# UPS "Brokerage Fees"



## Cole Slaw (Aug 26, 2005)

Finally,
Someone has gotten mad enough to launch a class action lawsuit against UPS for thier ridiculous "brokerage fees".
I've been the victim of this scam more than once, In one instance I actually paid more in brokerage fees than the actual value of the item.
Where do I sign up for the lawsuit?
Link: http://www.mytelus.com/news/article.do?pageID=oddities_home&articleID=2427540


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## gwillikers (Jun 19, 2003)

I wondered if someone would take them on one day.
I avoid UPS like the plague, but sometimes there's no other option.


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## mikeinmontreal (Oct 13, 2005)

Thank you, thank you, thank you. I just got hit $35 for a $35 item. The driver wrote that the amount was payable to the sender, so I made the cheque payable to the sender and I backdated the cheque to last year. Well another driver showed up yesterday requesting a new cheque, so I told him I would speak to UPS first before issuing. Now I am in the driver's seat, no pun intended and I will pay the taxes that I owe only. And I will mention the class action at the same time. Thanks again.


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## imactheknife (Aug 7, 2003)

I hate UPS with every fibre of my being...they have ripped me off so many times that I will NEVER use them again at least until a lawsuit straightens them out. Man greedy losers is what they are.

http://www.unitedpackagesmashers.com/bbs/

http://atlanta.bizjournals.com/atlanta/stories/2004/04/05/story6.html


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## matti (Oct 12, 2006)

What a nice thing to wake up to. 

If I get stuck with having to use UPS I will always pay out the extra for the Express or Expedited service since they don't slap the extra brokerage on that service.


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## DS (Oct 7, 2004)

:clap:

Boy am I glad to hear this. I hate UPS with a passion and have been ripped off by their "brokerage fees" before as well. 

I will never buy from anyone who uses UPS anyone, nor would I even consider using these jerkoffs myself.


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## MACSPECTRUM (Oct 31, 2002)

UPS's history is that of being funded by "wise guy" money
i remember stories of customers (shipping) being "coerced" (i.e. The Boss sez you otta uze UPS. Weez don't wanna see somethin' bad happen to ya")
looks like they are living up to their lineage

I have found many U.S. companies have learned from the horror stories of dealing with UPS when sending to Canada and are now boycotting UPS and using USPS instead

i now always ask if UPS is the shipper
if so, i forgo buying the item


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## JPL (Jan 21, 2005)

DS said:


> :clap:
> 
> Boy am I glad to hear this. I hate UPS with a passion and have been ripped off by their "brokerage fees" before as well.
> 
> I will never buy from anyone who uses UPS anyone, nor would I even consider using these jerkoffs myself.


Yup me 2, it's unconscionable!


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## lcsim (Apr 16, 2005)

Yeap.. We always opted for the extra money to upgrade to Expedited or Express, most of the time the extra charge actually offset the high brokerage fee, unless if it is something heavy then really no other choice (don't really trust the post office with any heavy such as server boxes). 

However, you can opt to clear the customs yourself and avoid the brokerage fee, all you need is the UPS Tracking# from the seller, call UPS before the package hits the border and tell them you will be clearing the package yourself. Once the package hits their warehouse, drop in to collect the necessary documentation (not sure if they charge you a small fee for that, used to be free) and take to a CRA office and pay the taxes, walk the stamped documents from CRA back to UPS and they will release the shipment to you.


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## sinjin (Jul 12, 2003)

I may just join that suit if it gets off the ground and filed in Ontario. 

I take the approach of informing US manufacturers/retailers of UPS practices in Canada and request alternative shipping, or else I will go elsewhere. But still I manage to miss at least one shipment a year and end up being slapped with UPS's outrageous fees. Burns.

Perhaps joining in would be less of an inconvenience in the long run, if successful!


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## martman (May 5, 2005)

This is a real UPS love fest. What else is "brown" in colour?
I too await with baited breath for the posting of how to sign up for the customs brokerage class action. 
Hope the info comes soon!
"I hate Brown!"


