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
FYI – UPS and FedEX (but mostly UPS) are well aware of the fact that they are doing something legally and morally wrong; its Canada’s God damned governments apathy that allows these scumbags to continue. Don’t waste your time informing them of new procedures. They probably know about them before anyone in the public domain does. These companies are unilaterally and without exception greedy pieces of crap. However, as a Canadian I feel compelled to ask: do US citizens get charged a ridiculous brokerage fee if they buy things from Canada? Because I can’t find ANY instances of this happening to US citizens … And yes, I am very much suggesting that UPS and FedEX subsidize their shitty companies by ‘taxing’ only Canadians.
Hello. I didn’t have time to read all the 2 year’s of postings but read enough to see folks now winning this battle. Thats’ great. My story, not quite. I paid UPS brokerage fees a year ago, on a brand new item from a retailer, which didn’t out work for me. Now, I am returning still new item to NY retailer for refund, less restocking charge of course, are these brokerage fees refundable? Aa all? Taxes/duties? Is it UPS, CNSA, or both that I persue? Any helpful advice would be appreciated. Thank you.
Sigh. Nevermind, Buttonville CBSA isn’t even for CLVS clearance and the nearest office that is, is Pearson Airport which is a good 40 minutes away.
Screw it, paying the stupid $17 fee and staying away from FedEx/UPS next time.
Just going to live with EMS or SAL shipping from now on I guess.
Hi there, I was just wondering if anybody had experience self clearing their packages in or around the Markham area.
I just called BIS to ask about self-clearing a package at the Buttonville CBSA Office, but when asked about self-clearing, the operator mentioned that it is only possible at the port of entry.
Now I’m stuck with a ridiculous fee almost $18 for a package that cost me $55.
Hello I called UPS several days ago and gave them my tracking number telling them I will clear the package myself. The lady on the phone even told me to call UPS and ask them if my forms are ready today. However, today I received the delivery notice and there’s a COD on it because I wasn’t home. I got a brokerage COD due $18.95 on a $65 item. So basically UPS cleared the item even tho I told them that I will do it myself… What should I do???
This time I have an inbound express from LAX, and I was planning on paying UPS since express includes brokerage fee (but still has other fees).
I called to make prepayment to save COD and Bond fee and amount I was told on ~$90 item was $27.62 [$10BOND+$4.50/line+$4.50/line+$4.25COD+$4.37TAX]
Why am I paying bond fee in fact while you haven’t advanced me any money to pay government? (you pay them next month, remember?). This is a box of cables and network jacks. How many lines of description are there that you have to charge me another $9?
Adding to the bad experience, package is already late. It sat at ONT until 3AM (picked up before cut-off) and totally missed flight to WorldPort. As of Friday afternoon, website still shows it will be here today (kiss my ass). I called 1-800# and I mentioned package didn’t get to the Worldport last night. Agent assures she cannot comment on any routing or how package will get here but it will get here today(kiss my ass).
Back to brokerage, I expect it to be on truck Monday. I will be making a visit to CBSA to get this done and save bogus fee of $19. I will also be calling them to get redund on $40 shipping fee.
Fun times.
UPS…Fedex…more psychopath corporations gouging their customers with insane fees…I just got a parcel and they charged me $29 plus GST on a $98 purchase…after paying $102 for the shipping! I which I would have known about this site before!
Andy, I got the package, went to CBSA and faxed B15 to the fax #. It has been a month and I have not seen any invoice coming to mail yet. I’m hoping they got the message as I clearly states tracking # on the B15 when faxed in.
For everyone else here are FAX numbers again
UPS Brokerage (506)447-3612
FEDEX Brokerage (905)362-0105
Fedex differs from UPS in a sense that they just drop off package without signature. Just go to CBSA on the same day and get it done, then fax B15. There is no proof you received package so Fedex cannot argue you have accepted it and agreed to pay in the future.
UPS do not release package without signature and COD paid. Do not sign anything, just tell them you will go pick it up at depot (safest). You can change this to redelivery at any time by calling the 1800 number so don’t say anything like “refuse” so it doesn’t get sent back.
Mary,
Unfortunately were somewhat at the mercy of the couriers with their lies and misinformation. Up till now I have had 2 LVS orders arrive from the US. One from FedEx and another from UPS, (you can read my posting earlier in this blog) both shipments I was able to avoid paying Brokerage Fees. Just follow what to say and what NOT to say, and no one should ever have to pay brokerage fees on LVS shipments again.
Cheers,
Andy
Pete, how did you make out with your FedEx shipment?
Cory, Good to hear you avoided the brokerage fees. :)
Carlson, did you account for your shipment and avoid the fees?
Suzanne, Hopefully someone from Edmonton will take time to answer your question.
I have 2 experiences with UPS . Both were for personal use medical equipment from the US which are duty/tax free. The first time (2010) I paid the erroneous taxes and brokerage fees ($150) COD and immediately called UPS to strenuously object. They relented and said they would issue a refund. When the refund came 3 weeks later it was minus a hefty brokerage fee, but I had run out of steam by then.
Today another delivery, same erroneous COD but this time I refused delivery. I call UPS again and the CS rep said they would discount the $60 by $10 dollars but the brokerage fee (for what?) could not be discounted. Huh?
I demanded a supervisor who agreed to pull the COD ticket in it’s entirety. I was on the phone for 35 minutes. I usually request shippers use USPS with no hassles. I won’t forget again.
I cannot believe UPS has not been censured for these usurious practices. How can the legions of people on here make that happen.
Thanks for the info. Went the the CBSA office at YXU, showed my invoice and the tracking number, paid my taxes. Getting a run around from UPS, but should have package soon with nothing owing to them. The CBSA faxed them the copies, but of coarse they “didn’t receive anything from the CBSA”.
Faxed the stamped paperwork myself, the Brokerage Office fax number is 506-877-4916. Make your fax subject “Attention: CRT”.
Here is an interesting CTV story on the same;
http://calgary.ctvnews.ca/beating-cross-border-brokerage-fees-1.762619
Thanks Trueler!
