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 Chad,

    If you inform UPS/FedEx that you want to self clear the package, there is a very big chance (almost 100%) that they will hold your shipment at the port of entry until you pay them brokerage fee and taxes with a credit card by phone, or at least agree to pay it at the delivery/pickup time.

    Trueler

  2. Afternoon Trueler,

    I found your website after searching about the dreaded import problems that I have experienced in the past.

    I have purchased 4 aluminum rims down in florida… I am working on having them picked up and delivered to me here in Canada. From what I can tell the nearest CBSA office is at the Hamilton Internation Airport…

    So do I just need to inform UPS/FedEx that I want to self clear the package? Nothing has been shipped yet so I am trying to nip this in the bud…

    Chad

  3. Hi Chris,

    Unfortunately I’m not aware of another alternative now other than showing up in person at CBSA (at least I have not heard about anyone’s experience). I’m sorry.

    I’m wondering why our Government does not make it easy for importers to pay duties and taxes… It would be very convenient if customers pay taxes for imported goods when filing tax return. And it is not hard to implement. Just adding couple additional lines.

    Regards,
    Trueler

  4. I have some automotive parts waiting to be delivered tomorrow from UPS with a 77.61 brokerage fee charge on 174.10 of parts. Unfortunatly my most local CBSA office and their hours are not so convenient for me. Is their anyway to do it another way ?

    Or am I kinda screwed this time and chalk this one up to experience for next time ?

    Thanks very much

  5. Hi George,

    If UPS have not paid taxes yet, tell them that you are going to do it yourself (of course if you want, have time, and ready for a possible hassle) and will provide them with B15 form which is a receipt for paid duties and taxes to CBSA. Then UPS will have to issue a refund for brokerage fee and money for taxes you paid to the driver. But I have not heard if anyone successfully done this, and can’t guarantee that UPS will go for it. You need acknowledge from UPS that they will not remit taxes on your behalf to CBSA, because when I was paying at CBSA, they asked me if I already paid them to the courier.

    Detailed instructions on how to pay taxes at a local CBSA office are given here:

    http://trueler.com/2010/11/24/self-clear-shipment-cbsa-avoid-ups-brokerage-fee/

    Please also refer to comments with other importers’ experience.

    Regards,
    Trueler

  6. BTW dear Trueler, how exactly it’s going to help me if the didn’t payed taxes ?
    Regards

  7. Hi George,

    I think even if you pay taxes by yourself to CBSA, UPS will not refund you for that brokerage fee, just because they don’t want to. You may try to call them and ask if they already paid taxes to CBSA on behalf of you. Note that they should pay it by the end of the next month after shipment according to CLVS program, i.e. by June 24. I bet that they have not paid it yet, but they will tell you that they did! In this case you are allowed to request a receipt from them that taxes have been paid for your shipment directly to CBSA. UPS must provide it to importer. If they confirm that thay have not paid it yet, so tell that you are going to pay it yourself, ask for shipment invoice, etc. Let’s see what they do.

    For your second question. If you pay HST during purchase, so I think the store is located in Canada. Is it? So, there will be absolutely no brokerage fee. However, who knows what UPS will do?…

    Thanks,
    Trueler

  8. Hi Trueler,
    Just received a pillow that I bought on Ebay
    $123 + (shipping)$27 +$51 brokerage fee.

    Is there anything to do after I already paid to the UPS delivery guy ?

    Second question

    All the orders from on-line Apple store shipped by UPS,
    you pay cost+HST – shipping is free, is there a chance that they going to charge an additional Brokarage Fee for MacBook pro ?

    Regards

  9. Hi Krzysztof,

    CBSA office in Brampton which relocated from 197 Country Court Blvd to 5425 Dixie Rd. (according to one of the importers) was able to help. CBSA at Person (terminal one) should be able to help as well. Did you show them instructions from CBSA Ottawa? They gave you incorrect information and just sent you to another place because they just didn’t want to do anything for you. Your shipment is personal, not commercial. They should not want to see the package, because it has already been released by the customs officers at the port of entry. UPS has their own brokers, but you are allowed not to use them and pay taxes yourself. You don’t have to say the sender something different in order to pay taxes yourself. If you have not looked at another post with experience of other importers, you may find it helpful as well:

    http://trueler.com/2010/11/24/self-clear-shipment-cbsa-avoid-ups-brokerage-fee/

    I hope you will be persistent with CBSA and will manage to pay applicable taxes yourself and not paying a penny to UPS.

