Question about UPS brokerage shipping fees to Canada

nobb · 08-23-2006, 09:58 PM

Hi.
Let me start off by saying that I am a complete noob when it comes to buying stuff from the internet and shipping it via UPS standard. When I bought my amplifier from www.sonicelectronix.com , I thought there was just a small standard shipping fee that I pay in addition to the price of the item. My total (including shipping) was around $170 CDN. However, when the UPS guy arrived at my house, he also charged me an extra $50 customs brokerage fee. The UPS man just said that fee is charged for shipment from USA to Canada. He said that such fees were charged from ground shipments, but not air. To be honest, I had never heard of such fees before so I was wondering if someone could give me more details about such fees and is there anyway to avoid it, since I want to buy a touchscreen LCD from mp3car stores? How much in brokerage fees would be be expecting if I were to order the MTSVO 7inch motorized touchscreen from the mp3car stores? Is there a way to get this screen more cheaply?

2k1Toaster · 08-23-2006, 10:11 PM

I know when I ship full desktop computers valued at roughly $1800USD through FedEx, the customer is usually charged about $200CND. Pretty riduculous.

Only way around it, is to declare it a gift. Then they call both people and ask for proof of relation. If you are found to have lied (claiming it as a gift when it is not), then in the U.S. you can face a couple years in jail and an enormous (like upwards of $5k USD) fine for international fraud. On top of that they confiscate the item, and usually destroy it.

It happened to one of my friends. They shipped a computer to their best friend in Toronto. About $3,000 USD. He claimed it as a gift to avoid customs fee's. The agreement was that the friend in Canada would pay back the costs to my friend. So my friend included a receipt in the box. Of course they get suspicious when you send a multi-thousand dollar gift to a person whom you are not related to! So basically, he got a fine of $6,000 USD, and the Canadian customs siezed and destroyed the computer. So in the end, he was out close to $9k USD, and no computer.

nobb · 08-23-2006, 10:52 PM

Thanks for your reply. I just noticed that mp3car stores have "USPS Global Express Mail (EMS) $32.57" Doing some reading, I am getting the impression that USPS would be a better shipping option instead of UPS standard ($21.40) due to the lower brokerage fees. Can anyone confirm?

SwapMeet · 08-23-2006, 11:07 PM

Quote: Originally Posted by nobb

Thanks for your reply. I just noticed that mp3car stores have "USPS Global Express Mail (EMS) $32.57" Doing some reading, I am getting the impression that USPS would be a better shipping option instead of UPS standard ($21.40) due to the lower brokerage fees. Can anyone confirm?

I work for UPS... answer is yes.

nobb · 08-24-2006, 11:31 AM

So if I choose the USPS I would only have to pay the $32 upfront and they wont charge me anything once my package arrives at my door?

kamikaze2112 · 08-24-2006, 11:48 AM

Quote: Originally Posted by nobb

So if I choose the USPS I would only have to pay the $32 upfront and they wont charge me anything once my package arrives at my door?

It'll come via Canada Post, where if declared properly, should only cost you taxes on the Canadian dollar value of the item, and a small processing fee, usually $5-$8 bucks. Make sure that it's declared as Computer parts and not a TV. if declared as Computer parts it's duty free, if declared as a TV you'll have to pay duty as well. It's prolly too big to fit in your mailbox, so you'll likely get the little card saying you have a parcel.

so for the MTSVO you're looking 449 USD + shipping for $32 USD

which is roughly $500 CAD + $35 CAD for shipping.

When you go to pick it up, you'll be chaged tax on the item value converted to CDN funds (assuming 14% for Ontario residents) $70 + the processing fee, which is like i said usually about $5 - $8. You might wanna call you local Canada Post outlet to confirm this, I'm just goin by my past experiences.

All said and done, you likely be $610-$615 give or take a few bucks.

Please keep in mind that the above is based on my experience. I'm not responsible for any other fees that you might be charged. This is how i usually go about figuring out my purchases from the US, and I'm usually pretty close.

Trev

nobb · 08-25-2006, 11:00 AM

Wow this is going to cost more than I had expected. Wouldnt UPS Worldwide Expedited be cheaper then? It is $73.35 and I heard that there is no tax since it is by air and not ground. If there is no tax, wouldnt that mean I just pay the shipping upfront and they deliver it to my door without any extra charge?

EDIT: "When you go to pick it up, you'll be chaged tax on the item value converted to CDN funds (assuming 14% for Ontario residents) $70 + the processing fee, which is like i said usually about $5 - $8. You might wanna call you local Canada Post outlet to confirm this, I'm just goin by my past experiences."

