UPS/FedEx Brokerage Fee – avoid scam (Canada)

Here is the legal way to avoid brokerage fee when importing goods from USA into Canada with courier companies like UPS, or FedEx, without driving hundreds of miles to the port of entry. CBSA officially replied that UPS forces customers to pay outrageous customs brokerage fees illegally.

When you want to order some goods for personal use from US into Canada, you want it to be delivered fast and cheap. It can be orders from eBay, and many other stores across US. Many eBay sellers do not deal with UPS anymore because of outrageous customs brokerage fees. Usually buyers face this fee only at the door, when package is delivered.

It is called C.O.D. (collect on delivery) invoice which includes duties and taxes for imported goods, and UPS customs brokerage fees and other UPS fees like collect on delivery fee, bill integrity fee, taxes on the fees and so on. This C.O.D. bill is usually about 50% of the item’s price! Of course duties and taxes must be paid, but it is usually from 5% to 15% for casual goods (no alcohol, or tobacco, or other goods for which duties applied) depending on the province.

When importers see the invoice to pay extra 50% of the item’s price thay order, some of them just refuse to pay, and item is shipped back to the seller. The sellers do not like this as well as importers, and ship items with more expensive and pretty slow USPS mail service. It goes through Canada Post to the addressee in Canada, and they charge $5 for customs clearance. But USPS delivery can take up to 6 weeks, and theirs delivery cost is higher than for UPS Ground.

Depending on the order’s price, UPS Customs Brokerage Fee varies up to 50%. For example, for the order of $40.01 the brokerage fee is $19.45 + tax, according to the table at UPS website.

If you still want to use advantage of pretty fast, guaranteed, and trackable UPS ground service to ship your imported goods from US into Canada,

You do NOT have to pay UPS brokerage fees!

I’m not advising you to use other courier services, like USPS, or driving hundreds of miles to the port of entry in order to clear items by yourself as UPS forces you to do, otherwise paying brokerage fees.

You do NOT have to be in the port of entry to clear your items!

I’ve ordered some auto parts from California, and UPS forced me to pay brokerage fees. They told that there is absolutely no ways to clear items by myself in local CBSA office other than port of entry. I have spent almost two months to investigate and escalate this issue with UPS and CBSA (Canada Borders Service Agency). Finally I got a call with apologies about the incident and official reply from CBSA which indicates the following:

You are allowed to self clear your personal shipments and pay any duty/taxes owing at an office other than where the goods are being held.

UPS SCS (Ground) was also incorrect to inform you that you had to present yourself at the office where the goods were located.

CBSA also advised me that they are going to inform courier company and CBSA offices to ensure they are aware of the proper procedures.

There are local CBSA (Canada Borders Service Agency) offices in GTA (I’m located in Toronto) where you can pay applicable duties and taxes for imported goods. There is absolutely no need to drive into Windsor or Fort Erie to clear your items. There are also a lot of CBSA offices across Canada, so you most likely may choose one which is pretty close to you.

Here is the way how to avoid UPS brokerage fees:

(Important note: this information is outdated, please see update as of October 17, 2010 below for required list of documents, according to which commercial invoice is not required by CBSA. That list is final and allowed to self clear many shipments successfully)

  • Place your order at US store with UPS delivery option
  • Print out your commercial invoice (PayPal invoice, or e-mail receipt from the store). You may want to make sure that shipper will put the correct price on the package for customs (just send them a note about it)
  • Wait for item to be shipped and get your tracking number
  • Call UPS, give them tracking number and tell that you want to clear your items by yourself in your local CBSA office. They should instruct you what you will need to do

Note: this mechanism can be only applied for Low Value Shipment program (LVS),when order’s price does not exceed $1600 CAD. In case of more expensive goods you will need to present yourself at the port of entry to clear your goods, or find a broker to do this for you.

If for any reason UPS still tells you that you can not clear items by yourself in local CBSA office, and you must go to the port of entry in order to pay duties/taxes – it is illegal! Insist on your rights. Tell that they violate the law. Mention that there is an official reply from CBSA. If you get the refusal from UPS, write down the name of the person you talked to, time, and phone number you called in. Please describe your case to me and I will forward it to the person in CBSA who investigated my case and replied to my inquiry. I’m not posting his contact information here to avoid spam. He advised to contact him if this issue is repeated again.

I believe that it should be applied not only to UPS, but to all other courier services. For example, FedEx brokerage fees must be avoided in the same way.

Updated information as of October 17, 2010.

Canada Customs (CBSA) officially replied and provided procedure of self clearing process which UPS, CBSA offices, and importers should follow:



How to pay duties and taxes for imported goods

If you are planning to have future shipments sent to you by courier from outside Canada, you do have the option of refusing the accounting services offered by the company, choosing instead to clear the goods yourself through your local CBSA office. If you choose to do this, you will not incur any brokerage fees. The two options available to you are the following:

1. Prior to receiving your shipment, you can contact the courier company and inform them of your wish to self-clear any shipments that are addressed to you and on which brokerage fees are applicable. The company will explain their procedures to you.

2. As an alternative, when a casual shipment is delivered to you, you can refuse delivery and advise the courier company of your intention to self-clear directly with the CBSA. In this case, please ensure that you take note of the unique shipment identifier number on the package, as the shipment will be returned to the courier’s warehouse.

With both options, you will need to visit your local CBSA office and provide them with specific details, including the courier’s name, the unique shipment identifier number, a description of the goods and their value so that the CBSA can correctly assess the goods. This information is usually indicated on the shipment’s invoice, which will be provided to you by the courier company. When you have paid the applicable duties and/or taxes to the CBSA, you will be given an official receipt indicating that the goods have been accounted for. You will need to present this receipt to the courier’s warehouse where your shipment is stored, in order for the courier to release your shipment to you.