    Regards,
    Trueler

  10. I had a $150 worth of motorcycle parts shipped to me from North Carolina via UPS. The brokerage fees were just over $98… I called UPS and got the invoice emailed to me. I printed it out and I took it to the CBSA offices at Pearson. First time I went to terminal 1 and they told me that I need to go somwehere else (gateway-something?) They gave me a number, but nobody answered the phone there. Today I tried again, this time at terminal 3. The CBSA officer (I have his number) told me that:
    – that office only serves travelers, and my case is “commercial”,
    – that he needs to see the package,
    – that UPS has their own brokers,
    – that I should have told the sender to do something different if I didn’t want to pay the UPS fees.
    I’m not having any luck dealing with these guys. What else can I do?

  11. Fred, I don’t see you providing info to help importers. The reason you are here is obviously different.

    If you do see anything wrong here, please let me know what exactly. I will revisit questionable statements and make corrections if necessary. Please provide proofs that statements you refer to are incorrect.

    Information and advises I provide here are indeed helpful to people importing goods into Canada. Thanks to importers who succeeded in self-clearance for their persistence dealing with the couriers and local CBSA offices! Thanks to all who at least tried!

    “… brokerage is some sort of massive conspiracy between every import broker and the government of Canada to screw the innocent importer out of their hard-earned money …” – haha) It’s not my words ;) But the fact is the fact: It is not in the interests of the Government of Canada, import brokers, or courier companies to make importation of goods an easy, cheap and pain-free process. I understand Canadian Government. It is great to support local manufacturers! But please understand casual importers as well: many goods are cheaper in US than in Canada, even taking into account shipping and taxes. Sometimes it is very hard or impossible to find necessary stuff here in Canada.

    Officially the Government of Canada has confirmed that paying duties and taxes for imported goods is a relatively simple and cost-free process. However now it still involves too much of a hassle in many cases unfortunately. We need to spread information about paying taxes in any local CBSA office more and more. If every importer will do this, UPS/FedEx/… will have to give up and make the process really simple!

    Thanks!
    Trueler

  12. Hi Trueler:

    The exact tax rate on books depends on which province you live in, because books are not PST exempt in every province as they are in Ontario.

    I just didn’t take my example far enough for your liking apparently. You pay GST on the DPV of the goods. In this case 0.05 * 96.58 = $4.83 CAD, assuming the destination is Ontario or Alberta.

    You are merely making vague assertions that I am lying and that brokerage is some sort of massive conspiracy between every import broker and the government of Canada to screw the innocent importer out of their hard-earned money.

    Providing info is why I cam here. I’m not sure what your game is anymore, but I can tell at least you have a huge chip on your shoulder regarding being told you are wrong.

  13. Fred,

    Please find obvious proofs that at least couple of your statements were incorrect here:

    http://trueler.com/2010/09/13/ups-brokerage-fees-total-scam-fraud-cheating-avoid-it/#comment-11157

    Why do you continue to misinform people? Or have you just confused yourself?

    In your last post you treated duty and taxes as the same thing. However they are in fact different. Most of the goods imported from US into Canada are duty free, but not tax free. FYI: Books are subject to HST

    You have demonstrated too much of incompetence. Initially I thought you are here to provide valuable information and may be help answering the questions.

    The bad thing is that such incompetent “brokers” are working at UPS!

    Refer to the experience of B Smith to see how UPS tried to charge $182 (taxes + brokerage fee) on the tax exempt item:

    http://trueler.com/2010/11/24/self-clear-shipment-cbsa-avoid-ups-brokerage-fee/#comment-10847

    The guy cleared the shipment himself and paid $0.

