Oh good! You must be sick of paying made-up, ridiculous UPS broker fees too! So was I, so I figured out how to legally avoid paying them to scammy courier companies. It's easy and all the instructions on how to do it are right here.
Yep. This post is especially for my Canadian readers or anyone else who is subject to UPS "broker fees" on online items you've shopped for and had shipped to your house.
How to Avoid Paying Broker Fees to Courier Companies
Broker fees are a scam and I want everyone to stop paying them right now. In this post I'm going to teach you how to avoid paying any and all broker fees. Legally. Because I hate them. And I like you.
Here we go.
(if you'd like the quick cheat sheet so you can see how easy it is, skip to the bottom of the post, then come back up here to read exactly how to do everything)
I'm happy to pay UPS or any other company whatever fee they charge to deliver my package but when they want to randomly charge some arbitrary amount to "broker" my package as it crosses the border I start to get my back up.
And when I get my back up, I get angry and start typing furiously on the computer looking for answers.
in 2015 ... I got my back up.
I had ordered (yet another) chicken door opener off of the Internet from a nice man somewhere in The United States.
Before it made it to my door I got this email from UPS.
When I got the email my first thought was I'M NOT PAYING IT. I'll send the stupid chicken door BACK. Broker fees are a scam. A complete scam.
#1. What the fine folks at UPS don't tell you is what exactly these broker fees are going to be. As soon as you allow them to be your "broker" by saying "yes go ahead" in your reply email they can charge you any amount they want.
#2. What the fine folks at UPS also don't tell you is YOU can broker your own package. It's called "self clearing". And it's ridiculously easy.
This is how I responded to the UPS email.
The first email I got in return was basically ... "Um ... I'm not sure about that. You're gonna have to call this number". I did not call the number. I emailed them again. A day later I got what I needed from UPS to "self clear" my package.
- Instructions on where and how to self clear the package including phone numbers and fax numbers (cause this is 1982) which has a spot for stamping by customs.
- The commercial invoice which also has a place for stamping by customs.
- And the regular invoice provided by whoever shipped you the item.
Here's the email they sent me and all the documents that came with it so you can see what they look like:
Legally they have to give you this information. They cannot say no. They cannot claim it can't be done (although they have done exactly this in the past). In my case after my email got to the right person I got a very prompt and efficient response from UPS. No hassles.
If you get an email like the one I got just copy and paste the body of my email and include your shipment order number. (I blurred mine out).
If you don't get an email first and someone from UPS brings your package to your door asking you for the broker fees say no. SAY NO. Say you're going to self clear your package and send them on their way. The second you sign anything, you can't go back. You will have agreed (knowingly or not) to UPS acting as your broker.
Once they leave call UPS and at 1-800-742-5877 and press "3". You will be connected to broker services. Tell them you're going to self clear your item and you'd like the documents you need for that emailed to you. Make sure you have your tracking number handy.
Once you have the documents you need you just take them to your nearest CBSA office. That's the Canada Border Services Agency. You've probably never noticed a CBSA office before but they're all around us in Canada. We're filthy with CBSA offices. You just didn't know it. What you need is a CBSA office that handles self clearing of items. Those are Inland offices and they're fewer and farther between than regular CBSA offices. They're usually at airports but can also be found other places.
If you're lucky there's an inland office near you. Mine was at my local small airport, a 20 minute drive away.
Here's a link that will take you to a map of all the Inland Offices in Canada so you can check right away if one is near you.
How far you want to drive will probably depend on how much money your broker fees with UPS would be. So let's talk about that a tiny little bit.
UPS has decided that they will charge you a percentage of whatever the value of your package is. So if you have a package that's worth between $40-$60 UPS has randomly decided they will charge you $16.75. If your item was $40, then you'll be paying almost 40% in broker fees. 40%!!!!!!!
The higher the value of your package, the lower the percentage you pay for your broker fees BUT they still charge more money based on how much your package is worth.