Carlson,
You still have time to account (pay duties & taxes) for your goods. Even though couriers lead you to believe they have already paid these taxes, they haven’t. Not until the 24th of the following month. As long as your goods were not signed for at the door. Signing for you goods also authorizes the courier to act as your broker. Take the Commercial Invoice off the package and head down to your local CBSA office. When you get there inform the agent that you would like to account for the goods you received. They will fill out a B15 form charge you the applicable taxes and give you the form. Take the form and phone UPS and ask them for their brokerage Dept’s Fax number. Fax them the B15 form showing you have paid all applicable duties and taxes. You need to act fast on this before they actually submit the taxes, which again like I mentioned they do not actually submit the taxes until the 24th of the following month. Don’t buy into their lies and excuses that they have already paid them. Sounds like UPS is playing the game that FedEx uses, by leaving the package and send you a surprise invoice weeks or months later.
Good luck and keep us posted how this works out for you.
Jonathan,
Unfortunately because of how long its been since you have received your shipments there is nothing you can really do about this now, as they have already submitted the taxes on your behalf and have already acted as your agent. Also weather you were charged COD charges at the door or not, once anyone receiving a shipment via courier signs for the shipment when they receive it, they have already unknowingly signed away their right to account for the goods.
What importers need to realize is that, if their goods do in fact require a signature to receive them as some insured shipments need a signature so the shipper also has Proof of Delivery, then they need to get a copy of the commercial invoice from the couriers (but I prefer asking the shipper for the copy of the commercial invoice, as it is much easier than listening the the lies of the couriers) take the copy of the commercial invoice to the CBSA office account for your goods, then phone and ask the couriers for their brokerage Dept’s fax number, fax the B15 form to them and asks them to lift the COD tag from the shipment and reschedule delivery to you. At least then if they still make you sign for it as proof of delivery, you already have proof if needed later on should they spring a surprise invoice on you down the road that you had already accounted for your goods prior to receiving your goods.
Cheers,
Andy
Since Fedex gives no C.O.D., do you just accept the order at the door, sign for it and take the invoice to the CBSA office to account for it right away?
Hi everyone,
I’m not really expecting a reply from the original author here, after all it’s been years since the original article was posted and ages since his last reply, but maybe someone else here can please help:)
In Edmonton is the only place to go the international airport? It sounds like Calgary folks can go to a mall ( Lucky !), and the airport here is not close and I will probably have to pay for parking.
Thanks!!
I think UPS is smartening up to all this.
Only today did I come across this when I was sent multiple invoices in the mail today from UPS. I thought it would be a confirmation of previous ones I paid, but instead found each one to be asking for more money. It seems that regardless of me giving my credit card information when it was delivered to my door, more than a month later I am getting invoices for shipping I thought I paid at the door. It was in examining the two invoices I noticed how they were so different in both the bond fee being charged, and for other charges that I didn’t understand. With all the added fees they both got jacked up to close to $50 each.
Sadly for me out in Nova Scotia, I am 100 kms away from the closest CBSA office. In a world connected, I don’t understand why we can’t just call these places and give our CC and have the form faxed to show we paid it.. or emailed for that matter. Why do we physically have to go down to their offices like it’s 1980?
This isn’t the 1st time I got these invoices. It seems as though it has become standard practice. Recently I received invoices for shipments dating back 3 months. I don’t think any of my payments are being processed and instead are being carried over 1-3 months later in these invoices along with all the fees.
If I got these invoices already, can I still go to the CBSA office and pay the taxes using these invoices that UPS sent me? I happen to be going into town tomorrow so if this is possible, might be worth it to save $50.
Thanks for your help!
Hi everyone,
I just recieved my parcel from UPS today (U.S. -> CAD). The delivery man just left the package at my door and didn’t even bother knocking on my door to collect COD/applicable fees. I am not sure what I should do now.
Carlson
Pretty much all the commentary here seems to be in regards to goods that are non-perishable (my assumption). Anyone have experience bringing wine into Canada from the US. Wine carries more of an urgency relating to delivery time and proper storage if couriers end up jacking customers around by dragging their heels delaying delievery… just wondering!
UPS still scams on customs, and it’s now August 2012. Obviously they don’t care how nasty they are. If they can steal money from 98% of customers they’re super happy, like pigs in s–t.
Pete, I agree, why even bother trying to get a copy of the CI from the couriers? When it is provided by the shipper as they are the ones that prepare it to begin with.
For my FedEx Ground shipment that was received at the Mississauga facility before being transferred to the Cambridge facility for delivery I had to Fax the B15 form to the Attention of Cheryl Vant @ (905)362-0105. When asked I was told no cover letter was required but to make sure Cheryl’s name was marked as the Attn: to person.
Cheers,
Andy
ps.. I can’t stress enough to all those people out there encountering problems, the sooner us importers forget that we ever heard the words “clear”,”self-clear” or “clear-own” the faster you will get your goods without headaches or grief. People need to start asking to “Account for Goods” which means one thing and one thing only, “paying for your own duties and taxes” without the use of someone acting as your broker. :)
Andy, can you please get this fax # for us? I posted UPS fax# above for others to send their B15 to. I have inbound Fed Ground and need to get B15 to them.
I usually push shipper to send me copy of CI and don’t bother getting from M0rons.
Marina, it is good to see that by asking to “account” for your goods, you were not given the run around that most people get when asking to “clear” their goods and being told that you have to go to the point of entry or the border to perform the “Self-Clear” process that really does take place at the point of entry.
Now as promised to “dk” and “Trueler” here are my tried and tested findings on the process for “Accounting” for your LVS casual goods.
You may want to make a coffee, tea, or beverage before reading my novel… I do apologize for the length of my post to follow but it is the process I went through by asking to “Account” for my goods and not mentioning “clear” or “Clear-Own” in any step of my process.
I have cut and pasted my post below as I had also posted this on a similar site and did not want to re-type the whole post, just a few small edited changes.
The Final Process of “Accounting” for your goods after they have “Cleared” the border with the courier company you are using.