Thank you for contacting the CBSA.

Internet: www.cbsa-asfc.gc.ca (http://www.cbsa-asfc.gc.ca/)

Canada Border Services Agency

Ottawa, Ontario

K1A 0L8

Government of Canada – Gouvernement du Canada


(Some personal information has been omitted, and CBSA e-mail address also to avoid spam. Some key phrases has been highlighted by editor, not by CBSA)

We may conclude, that in order to self-clear goods in local CBSA office we need following:

The final and proven way of how to avoid UPS brokerage fees:

– Courier’s name: UPS

– Unique shipment identifier number: UPS must provide

– Shipment’s invoice: UPS must provide

– Place where the package is being held

Let’s stop UPS outrageous behavior and lawlessness, and force them to obey the simple law and allow importers to self-clear without paying brokerage fees!

Tell about this procedure to all people who use UPS (or other couriers with high brokerage fees) to import goods from US into Canada! If UPS will hear about it from importers hundreds/thousands times per day, they will definitely start to use new procedure.

The exact procedure of self-clearing with scanned documents is given here:

How to self clear shipment at CBSA and avoid UPS brokerage fee

583 thoughts on “UPS/FedEx Brokerage Fee – avoid scam (Canada)”

  1. Hi Trueler,

    Thank you for your guide, unfortunately I was not able to avoid UPS robbery using that. I did exactly as it describe in the guide:
    – call to UPS and receive shipment’s invoice has the Unique Shipment Identifier Number (that cost me several hours of phone/email conversations).
    – came to Brampton CBSA office to pay custom due & taxes, bring all documents and the letter.
    – CBSA stuff (I talk with several officers) refuse this documents, told that this office doesn’t deal with UPS at all and finally send me to Pearson location (6500 Silverd Dart Dr.) where they told I may try to receive that “manifest” (from UPS office located there) and probably pay taxes/custom due.

    They ignore the mails as it isn’t an official document, told me that they never perform clearance (collect due/taxes) for UPS parcels at that location.

    So I give up as I need that stuff early next week. Any way thank you for your guide hope at least some people will able to avoid pay UPS for nothing.

    Thanks,
    Silen

  2. I also ordered some electronics from the U.S. and the seller used UPS as their Currier. I paid $23 in shipping and thought that was going to be it. a week later i get a notice that an attemp was made but nobody was home to pay $46 for brokerage fees and taxes WTF!!!! I was pissed
    that is almost $70 (23 shipping + 36brokerage + 13 taxes) I would have to pay UPS for an item that cost $100, a total rip off.

    I called the 1800 and they confirmed i would have to pay the additional fees before I can get my package.
    So i had the package re-directed to their warehouse In Ottawa

    UPS. 2281 Stevenage Dr, Hawthorne
    Ottawa Ontario|K1G 3W1
    T: 613.736.6910

    {TRICK – GOOGLE UPS+ your local area code 613 Ottawa, 403 Calgary, 416 Toronto etc.. you get the picture for local UPS phone numbers and addresses}

    I plan to go to UPS tomorrow and get the information i need to clear the package MYSELF at Ottawa’s local CSBA office
    Hopefully i can do this at the Ottawa Airport which is close by the UPS warehouse

    http://www.cbsa-asfc.gc.ca/contact/listing/indexpages/indextype49-e.html

    BUT in the mean time I am sooooooo MAD that i got creative!!!
    I am a graphic designer and a creative thinker so I took an official UPS sales brochure and re-formatted it so it looks like an Official Information letter advising customers of their rights and options when it comes to paying Brokerage fees and i plan to put it up at as many UPS store as possible

    i advise you to do the same
    if you have illustrator you can change the addresses to reflect the information in your city or you can leave your comments and i will be happy to update the info for you

    Also English is not my strong point so if you feel that some of the wording needs to be changes let me know
    BUT try NOT to make it too wordy, keep it simple so it looks like and official info letter.

    I hope you all get a kick out of it

    here is the link
    http://www.michelcoutu.org/mayfair/UPS/UPS_CSBA.pdf

  3. Hi Linda,

    You are definitely free to choose any delivery option offered by seller, you are not stuck with UPS. It is your choice (if seller provides some options, of course).

    There are several criteria that affect decision in each particular case:

    – How long delivery takes. It can be from several days up to several weeks, or even over a month
    – Availability and usefulness of tracking information
    – Convenience of paying taxes for imported goods into Canada
    – Cost of shipment
    – Risk of package being lost on its way
    – Delivery to your home or pick-up at some location
    – Reliability of projected delivery date
    – Risk of shipment being damaged
    – Responsibility of the courier in case of loss, damage, or delay
    – Customer service for resolving any unexpected issues

    It depends on your current needs and the type of your shipment which courier company to choose.

    In my case I ordered heavy stuff (auto parts) from US West Coast to Toronto several times. I’ve chosen UPS because another option was ~30% more expensive, I got stuff delivered by UPS in 6 days, I always knew where my stuff were located, I knew how to pay taxes directly to CBSA and avoid any brokerage fees and successfully done that.

    If it happens that another option is cheaper than UPS and you don’t need your package to be delivered fast, and don’t care about tracking, and have some kind of purchase protection it is worth to choose another delivery option.

    I hope this helps. Let me know if other questions. Feel free to share your concerns.

    Thanks!
    Trueler

  4. Trueler,

    Thank you so much for all the excellent info and for digging deep on this one. After all is said and done though, I would like to know what is the easiest, cheapest, and most pain free way to import/ship LVS items which are non-restricted into Canada? Or are we stuck with UPS for all our US shopping?