    My advise to everyone: if your have a local CBSA office in a reasonable distance, pay taxes yourself. No one can save you on brokerage fees as much as you can do yourself, none of the brokers. Do not give your money to unfair customs brokerage businesses who claim that shipment’s clearing is an extremely difficult and expensive procedure!

    Regards,
    Trueler

  14. “Value for Duty” is simply a term that means the value (in Canadian dollars) that is used to determine the duty applicable on the shipment.

    The same as “Value for Currency Conversion” is the value in whatever currency the invoice indicates and “Duty Paid Value” or “Value for Tax” is the amount on which GST is paid. Duty Paid Value is the VFD + the duty amount.

    As an example: If you had imported a book today and the shipper declared the value at $100 USD. The VCC is $100. The VFD is VCC*0.9658 [today’s exchange] = $96.58 CAD. Books are duty-free MFN, so the duty is $0. That means the DPV is also $96.58.

    Any shipment under $20 VFD (for example the $0 VFD you are suggesting) is “remissioned” and no duty/tax apply. It is true that UPS does not charge anything for such shipments.

    You have provided no proof of anything and I know that you don’t have any or there would be no debate. I have no reason to muddy the waters. My business is in clearing shipments for commercial importers only–which are usually far in excess of the $1600 CAD upper limit of LVS. I have a number of years, however, clearing personals for a courier company and know the process of rating them rather intimately.

  15. @Fred:

    as you can see, I provided proofs that your statements are incorrect.

    Well.. You are here to promote customs brokerage business if you prefer this wording rather than “get clients”.

    UPS charges brokerage fee based on “value for duty” – you may find it on their website. I have received shipments with zero value for duty several times delivered by UPS without any invoices.

    Thanks,
    Trueler

  16. Hi Trueler:

    I’m not here to “get clients”. Unfortunately if your only rebuttal is to call me a liar than I guess there is no help for you.

    Luckily your ignorance about international shipping is ultimately what keeps me in work. The technical aspect of clearing a shipment is actually rather easy despite the knowledge required. Most of what I do actually involves acting as a resource for clients and ensuring they remain compliant.

    I would like to see a link to a broker (UPS or any broker) that does not charge brokerage on duty-free/GST exempt shipments. Generally brokerage fees are based on the shipment value or specific negotiated rates for high-volume importers.

  17. Hey Fred,

    I don’t want to be rude, but you sound like all those UPS representatives who tried to make obstacles by lying to the importers wishing to self-clear :)

    There are a lot of incorrect statements in your last post as well. You definitely have an interest to keep customs brokerage business alive because you are a broker. That’s why you are trying to show that shipment’s clearing procedure is extremely difficult and expensive.

    Just a couple of examples where you misinform people:

    – “Brokerage services” indeed involve only paying duties and taxes on behalf of importer. You are saying that it is “blatantly false”. If no taxes due, there is no brokerage fee. Even UPS website confirms this.

    – You promise that it costs far more than $5 to clear each shipment. It can’t be true at all. Canada Post, for example, charges $5-$8 brokerage fee. But their delivery cost is usually higher than UPS, and delivery time is much longer.

    – etc…

    Fred, you are willing to get more clients. But you have chosen the wrong way. After all the incorrect statements from you showing that customs clearance is very sophisticated procedure requiring a lot of expertise and therefore extremely expensive, people will not trust you at all.

    Just say the truth: “I wanna earn money and can pay taxes to CBSA on behalf of you if you don’t want to do it yourself. It will cost you $50 per shipment because I need to earn my crust, not because it is a difficult and expensive procedure”. And people who understand that the brokerage fee from the courier companies is a total BS, will more likely use your services.

    But now you and many other brokers behave unfair by misinforming people. I would not recommend anyone to use customs brokerage services, because they may just rip-off importers even more than UPS and FedEx

    Regards,
    Trueler

  18. Hi Trueler:

    I’m not trying to confuse anyone. You are simply wrong on a number of points. Yes–clearing a shipment yourself as you’ve described is great for many people and they all thank-you for the walk-through. Telling them things that are false does not help anyone though. I’m not championing or selling anything.

