Jul
07
2008
I’ve been amazed by how FedEx Trade Networks (and other couriers) could charge a hefty brokerage fee for very little service and get away by doing so like an unalienable right.
Well, Mr. Matt Blackman of North Vancouver, British Columbia decided to stand up and filed a class action against Fedex Trade Networks and Fedex Ground Package System. According to the statement of claims (No. S066949 dated 01/23/07) in the Supreme Court of BC, Mr. Matt Blackman ordered automotive accessories from Santa Monica, CA, which were delivered to his home by Fedex.
Subsequent to delivery and by a letter dated June 16, 2006, Fedex demanded payment from the Plaintiff of the following Improper Charges:
(a) Brokerage fee: $27.00
(b) GST calculated on brokerage fee: $1.89
(c) Disbursement fee: $5.75
(d) GST calculated on disbursement fee: $0.40
(e) Total Improper Charges: $35.04
… The Disbursement fee of $5.75 amounts to interest charged by Fedex on the funds advanced for the payment of GST and PST calculated on the value of the goods shipped and represents a “criminal rate” of interest as set out in s.347 (2) of the Criminal Code in that it substantially exceeds 60% which is the maximum annual rate of interest allowed to be charged on credit advanced.
All BC residents being charged by Fedex for disbursement fees can be part of the class action. You can read the court filing here.
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Nov
06
2007
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
CAD |
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
|
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