Where did you get the $70? According to an eBay guide, they say that USPS and Canada post have an agreement to NEVER charge brokerage fees.

kamikaze2112 · 08-25-2006, 01:39 PM

taxes aren't brokerage. Brokerage is (as far as I understand) paying the taxes and applicable duties for you, then charging you a 'fee' plus the tax/duty/etc. THe fee they tack on is ususally beyond bloated for the actual service they've offered. I've seen $50 items come via UPS and having them charge the same in brokerage. It's rediculous. The $70 is the 14% Tax on the $500 for the monitor. Anything that's imported into Canada and is not declared a gift or warranty replacement is subject to taxes. Cause heaven forbid we do anything that doesn't involve the federal gov't being in our pockets

Oh yea, I'm not sure about shipping by air saving you the taxes, i never do it cause it's usually more than I wanna spend on shipping

2k1Toaster · 08-25-2006, 01:42 PM

Quote: Originally Posted by kamikaze2112

taxes aren't brokerage. Brokerage is (as far as I understand) paying the taxes and applicable duties for you, then charging you a 'fee' plus the tax/duty/etc. THe fee they tack on is ususally beyond bloated for the actual service they've offered. I've seen $50 items come via UPS and having them charge the same in brokerage. It's rediculous. The $70 is the 14% Tax on the $500 for the monitor. Anything that's imported into Canada and is not declared a gift or warranty replacement is subject to taxes. Cause heaven forbid we do anything that doesn't involve the federal gov't being in our pockets

Oh yea, I'm not sure about shipping by air saving you the taxes, i never do it cause it's usually more than I wanna spend on shipping

You got it spot on. The brokerage fee, is for some guy who has a magic stamp. He simply squirts some ink juice on a package, and voila! Now it is ready for customs, and importation, and only for between $50-$300. He must use really expensive ink! Basically the neato circle stmap you see on a package, yup. That's the guy.

BlackStealth · 08-25-2006, 02:04 PM

USPS is the best way to ship to Canada. Brokerage fees are between $5-$8. If you use UPS ground then you'll get screwed big time. If you use UPS air, then you don't have to pay brokerage fees, but you'll still have to pay applicable taxes.

Just be happy that USPS is an option! Most places don't offer it.

amthar · 08-25-2006, 02:59 PM

Is this a Canadian phenomina or something? I've purchased multiple products from Taiwan, China in general... and just last week i purchased from Japan. And never had to deal with any of these crazy expensive fees/taxes/whatever.

kamikaze2112 · 08-25-2006, 04:42 PM

NO, it's only when importing from the US

nobb · 08-25-2006, 05:04 PM

Sorry for asking so many questions. In regards to the $70 tax, how come I didnt get taxed when I bought my amplifer from the US retailer? I only had to pay an additional customs brokerage fee. Does that tax apply to USPS/Canada Post deliveries only and not UPS? Maybe I should ask the mp3car store people to just declare my package as REPAIR and stick with UPS standard?

kamikaze2112 · 08-25-2006, 06:01 PM

Ok, the brokerage, as I explained in an earlier post, is charged by the carrier, and not by CCRA. UPS, for example, will pay the tax and duty for you, then when they deliver the package they charge you brokerage, which is the tax and duty, plus an obnoxious service charge. With USPS/Canada Post method, since it's CCRA who is collecting the duty and taxes, they just get the Canada Post outlet to charge you instead. So in all reality, when you paid the "customs brokerage fee" you paid the taxes, and the duty, and whatever god awful fee that UPS charged you for paying the first 2 items at the border.

On a further note, most companies will not declare a package for something it's not. If you are found to be fraudulently declaring packages you can face severe penalties, jail time, and have the shipment confiscated. For some small items you can get away with declaring as gifts, but most gifts aren't insured. Also, if you try to declare something for a lesser value and it gets damaged or goes missing, you are only entitled to the dollar value for which it's declared....and no you can't put $1000 insurance on a $50 package either

You can only put as much insurance on the package as what you declare it for.

jschrauwen · 08-30-2006, 08:03 PM

My Barrie and Cheyene MT. friends are both spot on. Been recieving numerous parts and goodies from the US for years for my cars. When you finish stroking out the similar costs, the big kicker is the brokerage fees that are charged by the courier companies which are just astronomical. I believe it's incremental based on certain dollar thresholds. The higher the threshold, the higher the percentage charged (or supposed charge) should be. Courier companies are very very upset with Canada Post for still charging a flat rate for items recieved from abroad. They are trying very hard to have this changed, quoting it's unfair pricing to the private sector ..................... boo hoo, I say to the courier companies.
Whenever possible, I'll always, always ask to have any item shipped via USPS and I'm willing to pay a little extra for that too.
I have over $1,100.00 in speakers and amps coming tomorrow from UPS. I'm anticipating the usual 14% but I'm not looking forward to another 15% to 20% on top of that again for the added brokerage fees.
IE: $8.00cdn flat rate brokerage fee compared to a possible $210.00 UPS brokerage fee.

Best case scenario for Canadians - buy Canadian, or from preferred countries in the far east. If buying from the US, ship via USPS whenever possible.
BTW, I didn't know computer parts were duty free. But I imagine the taxes still apply.

Quote:

Is this a Canadian phenomina or something? I've purchased multiple products from Taiwan, China in general... and just last week i purchased from Japan. And never had to deal with any of these crazy expensive fees/taxes/whatever.

You might say that. Certain countries have certain designations by the CCRA as to their trade and import agreemants. I believe China and Taiwan have that certain agreemant with canada where the duty/taxes are waived. I'm not sure if the term "preferred status" is part of the jargon wrt this.