Well as promised here is my update on my LVS shipment. Yesterday morning (July 24) I was curious as to how far along my shipment was and when FedEx was going to phone me regarding the comment the shipper had put on the commercial invoice instructing that “Importer to Account for Goods†So when I went to FedEx’s website to track my shipment, it was in their Ohio hub enroute from Calif. The site said that estimated delivery would be July 25 (Yesterday) and that the shipment was on schedule for delivery. So I phoned FedEx and asked them if they wouldn’t mind faxing me a copy of the commercial invoice but not mentioning why or what I needed it for. They said “sure no problems you should receive that shortlyâ€, that call was made around 10am (July 24). By 2pm I had still yet to receive the commercial invoice so I called them again requesting the CI for the second time and they said “Oh you didn’t get that already†to which I replied “No, and the fax machine is right beside my deskâ€, again they told me that I would receive it shortly and reconfirmed my fax #.
Well by 5pm I had still to receive a copy from them, so I called them for the 3rd time and made the request again. This time they informed me that the CI for FedEx ground shipments is not available as it travels with the shipment and they don’t have any way of sending me a copy of it, unless they were to physically remove it from the package fax me a copy and then place it back with my shipment before it could continue delivery. I told them they should have made me aware of that info the first time I called. Their response was that the agents I spoke to at FedEx should have known that…. I told them not to worry about it and thanked them for their time. All along I didn’t really need a copy from them as I had the seller email me a copy of it before my shipment left CA. I just wanted to see if FedEx would comply with my request, which they obviously didn’t.
Also last night (July 24) before I went to bed I tracked my goods again and seen that they were at the Cambridge, ON FedEx facility, I knew this was the last hub before delivering the goods, so I printed a copy of the info showing the 4 tracking numbers of my shipment.
This morning (July 25) when I woke up and tracked the shipment before leaving the house to run some errands, the status was “out for deliveryâ€. I informed my daughter that if FedEx was to show up, to NOT sign for anything and tell them your father was not home and to re-deliver again tomorrow when he would be home. In the meantime I had with me a copy of the CI that the seller/shipper had sent me, the tracking info that I had printed last night stating that the goods were at the Cambridge facility, as well as a copy of the Memorandum D17-4-0.
I was now off to the CBSA office located at the Kitchener Airport to attempt to account for my goods and hopefully get the B15 form. The Kitchener Airport is about 20 mins from where I live, well I wasn’t even gone 10 mins from home when my daughter called me on my cell and said that FedEx had just left the house and had left my 4 packages there, the driver told her that no signature was required so she could leave the packages with my daughter. Of course my daughter was somewhat confused and said Ok leave them here but my dad had said to re-deliver them tomorrow. The driver told her I`m here now and nothing else is needed for this shipment. I told my daughter not to worry about it and continued on my way to the Airport. I got there, paid $3.00 parking for 1 hour and headed to the CBSA office. There were 2 others there sitting down and 1 other person at the wicket. When the person at the wicket left the CBSA agent said `yes Sir, can I help you, I immediately pointed to the 2 sitting down and said that they were here before me. The agent said that they were already being assisted by other agents. So I stepped up to the wicket and told her I was here to “account” for my goods that were shipping to me from the USA. She asked me for my paper work (all I handed her was the CI and the the printout with the 4 tracking numbers on it, no cargo manifest, and no Unique Shipment Identification Number, and no ID as I had forgotten my wallet in the car, but was prepared to get it if needed), She also asked where the goods were being held and I told her when I had last checked they were still at the FedEx facility at 42 Raglan Place in Cambridge, she said OK give me a few minutes… she went back to her desk and started filling out papers. I chatted up the 2 people sitting down and asked them how long they had been waiting, the guy said that he was there about 15 minutes already and that he was paying for taxes on an Imported vehicle. The lady sitting a few seats over from him said that she also had only been there 15 mins and that she was accounting for imported commercial goods. Before I could even ask them any more questions or take a seat, I heard from over my shoulder, “OK sir everything is in order and your taxes owing are $24.10”. She explained to me that because the goods were manufactured in the US there was no duties due and that I just had to pay the HST on the converted amount from US to Cdn, currency. As quick as I could hand her $24.10 she was stamping the form she had in her hands, and pushing it out through the wicket for me. I said is there anything else I need to do now, she said “yes just fax the form I gave you to the FedEx brokerage dept. and they will release your goods”. I walked away with the hugest smile on my face that you would have thought I had just found money…lol
Honest to god, it took me longer to type this than it did to account for my goods. When I got back into my car and checked the time on the paid parking tag, it had taken me less than 15 minutes to get the B15 form. I also looked over the form wondering what she used to reference as the USIN that everyone seems to have a hard time getting from the courier. The only box that I could see on the form that had any type of reference number was the FedEx tracking number on package 1 of 4. No other shipping ID # on the form. (So I gather the tracking # can be used as well, or it may technically be a USIN# as it is only uniquely identifies that package).
When I got home I phoned FedEx to ask them if there were any charges owing to them for the shipment and their reply was if the driver didn’t ask for any money that there was none owing. I said that I found that hard to believe as the shipment was over the basic exemption amount of $20. So I asked her if she wouldn’t mind connecting me with their brokerage dept. She said she could do that but they would more than likely tell me the same thing. I replied that’s OK I just wanted to make sure, and she connected me to FedEx Trade Network.
When the FTN agent came on the phone I gave her my tracking number and told her I had a shipment left at my house with no bill for taxes. Her reply was Oh maybe you got lucky and you didn’t get assessed for taxes…. (my ass) I told her I would like to hold while she was sure of this. After about 5 mins she came back on the phone and said your correct Mr. xxxxxxxx, there are taxes owing but not to worry as they would be sending me a bill for that. As long as I have received my goods in satisfactory condition I didn’t need to worry about anything else until the bill arrives. (If you do noting at this point, believe me you worries will start when you see the bill, and it will probably be to late to account for them yourself depending how long it has been since receiving your shipment) I said that I would like to pay for the bill now if possible, she said that “all the paper work was not complete at this time and it would be easier if they just mailed me the bill”… (my ass again) I asked how could you not have that calculated already if you have the commercial invoice there you must know what I owe?
