50% UPS Brokerage fee????

kazoobers
Community Member
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.
The money's the same, whether you earn it or scam it.
Bobby Heenan
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50% UPS Brokerage fee????

and i know that you (and other newbies) think that is pretty harsh... but to be honest, how long do you want to whine about this???

those of us who learned pre-eBay that courier deliveries would incur a brokerage charge have tried and tried to tell all of you that are now having this experience for the first time that it is normal - maybe you don't LIKE that it is normal - but does it do anybody any good to nag constantly on the forums about it?

there IS a thread for newbies to learn this PRIOR to buying - it'd be nice if the PINKS would tack it up at the top of the forums - but to date, this has not happened
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I'm not sure if you are calling me a newbie, canuck, but if you click on my fb number, I think you will see that I have been around for a little longer than some of the other posters here.

And with respect, I am not whining, just countering some of the arguments (and assorted smiley faces, etc...) that you keep bringing up to bump up the thread. Pray tell, what would be the point of pinning it to the top of the board, if not to generate more debate?

You may call it normal; otheres consider it a current business practice that borders on deceptive. I guess if you have been duped and cheated often enough, then it eventually becomes normal. More's the pity....

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50% UPS Brokerage fee????

Has anybody here arranged for a shipment using the US Postal Service's Global Express Guaranteed (GXG) service ? This is actually handled by FedEx. I assume FedEx delivers GXG packages in Canada. What are the brokerage fees like ?
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50% UPS Brokerage fee????

sysfixr
Community Member
it is what it is, and that's what it is

comparing UPS to walmart is like comparing them to the post office

there IS no comparison to be made, beyond the base fact *they deliver stuff*

it's unfortunate that this happens
it's unfortunate that this goes on
but ya know what?
it's ALSO unfortunate that people choose to be oblivious, and put 100% faith and trust into complete strangers to look after them

*old sayings* are sayings for a reason
caveat emptor being amongst the older ones
it's a dog eat dog world
reality is a harsh mistress
let's be careful out there
look both ways before crossing the street
don't eat yellow snow
well you get the idea ...

what it is, is this - buying stuff from OUTSIDE Canada makes you an importer, and most people for whatever reason do not realize this.
Coupled with that is the lack of knowledge about importing things, what's involved, paperwork, shipping, methods of shipping, and several hundred other things

Someone elses lack of knowledge is not my fault, or ebays fault, or paypals, ups's, or the exterior minister of foreign weights and measurements(Imperial division) for the lower Baie D'urfe region.

The lack of knowledge, research, homework, just basic looking into it, and finding out about it, BEFORE doing it, is no ones fault but the buyer

**zapped once myself, never again since. I, like a lot of Canadians, learned the hard way. The key part is to learn from it, and take steps to not allow it again.

On the bright side? at LEAST we have the option to self-broker! it's not much for some, but it IS something.

personally, just a thought, my opinion, whatever-

it WOULD be easy enough for ebay to set up a re-direct for newbies page, even something very simple like a sw installers' eula(scroll to bottom w/o reading, click next)
*technically* you ARE supposed to read all that blather, but I don't lol 😉

What I'm getting @ is - set up a page or 4 like that, main pertinent points to ponder, read/scroll, click OK means you say you know it, and only after newbies click that OK button signifying they *know* the basics would they be allowed to continue

Seasons Greetings !
C: C:\spot C:\spot\run
run spot_run

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50% UPS Brokerage fee????

allstarfta
Community Member
Hey Everybody. I'm a shipper in the U.S. and I've read through this entire thread. There's some really good information in here.

I have BIG TIME issues with Fedex and their "brokerage fees" and I'm seeking some help and guidance.

I run a small retail business and about 3 months ago, I started shipping to Canada. I knew international shipments would be subject to taxes and duties, however, according to NAFTA, goods sent across the border for repair or warranty purposes are not subject to any tax. At first, I sent out a couple test packages to test the waters. I sent about 5 packages out via Fedex and all were marked as repair/return. After delivery, I followed up with all of the customers and they all told me their packages arrived without any additional fees.

And here is where I made the biggest mistake… I opened the doors to Canadian customers. In the 8 weeks that followed, I shipped about 150 packages. After about the 8th week, the customers from the test packages contacted me and told me they had received bills from Fedex Trade Networks for taxes and brokerage fees. This really had me confused because I thought taxes would not be incurred on repair/return items. Furthermore, I did not even know what a brokerage fee was.