So you pay $16.75 for a $40 package, $30.40 for a $150 package, $71.80 for a $750 package and so on. The higher the value of your package, the more money you'll be paying.
EVEN THOUGH THEY ALL TAKE THE EXACT SAME AMOUNT OF WORK by UPS. Scam.
You can see the full list of the UPS broker fees here.
I took my documents to my local CBSA office and told them I was self clearing an item. I was one of two people there by the way. No waiting in line, no paying for parking even! I didn't have to explain what I was doing to them, didn't have to convince them I was allowed to do this, I just gave them my documents and they said, thank you ma'am, I'll be back in a second.
And in a second they were back with my forms (now stamped), an additional form, and a bill for my duty and taxes to pay. In this case there was no duty because the item was made in the U.S.A. and I just had to pay my Canadian taxes on it. I paid my bill and they brought me my B-15 form. That's the form you need to send to UPS to prove you paid your duty and taxes.
Your item is now self cleared.
Self clearing just means you pay the duty and taxes yourself. That's all it means. That's it. There's no brokerage office, no mounds of paperwork, no nothin'. Instead of UPS paying your duty and taxes ahead of time, you pay them when your item arrives in Canada.
Yup.
Broker fees. Scam.
When you get home, scan the B-15 form that border services gave you along with the form titled "self accounting procedures" and email it to UPS.
By the next morning my package was delivered.
Is it a pain? A tiny bit but I felt GREAT after doing it. Suck it UPS. I'll self clear my own items. Also, I'm confident that the Canada Services Border Agency is up to date on when or when not to apply duty. UPS has been known to apply duty to things they shouldn't. Like paper goods. Instruction manuals, books, concert tickets should all be duty free.
Other online buying tips for Canadians? If you have the option, don't use UPS or Fedex. Instead have your item shipped by USPS which is The United States Postal Service. No scammy broker fees there.
If you are ordering items under $20 then UPS is fine. There are no broker fees on items that range in price from $0 - $20.
How to Avoid Broker Fees
How to avoid the scam UPS broker fees when receiving online shopping orders.
Instructions
- Do NOT agree to UPS acting as your broker. Not through email or when they’re at your door. Just say no and do NOT accept your package.
- Email or call UPS and say you are going to self clear your item. Ask them to email you the necessary documents.
- Bring those documents to your nearest Canada Border Services Agency (must be Inland offices)
- Pay your actual taxes and get your stamped forms back along with the B-15 form they provide.
- Email the forms back to UPS to prove you paid your owing taxes.
- Wait for your package to arrive free of charge.
Notes
UPS will try to avoid doing this. They'll pretend not to know what you're talking about. They'll avoid emailing or calling you back.
PESTER them if you have to because they DO know what you're talking about and they HAVE TO by law give you the information you're asking for.
- Do NOT agree to UPS acting as your broker. Not through email or when they're at your door.
- Email or call UPS and say you are going to self clear your item. Ask them to email you the necessary documents.
- Bring those documents to your nearest Canada Border Services Agency (must be Inland offices)
- Pay your taxes and get your stamped forms back along with the B-15 form they provide.
- Email the forms back to UPS to prove you paid your owing taxes.
- Wait for your package to arrive free of charge.
I've used this technique several time since this post and I've received countless emails from happy Internet searchers who found my post. This isn't easily found information. But it is important information as far as sticking it to companies that already make obscene amounts of money goes.
Happy online shopping and everyone say it with me one last time. UPS can suck it.
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Tina Kennedy
Hey Karen,
Question, I was actually looking into this since I recently got a bill in the mail for $50.36 in brokerage fees. I was never given the opportunity to self declare. The package was delivered and I did not sign anything. I think bc everything is contactless not during Covid. Am I stuck paying this?
Karen
Hi Tina, things are different now, that's for sure, but I would think they still need to notify you PRIOR to giving you the package. I'd call them. ~ karen!
ash
thank you so much
Karen
Hi Ash, you're very welcome! ~ karen
Daniel
I ordered small item from china
It was free shipping also $1.50 NOT even $2
but UPS left notice on my door they missed me also my package has a brokerage due $44.50!!