She said “OK you will have to give me a few more minutes”, I said I can wait….. must have been 10 more mins, and when she came back on the phone, the first thing she said is “are you still there Mr. xxxxxxx?” I replied, “where else would I be?” she said “I was afraid that I had taken to long and that you may have hung up?” I said “no chance of that happening, and then getting a bill in a few weeks asking for my first born”… she said “your first what?” I said no worries, how much is the bill going to be for? She said “well it will be for the taxes that are still owing on the shipment”, I said “I know that, I’m just curious as to what other charges or fees will show up on the bill”, she said “the taxes owing are $24.10″… I said OK and…. then she said I had to hold again for a minute… 3 more minutes go by and she comes back on the phone and has the nerve to ask me if there was anything else she could help me with… I kept my cool and said “yes the remaining charges please”… she then said I was lucky the goods were manufactured in the US as there would be no duties on my order, I said “Oh wow lucky me”…. she said “there would be a small fee of $5.85 and the brokerage fee for taking care of all the paperwork required by the government and clearing the package through customs on my behalf”… so again I asked her “and the brokerage fee isâ€??? she said “the brokerage is calculated on the value of the shipment and that was an additional $28.50, so everything would cost less that $60.00”. “Would that be all today Mr. xxxxxxx?” This next question is what I think took her of her chair, I said “just one more thing, can I please have the fax # to your brokerage dept?” she immediately replied “What do you need that for? I said “I need it to fax you the B15 form I am holding in my hands.” She said “you mean to tell me you have wasted all my time asking me all your questions just to tell me you have already paid the taxes?” I replied “Yes, and it took you longer to give me the info that I’m sure you had sitting in front of you all along after I provided you the tracking #, than it took the CBSA agent to complete all those forms you mentioned and issue me the B15 form. She said “well Mr. xxxxxxx, you have yourself a wonderful day,” I said I will have a wonderful day right after you provide me with the fax # …… Hello?….Hello?…… Hellllllloooooooo? I was shocked, she had hung up on me! ….. lmao
I think I will call back now and just ask for the fax#.
Trueler, I am so sorry for writing a small novel, and would not be offended if you felt that you needed to edit it.
On a last note though, I would seriously suggest that if you went through your post and subbed out the term “clear†or “self-clear†with “Account†I don’t think the process would be confusing then, to either the CBSA agent or the courier company. Even on the top of my B15 form is says “Casual Goods Accounting Document†and not clearing document, so we may as well call the process by what it is.
So please remember fellow Canadians, if you sign for the goods from the courier before accounting for them yourself, you have also signed away your rights to do so, and they have your signature to prove that you agreed with their terms and conditions.
Kinda of reminds me of an old business saying: “What the large print giveth, the fine print taketh awayâ€
I hope my experience and interpretation of “Clearing” vs “Accounting” clears this vague area of terminology. If you notify them you want to clear your own shipment, get ready for a trip to the border, If you notify them you are looking to “Account” for your own goods, get ready for a trip to your local CBSA office that offers accounting for your LVS shipments.
Cheers,
Andy :)
I just wanted to update the information re: UPS placing my customs amount as un-paid debt to the collection agency. It turns out it was a mistake on UPS end and they promised to correct it immediately and close the file. And by the way – RMS (which is a collection agency that UPS had been sending my information to) has also confirmed that they have sent the information back to UPS after I sent RMS b15 copy. So UPS can’t do anything really if you self-clear and have b15 form available. So don’t pay their outrageous brokerage fees and clear your packages by yourself – you will save lots of money.
Hi all,
My story is turning to be very time-consuming. I followed advice to account for my customs; paid them in Mississauga CBSA office and provided copies of the B15 form and copies of the receipts at UPS on Steeles to receive my package. I received the package after a long discussion over the phone with UPS accountant. However, 3 weeks later UPS sent me a bill for 47 dollars requesting to pay UPS directly – taxes only, they didn’t mention their 57 dollars brokerage fee. I refused to pay and sent them again the copies of b15, my credit card statement with the CBSA payment record.
But now I’ve received a letter from collection agency requested to pay the $47 within 10 days. Don’t know what to do.. I already paid the taxes of $47; now UPS is forcing me to pay them twice through collection agency.
Will appreciate any advice.
Thank you.
London(ON) – success
Firstly I want to thank you all for providing these useful information.
Since it seems on one in London shares this kind of experience, I want to write something. Sorry for my poor English.
I have a package shipped by UPS standard from USA on July 5. I had no idea about the brokerage fee until it was on the way to Canada. I found this website and learned what to do.
I called UPS for the commercial invoice, and to my surprise, it was very smooth, no cheating, no arguing, and I went to the local CBSA office at London international airport. They didn’t need the USIN # or any other number. (and I even doubt if the commercial invoice is needed, because UPS lost my commercial invoice before my package came into Canada and they just wrote down the addresses of mine and the shipper, and the title of things contained in the package, without any other details) They just called someone to check there was a shipment for me as I described. And I paid the GST (13%) and got the B15 form.
Everything went smoothly until then. Then I went to the UPS costumer center (60 midpark road) where the package was held, they said they can’t handle this thing, I should call UPS and fax the B15 form to them. So I went back and tried to call UPS. The real trouble started then. I called like 10 to 20 times, each time different operator gave me different answers, just kept lying, lying, and lying. There was once an operator said she could waive the brokerage fee, but still asked me to pay for the taxes, I said I had paid to the CBSA, she said since they paid earlier than me, I should go to the CBSA for a refund. Of course I won’t accept this. Finally one nice operator handled this without any argue. It’s really different between different operators. Finally I got my package without any charge.
I think there is one thing to be noticed, don’t insist on the words “clear”, “self-clear”, “clearance”, just use “pay taxes”. If you told them you want to do the clearance by yourself, they will say that you have to go to the port of entry……. and we are not sure if they are lying about this.
Although I got my package finally without the brokerage fee, I’m really tired of arguing with them. I will not use UPS anymore.
There seems to be a difference here between personal and commercial shipments. With that being said, if you notice UPS that you are going to clear your own shipment, will they hold the package at the port of entry or will the package continue to your local warehouse because they’re bonded? It seems to me that as long as the package is held local to the CBSA office you intend to visit, you’re good to go. However, UPS/Fedex make it seem as though your package will be held in a distant warehouse across the country.
Thanks for the information. I purchased some electronics on ebay that were shipped to Canada from the US. On the first delivery attempt I was shocked when I received a bill for $83.12. When I looked into this further, I came across this information and decided that it was worth a try.
I called UPS and like everyone else was told much the same lies. First I was told that I couldn’t self-clear because this only applies to certain goods like clothing. Then I was told that if I wanted to self-clear it would have to be shipped back to Vancouver and I would have to do so in person. Regardless, I was able to obtain the commercial invoice.
