Since most American companies ship via UPS Ground by default (since it's the most economical way to ship within the US), they're usually completely unaware of the gouging that happens when those UPS Ground parcels cross the border. So take the opportunity to tell them just how bad that gouging is. Once they find out, they're usually just as outraged as we are, and will use a different method to ship to Canada. At least, that's what I've found.
And now, here's a UPS horror story that actually ended well...
I just had an item with a declared value of $20 US, shipped to me by UPS Ground. UPS doesn't charge fees on shipments worth $20 or less, so I'd thought I was safe. At the time the package left the sender, our dollar was at par with the Greenback. On the day it reached the border, there was a slight blip in the rate, so the item was worth $20.03 CDN.
Those extra 3 cents pushed it into "gouge the poor schnook with obscene fees" territory. Don't believe the "Entry Preparation Fees" listed on the UPS Canada website
. They sneakily list a fee of just $7 on shipments valued at $20.01-$40.00, but you have to read the fine print on the WHOLE PAGE, to discover that they also charge you a bunch of other fees on top of that.
There's a COD Fee (since the deliveryman has to collect the fees & import taxes from you) of $4.25, and a "Bond Fee" of 2.7% (minimum $5.85) "to allow the shipment to be released in advance of payment to the CBSA" (Canada Border Services Agency). So that little $7 fee has just ballooned into $17.10 +GST, and that's before adding in the import taxes (a measly $2.60).
So, to recap: My shipment incurred UPS fees of $7.00 + $4.25 + $5.85 (total: $17.10 +GST), plus import taxes (GST & PST) of $2.60, for a grand total of $21.32---on a shipment worth $20.03.
The UPS rep on the phone was wonderful. She explained the fees fully, agreeing with me completely that the total fees should be shown in the chart, and not broken down so sneakily. But she stressed that the fees were legal (as if that excused them). When I asked if there was a supervisor who could waive those fees, since they were so outrageous, she herself, as a one-time-only goodwill gesture, WAIVED THE FEES (except for the $2.60 import taxes of course) and told me how to avoid those brokerage fees in future.
1) Ship by UPS Air. UPS Air shipments NEVER incur fees. UPS Ground shipments ALWAYS incur fees.
2) Ask the seller to declare the value in Canadian dollars. Just adding "CDN" after the value on the form will do it...especially now that our dollar is pretty much at par.
3) You could tell the seller to note on the waybill that you wish to clear the item through Customs yourself, and do NOT want to use the services of UPS' brokerage. This will mean getting the paperwork from the UPS office, taking it to the CBSA office (usually right nearby), getting their stamp of approval, and taking the paperwork back to UPS, who will then release the parcel to you.
4) Of course, the best way is just never to buy anything unless the seller is willing to ship by Mail. The postage will cost more than UPS Ground, but the fees are only $5. Curiously, DHL is the one courier company that seems to be managing just fine even though it also charges only $5 in fees. So it's not like UPS and FedEx can't survive on $5 fees; they just prefer ripping Canadians off.