    Thanks so much.

  5. Hi Tristan,

    Probably CBSA misunderstood your question or just replied in a hurry without proper research – it took 3 days for reply to you. I got my reply in about a month with a call back from CBSA.

    Actually the question to CBSA should be “how to pay taxes for imported goods”. Clearance itself is definitely done at the port of entry – it is inspection of the goods (if needed) and release to the courier to move further in transit. According to CLVS taxes can be paid by importer later on (it is called accounting process). It was not my invention. Accounting process is described in the documents located at CBSA website. There are Manifests related to CLVS program, one of them is here:

    http://www.cbsa-asfc.gc.ca/publications/dm-md/d17/d17-4-0-eng.pdf

    Other supporting documents are here:

    http://www.cbsa-asfc.gc.ca/import/courier/lvs-efv/menu-eng.html

    When UPS did not honor these procedures for the first time, I made an investigation through many documents and sent a request to CBSA in order to confirm. After that I successfully paid taxes for my shipment at a local CBSA office without going to the port of entry. CBSA provided me with B15 form (receipt of paid taxes) which I’ve sent to UPS in order to waive brokerage fees. You may see the proofs of the process I’ve done here:


    How to self clear shipment at CBSA and avoid UPS brokerage fee

    There are also successful cases of paying taxes directly to CBSA without brokerage fees reported by other importers in comments.

    People just call it “self-clearance”. However the proper name is “accounting for imported goods”, or “paying duties and taxes”. Note that “clearance” involves inspection and release of the goods by Canada Customs officers at the port of entry (brokerage services are absolutely not involved in this process).

    What I got from CBSA is posted in this article.

    The main idea is the following. Brokerage fees are not regulated by the Government and can be about half of the total price of your shipment. That is why CBSA allows to pay duties and taxes at any local CBSA office in order to avoid outrageous brokerage fees.

    I hope it clarifies things.

    Thanks,
    Trueler

  6. Here is a below communication between myself and the CBSA, I’m not sure what you got from them Trueler but this is what I got. I didn’t mention if the goods were personal or commercial but this is what I got.

    From: Tristan Flynn
    Received: 2/21/11 4:10:44 PM EST
    To: CBSA-ASFC@canada.gc.ca
    Subject: Importing to Canada from US

    Hello,

    Can you please tell me if I have to be at the port of entry in order to clear my own shipments through customs? I have been informed by UPS that I cannot clear my items at the CBSA office in Halifax because the port of entry for my items is Montreal. I have found a detailed website in which the creator says the CBSA have confirmed this is incorrect. The Website is http://trueler.com/2010/09/13/ups-brokerage-fees-total-scam-fraud-cheating-avoid-it/

    I import stuff dog toys that are less than 500$ in value per shipment.

    Can you please provide the steps required to clear my items? I am sick and tired of paying hundreds of dollars to UPS to clear customs, I want to do it myself.

    Thank you

    Tristan Flynn

    cbsa-asfc@canada.gc.ca to me
    show details 5:49 PM (18 hours ago)

    Unfortunately the information provided by UPS is correct. For a parcel to be self-cleared, it must be done from a CBSA office located in the same city.

    If you cannot pick up your parcel in person, you may designate a person who can clear the parcel for you provided they have been provided with written authorization from you giving your permission for them to do so. If you decide to have a delegate clear the parcel, please make sure that the person picking up the parcel has government-issued photo identification to confirm their identity.

    If you need more assistance, please contact the Border Information Service (BIS) at 1-800-461-9999. If calling from outside of Canada, you can reach us at 204-983-3500 or 506-636-5064
    (long-distance charges will apply). If you call during regular Canadian business hours (8:00 a.m. to 4:00 p.m. local time Monday to Friday, except holidays), you can speak directly to an agent by pressing “0” at any time.

    Thank you for contacting the CBSA.

    Internet: http://www.cbsa-asfc.gc.ca

    E-mail: cbsa-asfc@canada.gc.ca

    Canada Border Services Agency

    Ottawa, Ontario

    K1A 0L8

  7. Hi,

    Luckily, I stumbled upon this before my order was shipped!
    I bought an iMac on ebay the other day

    I have informed the seller that I wanted the tracking number of the item in order to call UPS and inform them of the CBSA “pick-up.”

    I will call them outlining that I wish to clear my items through the local CBSA office. (This being in Ottawa)
    If I get refusal I should write down his/her name, time and phone number I called in.

    What should I go upon doing after this? I’m guessing that if they refuse my “rights” so to speak, of clearing it myself that I should (when shipment arrives) take down the Courier’s name, shipment invoice, ID number, and where the package is being held.

    Then what?
    I need to make sure I know before it arrives.
    Any help is appreciated.

    Thank you so much, this link is great.

    – James

  8. TNT Express

    Ordered some stuff from china and decided to give TNT a try since i had heard UPS/fedex/DHL overcharge for brokerage fees..

    Was relieved when I talked to the TNT customer rep over the phone and he said “The system does not show that I have to pay anything”… great i thought..

    A month later I receive a call from someone at TNT telling me I owe them $28.25 … this makes things worst because i ended up ordering another package through TNT believing their lies that they do not charge brokerage frees or that i did not owe any brokerage fees to them

    I was wondering if someone could clear up the following issues for me:

    1) They never supplied me with an invoice at the time of delivery
    2) Lied to me over the phone that I did not owe them anything
    3) I was never given any option to chose or refuse TNT brokerage at anytime
    4) No invoice was supplied to me at the time of delivery
    5) My packing slip does not show any duties being paid
    6) My parcel was labeled “Trade sample worth no commercial value”

    Can i still self-clear the item ?
    Anyone with any ideas regarding this??