I went to the CBSA office in Calgary. The agent there was very helpful. She wasn’t sure how to proceed without the shipping manifest but another agent overheard our conversation and knew about this immediately. She had saw this on the news:
http://calgary.ctvnews.ca/beating-cross-border-brokerage-fees-1.762619
They immediately took my payment. For electronics, I just had to pay the GST, $18.25 (much better than $83.12) and I got the B-15 form.
I called UPS. Once I told them I had the B-15 they became much more responsive. I was given the fax number and was told that it would be processed within 24 hours, if not the same day.
In the meantime, the driver came for the second delivery attempt. I had to refuse the delivery as I would not pay the COD. I told him that I hoped to have this resolved within 24 hours by the next delivery attempt.
I called the next morning and confirmed that they received the B15 and that they had waived the COD. The agent confirmed that this information had been passed along so I should be able to received my shipment.
Keeping my fingers crossed, I should receive my shipment today.
Here is another interesting read:
http://avoidbrokeragefee.blogspot.ca/
It is really amazing what a little research can do.
Thanks again!
Hi all, thanks for all these useful information. I bought a used iphone4s from a seller on ebay in USA. Now I’m preparing to fight against the UPS for the brokerage fee. :)
The seller used to live in Canada, and he bought the phone in Canada, then he moved to USA and sold the phone on ebay. So my question is, do I need to pay the HST or other taxes for this phone? Cause it’s a used one and he had paid taxes to Canada when he bought it, it seems to be double charged if I paid taxes again. Will it help if I go to CBSA and explain this? Have anyone encountered with the same problem? Any reply will be appreciated.
dk, I agree, UPS is not that helpful even when my company is paying them. We pay UPS around 1500 to 2,000 USD a week.
I have not found Fedex to be any more helpful and they cost more. DHL is another option. I do not know if they cost less. I think the best defence is for the customer to be knowledgeable. Most of my customers do not set up a UPS account even when I tell them to and just let UPS deliver COD, even when I tell them they will be charged for that.
Andy — thanks for reminding me of forgetting to thank Truler for all the effort and posting his findings — thanks Truler !
Also, interesting idea! Please post if this does indeed make things easier.
Eve — you are correct in that the couriers are providing the service and charging for it — and yes, they are *for profit* companies.
No argument here!
However, when they aren’t forthcoming in providing information they are obligated to or misleading people — well let’s just say — that’s just downright dirty business.
Two posters above: that’s what I’ve been doing I left them in the dark until it was in Calgary.
Fax is 506-447-3612
I do not work for UPS but I use them. UPS is a for profit company. If you use them or Fedex to clear your shipment into Canada, they will provide that service and they will charge you. This is not a scam but a service. People can become more knowledgeable and clear the shipment themselves or at least set up a prepaid account with UPS to avoid the bond and COD fee’s.
I had a parcel come from England (long story short- it seems that only Europe has sportbike centrestand parts) and told the driver I was going to self-clear. He clarified “so you’re refusing the COD then?” to which I said yes I am intending to self-clear customs and account for duty and taxes myself. So he smiled and wrote on the package “refused COD” and walked away. I called UPS and the computer told me the package was being sent back to the sender because COD was refused.
As I said, these parts are only available in Europe and the vendors there only want to send via courier. Same with some flexible curtain rods I had also ordered, only available in Europe and they had to send via courier because the package length was 2.5m (Royal Mail limitation of 1.5m).
Anyway I asked the UPS clerk on the phone if there was any way to self-clear, he said he could have the package sent back to the port of entry and would I be able to deal with it in Calgary? I live in Calgary, so luckily (this time) it will be no problem. But the driver was very canny to keep the electronic invoice away from my grasp to obtain a copy, which I gather is all I would need to “self clear”. I even told him I intend to pay the duty and GST myself at the border services agency, he still deliberately interpreted that as “refused COD” – which means, return to sender.
But while I had the clerk on the phone, and because others had mentioned to notify UPS before they deliver if you intend to self-clear customs, he let me know that the second parcel is leaving London England tonight, will arrive in Kentucky tomorrow, and will arrive at the “port of entry” on the day after, at which time I could call UPS back for the invoice / manifesto / whatever to be e-mailed. So the clerk may or may not know which port of entry UPS has chosen, but since I divulged that I intend to self-clear / account for duty and taxes, UPS may decide to use the port of entry at Winnipeg or some other fool place. I guess I will find out in a couple days..
By the way my motorcycle parts cost 33 Euro, so I guess that’s about $42 Canadian for value, GST should be about $2.10 or so (UPS was paid 27 Euro for delivery, which should be ample). UPS wanted to charge $12.61 Cdn for brokerage and tax, but that’s still $10.51 for customs clearance whereas Canada Post would only charge $5, therefore, I will waste the time to self-clear. Plus as I said I am hoping to delay a couple days until the second parcel arrives, and deal with both at the same time.
Actually, another thing I want to do is try faxing those B15 forms to the Calgary fax number 403-648-3308 – does that mean that UPS would still have to deliver to my door? Because if so I would love to get the same driver once again and have him put my parcel into my hand, with no brokerage fee collection.
I had an afterthought after my last post that I would be willing to put to the test and hopefully help end us from paying outrageous brokerage fees. I currently have goods ordered from a US supplier, the goods are valued at $200.00 and because they are for my personal and not commercial use, they would fall under the importation of LVS casual goods. Now because they are also manufactured in the USA, there should be no duties on these goods as per the NAFTA agreement. So I will ask the shipper/seller to make a note on his commercial invoice and any other documentation that accompanies my package to read: “Importer to “Account” for Goods”. Let’s see where this gets me? … lol
I will follow up on here after I complete all the required steps to account for my goods, educate any couriers or CBSA agents along the way with legal published material and have received my package in my hands.