After talking with someone from Fedex Trade Networks, I learned that taxes were charged because I had failed to put “repaired under WARRANTY”. Just putting repair/return wasn’t good enough (even though this is one of the selections in Fedex Shipping Manager software, along with “gift”, “merchandise”, “commercial sample”, etc.). I also learned that brokerage fees were assessed relative to the item’s value. Hearing this almost gave me a heart attack, because I ship high value items.

So it turns out that just about every package I shipped is going to be subject to $80-$130 USD in tax and brokerage fees. If you do the math, this is easily going to be over $15,000. Having to pay out this amount of money will be detrimental to my business and there is no possible way I can afford to pay this out. This would mean every package shipped to Canada would’ve been at a loss (a pretty steep one too).

A very nice lady at Fedex Trade Networks listened to me explain my situation and attempted to help me out. She told me I could fax over revised commercial invoices stating “repaired under WARRANTY” and that I could also revise the value on the commercial invoice to state the “service charge” for the repair work instead of the value of the item. So if my “service charge” aka “declared value” was less than $20, there would be no taxes and therefore no brokerage fee. This was great news and seemed like a perfect solution to my problems. I would just have to fax her the revised commercial invoice for each of the bills my customers or I received.

So I did this for about 2 weeks and I just recently got a phone call from her. She said her manager would not approve this. I would have to pay the entire invoice amount and THEN send in the revised commercial invoices and then Fedex Trade Networks could request a refund of the taxes from Canadian customs on my behalf. The brokerage fee however, stays and must be paid. After hearing this news, I realized I was pretty much back where I started.

As I previously stated, I will not be able to pay all these invoices in full and hope/pray that Fedex will get me reimbursed for the taxes.

So here are some of my options:

1) Totally stiff Fedex and ignore them.
- Probably not a good idea since they will send the bill to a collections agency. I’m not familiar with how collections agencies operate but I don’t recall ever giving Fedex my social security number.

2) Pay all the invoices in full and go out of business.
-Hmm….

3) Wait until the bill goes from Fedex Trade Networks to Fedex USA and then try to deal with Fedex USA.
- I was considering this option because my shipping volume is pretty consistent and of a decent amount (roughly 20-30 packages a week). So I was hoping this would help me out when I try to talk to a Fedex account manager about my situation. However… I don’t know if this will work with a $15,000 bill. Another downside to this approach is that once the bill gets passed over from Fedex Trade Networks to Fedex USA, I will no longer be able to send in the payment and request for the taxes refunded. So option 2 and 3 are mutually exclusive. Doing 2 will prevent me from ever getting to do 3, and doing 3 will mean it’s too late to go back and do 2.

I know I am to blame for not FULLY researching all the associated fees (brokerage fees) for shipping to Canada, but I’m upset that Fedex does not mention ANYTHING about the brokerage fees in Fedex Shipping Manager. Not even a little warning or note. Since the brokerage fee is a flat fee based on item value, couldn’t they have a simple chart showing the fee when you’re inputting the shipping/item information?

So… I am asking for anyone’s input and advice regarding this matter. Any help or insight would be greatly appreciated. Thank you for your time... I know this was a really long post.



Allen
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50% UPS Brokerage fee????

jakeeangel
Community Member
You're screwed! Sorry to be so blunt but you don't mess with them and if your number of $15,000 is correct, I stand by my first statement. Pay up or they will come after you and you will lose.

Questions. You need to clarify something regarding the terms you're using; returns & repair under warranty. The only way that would apply is if the person bought the item from you, had a problem with it and returned it to you for warranty repair and your shipment back to them is a return for repair under warranty. If it's anything else, it is not a true return for repair under warranty.

If you're buying items that are store returns or items that have been repaired and bought by you and then you're selling them to another person altogether, you classifying the shipment as return/repair under warranty is false and liable to get you in trouble with Fedex, Canada Customs and US Customs. I would also suspect it has something to do with why your claim was rejected.

Are you just looking for terminology to not have your customers pay taxes and brokerage costs on shipments? If so, that'll get you in a world of trouble that I'm pretty sure you don't want. Especially when you're talking large sums of money. You will attract the attention of Canada & US Customs very quickly.



Come See What Else We've Got Up For Auction!

When you find doing what's right hard to do - you've got a problem.
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50% UPS Brokerage fee????

allstarfta
Community Member
I believe any good that is sent for repairs or warranty work should be except. Not just those purchased directly from me, because tax was already collected at the point of sale.

Some of the packages were actual sales, but many were also really repaired units sent back.

Some were just sent back and not even repaired, because they were damaged beyond repair or did not qualify for warranty work. And those got hit with fees too!