  9. I just wanted to thank you for this great site because thanks to it, I’ve managed to beat UPS at their stupid brokerage game.
    I had one of their yellow tickets on my door, saying there was almost $40 due in brokerage on a package. I called to check to see what the breakdown was, and the cost of shipping the package was $20, the contents were valued at $45 (although they are free samples, so essentially have no cost) and they wanted $5.82 in taxes and the remaining $34 was their brokerage fee. They gave me the usual runaround, and I gave up. I went online, found your site and called back. Things changed a lot.
    I told them I wanted to clear the package myself. They said I would have to go to Montreal, and I said no I wouldn’t – I could go to St Stephen in NB (which is still 90 minutes away, but anything to make sure they don’t get the money…). They said I would need the package, and I said no. They started to get frustrated and told me they would not charge the brokerage this time and only the taxes – $5.82 – and suggested I use a different courier company in the future. I said I’d be happy to and I’d have the money waiting tomorrow for the delivery guy.
    I’m now in the process of counting out the pennies from my change jar to give a big bag of coins to the UPS man; I hope he counts it…
    Thanks for the great advice, and I would suggest that everyone is persistant, tell UPS that you want to clear the package by yourself and wait for them to cave. Information = power!

  10. Hi Harold,

    It is indeed outrageous. I was sure (and still sure) that at least “fuel surcharge” is definitely part of delivery charges.

    I have only two explanations:
    – UPS made some error and wrongly issued additional charges for you
    – Seller wanted to give you “better deal” and paid only some necessary delivery charge leaving the rest on addressee. Most likely you would not want to buy from that place knowing that delivery cost $211.62

    Regards,
    Trueler

  11. I have just received a hearing aid from China.

    They charged me $50 shipping. Enough, for something that weighs maybe 150 grams, but that’s not the issue.

    UPS have presented me with this bill:
    Import Freight $113.20 (I thought that’s what the $50 was for)
    Intl Extended Destination Surcharge $30
    Fuel surcharge $18.62 (Fuel for what?)
    Total Shipping Charges $161.62

    Note that there are no duty or taxes (medical device for personal use)

  12. Thanks for sharing this information with us. It gets really ridiculous when you pay shipping to the vendor, brokerage fees to UPS/Fedex AND taxes on top of it all, sometimes costing you double the original price of the goods!

  13. Hi Nick,

    If the value for duty is specified as $1900 on the shipment, so it can not be cleared by yourself in a local CBSA office, because it does not fall under CLVS program. I’m sorry for this.

    I did not research the issue of minimizing brokerage fees for items above $1600. You may try to search for this in some Canadian forums.

    Since it is a computer, and there is some software installed on it, probably shipper reduced value for duty to be under $1600. I believe it is not illegal to do so, because you could just pay online and download that software without any delivery. I hope that seller took this into account (or another legal aspects) which helped to offset the value for duty under $1600.

    Just wait for your shipment to be sent from Windsor to Concord, and then you may call UPS and ask what fees you will be required to pay at the door. And ask for commercial/shipment’s invoice to be sent by UPS to your e-mail. Tell that it is necessary for your records, don’t tell about self clearance. In this invoice you will see what “value for duty” seller specified. If they refuse (they sometimes do) ask for supervisor, or try another agent.

    There is another way if you will have problems getting commercial/shipment’s invoice from UPS. Wait for your shipment to be delivered to you, and take a copy of C.O.D. invoice which you will have to pay (driver will present it to you) and the label on the shipment. You may take a photo of them and print out later. If the value for duty is below $1600, you can do self clearance. In this case tell the driver that you are going to dispute your C.O.D. bill. He will bring your shipment to the Concord UPS warehouse.

    Since the computer has been shipped on January 26 from California, I’m expecting it to cross the border in Windsor on January 31 – February 1, and delivered to you one or maximum 2 days later. Usually it takes 6 days from California to Toronto (I ordered stuff from there several times). “Package data processed by brokerage waiting for clearance” just means that electronic data about your shipment was sent to the port of entry – Windsor. Actually there were no any brokerage services involved yet.

    Alternatively, you may ask seller to send you commercial/shipment’s invoice which they have already sent to UPS along with your shipment. You will have an idea of what is the value for duty specified.

    Hope it will be helpful.

    Thanks,
    Trueler

  14. Hi Trueler,
    I bought a $1900 computer from California and it was shipped through UPS on January 26. What are my options to avoid or minimize these UPS fees since the value of my item is greater than $1600? I know you said that I must present myself at the port of entry to clear my goods, but I live in Toronto and I’m assuming the port is really far.
    On the UPS tracking web page it says that the “Package data processed by brokerage waiting for clearance” in Windsor, ON. Not sure if that is the port of entry, but if it is, it is definitely too far for me to travel to.

    Any ideas?

    Thanks
    Nick

  15. I just phoned UPS at 1-800-742-5877
    I talked to ROBIN @ EXT 2116

    She gave me the usual rundown.
    I told her, she is a manager and has the right to refund money and that “I ONLY WANTED HER TO DO WHAT WAS RIGHT”

    I hit her morals and she crumbled.

    ASK THE BIATCHES IF THEY HAVE A HEART.

    THEN NEVER USE THE BOSTARDS AGAIN.

    MAYBE WE SHOULD ALL PICK A WEEK AND LOAD THEM WITH PHONE CALLS.

    I think I may drop a package in their drop box, hopefully the shit won’t stink up my car on the way their.

  16. Hi Eric,

    UPS inventing new things… “commercial invoice only on the package”… hm

    I suggest you following. Try one by one until success.