    Canada customs does NOT rate the goods. They do not see the invoice at all in the great majority of cases. They may be helping/doing it for you when you show up at the office in person, but that is NOT how it works on any kind of large scale. The broker has to rate the shipment before the info is transmitted to the CBSA. That involves determining the tariff classification, GST rate, tariff treatment, etc, etc.

    Assuming a courier uses your system and simply folds the cost of brokerage into the shipping fees: what about the people who have actually decided to use a broker besides the courier’s in-house? They–and you–have that option. Suddenly they are paying brokerage twice. A large-scale customs brokerage is a massive operation and I promise you that it costs far more than $5 to clear each shipment; if brokerage fees were somehow eliminated the cost of international shipping would go up significantly.

    Again: if you don’t like some particular courier’s brokerage fees simply DO NOT use them. Even if you are unable to clear yourself you may use ANY BROKER that has the ability to clear for the port in question and is willing to have you as a client.

    The problem arises when 99.99% of casual importers do not arrange for clearance when they are supposed to. To that end couriers are allowed by the CBSA to assign their own broker. The alternative is that every personal shipment be held in bonded warehouses at the border until brokerage can be arranged.

    You keep repeating that the only thing brokerage involves is paying duty which is BLATANTLY FALSE. I’m not sure how you came to that conclusion at all.

  19. Fred, you are broker. It is a major part of your job to complicate things in customer’s eyes. I understand this.

    My role is to give people accurate information to understand what the “brokerage fee” is and how to avoid it. Here is more explanation:

    I’m paying international delivery rate to the courier for my shipment. It is courier’s responsibility to provide and transmit all the necessary documentation to Canada Customs at the port of entry – I’ve already paid for it.

    I’m paying taxes. It is Canada Customs responsibility to rate the goods based on shipment’s invoice.

    Brokerage services involve ONLY duty/taxes payment to CBSA on behalf of importer. That’s it. Nothing more. Does it worth even $5 CAD? $1 CAD? It should worth 0. Because customer has already paid for international delivery into Canada. There are taxes applied to most of the products. The courier knows about it, so the delivery rate must cover the procedure of paying taxes. It is very simple.

    – We have just figured out that “brokerage services” for personal shipments under LVS program cost zero.
    – Couriers charge importers with extremely high unexpected fees at the delivery time.

    => “brokerage fee” is just a HUGE hidden portion of delivery cost, and couriers do not tell you anything about it. In most cases it exceeds actual delivery cost paid initially.

    Thanks,
    Trueler

  20. Trueler: How long does it take a rater to rate a shipment? Assuming 1 tariff classification code, no OGD requirements?

    How much does a rater get paid, on average?

    How long did the shipment take to dispatch?

    How much does the dispatcher get paid?

    How much does it cost–ballpark–to submit a shipment EDI? I mean the fee just for transmitting the info.

    Don’t even bother taking into account the training involved or the technical infrastructure required for communication. Forget the resources needed to maintain records of every transaction for 7 years. Ignore the software licensing costs (thousands of dollars per PC per year). Assume there is no need to bring any brokerage support employees into the picture. That you don’t need to do anything as complicated as a temporary entry, a refund/correction or CFIA clearance. Since we are dealing with personals/couriers only there is no need to worry about consignment or acquiring POA.

    If you say it costs less than $5 or that the process can be automated then you flat-out have no clue what you are talking about.

    You can have your shipment delivered by UPS and cleared by Fedex if you please. The brokerage has NOTHING to do with the delivery cost, period. Brokerage fees are subject to the requirements for the particular goods being shipped, the amount of duty/tax owed, the exchange rate, etc.

    There are a lot of brokers available, though many will not clear personal shipments:
    http://www.cscb.ca/040/mdbrca_e.asp

  21. Hey Fred and Everyone,

    1) Shipment’s clearing is an extremely easy and fast process especially for a courier company with brokerage department. By shipment’s clearing in this statement I mean paying taxes for personal shipment with a value below $1600. It requires from brokers only to pay money to CBSA by the end of the next month after shipment. That’s it. Nothing else.

    2) It definitely does not worth 50% or more of the total item’s price. It does not even worth $5. There are thousands of shipments going through the border, and it may be done as an automated process.