Cheers,
Andy
To dk:
Awesome follow up to my post. You’ve hit it spot on. As you also mentioned I do believe it’s the terminology that we are using that confuses them all. We say we want to “self-clear” or “clear” our goods, when in fact we want to “account” for our cleared goods at the CBSA office. I also totally agree with your “side note”, all of it, especially the “Negative Option Billing” analogy. The important thing to remember is not to sign anything from the courier until you have accounted for your goods with the CBSA and have been issued the B15. Fax the B15 to your couriers brokerage dept, and have them remove or lift the COD tag from your shipment, then ask them to reschedule your shipment for delivery. Again dk as you also stated, “the courier is paid to transport the goods to the receiving address” not the border or their in-bond warehouse, but the receivers address. So don’t let the couriers make you think you have to jump through hoops and obstacles to receive your goods. The shipping that has been charged to you by the seller is NOT to just the Canadian border, but to the receivers or importers address.
In closing, dk you have provided more than your 2 cents worth IMHO.
Trueler, kudos to your original post and methods for receiving your shipment without outrageous brokerage fees, the only thing I would do different is change the terminology used of “clear” or “self=clear” to “account” which should clearly clarify what your intentions are.
Cheers,
Andy
I too had the unplesant experience of the EXORBITANT BROKAGE FEES charged by UPS — which led me to this blog.
However ,I have to agree with the previous statement by Andy. There seems to be a confusion of terminology being used which is probably causing some of the frustration.
From my understanding and what Andy mentioned , *self clearing* is just that— YOU have to be at the point of entry to complete the *self clear* of goods. So , if you contact UPS to say YOU want to *self clear* the goods then technically they would be correct in saying this has to be done at the point of entry where customs processes clearing of goods.
Instead , everyone should be focusing on * accounting for payment of duties and taxes * personally.
Call it a techincallity or purely semantics , I believe these two differences in terminology is what UPS uses to dissuade folks from completing this on their own. Afterall , we know it’s an additional income they can make and they really don’t wish to give that up willingly.
Once the proper distinction is clearly made that you wish to personally * acount for duty and taxes * then the courier is obligated to provide the necessary documentation to do so.
Also, at which time this also confirms that you are not permitting the courier to act as your broker.
In a nut shell , the courier is paid to transport the goods to the receiving address. If coming from outside of Canada, the goods must pass through a designated *point of entry* for Customs officials to *clear* the item for entry and travel inland — the couriers have nothing to do with *clearing goods*.
Specific couriers and the wharehouses like UPS are bonded and are required by Customs to not release the goods until duties and taxes are collected and submitted to the govenment — which basically is the final step in *clearing of goods *.
Two ways this can be completed :
1) have the courier pay duties and taxes on your behalf. This means the courier company will now charge the ridiculious fees to be reimbursed for those tax and duty amounts.
2) Opt to pay the duty and taxes yourself. Once paid and the official receipt form B15 is stamped is all that’s need as proof Customs has *cleared* the goods to be released by the courier.
Side note —
I believe if the courier is not contacted that you will personally * account for duty and taxes * payment they will accept this as being authorization , by you , to act as your broker.
In a manner of speaking — it’s like * Negative Option Billing *
In some cases the goods may be delivered , even without a COD , signing for the delivery and have the invoice sent at a later date. In this situation ,once you sign for the delivery you also unknowningly authorize the courier to become your broker. In which case you really have no recourse but to accept the additional charges.
2 cents worth
After reading about a dozen various online blogs and the posts on this site and other sites, as well as the D memorandums on the CBSA’s site, I have personally come to the conclusion that most of the confusion comes from what (You or I) “the importer” is specifically asking for. eg.. when you advise that you want to “self clear†your shipment they (UPS and other couriers as well as some CBSA agents) will tell you that you must go to the point of entry as that is where the shipments actually clear before being allowed to travel inland, so they are correct in this info.
Whereas if you mention that you want to “account for your own goods†at your local CBSA office, this is a whole different procedure that takes place after the goods “clear†customs. At least this is the info that was given to me when I phoned the local CBSA office in Kitchener. To make sure I understood the agent correctly, I did ask him twice, “clearing or self-clear†and “accounting for the imported goods†for LVS casual goods are 2 separate procedures. Therefore when my shipment “clears†the border with the courier, all that is needed to be done by me is “account†for the goods and pay any duties and taxes to the local CBSA. You will of course need the required documentation mentioned earlier to account for your goods.
To avoid additional grief, DO NOT have the goods marked “self-clear” or anything for that matter from the seller and DO NOT tell the courier of you intentions to “account” for the goods until you see the package is either arrived at your local couriers depot or the shipment is marked out for delivery. When the driver shows up with the COD tag, tell him there is a discrepancy with the amount of the COD and you will clear this up with the couriers before you have the shipment redelivered. If you happen to have a copier ask the courier if you can make a photocopy of the commercial invoice, it will be in a plastic type of zip-lock bag stuck on your shipment, tell him you need it just to make a copy to see what the amount owing to them is calculated on, or something creative like that. Just be nice and polite, after all the drivers are just doing their job. If it says COD then the driver has to collect the amount before he can give you the package, he’s just following rules and doesn’t want to lose his job.
Take your all your required paperwork to the local CBSA office, tell them you are there to account for your goods (pay applicable duties and taxes) again DON’T mention “self-clear” as they have already been “cleared” at customs, you just want to pay the duties and taxes owing, and they will issue you the illusive “B-15” form. Follow the directions mentioned in all the earlier posts to get this form to your couriers. Then phone the couriers and make sure they lift or remove the COD tag for your package……..
Enjoy brokerage free shopping on all your LVS casual goods.
Cheers,
Andy
So in summary I think people that wish to avoid the outrageous brokers fees charged by couriers and pay their own taxes, they must “NOT” mention that they want to “self-clear” their shipment but rather “account for their own duties and taxes” on their casual goods.
Cheers,
You’ll have to get the number and email from a supervisor at ups. Yet another hoop to jump through
TO Lidia:
I agree but…. if they send me to collections this messes with credit ratings and the like. Would anyone know where I could find out if UPS is telling the truth about their ability to get the taxes back on their own? And does anyone have any advice navigating collection agents? I have all proof and documents to show that all taxes are paid. Plus try to get your package from UPS when you don’t pay the fees owing!! Not happening! When I pointed this out to the agent that I spoke to, she could not explain how I was able to take possession of my shipment unless if fact I had paid all owing fees.
p.s. do you know what fax number i should send it to, and what email? i will probably fax it AND email it, but it would be nice to do so to a higher up so that it gets dealt with faster.