    – Please call another representative and ask for commercial invoice to be sent to your e-mail. If refused, ask for supervisor (in one of my cases only supervisor of supervisor could send it to me).

    – If UPS does not provide it, please contact your seller. They have absolutely the same document. Actually, they send shipment’s/commercial invoice to UPS. Ask them to e-mail it to you. It is different from PayPal invoice! Seller specifies “value for duty” on it – it is needed by customs.

    – If no luck with seller, print out you PayPal invoice with the description of the goods and value for duty. Login to the UPS website to get your Shipment ID. Put this ID along with tracking number on PayPal invoice. It will probably be accepted by the customs (I don’t guarantee this).

    UPS and seller should definitely provide you with invoice, so there will no need in PayPal invoice I hope.

    Thanks,
    Trueler

  17. Hello Trueler

    I was told that the bill will be on package and they cannot send me a copy to my e-mail.
    So instead of UPS commercial invoice, can I use the Paypal invoice which was the original at the time?

    Or does it not work for the “How to self clear shipment at CBSA and avoid UPS brokerage fee”?

    Thanks again Trueler!

  18. Hi Lydia,

    There are already a lot of detailed stories regarding UPS as you may see here in comments and in another article as well:

    How to self clear shipment at CBSA and avoid UPS brokerage fee

    Message to CTV News: If you decide just to say bad words about UPS and advertise national Canada Post with USPS, it will not help at all! Almost all the people in Canada are already aware of the outrageous brokerage fees from UPS, and that USPS/Canada Post do not charge it (or just $5 flat fee).

    CTV, please let people know that there is a way to avoid brokerage fee and still use UPS!

    Everyone can pay taxes and duties at any local CBSA Office.

    The only requirements are that shipment’s value for duty is below $1600 and there is a local CBSA office available (there are many of them across Canada).

    The procedure of self clearing is not hard, but UPS and some local CBSA agents are against of it and they are making the process almost impossible from time to time.

    CTV, you may really help Canadian importers by spreading the word of self clearance procedure in any local CBSA office! There are even several offices in GTA. You may interview CBSA officials in Ottawa to triple-confirm the official reply from CBSA which I posted in this article.

    Everyone! Please share your story here! It is indeed helpful, so we can see how UPS changes its tactic and we can probably find the next solution.

    PS: USPS/Canada Post is a different story. If you pay taxes yourself, UPS is a wa-a-ay much better than USPS/Canada Post, because it is many times quicker (compare 6 calendar days and 1.5 months), less expensive, and you know where your package is located every single hour.

    Thanks in advance!
    Trueler

  19. Thanks Nicole for your input. It was indeed kind of criminal behavior from UPS around your gift.

    I hope CTV will consider not the fact that UPS does not ask permission to be your broker (because it will not have any positive results), but violation of the Low Value Shipment program where all the importers are allowed to pay taxes and duties at any local CBSA office without driving hundreds of miles to the port of entry as UPS and some uneducated CBSA officers illegally force you to do!

    CTV, do you hear us?

    Thanks,
    Trueler

  20. Hi,
    I was charged $40 in brokerage fees for a gift sent to me from NYC to Toronto. The gift was $45. The rep at UPS told me this was duty as the invoice of the gift was over $100. When I got the gift the invoice clearly said the gift was only $45. I spoke with UPS today and let them know I was expecting a full refund and was not going to let it drop until I got one.

    They actually have a class action lawsuit against them and CTV is considering doing a story about this unethical and what I consider criminal behaviour. Anyway, I do suggest people that have been charged this fee ask to speak with a supervisor and insist on a refund. They do not ask permission to be your broker and that is illegal. When I mentioned this, the supervisor said she would process a full refund.

    I cannot believe this company as well as FEDEX apparently gets away with doing this.

  21. Hi Eric,

    Yes, it is working. Please refer to this post as well to see how the process exactly works:

    How to self clear shipment at CBSA and avoid UPS brokerage fee

    You’ve got incorrect information from UPS and CBSA agent Matthew.

    Note, that you don’t even have to inform UPS that you want self clear. Just ask them to provide shipment’s/commercial invoice with shipment ID number (or you can get it by yourself when logging in to the system).

    When clearing in CBSA office – show them instructions which I posted here obtained from main CBSA office in Ottawa (did you show them to Matthew?). They have to follow them. Otherwise put the name of the officer who refused to assist you and make a complaint to the ministry.

    Thanks,
    Trueler

  22. Trueler,

    Is this methods still working?
    I recently wanted to clear my item locally however both UPS and CBSA told me that only way for me to clear the item is to be at Fort Eerie.

    I was also told that above (“The final and proven way of how to avoid UPS brokerage fees”) is not possible by the CBSA agent named Matthew on January 20th 8:13AM.

    My item is currently at Fort Eerie being cleared.

    Thanks for your response (Hopefully before UPS arrives).
    I’m hopeless as I have been denied by CBSA.

  23. Hi Sabs,

    Taxes and fees on your own computer for which you’ve already paid taxes?!

    Either UPS incorrectly assessed the shipment or your parents told in UPS store that they are selling that laptop to you. I believe it is the first case. So, it is entirely UPS fault. “Value for duty” definitely had to be marked as zero because it is a product already purchased in Canada.

    Just imagine. You are traveling with a laptop which costs $1000 every weekend across the border from Canada into US and back. Should you pay over $500 each month in taxes to Canada Customs?

    Regards,
    Trueler

  24. Hi Trueler,

    I’m in Mississauga. Unfortunately I only came across this page after the payment of fees. $350. So far the highest of everyone on this page (do I win a prize?) This was all because I had my parents send me my laptop from NJ with UPS because I forgot it there when I visited last. They wrote the value as $2000 so it would be properly insured if something were to happen. I ended up paying the HST (252.20) Brok fee ($87.26) and the Brok fee tax (11.34) even after speaking with CS and asking them to reduce the fees out of “good faith” on my own computer.