    3) UPS brokerage fee is just a hidden part of the delivery price and nothing more. This is not the cost of actual brokerage services. UPS definitely knows how much of the brokerage fee they are going to charge when the shipper sends the package.

    There are a lot of 3rd party unfair brokers popping up frequently offering brokerage services for courier shipments for lower price than UPS/FedEx/TNT or whoever asks. They describe how difficult it is to clear your shipment, that it requires a lot of paperwork, etc… They don’t tell you that it is in fact a very easy and straightforward job

    Thanks,
    Trueler

  22. Frostiex: I’m not sure how you can suggest it is “fair” for a broker to clear shipments at a loss. They would not be a very good broker. That’s like suggesting it’s “unfair” for the telephone company to charge for internet access.

    There are a lot of posts here confusing the role of the courier with the broker and a lot of anger born of ignorance.

    The courier that charges the carriage fees does not even necessarily know which broker is going to be used, so they can’t really charge the shipper for brokerage.

  23. Hi Frostiex,

    UPS pays duties and taxes to CBSA at the end of the next month after shipment has been released at the port of entry. So, I think it is not too late in your case.

    Thanks,
    Trueler

  24. I am soooo tempted to clear myself in calgary. Is it too late now that tha package has already been attempted for delivery? I am so sick of UPS’s exorbent amount of fees for clearing an item. $5 on top of duty and taxes are fair. It should not go up base on the price of the item.
    To me that is double dipping, they charge the shipper shippig fees and then clearing fees form the recieving end. Do they even remeber the reason WHY the shipper pays the postage to begine with?

  25. That sounds easy:) I’ll give it a shot next month. Thank you for quick reply!

    cheers,
    Mike

  26. You are welcome Mike.

    The case when courier sends you an invoice is even simpler. You have absolutely no risk that courier will send it back to the port of entry.

    When your item arrives without C.O.D., just take it and say “thanks”. Call the courier and ask how much you owe them in brokerage fees and taxes. Now you can do the process: obtain shipment’s invoice, etc… At your local CBSA office it is even simpler. Just tell them “Shipment is in my trunk, I have an invoice with goods details, and want to pay taxes”. CBSA may ask if you already paid taxes – no, the courier is going to pay them only by the end of next month – you want to do it yourself. The same thing happened to me. CBSA accepted taxes, issued B15, and I faxed it to UPS in order to waive future invoice.

    Regards,
    Trueler

  27. Thanks a lot Trueler for such a great research, I wish I knew about self-clearing before Christmas:)
    One thing that is still not clear to me is how to handle the self-clearance when courier sends you an invoice (instead of cod)? In my experience couriers always send you an invoice a month or so later:(

  28. Great information… I too hate paying UPS brokerage fees! I’ve been burned too many times by them.

    But this is just a note for some of you that don’t want to self clear (because of extra time or too far a trip to CBSA). You can and are legally entitled to use a third party broker to clear your UPS and FedEX shipments. Of course UPS etal… don’t like to tell you this! Do your research… I did only a little research and found several discount brokers who are charging at least 75% less than UPS Brokerage services!

  29. New changes to the CBSA location that you have put in there:

    197 County Court Blvd. location is closed the door notice now refers to another location:

    5425 Dixie Rd
    905-625-1081

    The officer initially wanted a waybill. However I explaned to him that the waybill is on the package that is being shipped to me. Basically, I explaned to him that if I let UPS pay the duty for me (which he initially understand that to be the situation), I’ll be chared brokerage. However if I pay the duty myself, I’ll will not charge me brokerage fees. He then proceed to write up the B15. Faxed the document over to UPS waiting for the truck to get back to the depot before PU. Thanks for listing out the procedures.

  30. Hi Trueler,

    After reading your article (btw thank you) So I went to the Brampton Customs office the other day to self clear a ups shipment and they are now closed! I really didnt want to pay UPS close to 50 bucks in brokerage charges.

    I really didnt want to search for a mississauga customs office and take a bus from sheridan college. So I went on google and searched around for customs brokers …

    Trueler’s note: the rest of the comment has been removed because it appears to be a shill… Brampton office is not closed. It has been relocated (see the post for details)

    PS: The best customs broker is CBSA. They save you the maximum you can!

