# UPS brokerage rates



## MACSPECTRUM (Oct 31, 2002)

I don't know about you, but I have been surprised by outrageous UPS brokerage rates when receiving packages from the U.S.

Here is their website outlining their charges.
Note FedEx doesn't charge brokerage since all their pakcages go air.
UPS apparently doesn't charge brokerage on their air packages, but I have no experience with that.
US Post doesn't charge brokerage either.

UPS will automatically charge you brokerage WITHOUT consulting with you on ANY personal package.

http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html


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## adagio (Aug 23, 2002)

I was burned once by UPS. Never again. I won't purchase anything that is sent via UPS. If given a choice I always select USPS. If there is no choice then that company doesn't get my business.

I've emphasized to friends and family to use any other service but UPS when sending me gifts.


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## mac_mark (Apr 19, 2004)

adagio - exactly.

I'm the same way. If a company uses UPS, I won't shop with them. Too expensive. I once had a HP printer power cable sent to me because of a recall and UPS wanted $20 for the brokerage...I couldn't believe it. Luckily for me I didn't pay, and they never followed-up.


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## martman (May 5, 2005)

Me too. I will not use UPS. I think it should be against the law to deliver a package then without any warning send a bill for $40 a month or two later. They should absolutly have to tell you you are going to recieve a bill in the future for a package now...
^%@!& UPS!
    XX)


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## martman (May 5, 2005)

mac_mark said:


> Luckily for me I didn't pay, and they never followed-up.


No they just reported you to a credit agency.
UPS sucks!


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## martman (May 5, 2005)

MACSPECTRUM said:


> Note FedEx doesn't charge brokerage since all their pakcages go air.


I've had Fed-EX charde brokerage rates and USPS (United States Postal Service) will charge brokerage fees if you recieve "Global Priority Express" which turns into a courrier company when it hits the border. Always use regular air mail and not global priority....


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## Heart (Jan 16, 2001)

I use UPS for a number of shipments from the US for my business. (Not Computer Related)

The business relationship with UPS has always eaten up more time than it is worth.
Improper charges, over charges, incorrect GST charges, long correction/rebate process.

I now have an account and a special rate per volume shipments.

Here are a couple of tricks we have implemented over the years.

1. Set up a COD account, payment before the shipment arrives to you.
When it arrives at the bourder, UPS must call you and get payment, at this point you can check the charges and the totals.
Every once and a while a package slips by. This is somewhat time consuming when taking or returning the call to UPS.

2. My wife did a very in-depth analysis of using a broker. (A & A Contract Customs Brokers http://www.aacb.com/ ) and found that using them as your broker for Items $1200 or less was cost effective. Anything over was left to UPS. This was incorporated with the phone call in #1.
A & A Customs Brokers really did not like this deal, they were only getting the small stuff and thus not making any money on us. 




.


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## CanadaRAM (Jul 24, 2005)

Slight misconception -- yes US Postal Service doesn't charge brokerage --- no American shipper charges the brokerage, it is added on this side of the border by the Canadian company who handles the paperwork. On USPS shipments that come in via the mail, if they are small enough, Canada Post doesnt bother. But on shipment over a certain value, Canada Post will collect GST, PST (depending on your province) and a handling fee of $ 5 - $ 8 

UPS overnight is expensive (about US$45) but it does include the brokerage fee and it has been reliably fast (at least for us, with a business account). Certainly worth it for shipments over, say $800.

FedEx Overnight is more expensive but also includes brokerage, while FedEx ground does not.

DHL/Loomis/Airborne (cant keep track, they have swallowed up so many companies) has a reputation of being unreliable and a pain to deal with. Most of our US suppliers refuse to ship with them - too bad, because the old DH: international service was the cheapest way to bring in small packages (about $24 2 day service, brokerage included)


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## RicktheChemist (Jul 18, 2001)

.


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## mannypwife (Feb 15, 2005)

I have avoided bidding on many eBay items because the seller refused to ship via anything but UPS. Too many fees! Also, I have come home twice in the past month and found packages delivered via UPS in a bag tied to my doorknob.

I'd like to think that I live in a crime free neighborhood, but that isn't the case. Why on earth would they just tie something to a doorknob for anyone to take? I guess that way I couldn't refuse delivery. I'm still waiting to see if I get a crazy bill from them down the road.


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## macuserforlife (Oct 30, 2004)

I bought a stand for my XServe RAID recently. It was second hand and cost $150. I originally organised to use USPS because I, too, refuse to use UPS. Sadly the shipper didn't verify before agreeing to use USPS and it turned out the package was too big. No problem I'll use FedEx. Nope FedEx wanted over $200 for shipping (I don't know how much effort the seller put into the FedEx inquiry).

The end result was that UPS was my only option and I had already paid for the item. As I mentioned, the item was $150 but the seller didn't put the price anywhere on the package. 