    So now I am in the process of getting a refund through CBSA Informal Adjustment Request. I am already running into problems and I’m just filling out the form. It’s asking me for the CBSA import receipt number, which I don’t have. In the instructions, it says under field 3

    ” Provide the CBSA inventory/import receipt number from the CBSA Postal Import Form or the Casual Goods Accounting Document or from a courier receipt. You must attach the original import document”

    This is scary because I don’t have these forms from UPS and it isn’t on the UPS Invoice, or the UPS page I got from the driver, as far as I an see.

    If anyone knows what I have to do, please let me know, otherwise I’m going to the CBSA offices to ask them.

    sabs

  25. Thank again, LVSinfo!

    I used to communicate with CBSA via e-mail. This is how I got a reply with instructions how to deal with UPS/FedEx/Others brokerage fees. But it takes weeks to get replies even by e-mail.

    Guys, please fill the feedback on CBSA website with your detailed explanations if local CBSA offices or UPS do not follow instructions!

    Good Luck!
    Trueler

  26. I was just looking over the CBSA website and I noticed they have added an electronic feedback form, to send them complaints or compliments about CBSA programs or service provided by staff. This could be a good, easy, first step to making concerns known to the powers that be at the CBSA that their is a problem with non compliance of the LVS customs regulations by the couriers and its adversely affecting CBSA clients (the importers). Check it out, it beats complaining snail mail. Click the feedback form link at:

    http://www.cbsa.gc.ca/contact/com-eng.html#a1

  27. Hi LVSinfo,

    Thanks a lot for following brokerage fee related threads here and your post! Really appreciate it!!

    Trueler

  28. Hello, I have been reading the comments on this website. It is heartening to see folks asserting their rights to self clear and disheartening to see both UPS and the CBSA still making it difficult.

    One comment I wanted to make was to clear up some confusion on the unique shipment identifier number. The 14 digit Transaction number is indeed the unique shipment identifier number. With this number Customs can see all electronic documents submitted to them that are related to that number. So if they need the cargo control number they can pull it up in their system using the 14 digit transaction number.

    You may want to just outright request the transaction number and quote paragraph 55 from D17-4-0 which says they must provide it. This is less vague than asking for the unique shipment identifier number and all couriers/brokers/CBSA officers will know what this number is. Why the D memo references transaction number in paragraph 55 but unique shipment identifier number in 56 I do not know, but they are one in the same.

    A transaction number will always be more useful to CBSA then any other number you give them. (although if you do have the cargo control number they can find the related transaction number and vice versa.)

    It is interesting to see UPS switching to Fedex’s tactic of leaving the package without collecting the duties and taxes (and brokerage fee) and sending a bill later. This is blatantly against the LVS rules outlined in D17-4-0,(they are not to leave the package with the importer until the importer has paid the duties and taxes, its black and white) but as Trueler has outlined when they doe this it makes it very easy to go pay your duties and taxes and fax the copy of the B15 to the courier. (I do this all the time with Fedex)

    My suggestion to anyone that has followed the correct rules to pay their duties and taxes and has run into road blocks with the UPS and CBSA that are contrary to what is laid out in D17-4-0 would be to write the Minister in charge of the CBSA and complain. Be very detailed, document every call you make and who you talked to and what was said. Make sure for both UPS and the CBSA you ask to talk to a supervisor and get their names and what they said. Outline how what you were told is contradictory to the CBSA regulations in D17-4-0. Honestly the only way UPS and other couriers that are violating the regulations will change their ways is to get their knuckles rapped by the government. The only way this might happen is if enough people make proper complaints (with details) to the proper politician.

    The minister in charge of the CBSA is:
    Minister of Public Safety, Vic Toews
    Parliament Hill
    Suite 306, Justice Building House of Commons
    Ottawa. Ont. K1A 0A6
    Ph:(613) 992-3128
    Fx:(613) 995-1049
    E-mail: Toews.V@parl.gc.ca

    Remember all mail to members of parliament requires no postage and they are required to respond (though it is often a canned response)

  29. Greetings all!
    I posted to this site a while ago (Oct 26, 2010 – “Jim”) about my experiences of dealing with UPS and following Trueler’s instructions and not having to pay UPS fees. I keep dropping back from time to time to read the posts. I agree with the above poster – this info/blog should be made available to ALL Canadians, esp. those who buy on eBay! eBay should make a sticky so that all Canadians buying stuff from the US that is shipped vis UPS know their rights…

  30. Hi Jim,

    If I understood the first question correctly, so yes, you can just fax the B15 form to UPS. If it will be enough time for brokerage department to handle this info and waive the fee in the system, so the driver won’t ask you to pay. Now it is pretty common practice that drivers don’t ask to pay, but UPS sends you invoice in several weeks. In this case you are fine as well. If driver asks to pay for invoice at the door, so call UPS to schedule delivery when they update the system with the information that taxes paid. Usually it takes 1-2 days.

    If the there is a shipment ID number, description of goods, value for duty, address on the invoice which you can get from the shipper, there is no need to ask UPS about anything. In my case UPS sent me by e-mail exactly the same invoice which shipper sent to UPS.