I did't get any email also didn't get any call and meeting them yet
$44.50 is nothing if it make sense and I need to pay but I don't wanna pay $44.50 for $1 item
It's ridiculous
What should I do? :(
Karen
Hi Daniel! If you hadn't been notified prior to the package being left then you have NO obligation to pay the $44.50. You did NOT accept the package. It wasn't signed for. I would call UPS and tell them you didn't accept the package and didn't sign for anything. Make that known. Then you can either tell them you would like to "self clear" it. They will have to pick the package up from you again, it goes back to a depot, THEN you pick it up from the customs office like I described. If that isn't something that you can do then either a) either ask them to explain and reduce the charges or b) insist again you didn't accept the package and tell them to take it back. ~ karen!
Naomi
Hi!
I was wondering if you may know since you figured this out brilliantly.
I received a package early January and only now received a letter from UPS saying I need to pay Customs fees before xx date. Now, I have the package.
Do I need to pay it ?
Karen
It depends on how hard you want to fight Naomi. If you didn't receive any notification that you had to pay, and accepted the package without any email, phone call or other statement from UPS that you had a fee then you don't have to pay it BUT they will hound you forever until you talk to someone and tell them what happened. Even then it's iffy. If it's a small fee I'd probably pay it and silently hate UPS. Something big might be worth calling them to work it out. I've done both in the past. :/ ~ karen!
vinh
I already signed and gave my credit card info help
vinh
Does the signature go in effect for all future shipments? they asked for my credit card.
Karen
Hi Vinh. It’s too late for this shipment im afraid but for future packages do what I say. Refuse delivery and say you will self clear. If you HAVENT accepted this package though you might have luck if you call them and say you want to self clear. They shouldn’t use your credit card for future fees.
Kathleen Kato
Thanks so much for the incredibly helpful info on not paying brokerage fees for stuff from the States into Canada. I spoke to the CBSA and was told that self-clearing involves knowing where the item entered Canada because to self clear you have to take the paperwork to that location. We live too far from the Vancouver airport to make that option viable. Also, lots of places only offer UPS as a delivery system to Canada. I was told that you can specify that you want to self-clear when you order which helps a bit, I guess [although not for us].
Karen
Hi Kathleen! Have you checked to see if you have a self clearing place near you other than the Vancouver airport? Possibly a smaller airport or customs office? ~ karen!
Charlene
SAY WHAT??? Predicting my poor husband will be displeased with you as the brokerage fees have been my only deterance to online fabric shopping from the USA...
Sharing the bejesus out of this.
Karen
Good luck!! (to your husband ;) )~ karen
Unknowing
Thank you Karen for this informative post. I recently ordered a jacket from the USA. It costs 280 CAD. The seller chose UPS to deliver the package. I then received a notice (I wasn't home when they tried to deliver the package) from UPS saying that I would have to pay $120 ($47 duty + $42 taxes + $31 brokerage fee) to them to receive the package. I requested to have the package returned because the COD fee was almost half the price of the jacket. And the package was sent back to the seller. Now a few weeks later, UPS sent me a bill for $120. They say that even though the package was sent back, I still have to pay the COD fee. Is this right? Thank you very much.
Karen
Hi there! I'm not an expert on UPS but from where I stand I'd say if you didn't accept the package then you owe nothing. Why would you have to pay duty on something that you didn't keep? Or taxes? It doesn't make sense at all. Personally I'd fight it. ~ karen!
Unknowing
Thanks for your reply. UPS has dropped the charges. I didn't authorize them to act on my behalf.
A very annoyed UPS client
thats so good. I hope everyone avoid that broker fee. its absurd. I am in Mauritius and being charged $40 for a $90 item. There are no duty on the item as it is below the taxable value. Thats absurd. Worse is that i wasnt even contacted by the broker company but i had to contact them myself and one week later they are still "awaiting clearance by customs".