  31. I think the best advice for Macro is just to ask that shop to reimburse $140 because they promised. It is the easiest way and hassle free.

    Regards,
    Trueler

  32. Permission to account for casual goods:
    http://laws-lois.justice.gc.ca/eng/regulations/SOR-95-418/page-2.html

    Marco: If a local shop has something drop-shipped to you it’s a bit of a toss-up. If the vendor accurately prepared the commercial invoice listing the local shop you are using as the importer of record–with you merely as the consignee of the package–you will see no charges.

    Very likely the vendor did this incorrectly and listed YOU as the importer of record. The courier/broker has no reason to question the invoice, so they will clear it on your behalf and stick either stick a cod tag on there or send you an invoice.

    When dealing with a vendor in the US you could try(depending on which courier being used) having them ship the goods DDP (Delivered Duty Paid, alternatively F/D–free domicile). This means the vendor will charge you the duty/tax and brokerage/shipping ahead of time, and will then pay the entirety of the courier’s bill.

  33. Hi,

    I just called home because I saw my package as delivered and guess what ? I paid 140$ of brokeage.

    I already paid taxes on the item I can’t believe I am paying 140$ for UPS services that’s totally bullshit. I will have to call them to know what are thoses charges and if they tell me it’s taxes and customs etc.. I will be very pissed off.

    I’m calling them right away.

  34. Hi Student,

    I’m sorry that it happened. It is called robbery.

    FedEx already paid taxes on your behalf to Canada customs in the end of January during consolidation, so unfortunately there is no way to pay taxes again to CBSA – they will not accept it because taxes already paid…

    There us not too much you can do. BUT! You may try contacting FedEx and explain that you had absolutely no idea that you’ll have to pay outrageous brokerage fees on top of the taxes. Ask them for three things:

    – Paper (law or instructions) which clearly state that they have a right to act as your broker without your confidence with unrestricted brokerage fees to be paid
    – Receipt from CBSA that taxes have been paid by FedEx to CBSA. You definitely have a right to get it. For example if you will travel to US and take the contents of your package with you, on the return way you will be asked by Canada customs to pay taxes for it. If you show them receipt – no questions
    – The reason why they’ve sent an invoice only in two months when it is already to late for self-clearance

    If they won’t provide answer to any of this questions – continue to dispute it with them, or with supervisor.

    And one more thing. Importers do NOT have to inform courier about intention to self-clear BEFORE the shipment. It’s a lie!

    I hope this helps. Otherwise, next time you will know what to do – pay taxes directly to CBSA right after you receive your package, don’t wait for an invoice.

    Please let us know if you have any luck with waiving your brokerage fee in this situation.

    Thanks,
    Trueler

  35. Hello:

    I received a package from Chicago in December without any notice or charge, but in February 15 I received an invoice from Fedex and today I received a last statement asking meto pay.

    I call them today and I said I havent designated them as my broker, the CS told me they had the right if I didnt inform them before the shipment, and told me that I must pay because they would send me to a recovery agency.

    How could I know if the shipment has been already cleared? Can I still clear the shipment by myself. I dont have any number, I just only have the invoice.

    I think I am in the same situation as Jim
    http://trueler.com/2010/09/13/ups-brokerage-fees-total-scam-fraud-cheating-avoid-it/#comment-1821

    Regards

  36. Hi again,

    Thanks for the reply.

    Now the package is still in the US but they added the following:

    Lachine, QC, Canada 23/03/2011 8:06 Package data processed by brokerage Waiting for clearance

    As I said the package is still in Salt Lake City in the States.

    And here’s the message from my shop :
    That price is correct, the universal maximum discount policy from Cobb is that I have to advertise at MSRP of 595, though I can sell it for less via PM’s etc. At 595 on our site however to Canada, it will cover the brokerage and whatnot.

    The part where he told me, he would pay me back if I have any charges from UPS was on the phone. He told that he was able to collect it back from UPS.

    I’ll keep you guys updated. I said to the local shop that I was buying through them to avoid shipping surprise.