Gary,
oh man i sur ehope i an get this all sorted in time for our anniversary :/
the CTV video clip from calagry, the guy did the grab and walk out method, and he got charges put on him by UPS, but if they tried to do that here, i don’t think it would work because I would have already paid the duties, etc. I figure if the duties and taxes are paid, the package is as good as mine, and i have every legal right to take it, in fact, them keeping it is illegal and an act of “theft”. i figure if i just grab it and then figure out the paperwork later, then i will still have it in time. hopefully. we’ll see… i will keep you updated :)
Lidia, I’m also in Regina. You are a bit luckier as UPS is using Winnipeg for the port of entry. If it’s still there, great. You will need The shipping manifest, commercial invoice and tracking number for customs at the airport (schmirler ave). After you present these docs, the customs agents will look up the correct code and rate of duty for your package. They may offer to fax the info to UPS for you so have a correct fax number ready. Faxing it to the port may be slow. Fax it to a brokerage supervisor or even better, email it. That way, there is a paper trail (figuratively speaking). The process of receiving your docs and changing the shipment back to delivery may be the time delay that breaks the deal. If they can’t have it resolved by Thursday, you definitely won’t have it by Friday.
I thought about your grab and slam method too but i thought the police would be even less informed about self-clear than Ups.
All i can say is to get your stamped B-15, write the tracking number on it and email it to someone in authority at UPS with the ability to clear your package.
If you need another testimonial for the tv spot, my email is awesomegary at hotmail dot com.
June 21st. My package was delivered. The driver wanted to collect but rescanned the package and it was marked at zero owing. Mother F. it only took 17 days for this to be resolved.
Wow! What a long litany of the same problem. Here is yet another example.
I was already aware that we would be charged extra fees by UPS when I ordered a package from WonderGel in Utah. In the comment field I said:
“UPS is unreliable to our location and frequently charges duty and handling that is unnecessary. If there is an option to ship by USPS please let me know as I would prefer it.”
The fact that WonderGel ignored this comment and shipped UPS is partly my fault as I did not EXPLICITLY tell them not to ship via UPS, but the fact that they ignored it and since then have refused to take any responsibility for the mess, nor to change their policies, is the subject of an entirely separate matter that you can read about on ripoffreport.com if you want.
Anyway, back to UPS…
They wanted $40 COD on an item that cost US$52. This apparently included $6 in taxes and $33 in brokerage fees. When I called their agent I pointed out that no duty was payable on this item, and asked what service they provided to justify the brokerage fee. She gave me a long song and dance about the handling, audit, paperwork etc. and when she was finished I simply pointed out that their computer sent an electronic message to the CBSA computer and no human intervention was needed. She then offered to reduce the fee by $15 as a “goodwill” gesture. I took it, as at that point WonderGel was refusing to accept the product back and refund our purchase – they insisted that we still had to pay the $32 shipping. Faced with paying $32 to get nothing, or paying an additional $25 to get our item, I went with the latter.
Self-clearance is not an option for me, as I live on Denman Island. To rub salt into my wounds, UPS shipped the item to Campbell River and then PUT IT IN THE MAIL! I just got it today, 20 days after ordering.
I’ve simply decided not to use UPS ever again. If I want to buy something from the US I will ask the vendor to ship USPS (which is quick and cheap, in my experience) or simply do without. If the vendor tells me they only ship UPS, I will explain to them that they are losing my business for that reason.
I have tried using an analogy with UPS and WonderGel but they are oblivious –
“You walk into a store and buy something, and pay at the counter. As you attempt to leave, the doorman stops you and says that he cannot open the door unless you pay him a steep fee. Indignant, you return to the sales counter to return your item and get a refund. But the clerk tells you that there is a restocking fee.”
Would you stand for this?
Calgary ran a story on CTV about all this, here is the link:
http://calgary.ctv.ca/servlet/an/local/CTVNews/20120202/CGY_ups_brokerage_120202/20120202/?hub=CalgaryHome
I have already contacted CTV here in Regina as well. If we all band together and get this story to run on every local new station, maybe these courier companies will stop cheating people out of their money :)
by the way, the package in in Winnipeg Manitoba, only one province away… maybe i have enough time to deal with all this??
I am very confused… I have been reading through these posts, and it seems like I need to get a whole bunch of numbers and forms. Here are the things I’ve taken note of:
Unique shipment identifier number
shipment’s invoice
shipping manifest
HS code (what is this by the way?)
commercial invoice
bill of lading
B-15 form
what is all that stuff? is some if it the same thing? out of all that stuff, what do i need in order to self clear??
I ordered a package and it was picked up by UPs on June 21st. It is not in transit. I called UPS and they gave me the unique shipment identifier number pretty easily. I told them i wanted to self clear. I am in Regina, SK. Right now the status of my package says “Package data processed by brokerage. Waiting for clearance.” So i called UPS right away to ask why they are still attempting to clear the package for me since i already gave them notice of my intention to self clear a few days ago. The supervisor informed me that there are several notes that i intend to self clear and tha tmy package would be held until i pay the taxes/duties. i need to get this package by friday (it’s an anniversary gift for my husband). they informed me that they would get the resolution centre to call me back onmonday (tomorrow) to inform me on proper self-clearing procedure. so should i call them back and “pretend” that i no longer wish to self clear? because i am worried they are going to hold my package until i email the b-15 and then i won’t get it in time for our anniversary. would it work if i just go to my local CBSA office tomorrow mornign right when they open, give them my invoice (which has each item and it’s value, including shipping cost, etc), also give them the tracking number and the unique shipment identifier number. if i give them all that, then can i pay for the taxes and such? then they should give me a b-15, right? SOOO, if i call UPS and tell tehm i no longer wish to self clear (just so they continue to deliver my package on time), then couldn’t i just show them my receipt at the door and tak emy package? cuz i was thinking if they refuse to give me the package, i would just grab it and slam the door in their face, LOL! my husband is a very large guy so i don’t think they would try to muscle me or him ;) anyhow, since the taxes/duties will have already been paid, i would just need to email them the b-15, no harm done really. also, i am thinking that if i pay the taxes BEFORE they get a chance to do it, then won’t i show up in their system? so then they wouldn’t be able to act as my broker. am i making any sense here? LOL. what do you suggest i do? anyone? any thoughts??