    Best Regards!
    Trueler

  31. Trueler

    I have dealt with UPS and their crooked brokerage department many times and finally got on my search engine and found this blog. Thanks for your efforts in all of this. What I’ve learned here today will be sent to my entire address book and to anyone else that wants it. I have one question though. If I intercept my package after it crosses the border (before delivery) and I have the appropriate documents, can I not just FAX the B15 form to UPS showing all duties and taxes are paid and my shipment will arrive at my door without charges? I have checked with a couple of the companies I order things from in the states and they tell me that they put the shipping ID number on the commercial documents and the (in this case) NAFTA documents. If I understand correctly, I can get the required info from the shipper and don’t need to get anything from UPS? Can you comment.
    Thanks
    Jim

  32. Looks like there is a tendency of successful self-clearing now.

    Share your experience!

    Thanks!
    Trueler

  33. Hi GMDee,

    Thank you for sharing experience!

    Everyone is allowed to self clear when package already went through port of entry customs. This is what CBSA tells, and Low Value Shipment program states. UPS was incorrect telling you that you can not pay taxes by yourself.

    One question to you. Do you have CBSA office nearby? If you do have, you can ask UPS for shipment’s invoice and self clear. UPS will provide all necessary information to Purolator after you provide B15 form to UPS (we have such a case done successfully in St. John’s). For more detailed instructions you may see this post:

    How to self clear shipment at CBSA and avoid UPS brokerage fee

    If you don’t have local CBSA office nearby, then unfortunately you have no choice other than paying brokerage or taking ferry.

    Best Regards,
    Trueler

  34. Just called back, and the rep had no problem letting me self-clear; however, because I live on Vancouver Island, and UPS uses Purolator as a delivery service on the Island (UPS doesn’t actually do any of the deliveried here), the package would have to be sent back to Richmond B.C (the port of entry), where I would then have to go to fill out the paperwork and clear the package. Because there are no UPS warehouses on the Island, I’m stuck taking the ferry to the mainland.

    There may be a way to self clear the package, but its looking as though I’ll have to deal with two separate couriers on this one. It isn’t worth it this time, unfortunately. I sure as hell am never going with UPS again though.

    To anyone looking to self clear, just be aware that UPS may be changing their tactics. I spoke to three different reps (two in the US and one in Canada), and not once was I told that I wasn’t allowed to self clear. It seems that UPS is trying to make self clear very difficult, rather than denying that it can be done.

    Good luck to all!

  35. Hello,
    I just received a first notice of delivery from UPS for and order totalling $280.00. $60 of that was shipping (UPS ground), and I just found out the brokerage fee is an additional $98. I did a quick Internet search and found this invaluable website, went through it and decided to call UPS. I was told by the agent that because the package was already cleared, I wouldn’t be able to self-clear it. He said that if I wanted to self clear, I would have had to call the company I ordered the product from and decline UPS’ brokerage service before the package made it to the border. Basically I was told that it was too late for me to recuperate the brokerage fee and that I am stuck with it.

    From what I’ve read on this blog, you can refuse a package at the door (so it has obviously already been cleared), and still attempt to self clear it, thereby avoiding the brokerage fees. I think what I’ll do is call UPS back in a while and speak to a different rep., change my tactic and try again. Has anyone else been told this by UPS? for the most part it seems that the UPS reps will deny altogether that you can self clear. This rep was clever in saying that self-clearing is possible, however it was too late for me to do so.

  36. Hi mrmomar,

    Thanks a lot for your detailed experience!

    UPS does not want to let people self-clear because they make money, absolutely agree with you.

    The fact that UPS waived brokerage fee for you (and for some other people) obviously confirms that people are allowed to do self-clearance :) It is cheaper for UPS to waive brokerage fees for some people, rather than show that they allow self-clearance. However, they already showed it because we have several successful cases here.

    When I’ve asked to send invoice to my e-mail they could do it only with the second attempt, when they spelled my address back and there were ~6 mistakes in 10 letters. Make sure they get you address correctly.

    Trueler

  37. Hello,

    I tried your method today for a shipment of goods purchased online from Boston, MA to Calgary, Alberta Canada. I had already read your post and comments and was prepared for the typical UPS roadblocks described above. I will share my own experience below. Personally, I think UPS is changing their tactic as a result of this blog to make it even more difficult. It is our responsibility to inform CBSA and consumers of these tactics in order to force UPS to make self-clearing easier.

    Bottom line: UPS does not want people to self-clear packages because they make $$ doing it for us.

    12:00 pm.
    UPS called to ask for authorization to act as a broker on my behalf. I refused and said I would self-clear the package. They agreed, then informed me I would have to go to the warehouse in Winnipeg! 1300km away! They said the only way to self-clear a package is if it is personal effects (goods older than 6 months that you already own and are shipping across borders). I told her that she was misinforming me and asked her to submit in writing a statement that UPS is refusing to let me self-clear the package. She said she did not have access to email (a lie that I later found out when calling back) and could fax it only. I had it faxed to work.

    The fax states:
    “packages that are entering into the port of Winnipeg cannot be cleared though [SIC] another port – example : Calgary – unless – it is personal effects”

    I asked for her name, employee ID#, told her I would contact CBSA and hung up.

    12:30 pm
    I called CBSA (1-800 461-9999) and complained UPS would not allow me to self-clear a package unless I went to the port of entry. The CBSA agent said this is incorrect and that the package could be transported between from Winnipeg to the bonded UPS warehouse in Calgary, where it could then be self-cleared locally. This is consistent with CBSA’s Memorandum D 17-40 Section 16: “Courier LVS Program Release Process
    16. When Courier LVS goods arrive in Canada at an office other than the office of release, the in-bond movement of the shipments to the office of release is permitted…”

    12:45 pm
    I called UPS again to ask for an electronic copy of my invoice to provide to CBSA. She read the notes on my shipment and informed me again I would have to clear the shipment in Winnipeg. She agreed to send the invoice via email, but I never received it. I told her I had spoken with CBSA and they informed me that the previous UPS representative was incorrect – I could self-clear the package in at the bonded UPS Calgary warehouse. She immediately put me on hold to speak to a ‘brokerage specialist’. 5 minutes later she came back and told me that CBSA was correct, but that my package would not be travelling ‘in-bond’ between Calgary and Winnipeg. She explained that if it is not travelling in-bond, then it must be released by CBSA in Winnipeg and all duties / taxes paid prior to release. I told her that I would gladly submit the CBSA required documents to a local CBSA office and have them fax it to Winnipeg for release. I also asked her to email / fax me a statement that my package would not be travelling in-bond between Winnipeg and Calgary. After this request, I was immediately put on hold and transferred to the UPS ‘brokerage specialist’.