So on a lot of these packages, I didn't charge a service fee AT ALL, but now I have to pay huge fees to Fedex.
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50% UPS Brokerage fee????

jakeeangel
Community Member
Unfortunately that's not the way it works and tax already collected is irrelevant. There's taxes to be paid on used cars and on used goods being imported into Canada as well.

Repaired units sent back?

Clarify please. Are you talking about the following scenario. I buy an item from you and it doesn't work. It requires repair work. I send it back to you for said repairs and then you reship it back to me.

That's the only way you can classify the goods as repairs under warranty. If it's not the above scenario then you cannot use that classification.

You cannot ship goods bought initially by Joe, repaired under warranty and then resold to Bob as a return for warranty repair. That is considered a sale of a used good subject to taxes, duties and brokerage if applicable.



Come See What Else We've Got Up For Auction!

When you find doing what's right hard to do - you've got a problem.
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50% UPS Brokerage fee????

- ship via USPS (United States Postal Service)
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junglejammies
Community Member
I have had enough with UPS. I had to pay a fee at the door, they then said I did not pay the fee and I got a letter from thier internal collections agency


I would focus on stating that you must have paid the fee or the courier would NOT have left the item. UPS will not leave the item if brokerage fees are due. If you don't pay, they send it back.This is their policy.

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50% UPS Brokerage fee????

kazoobers
Community Member
allstarfta, you said your customers in Canada received the bills from Fedex, which makes them responsible as the receiver of the items. Are you suggesting that you will be reimbursing all of your customers? If so, that is awfully kind of you. When I contacted the Seller of my item and told him of the fees I had to pay UPS, he said sorry about that but did not offer to pay, and he had every right to do so.
The money's the same, whether you earn it or scam it.
Bobby Heenan
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50% UPS Brokerage fee????

UPS will not leave the item if brokerage fees are due. If you don't pay, they send it back.This is their policy.

I have actually had UPS leave a parcel and the bill arrive in the mail later.

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50% UPS Brokerage fee????

allstarfta
Community Member
kazoobers,

Yes, the recipients are receiving the bills but I will eventually be responsible for them because I told them that there wouldn't be any additional fees (because it was labeled as a repair/return) and I was totally unaware that brokerage fees existed.

Also, if they refuse to pay, which I'm sure most will do, since it's not a small amount, then I will ultimately be responsible for it anyway.
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50% UPS Brokerage fee????

junglejammies
Community Member
A truly wise man never plays leapfrog with a Unicorn.

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kazoobers
Community Member
OOOOOOOOOOOOOOOOOO.....K


Merry Christmas everyone!! (except UPS) 😉
The money's the same, whether you earn it or scam it.
Bobby Heenan
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50% UPS Brokerage fee????

Anonymous
Not applicable
allstarfta, your situation is far too complex for the boards and you will be perplexed by many conflicting statements. Despite what is posted here on the boards, your situation does have some leeway, and I would hesitate before paying out any money to Fedex.

Due to the amount of money involved, I would not hesitate in securing legal advice. If you end up having to pay money to Fedex, you may find that it is considerably less than the amount claimed. Also, depending upon the tenacity of your attorney, you may end up having to pay nothing.

Collection companies should be ignored. Their sole permitted function is to harass although quite often, it works.

I would be interested in learning how you fare within a more practical milieu. Photobucket

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stopchick:

that's exactly what I signed on to say. Consult a lawyer before you pay Fedex a dime. You were not given any indication about these brokerage charges. Ignore the posters here whose only advice is "suck it up, you should have magically have known everything in advance". Ask your lawyer if this is what a "reasonable man" should have expected.
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50% UPS Brokerage fee????

jakeeangel
Community Member
Ask him too about the repurcussions of filing false claims with customs.

15 grand isn't chump change & I really feel for you but you did file false paperwork with US & Canada Customs. Fedex isn't going to eat it. Get as much advice as you can but be aware that you did file under false pretences.

The way you used the terminology on the Customs form is not the intended use & meaning of return for warranty repairs. Sorry. I wish you luck in dealing with this & hope it works out for you.



Come See What Else We've Got Up For Auction!

When you find doing what's right hard to do - you've got a problem.
Message 498 of 950
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50% UPS Brokerage fee????

UPS is full of crap these days...I got charged a 70$ Brokerage fee for a 200$ item plus 30$ Shipping!
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50% UPS Brokerage fee????

um.. no.. thats pretty much about normal... you pay shipping for the seller to send it to you .. then you are IMPORTING to canada and pay for UPS to "BROKER" the goods into this country across an INTERNATIONAL BORDER for you ... then you are paying GST and PST on the value of those goods, just as you would if you purchased them within our Canadian country borders...
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