also, UPS should be dealing with the government about getting their taxes back, NOT you… it’s not YOUR fault they didn’t do their job and look into it. Again, it’s on them, you have nothing more to do with it. tell them to work it out on their own with the government. not your problem anymore.
tis sounds REALLY fishy to me. You aloready paid the government, and I’m sure you can get proof of it, like areceipt. If UPS was stupid enough to pay the taxes as well, then that’s on them. But I really think they are bluffing you, because once you’ve paid the government, there will be a record on file that it has laready been paid… it would be impossible to pay it twice as it would show up as PAID in their system. I would just tell them to go fly a kite :)
Hi Trueler
I thought I had completed the proper procedure as laid out by this site and info from comments which did work but…. I have run into a problem a month after the package has been picked up by me. As it turns out UPS miss placed records of my taxes paid and now requires me to pay the taxes again to them stating there is no way for UPS to collect taxes back from the government. They state I need to pay UPS the taxes that are still attached to my account and then fill out a B2G form and recover taxes from the government as the taxes have now been paid twice. After talking in circles the agent states if I don’t pay the outstanding taxes they send it to collections. The only option they gave was to credit me with the outstanding amount for sending a shipment only and not to receive one. This option is useless to me as I never ship anything that requires a courier. This outstanding may have been taken care of within thirty days but conveniently for them it is past the thirty days and they state their hands are tied. So is this the only option now to pay UPS the taxes and recover the second taxes paid to the government by UPS??? It seems to me that they could bluff me as a way of getting me in the end to pay the brokerage fee as the taxes and the brokerage fee in this case are almost the same value. And this is what I mean, I paid the taxes ($59.69) to government as they would have on my behalf and removed the brokerage fee ($60.00) but now stating they paid taxes as well I have to square the account with UPS the same amount as the forgiven brokerage fee!!Any thoughts?? Hi Trueler
I thought I had completed the proper procedure as laid out by this site and info from comments which did work but…. I have run into a problem, a month after the package has been picked up by me. As it turns out UPS miss placed records of my taxes paid and now requires me to pay the taxes again to them stating there is no way for UPS to collect taxes back from the government. They state I need to pay UPS the taxes that are still attached to my account and then fill out a B2G form and recover taxes from the government as the taxes have now been paid twice. After talking in circles the agent states if I don’t pay the outstanding taxes they send it to collections. The only option they gave was to credit me with the outstanding amount for sending a shipment only and not to receive one. This option is useless to me as I never ship anything that requires a courier. This outstanding may have been taken care of within thirty days but conveniently for them it is past the thirty days and they state their hands are tied. So is this the only option now to pay UPS the taxes and recover the second taxes paid to the government by UPS??? It seems to me that they could bluff me as a way of getting me in the end to pay the brokerage fee as the taxes and the brokerage fee in this case are almost the same value. And this is what I mean, I paid the taxes ($59.69) to government as they would have on my behalf and removed the brokerage fee ($60.00) but now stating they paid taxes as well I have to square the account with UPS the same amount as the forgiven brokerage fee!! Now this if this is the case and they are trying to recover money lost in a roundabout way all who are using this procedure would have to confirm that their account is zeroed before thirty day expires. Any thoughts anyone????
Hi Trueler, I will not bore you with all the details, suffice to say my complaints are the same the hundreds above. I am taking a different course of action. I am pointing out the the USA’s international trade administration ( http://trade.gov/ous/ ) that Americans buying mail order from Canada are allowed $200 duty free, but Canadians buying mail order from USA are only allowed $20 duty free. The ITA is a section of the US Dept of Commerce and they take complaints about trade barriers, and difficulties in exporting to foreign countries. If I can get them to press Canada to raise the $20 limit to match the $200 US limit, a lot of the financial extortion suffered by Canadians at the hands of UPS Fedex and Canada Post will disappear. Following is the text of my letter. I cut and pasted it from the correctly formatted word document original. If the formatting is too unreadable, I can forward you the word document to publish on your excellent website.
I will let you know when I hear back from them.
Under Secretary of Commerce for International Trade,
Francisco J. Sánchez
International Trade Administration
Office of the Under Secretary
Mail Stop 3850
U.S. Department of Commerce
Washington, DC 20230
Dear Under Secretary Sánchez,
re: Does the difference between the US $200 and the Canadian $20 duty free limits on mail order imports constitute an unfair trade barrier?
The current situation regarding low value mail order goods between Canada and the USA is that USA waives all duties and taxes on shipments valued at $200 or less but Canada waives all duties and taxes on shipments valued on only $20 or less.
The Canadian government wants to collect 12% tax (part federal part provincial) on mail order imports from the USA.. This on its own, is acceptable, however the Canadian Government accepts or even encourages exorbitant handling fees to collect this tax. Canada Post charges a flat $8.50 handling fee to collect the tax. UPS or Fedex charge handling fees of $15 to $19 on a package valued as little as $30 for example.
A recent $33 shipment of an automobile part to me, via UPS, was marked up 70% . I was charged $19 in fees to collect $3.96 taxes. Making an addition $23.00 on top of the selling price, not even including the shipping costs.
A $21 package received via Canada Post would cost an additional $11.02 (52%) made up of an $8.50 fee to collect $2.52 tax.
So you see, any mail order purchases from $20 to $100 made by Canadians from the USA, are marked up so exorbitantly(50% – 90%) , it is simply not worth making the purchase.
I suspect the reasons behind my being charged $19 to collect $3.96 tax, is not about the tax money, it is about setting up an undercover trade barrier. The consequences of this barrier are that hundreds of millions of dollars of mail order trade from Canada to the USA are supressed. (possibly even a $1 billion a year).
Currently Canada sits with a yearly $3.8 Billion dollar trade surplus with the USA. I would like to send a few dollars of that surplus back to the USA, by buying some goods by mail order. However due to the unrealistic $20 limit on the Canadian Postal Limits Remission Order, I and millions of other Canadians are curtailing from making mail order purchases from the USA.
So anything you can do to encourage Canada to play fair in cross border trade by increasing their $20 duty free postal limit to match the $200 USA limit would be appreciated by people on both sides of the border.
yours truly……