  37. Hi Macro,

    Just make sure that you have a promise in written from the shop to pay back any invoice from UPS related to your shipment. It depends on what kind of agreement the shop has with UPS. Probably it will be straightforward and shipment will be delivered to your doors with no problems and no C.O.D. invoices. Please let us know! It is interesting.

    Thanks,
    Trueler

  38. Hi guys,

    I have a question for you. What happens if I purchase my parts from a local shop here in Montreal but they have the item shipped from the states to me by UPS ?

    I already paid shipping/taxes on the item here in Montreal. Last time I did this with FedEx I had nothing to pay but with UPS I’m kinda scared to pay more. My shop here told me that if I ever pay something that I should contact them and they will pay back what I paid and they will collect the money from UPS after.

    Is this possible ?

    I hate UPS !

  39. Hi Dave,

    I think it is worth to try the closest CBSA office first, because even offices listed as LVS, sometimes refuse to accept taxes.

    Thanks,
    Trueler

  40. Thanks for your quick reply, Trueler.

    In this case, there is a UPS Store that’s not a 5 minute drive from the CBSA office. This CBSA office is not listed on this site as one that deals with LVS program clearances – do you know if that means that I’ll have to drive to another office that is on the list?

    Although it amounts to a small percentage of the item’s original cost, it is the principle of the thing. I would rather not pay $80 for nothing to a shady American company if I can avoid it. I can think of better things to do with $80.

    Thanks
    Dave

  41. Hi Dave,

    For $900 purchase Ontario HST (13%) is $117, you’ll have to pay it anyways. So, the brokerage fee itself is ~ $80. It’s up to you to decide if possible hassle to avoid it and pay taxes directly to CBSA worth $80.

    You need to get shipment’s/commercial invoice from UPS which describes the goods, value for duty, and unique shipment ID number.

    Regards,
    Trueler

  42. Hello,

    I just purchased a new set of cymbals on eBay. The Buy It Now Price was $899 USD, and the listing advertised UPS Standard Shipping to Canada for $45.50 USD. UPS tried to deliver the cymbals to my apartment in Kingston Ontario today while I was at work, and left a slip saying that there is a COD brokerage fee of $196.64 (!).

    After doing some Googling, I found that there is a CBSA office in Kingston. I have my Paypal/eBay invoice, and the slip that I got today has a 12-digit ‘InfoNotice No.’ and a 6-digit number in the comments section. I believe that my purchase falls into the LVS category, as it was less than $1600 CAD.

    I apologize, as I know that there are quite detailed instructions here on this site; but I wanted to ask what else I will need to bring with to the CBSA office if I intend to self clear? Also, will this be in my best interest (that is, cost less than the $200 brokerage fee for a $900 purchase)?

    Thanks in advance for both your help and for maintaining such an informative site.

    Dave

  43. Hi Fred,

    I did not want to be hostile, sorry about that. Some of your information is indeed interesting. But most of the things you are talking about make me thing that you are not just a broker, but a broker from UPS brokerage department, because your advices complicate things a lot and self-clearance process won’t be possible if people follow them. For example:

    – Unique shipment ID number is required by CBSA and is easy to get. Cargo control number is not mentioned in their instructions, so it just does not matter.

    – If people call ahead to advise UPS in the intention to self clear, UPS simply does not allow it at all, they just block the shipment at the port of entry. So it is important to wait until shipment is in a local warehouse. Moreover, as I understand, nothing is done by UPS brokerage department at the port of entry if everything is ok with the shipment (in most cases it is), so there is absolutely no double work! If UPS will allow self-clearance and will assist with it in future, I would definitely call ahead. But this is not the case now unfortunately. It’s a UPS choice.

    – People usually import with couriers unregulated goods.

    And about paragraph 11. I think I see what you meant. But cargo control and release documents and cargo/release lists (which are used for LVS) both have numbers (I believe). And CBSA officers could call it the same – “cargo control number”. I agree, that it indeed sophisticates things from CBSA side.

