Brokerage Fees on UPS deliveries....?

[AshG]

A brokerage fee is an extra fee UPS tacks onto my deliveries.

Just what are these brokerage fees anyway?
Is there any way I can avoid paying them?

When I remarked on the cost of this once, my UPS delivery dude said something along the lines of, "yeah, it'd be great to be in the brokerage business."
This leads me to believe that its not a UPS thing - is it linked in some way to tariffs?

I get the delivery tomorrow so any advice before I cough up the $50 fee (ouch!) would be appreciated.

 

[sentence]

Once your package has been shipped, I don't think there's much you can do but refuse delivery. It's funny you brought this up cause I just paid the $50 yesterday for some records. The best way to avoid it I'm told is to get the shipper to send it by UPS air mail as the brokerage fees only apply to shipments sent by ground delivery. It's such bullshit. I just paid it cause I really wanted my records.

 

[AshG]

ok, but now my curiosity has the better of me.
what is this fee?
who gets this money and why is there a charge at all?
from the UPS guy's remarks, it sounds like its not a UPS thing per say.
thanks for the advice... I'll look into that air mail option next time.

 

[swenard]

A brokerage fee is on all shipments arriving in Canada from the U.S. The broker has to release the shipment from customs for you. Everyone has to pay it. If you don't want to pay it then keep business in Canada!

 

[gasper]

Originally posted by swenard
A brokerage fee is on all shipments arriving in Canada from the U.S. The broker has to release the shipment from customs for you. Everyone has to pay it. If you don't want to pay it then keep business in Canada!

but we don't get charged $50 for regular parcel post from US Postal service.....

please explain...

 

[Dr. Grinch]

Request that the parcel be shipped as a "GIFT" or "BROKEN" or "$0 VALUE" and you don't pay brokerage fees.
I do it all the time on electronics from the US

 

[gasper]

whether or not its a gift or a $1000 purchase, it still needs to be cleared through customs....why do we pay more when we've already paid, and not pay when we're getting something for free?

 

[sentence]

if you have it marked as 'gift' or '$0 value" doesn't matter when it comes to brokerage fees. All that will save you is paying taxes and duty on the items. I order records from the US regularily and I have have never encountered this until 2 days when I tried out a new online record store. They ship UPS ground as opposed to UPS express. I called UPS about the charge and they told me that when a package is shipped via ground it has to be physically cleared through customs (thus the brokerage fee + taxes, duties etc.) and when you ship it UPS air mail the brokerage is included in the cost of shipping so you pay up front and the package doesn't have to be cleared physically at the border. My experience tells me it's cheaper just to get it sent UPS express (air) or through US mail.

 

[AshG]

Ok, so someone correct me if i'm wrong, but here's what i understand the brokerage fee to be:

A charge applied through UPS for clearing ground shipments through customs.

If this is the case, then why do we not have to pay brokerage fees on all items sent to us from outside of canada? I mean all packages have to go through customs, right? Why do I not have to pay a brokerage fee if my shipment is not done through UPS? Why does UPS alone add this charge to shipments?

And why does UPS not mention any of this on their website?

 

[H2Whoa]

All courier companies use a third party brokerage firm. Such fees are usually included in air deliveries but tacked on for ground. As said below mail is probably cheaper (fees are included). If you can, ship stuff through your work. You may still have to pay but they will probably have an account and applicable discounts. Some firms even have brokerage accounts to also lower fees.

 

[quantumdj]

Originally posted by Dr. Grinch
Request that the parcel be shipped as a "GIFT" or "BROKEN" or "$0 VALUE" and you don't pay brokerage fees.
I do it all the time on electronics from the US

That may work, but dont be surprised if you do get a charge. They can open it to inspect if they wish, and if they determine that it is not a gift, etc., then they will charge GST and PST on the value that they determine, along with a $5 handling fee. I've had to explain this to plenty of angry customers, and be assured, it's not a fun thing to do. (this is from experience in a pharmacy's postal outlet.)


p.s I work for UPS now, but I have nothing to do with the billing (I work around the aircraft) so I cant help you. Sorry!

 

[Buddy Holly]

UPS reckads

I do alot of my record shopping from the US and have never had this happen to me before January 2002. Now they are charging me for "brokerage" fees at the border (which was so greatly explained by the people above). If you chose UPS air you will still be spending the same amount of money ( they just calculate it in pior to shipping). Ive really slowed down on my record buying from the states because of this. Its just another way for them to make extra cash on us. They even charge you for the conversion to canadian /american, which has already been done!! Bastads!
Oh well, I guess it is cheaper to drive to T.O and back spend $30bucks on gas, $20. on parking, $10 food, and a long time on the road. But listening to the tracks on line is SO much easier and stress free.
Good luck with your Vinyl.