UPS opened the package and just pulled a number out of their collective [email protected]#% and charged me GST, PST and brokerage based on $380!!!!!

I agree that they shouldn't be able to charge anything without consulting the receiver but to just make up prices on things to charge exhorbitant brokerage smacks of profiteering.

The kicker, UPS likes to tell you that they just act as the collector for the brokerage firm.......... THEY OWN THE BROKERAGE FIRM!

They have taken their profiteering to the point where they should be investigated for criminal activity!


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## SoyMac (Apr 16, 2005)

adagio said:


> I was burned once by UPS. Never again. I won't purchase anything that is sent via UPS. If given a choice I always select USPS. If there is no choice then that company doesn't get my business...


Ditto.
I've even seen company websites stating that they will not ship to foreign customers by UPS because of UPS' outrageous brokerage fees.
I guess the customer backlash has not yet risen high enough to bite UPS on the behind.
Hopefully, soon.


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## CanadaRAM (Jul 24, 2005)

macuserforlife said:


> UPS opened the package and just pulled a number out of their collective [email protected]#% and charged me GST, PST and brokerage based on $380!!!!!
> 
> I agree that they shouldn't be able to charge anything without consulting the receiver but to just make up prices on things to charge exhorbitant brokerage smacks of profiteering.
> 
> ...


Down Boy.

If the shipper does not declare a value, CANADA CUSTOMS requires a value to be estimated. The standard estimate seems to be $300 US for unidentified computer parts or software -- and probably not far off the new value of that piece, either.

You want them to contact the receiver before processing the paperwork? Good luck. You'll add an extra three days and $50 in costs to packages coming over the border while operators try to track people down and get a straight answer from them. Ain't gonna happen.

Your problem starts and ends with the shipper improperly declaring the goods. The rest of it is mandated all the way down the line. Sucks, but it was the doofus at the beginning of the chain that launched the @$^@ storm.

Same thing happens by the way, when sellers insure a package for $1000, hoping they'll get a windfall if UPS loses it and they claim on insurance. They have just obligated you to pay tax duty and brokerage on an item of $1000 value, because they have declared it on a legal document.

Next time, lay out all the labelling and customs info for your seller, chapter and verse.


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## macuserforlife (Oct 30, 2004)

CanadaRAM said:


> Down Boy.
> 
> If the shipper does not declare a value, CANADA CUSTOMS requires a value to be estimated. The standard estimate seems to be $300 US for unidentified computer parts or software -- and probably not far off the new value of that piece, either.
> 
> ...


Nope, I disagree. UPS is the only shipper that gouges like this. That's the whole point of the thread, UPS are profiteers. 

If all the other shippers did the same thing there would be some recourse to defend UPS but, as has been pointed out by many others who've been burned by UPS' outrageous brokerage charges, the other shippers are more realistic with their charges. Even if there was a small gap between UPS' charges and all the others I could understand defending them but theres not! Point blank UPS charges outrageously more than everyone else. I, for one, detest any type of profiteering, and I refuse to use UPS when there is any other choice and that includes using different suppliers or just flat out not buying something that only offers UPS as shipping. It's my decision and I understand and fully support everyone who makes the same decision. For those who are content with UPS and who don't find their charges unrealistic, more power to you, keep using them.


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## MACSPECTRUM (Oct 31, 2002)

I spoke to UPS earlier today and they said ther brokerage rates are in line with other couriers


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## CanadaRAM (Jul 24, 2005)

macuserforlife said:


> Nope, I disagree. UPS is the only shipper that gouges like this. That's the whole point of the thread, UPS are profiteers.


No - we're not talking about their brokerage rates - we've already agreed on the fact that their fee schedule is too high. We were addressing the point of what happens when a shipper fails to assign a value to goods in a shipment. Canada Customs REQUIRES that a value be assigned. Whether it is UPS, CanadaPost, FedEx or TNT Mailfast. More than once, and on different carriers, I have seen US$300 used as the default value for undeclared goods.

The GST, PST, Duty, and yes, the inflated UPS Brokerage fee schedule then fall into line behind that assigned value. My contention is that the $US300 assigned value is not unique to UPS, based on my experience, and is not an attempt by UPS to increase brokerage charges.


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## kps (May 4, 2003)

CanadaRAM said:


> Down Boy.
> 
> Same thing happens by the way, when sellers insure a package for $1000, hoping they'll get a windfall if UPS loses it and they claim on insurance. They have just obligated you to pay tax duty and brokerage on an item of $1000 value, because they have declared it on a legal document.
> 
> Next time, lay out all the labelling and customs info for your seller, chapter and verse.


Not quite. There is the declared value for *customs* and then there is the declared value for* carriage*. These are two different things. A prototype product, or an architectural model may be worth $50 for customs, but thousands if damaged during transit. Customs charges and taxes will apply only on the declared value of the merchandise. 

