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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 |
5 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.
[Reply]
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 ?
[Reply]
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.
[Reply]
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.
[Reply]