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## CanadaRAM (Jul 24, 2005)

mikeinmontreal said:


> Thank you, thank you, thank you. I just got hit $35 for a $35 item. The driver wrote that the amount was payable to the sender,


If that was really the case, it was a COD shipment, the $35 had nothing to do with Brokerage, and you have just defrauded the sender by writing a rubber cheque.

Brokerage fees are payable to UPS and never to the sender. The UPS brokerage fee on a $35 item would be their minimum $16. UPS is also collecting any duties payable, GST and provincial tax as they are required to by law.

Don't get me wrong - the UPS brokerage fees are outrageously high, but the case does not have a leg to stand on. Every cross-border shipment must be cleared through customs, and every carrier charges brokerage, one way or another, either in the expedited air shipping charge or separately. Canada Post occasionally doesn't bother to collect on postal shipments below a certain dollar amount, or does so somewhat randomly. That doesn't mean that it is tax and brokerage free, however, just that CP didn;t choose to do the paperwork.

The contract for shipping was with the shipper, who specified that the receiver pays all taxes, duties and brokerage fees on receipt. 

As a recipient, the choices are: Call the carrier 1st to determine the fees, go to the carrier's website to determine the fees, ask the sender to disclose what fees are payable, or refuse the shipment. By signing for the shipment, the recipient agrees to pay all fees payable. 

The recipient's ignorance is not grounds. It is like going into a restaurant, not looking at the menu, ordering steak dinner, eating it and then going "I'm not paying any #@&# $35 for that! I never would have ordered it if I knew you were going to charge for the side order of fries and the wine!"

Again, I never use UPS ground for over border because the brokerage is too high. But it's the recipient's fault for making unfounded assumptions about how international shipping works. Why the #&# did he think that UPS ground was $12 while the same parcel by FexEx was $45??


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## CanadaRAM (Jul 24, 2005)

martman said:


> I too await with baited breath


Why? What are you trying to catch?

 

(Or is it time to fish or cut bate?)


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## martman (May 5, 2005)

I have top dissagree with you Canada Ram. My first experiance withthe customs brokerage fee came 6 weeks after I had recieved the package with no warning that a bill was forthcomming. I think there is plenty of merit to his case.


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## HowEver (Jan 11, 2005)

CanadaRAM, the "brokerage" is charged on the insured amount. It is possible that the sender supplies an inflated insured or perhaps even 'replacement' amount, UPS sees this and charges based on that. Or so they say. UPS is still evil and I'll avoid them at all *costs*.

I ordered an item recently and the sender changed methods and shipped via UPS. UPS wanted $56 CAD on an $18 US item, claiming that the insured value was $100 US. I told them to keep it. The sender refunded my money (so I didn't have to do a chargeback, which was the next step). He also told UPS to keep the item, since it would have cost him "brokerage" on top of "brokerage" to have the item shipped back, for a total of $71 US.

UPS: the Cosa Nostra can only dream.


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## Paul O'Keefe (Jun 3, 2005)

I'd sign up for such a class action!


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## lcsim (Apr 16, 2005)

Over declared value is a common problem especially with eBay sellers in the US, who always think of their original purchase value and/or what it will cost one to replace the item. 

There are technically two different declared values, one being the Carriage Declared Value (used by couriers to determine transportation liability and pay out to sender in the event of lost/damage, i.e. insurance), the second being Customs Declared Value which is used by Canada Customs to determine the tax liability on entry. In the good old days you can actually declare two different values that are very different, i.e. it will cost $100.00 for the seller to replace the item, but it was sold for $50.00 to the buyer in Canada which is the tax liability. However, this was being abused and lead to new restrictions imposed by courier companies where the Carriage Declared Value (i.e. Insured Value) cannot exceed Customs Declared Value.

If the seller declared a value that is higher than then actual transaction (where if the item is less than CAD$20.00 it would be free of brokerage fee and tax), you can demand UPS for a readjustment of their broekrage fee and tax collected but prepare to fax UPS Brokerage the actual payment proof, i.e. Paypal invoice. The same process applies to Canada Post where you can dispute the tax collected using the instruction at the back of the Customs Collection form on the package. 

