above should be "you FAIL to address my only point,which was that Canada post did not "negotiate" their $5 brokerage fee"

[sysfixr]

I see what you're saying deev, BUT!!!!! your motel analogy has one flaw. Neither of your motels are Gov't mandated not fot profit entities.
Therein is the crux of the matter
Courier Co's are privately run, for profit businesses, as such they are not under the same obligations as PO's.

Also ... where do you think the 5$ fee came from?
Arbitrarily picked at random from the ether? No, it was negotiated between CP and the UPU

You may continue flogging this horse, I however am done. I, like most others here, am here to help not argue 🙂

[canuckchat]

... I thought I was here to help too... apparently, I was incorrect in my assumption .... of helping people... understand that they need to have items shipped to them via postal service as opposed to courier service...

[deev_hutch]

Sysfixr:

No, you have provided no evidence that the canada post $5 fee is somehow negotiated between CP and the UPU. The UPU does not have anything to do with brokerage fees.

Canuckchat: You are certainly here to help. My apologies for the grumpyness. You and I are on the same page when it comes to shipping via postal service as opposed to courier service. Keep on educating people.

[deev_hutch]

Sysfixr:

What is to prevent USP from also charging a flat rate $5 for brokerage? Who do they have to "negotiate" with? Who does the brokerage fee go to? (hint: it goes to themselves)

Please keep trying to find me evidence of this "negotiation" between UPS and Canada Post...... I'm afraid I can't just take your word for it...

[sysfixr]

Please keep trying to find me evidence of this ....

yuh.

i'm right on that.

stay tuned.

[deev_hutch]

Sorry - but you're not helping anyone when you imply that poor, poor UPS has to charge these high fees, because mean old Canada post has "negotiated" a special deal somehow.

[2randy123]

Google UPS class action lawsuit. There is a lawyer's office taking complaints for their inflated brokerage fees into Canada. They are not calling first, just charging and that's not right. They screw up on the bills too and it takes several phone calls to get them fixed. If they call after you've paid for the item and ask for payment, make them take the cod charges off the bill. I did that. I am still waiting for the credit though as well as the credit for inflating the amount on the original invoice.

[g-funk123]

I have also just been billed the infamous brokerage charge. My problem is that when I researched the fee I found this forum. We as buyers and sellers are not properly informed that we will be paying these fees. I will be careful not to purchase from a seller who uses UPS. The one tidbit I learned here is to have it shipped to your workplace. I'm not going out of my way to pay an absurd fee. You can come to me during reasonable hours at a place convenient to me, thank you. I had to argue to have it shipped to my workplace, and was treated rudely by the representative I spoke with. I only wish I could sign the law suit. I have emailed the law firm asking to allow residents of Saskatchewan to voice their concerns too.

[gsr63]

I'm curious - do people think -
a) There should be NO fee?
b) Or do people think the fee is too high?

[deev_hutch]

Personally, I have no problem paying a brokerage fee. It is a necessary service to get a package across an international border. I do have a problem with this combination:

1. The UPS fee is much, much too high compared to their competitors. ($5.00 per package USPS/Canada Post)

2. The sliding scale of the UPS fee makes no sense. The brokerage work done is the same (filling out a form), whether the item is valued at $30.00 or $300.00. Why charge $19.45 to broker the first package and $38.92 to broker the 2nd? And, an additional rip-off: why charge a $4.25 COD fee for collecting the brokerage fee?

3. Poor disclosure of the fee by UPS to both shippers and receivers (at least now there is info on the website. When they ripped me off a few years ago, there was NO information anywhere, and the 'customer service reps' seemed to have no idea at all how the fee was calculated)

[dexmor]

"I'm curious - do people think -
a) There should be NO fee?
b) Or do people think the fee is too high?"

b) Too high!

[kazoobers]

GSR63, people are complaining that UPS charges way to much. They charged me 50% of what the item was worth. As mentioned, USPS charges a standard rate of $5.00 per package. UPS is clearly taking advantage of a situation.