    The broker specialist reiterated that only personal effects could be released without visiting Winnipeg. I repeated that I knew this was not the case, and that I would like a written statement that my shipment would no be travelling in-bond between Winnipeg and Calgary. She diverted the topic by saying that the UPS Calgary warehouse is bonded, but that this particular shipment is not travelling in-bond. I explained that I was certain there was a way to self-clear the package, and that I had no problems staying on the phone until she explained how it could be done. When I cited that their statement also contradicts the CBSA’s Low Value Shipment program, she again said that this particular shipment did not fall under the LVS program because CBSA had requested to inspect it already. I found that a little odd since it isn’t due to arrive in Winnipeg for another 4 days.

    RESULTS??
    After some back and forth, she offered to split the brokerage fees. I explained that I was determined to self-clear this package. Within a couple minutes, they waived the brokerage fee entirely, and I agreed to pay for the duties and GST only.

    While this was financially successful for me (no brokerage fees, but I was on the phone for over an hour), I was not able to actually self-clear a package at the UPS warehouse in Calgary. I suspect that I caught them in a lie by telling me that the package was not travelling in-bond between Winnipeg and Calgary, which is why they would not submit it in writing, and they gave a lot of ‘special circumstances’ for this particular package. The fact they would tell me it is not travelling in-bond is concerning — this suggests that it is travelling without protection, insurance, etc. In this case, I don’t know which situation is worse, the truth or a lie.

    I believe that UPS is well aware of our right to self-clear packages, and they will take any tactic to prevent it. It is in their own best interest to waive the brokerage fee to the occasional customer than to make self-clearing an easy process. In doing so, they are protecting their ability to charge an exorbitant fees for a small amount of paperwork. When I asked why USPS charges $5, they said it was because the postal service is a government agency. Unless consumers continue to complain to exporters, UPS managerial staff and the CBSA, this situation will not change. Currently, brokerage fees are acting as an enormous barrier for international and electronic commerce, particularly for small businesses and their costumers who rely on couriers as part of doing business.

    I will also be filing a complaint with the CBSA and UPS.

  38. Hi saz,

    Please make sure you have shipment’s invoice with description of goods and value for duty, unique shipment identifier number, and address where goods will be on hold when you go to CBSA and self-clear your package.

    Current tracking status means that your package successfully crossed Canadian border, i.e. customs decided to let it go.

    Thanks,
    Trueler

  39. Hi Trueler,

    Just to let you know the progress of my shipment. I am guessing now the CBSA has enough information for me to go there and self-clear my package.

    WINDSOR, ON, CA 12/01/2010 8:13 P.M. REGISTERED WITH CLEARING AGENCY / SHIPMENT SUBMITTED TO CLEARING AGENCY
    12/01/2010 8:13 P.M. REGISTERED WITH CLEARING AGENCY
    12/01/2010 2:00 P.M. DEPARTURE SCAN
    12/01/2010 11:29 A.M. RELEASED BY CLEARING AGENCY. NOW IN-TRANSIT FOR DELIVERY
    12/01/2010 4:28 A.M. IMPORT SCAN
    12/01/2010 1:30 A.M. ARRIVAL SCAN

  40. As I understood, Anne got the shipment’s ID # from UPS, and the number appeared on the web page after registration was the same.

  41. Hi saz,

    a) This is exactly what I did
    b) Yes. I’ve asked UPS for the fax number. It is 1-770-990-1724 (UPS Brokerage Department). Make sure you put your tracking ID number on the cover page, so it won’t be lost. I’ve put this fax number in the detailed instructions at How to self clear shipment at CBSA and avoid UPS brokerage fee
    c) Yes. Parking is free at the Brampton CBSA office. There are no any “Canada Customs” signs at the street. When you locate the building, turn left as soon as you enter. There will be a door on your left.

    Trueler

  42. Hi Anne,

    Can you confirm if the Shipment ID # is an 11 digit alpha numeric #?

    To Trueler:

    a) If they are going to invoice me after should I just let the driver deliver and then I can ask UPS for the shipment invoice, go to the CBSA office, get the B15 and then fax them over to the brokerage department.

    b) Do you have the fax #?

    c) Is parking free at the Brampton CBSA office?

    thanks,

    Saz

  43. Hi Anne,

    You are very welcome!
    Most likely driver will not accept B15, because they are not trained to do so. You will have to fax B15 to UPS brokerage department, call them and ask for release. At the same time you may schedule delivery.
    In my case I could skip conversation with UPS about self-clearance. Driver did not ask me to pay anything and just gave me the package. Then I called UPS to figure out if I should expect invoice – they confirmed that there is an invoice expected. I’ve asked about self-clearance and they told me the same story that it is not possible. I called again and just asked for shipment’s invoice – they send it to me. After self-clearance at CBSA I called again and asked how to present them B15 – they gave me UPS brokerage department’s fax number. Now I do not expect any invoices from UPS for this shipment.

    Regards,
    Trueler

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