Now there is still no excuse for companies like UPS and FedEx Ground to charge a huge amount of brokerage fee for simply pushing paper/electronic bits to Canada Customs and collect the fee on behalf of Canada Customs. UPS is actually pretty upfront on their website with regards to their brokerage fee, try find the FedEx Ground, you have to call and ask them to send it to you.

Until there is some law that can be written to protect the consumer, it is up to the customer to avoid such unreasonable charges, or do their own clearance. One should fully arm oneself with the necessary knowledge before engaging in importing goods from abroad.


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## mikeinmontreal (Oct 13, 2005)

Hey CanadaRam, I didn't defraud the sender. I paypaled them the full amount from my Ebay auction. They got paid. They assured me they were using USPS. They sent the item 3 weeks late and decided to use UPS. I complained and it fell on deaf ears. Regardless, UPS has outrageous fees and I have contested the brokerage fees as charged.


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## Deep Blue (Sep 16, 2005)

Ditto, I have been screwed by brokerage fees from all the courier companies. Hate them all, not just UPS. I only ship from the States using the USPS. It's slower but it always gets here and no scammed charges.


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## Deep Blue (Sep 16, 2005)

I see where you are coming from on a business point, CanadaRam, but it seems to me the only one getting done here is UPS. The seller got his money, UPS is left waiting - and they deserve it.


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## LaurieR (Feb 9, 2006)

I too fell victim to UPS brokerage fees with an item from ebay. I'm happy to see some action being taken and I hope this makes UPS change their evil, greedy ways.


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## gordguide (Jan 13, 2001)

" ... Brokerage fees are payable to UPS and never to the sender. The UPS brokerage fee on a $35 item would be their minimum $16. UPS is also collecting any duties payable, GST and provincial tax as they are required to by law. ..."

A minor point, but important none the less: UPS collects the fee on behalf of a brokerage firm they contract to clear their shipments; they do not charge brokerage fees themselves.

UPS will be quick to tell you that if you complain; they will state that they do not charge brokerage fees, but instead pass on the fee, that they have already been billed for to clear your shipment, directly to you. In fact I have heard them say they've already paid it (which is probably not true, but a technicality; we all understand how a bill gets sent, then paid).

Of course, what they won't tell you is the broker they do use is a wholly owned subsidiary set up specifically to clear UPS shipments. So, in practice it's a moot point. But, UPS can and does defend the fee by saying "it's not us, it's our broker."

As for paying brokerage fees directly to the seller, the contract the sender signs states that if the recipient does not pay the shipping and associated fees (taxes, brokerage, whatever) then the sender must pay them. Generally it's not an issue, but occasionally the item is delivered before the brokerage bill that normally would accompany it. The shipper will bill the recipient by letter, and if the recipient doesn't pay, then they bill the shipper.

" ... Don't get me wrong - the UPS brokerage fees are outrageously high, but the case does not have a leg to stand on. ..."

The grounds for the suit are, in essence, that they are "outrageously high", which can be deemed to be an illegal practice. What the chances of success are I don't know, but I think I can clearly see at least one leg


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## lcsim (Apr 16, 2005)

gordguide said:


> " ... Brokerage fees are payable to UPS and never to the sender. The UPS brokerage fee on a $35 item would be their minimum $16. UPS is also collecting any duties payable, GST and provincial tax as they are required to by law. ..."
> 
> A minor point, but important none the less: UPS collects the fee on behalf of a brokerage firm they contract to clear their shipments; they do not charge brokerage fees themselves.
> 
> ...


You are absolutely right of them being "separate entities"  However, UPS Customs Brokerage also advertise themselves as "One Courier, One Broker, No Hassles" on UPS Canada's website, all inbound UPS carried shipments by default get cleared by UPS Customs Brokerage unless the shipper stated otherwise or the receiver has on file with them a different customs broker. FedEx Ground at least have the courtesy to call you up and ask if you wish to use FedEx Trade Networks to clear your incoming package, of which they also own 

http://www.ups.com/content/ca/en/resources/select/receiving/customs/index.html


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## kps (May 4, 2003)

Yup, UPS went on a customs broker buying spree a few years back. They bought Livingston International in Canada and Fritz-Starber in the US. Although FedEx always had their own in-house brokerage for their express shipments, they bought C.J. Tower in the US for ground shipments and re-branded them as FedEx Trade Networks. Trade Networks also does some freight forwarding and logistics.