    Thanks,
    Trueler

  44. The other government departments include but are not limited to the CFIA (Canadian Food Inspection Agency), NRCAN (Natural Resources Canada), and Transport Canada. The OGD series of D-memos is here:
    http://www.cbsa-asfc.gc.ca/publications/dm-md/d19-eng.html

    When those departments require additional paperwork for release (such as for tires, food items, etc) the shipment may not qualify as LVS and a different set of rules apply. You may be surprised at which types of goods are regulated. I know it may be meaningless to you in this form, but here: http://www.cbsa-asfc.gc.ca/eservices/ogd-amg/hs-sh-eng.html

    The reference to paragraph 11 referred to no cargo control numbers being assigned to low value shipments. I was under the impression someone was trying to obtain one. Upon re-reading and based on my understanding of the UPS shipment ID leads me to believe that is in fact what the CBSA wants. I will verify that– for my own interest if nothing else.

    You seem a little hostile and if you have no interest in reading my posts I suppose I do not need to compose them. As far as it goes you have a reasonable grasp on clearing your own shipments.

    Regards,
    Fred

    PS: Waiting until the shipment gets to the door to indicate you’d like to assign a broker besides the courier is what raises their ire. At that point not only was it a waste for them to pay someone to clear it, they have to pay a second person to “unclear” it to avoid the duplicate entry. You can simply call ahead and things should be smoother.

  45. Hi Fred,

    You are a broker, but not familiar with CLVS program. Why did you comment without enough expertise?

    I see that you complicated things a lot in your post… and somewhere misleading…

    First paragraph of D17-4-0 does not tell anything about “goods that require CFIA, NRCAN, etc.” Please explain acronyms next time if they were not used here before. We are not talking about controlled, prohibited or regulated goods here – it is a different topic. We talk about regular stuff to be imported from US into Canada like some electronics, auto parts, clothes, etc… Not weapons, fireworks, alcohol, tobacco, plants, food, and so on…

    Did anyone having trouble with paying taxes at CBSA imported restricted goods? Fred, I believe your suspicion is wrong, because people usually understand that something is restricted, and sellers won’t ship any kind of food, plants, alcohol across US-Canada border.

    Paragraph 11 of D17-4-0 tells that cargo/release list must be presented to the CBSA by the courier before or as soon as the shipments arrive in Canada. It absolutely does not tell why unique shipment ID number “can not be given for LVS goods”. Moreover “USID” must be provided by the courier to the importer. Usually it can be found on shipment’s/commercial invoice, on the package itself, or at ups.com when logged in. It is pretty easy to get. CBSA requires it because it is the unique shipment identifier number which is being assigned to the shipment.

    Please be more accurate with the information you provide and do not complicate things.

    Thanks,
    Trueler

  46. I’ve read the first half of the comments on this blog and there is a fair amount of misinformation.

    Understand that customs clearance can be a fairly complicated process and I 100% guarantee that neither the UPS reps you speak to NOR the CBSA officers know the answers to all your questions off-hand.

    First big hint: the courier LVS program means “low value” which I’m certain everyone knows by now. Generally this means any shipment >$20 and <$1600. However, the term is somewhat misleading read the first paragraph of the oft referenced D17-4-0. Any goods that require CFIA, NRCAN, etc info are NOT considered LVS, regardless of value. Any goods the officer wished manifested (paragraph 20) are NOT LVS. I suspect some of the trouble people are having is due to this fact.

    In these cases you MUST be present at the port of entry to self-clear. Or retain the services of a broker.

    The USIN (accurately the "cargo control number" that somebody was trying to discover is assigned by the COURIER. D17-4-0, paragraph 11 describes why you cannot be given one for LVS goods. Of course, I cannot think of a reason that the CBSA would require this info for self-clearance purposes. The commercial invoice should be enough. Please note that a commercial invoice and a bill of sale are completely different and not interchangeable.

    I couldn't read everything in once sitting, so I may have noted something which was already covered. If you have a specific question feel free. I am a broker and not a courier, so some of the minutiae of the CLVS program is outside my expertise.

  47. Hi Silen,

    CBSA officers in Brampton accepted taxes for UPS shipment from myself and issued B15 form! They just gave you incorrect information!

    Feel free to file a complaint with CBSA.

    Regards,
    Trueler

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