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Loading ...Brokerage Fee
Fee charged by customs brokers are the common surprise and most loathed cost. It appears that Canadian Customs randomly sample shipments for to GST/PST/HST. When your shipment is chosen, brokerage fee applies. For consumption tax exemptions, please see our article.
Items shipped via US Postal Service (USPS) are handled by Canada Post. Canada Post automatically applies a $5 processing fee ($8 for Priority Post) for each package to clear Canada Customs. This applies even for a tax less than $5. The fee is collected at Canada Post outlet before you can walk away with your shipment.
Couriers, such as Fedex and UPS, charges a much higher fee. Couriers will send you a bill a few weeks later. If you do not pay on time, couriers will go with collection services, which impacts your credit rating.
The following are the UPS brokerage rates. You may want to check the UPS page for latest changes.
|
Value for Duty |
UPS Standard Service and All Other Couriers/Transportation Companies2 |
UPS Worldwide Express Plus, UPS Worldwide Express, UPS Worldwide Express Saver, and UPS Worldwide Expedited Services |
|
$0.00 to $20.00 |
$ - |
Free |
|
$ 20.01 to $40.00 |
$7.00 |
Free |
|
$40.01 to $100.00 |
$19.45 |
Free |
|
$100.01 to $200.00 |
$29.00 |
Free |
|
$200.01 to $350.00 |
$38.92 |
Free |
|
$350.01 to $500.00 |
$43.73 |
Free |
|
$500.01 to $750.00 |
$49.73 |
Free |
|
$750.01 to $1,000.00 |
$55.58 |
Free |
|
$1,000.01 to $1,250.00 |
$61.58 |
Free |
|
$1,250.01 to $1,600.00 |
$65.46 |
Free |
|
$1,600.01 to $5,000.00 |
$69.03 |
Free |
|
Each additional $1,000 |
$5.38 |
Free |
10 responses so far. Leave a comment
I’m looking at bringing in some appiances. Any suggestion as to whom I should use for shipping/brokerage in Ogdensburg?
[Reply]
I ordered two USB speakerphone for Skype from US, for $260. When they arrive, there’s $68+ charge from UPS, among which $13 is GST and $55 is UPS brokerage fee! These guys are make money for nothing. Shameless companies.
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Always ask the U.S. Company to ship U. S. Mail insured , Fedex and UPS have identical rates. For example as of 21 January 2010 a 1 pound package size 5 inch x 5 inch x 4 inch shipped to Mississauga Ontario from Mesquite , Texas costs $49 Can for ground slow shipping. For expedited delivery $58 CAD. These fees include the brokerage fee + shipping fee. The item is an electrical switch worth $100. So the delivery cost is 50% or 60% of the value. These prices were currant today 20 January 2010. Fedex calls the Brokerage fee the Clearance Entry Fee.Industry Canada isnt interested in this scam , you would wonder why, but they have other more important mandates ?
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Since when is a brokerage charge a scam?? UPS, FEDEX, etc. hire their own customs brokers, which ensures you receive your package as soon as possible. That’s the only reason to use a courier, unless your item is valued beyond the insurance limit of USPS. If you ship USPS, and your item is very low in value, it’ll probably go right through Canada Customs. But if your item is marked has having a $100 value, then Canada Customs will likely charge you a $5 ‘handling fee’ plus tax(es) and duty (which will vary, depending on the item and it’s country of manufacture).
So, you’ll save money with USPS, but if you want something delivered quickly, use a courier — but be prepared to pay extra for the convenience. Ask your courier how to clear the item through Customs yourself and save the brokerage charge.
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Nick
Reply:
May 12th, 2010 at 2:21 pm
Actually small correction, UPS and Fed Ex act as their own brokers so they technically make money for nothing.
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John
Reply:
June 1st, 2010 at 8:20 am
Money for nothing? BS. They have to hire someone to handle your entry, they have to put up the bond, they have to hire people to listen to the complaining of people who call and whine about fees. You don’t complain to your lawyer about paying them, your cable company for paying them. Its simple – if you don’t want to pay to have your item clear through customs, Educate yourself, and do it yourself, or don’t use that carrier.
Saying they make money for nothing is such a load of crap.
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Joe
Reply:
July 22nd, 2010 at 11:58 am
I have educated myself and would love to clear customs. Too bad you can only pickup the paperwork to clear customs yourself if you’re anywhere near the port of entry, which in my case is about a 10 hour drive. So, as far as I’m concerned, whether or not they’re making money for nothing, they’re not really leaving me a viable alternative…which pisses me off.
writing maven
Reply:
August 18th, 2010 at 10:50 am
Shipped UPS, item value of $35.00, item was “selected” by Customs and I was assessed an additional $!2.75 in fee. So it does not seem that a value of less than $100.00 avoids Customs complications.
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If it is what you want is shipped air clear customs yourself. It is amazingly easy and the courier office where you pickup your goods will actually give you a little road map on how to do it. If you do use UPS get your shipper to send it “Express”. It costs a couple dollars more but saves the broker fee at this end.
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Well, it would be one thing if UPS let you know of such fees up front, but in my case they did not. After paying $16.55 to ship a gift to my sister in Montreal, UPS would not deliver the package without the payment of the “entry preparation fee/brokerage fee” and a bond fee totalling another $12.75. UPS said I could either pay the additional fee or they would return the package to me and charge me for the return shipping. Not very customer friendly business practices, in my opinion. I will not ship items to Canada via UPS ever again.
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