I myself got burned several times by UPS ground shipments, I wish this class action suit success.


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## KreenysMac (Aug 23, 2005)

*You Don't Have To Pay!!!*

I was outraged as much as everyone at the brokerage fees. Then once I started to build a robot for a grad-school project, having to import parts from the US, the brokerage fees started getting outrageous.

*YOU DON'T HAVE TO PAY THESE FEES!*

So, I was doing all this importing, and getting to know the desk agents quite well (because I work during the day and was never home when they delivered, so I had to go to the main depot) ...

Then ...

... one of the service-desk agents tipped me off. When you get your first delivery notice call (don't accept the package, or make sure you're not home), call the 1-800 number and press "0" to speak to an agent.

Give the agent the notice # and say to them "I would like to clear this package through Canada Customs myself". At this point they'll do a bunch of typing, get a contact phone # from you and probably give you a location of their brokerage office. In Winnipeg, this office is right at the main UPS depot. 

UPS will now put together a couple of forms for you. You will have to pick these up from the brokerage office. The phone agent will give you the location when they call you about the forms being ready. It's almost always at the main depot. *The hours are limited, usually only 10am to 3pm, Mon to Fri.*

You now must have an *original receipt* from your purchase, like the one most companies email to you or say "print off for your records" when you purchase the item. PayPal receipts usually work too. The receipt should have your info on it as well as a brief description of the object purchased and the price (whatever currency) that you paid for it. Bring a copy with you to UPS.

You now have your UPS forms and receipt. You now go to Canada Customs. They have your package on file. You *will* have to pay GST and PST on the package, but believe you me, this is FAR less than the brokerage fees for most small items.

Bring the stamped Customs form back to UPS and pick up your package!

A bit more of a hassel, but this saved me over $50 in brokerage fees once!

-- Kristine


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## gordguide (Jan 13, 2001)

CCRA is quite flexible as to what constitutes a receipt or invoice as far as self-clearing goes (printed letter, printed eMail, handwritten, etc) but they really like to see the quantity and per-unit price as well as the total price listed. Only a big deal if you have multiple items and quantities on the invoice, but there you go.


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## lcsim (Apr 16, 2005)

You are right in terms on the flexible CRA documentation requirement, unless the import is more than CAD$1,600.00 which they consider as a high value import, that they will be a little more picky in terms of documentation where some officers asked the importer to produce printed invoice with all the vendor information and exact description of line items in the shipment. Although the LVS (Low Value Shipment) threshold is being used by courier company in terms of reporting to CRA, but we did see some customs officer used that as a guage for the amount of documentation they ask on clearing.


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## CanadaRAM (Jul 24, 2005)

HowEver said:


> CanadaRAM, the "brokerage" is charged on the insured amount. It is possible that the sender supplies an inflated insured or perhaps even 'replacement' amount, UPS sees this and charges based on that.


Of course -- they are legally obligated to collect tax and duties if any on the declared amount as well. The shipper lied, how is that UPS's fault?

Look, I don't want to defend UPS's rates, which are too high. But there is a lot of disinformation being promulgated here as well.

Mike: If it was brokerage fees, you made the cheque payable to UPS or their brokerage service. You said that the $35 cheque was instructed to be payable to the SENDER. That is simply not correct. The only time payment is payable to the sender is on a COD shipment where the check is being sent back to the sender.

Kreenys: Of course you can clear it yourself, if you have several hours of free time and live close enough to the UPS office. You can also send it to a private customs broker who will charge $35 - $75 for the paperwork, minumum.

When you sign for a shipment, there's a bunch of fine print on the back saying that there may be fees payable by you. Just like when you buy a ticket to a ball game, the fine print on the ticket says you've just waived your right to sue if you get beaned by a home run and become injured. Didn't read the terms? Didn't ask what the charges were? Ignorance is not grounds.


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