Additional cargo insurance is a tricky business. Anything of high value is best insured separately and not through a carrier. The trick is to find an underwriter that'll take on the risk. If you're a business, you may get such coverage through your commercial insurer, if you're an individual, you're pretty much at the mercy of the carriers.


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## macuserforlife (Oct 30, 2004)

CanadaRAM said:


> No - we're not talking about their brokerage rates - we've already agreed on the fact that their fee schedule is too high. We were addressing the point of what happens when a shipper fails to assign a value to goods in a shipment. Canada Customs REQUIRES that a value be assigned. Whether it is UPS, CanadaPost, FedEx or TNT Mailfast. More than once, and on different carriers, I have seen US$300 used as the default value for undeclared goods.
> 
> The GST, PST, Duty, and yes, the inflated UPS Brokerage fee schedule then fall into line behind that assigned value. My contention is that the $US300 assigned value is not unique to UPS, based on my experience, and is not an attempt by UPS to increase brokerage charges.


Interestingly I paid less in brokerage and taxes for my XServe RAID than I did for it's $150 stand. What could the difference be? Oh that's right, one had an undeclared value and was shipped UPS while the other had an undeclared value and was shipped FedEx! The big difference here, and I'd like to draw the line to your following point about extra wait times and fees, FedEx took the time to contact the shipper for the required info.
As for Good Luck? I don't need it, I have FedEx.



CanadaRAM said:


> You want them to contact the receiver before processing the paperwork? Good luck. You'll add an extra three days and $50 in costs to packages coming over the border while operators try to track people down and get a straight answer from them. Ain't gonna happen.


My biggest issue with this statement is that, in following up with the shipper they are doing what equates to no more than what you pay for! If you go to buy insurance, a car or anything else the seller will either assist you with or fill in the paperwork for you. That's what they're paid for. If you, for example, accepted an unclear order for RAM and shipped them any old stick of RAM you'd be out of business in minutes. My point is UPS have been let go for too long. They have long since forgotten the meaning of customer service and are all about profits at any cost. Oh and before anyone jumps on the "businesses need profits" route, I said "at any cost", including customer satisfaction and relations.




CanadaRAM said:


> Your problem starts and ends with the shipper improperly declaring the goods. The rest of it is mandated all the way down the line. Sucks, but it was the doofus at the beginning of the chain that launched the @$^@ storm.
> 
> Next time, lay out all the labelling and customs info for your seller, chapter and verse.


I agree with you 100% about the seller declaring the value, however, you contest that UPS are the same as others in using this fictitious value. Interestingly, UPS are happy to sit on a package indefinately if a phone number is not included on the form in the beginning. This, evidently doesn't cost them any more? By contrast they are perfectly willing to ship an item without a declared value if it means they can make up the value and score some brokerage fees.

My main point is that I find UPS' business practices underhanded at best. I choose not to use them and that's my opinion. There are certainly those who have had better experiences with them or worse experiences with the others but you're wasting your time trying to convince me any different.


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## jdurston (Jan 28, 2005)

Quick question, I just purchased a used Pioneer CD-IB100 ipod adaptor from ebay. The seller would ship anything but UPS, but said since it was used he would put the value at $20 and mark it as a gift.

UPS tried to deliver it yesterday, I wasn't home but they left a sticky on the door. 
They want to charge me $48.95 in brokerage for a used item I paid $38 for. Is there any way out other than refusing the package, or is there a way to negotiate reduced fees?


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## MACSPECTRUM (Oct 31, 2002)

nope, refusing it is the only way
welcome to the wonderful world of UPS


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## jdurston (Jan 28, 2005)

I just phoned UPS customer service. The seller had incorrectly stated the value of the item at $115, which is the cost brand new in the States. I bought it obviously used so the value should be a fraction of that.

The customer service person I spoke to, said to get my seller to fax in the invoice again and state a value less than $60, and indicate that it is a gift. Of the $48.98 owed to UPS only $7 was taxes, the rest was brokerage. The downer is that my package is on hold until we've reached a resolution.

I'm thru with UPS they will never get another cent from me. I'm not bidding on anything that is shipped by UPS only. The brokerage would've cost me more than the item itself.


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## mikeinmontreal (Oct 13, 2005)

Conclusion I arrived at 7 years ago upon one of my first Ebay auctions. $20 U.S. NFL Jersey cost me $35 in brokerage and taxes.


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## MACSPECTRUM (Oct 31, 2002)

i only purchase ebay-u.s. items from shippers that ship via USPS
UPS is four letter word in my house
(George Bush fuzzy math) - 2 for 1 zing !


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## T-hill (May 18, 2005)

Yeah... If I buy in the States, I have it shipped to the States. I'm visiting my cousin in Chicago next week. The stuff I ordered from an American retailer is on its way to Chicago as we speak. My simplest answer...


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