If i didnt need the item i would have just sent it back. The whole thing isnt that simple to be done on our own here in mauritius... sadly.
Karen
I just looked up Mauritius. Wow. It's beautiful. So. Next time just make sure you tell, not ask, TELL the UPS people who contact you that you're going to self clear the item. They may be confused and they might fight it, but it can be done. Don't let them win! ~ karen
Sammy
I heard about self clearing and I am currently trying to do this by calling UPS to let them know. They said I will get a call back within 24 hrs for the next steps and I haven’t heard anything back for 48 hrs. I’ve called them 3 times since.. ridiculous. Hate UPS at the moment..
Karen
What next steps? For them to send you the documents? Call again. Call non stop. Call a different number. It's not their priority to help you because it's taking mone out of their pocket but keep bugging. Good luck! ~ karen!
Miranda
Question for you, Karen.... I have called UPS twice now, to tell them that I’m self-accounting or clearing. First, the lady I spoke to on Tuesday said that she was putting it in the system, and that the item would have to be brought to the warehouse before I could get the shipping documents. Then, I checked the tracking again...said it was back en route to Ft Erie. I called again today. Spoke with a young guy who first told me I would have to go pick it up in Ft Erie. I corrected him and told him I would be going to my local CBSA office. He then tells me that he’s sending a message to the port of entry to hold the item so I can self-account. I just checked the tracking and it’s showing as on its way to me. 😖 I’m worried that they’ll come here, I won’t be home and they’ll drop it at my local ups store. Have you had that happen? I feel like I’m going to get stuck paying this ridiculous fee.
Karen
Hi Miranda. No matter where the package ends up, you can say you're self clearing it. So if it comes to your house you can just refuse it (which I've done), say you're self clearing it and they'll take it back with them. Same thing if it ends up at the UPS pickup area. It's a bit of a pain but usually worth it depending on the fees they completely make up to charge you. ;) ~ karen!
Miranda
Just so you know, it’s two and a half years later and this information is still coming in handy. Called UPS today to request shipping documents, they told me once the shipment is brought to their warehouse, they can finalize the documents and will call me when they’re ready....to pick up. I hope I don’t get any hassles having it emailed to me. Thanks for the info! I just can’t stomach paying $55USD for shipping and then $70CAD for “brokerage”. Ridiculous.
Karen
Excellent! My newest anger is getting a bill from Federal Express 3 months after they delivered something saying I owe them $55 for a $70 item that was a gift. They're going to have quite a public fight on their hands if they try to force me to pay. NOT gonna happen! ~ karen
Rhonda
My husband just received an e-mail stating that he owes import fees to UPS. Is this the same as brokerage fees and do you know if your guide still applies.
Karen
Hi Rhonda. Yes and yes. :) ~ karen!
Rhonda
Thank you. You are the best!
Neva F
Thank you for this excellent post. I received an email identical to the one you posted, from the same email address, with instructions re: self-clearing.
There was no phone number on the form for the UPS port warehouse in Windsor, Ontario (BIG SHOCK)- HERE IT IS if you want to call and check if your fax went through - (519) 251-7001
Don't give these big corporations any more of your hard-earned $$$ than you absolutely HAVE TO.
Karen
You're welcome Neva! Glad it worked for you. Stupid UPS. I actually have nothing against big corporations when I'm paying for something of value, but these broker fees ... they are SUCH a scam. Bleh. ~ karen!
Kendra
Thank you for sharing this information!
I had to deal with unnecessary delays and a HUGE broker fee from DHL when I ordered some copper pots from Turkey to the US earlier this year. I'd looked at customs general fees for the items to prepare myself for the taxes -- I wish I'd thought to search to see if I could do this myself. Argh -- lesson learned! I will be prepared in the future!!!
Karen
It's a tiny bit of a pain but you'll feel vindicated. These broker fees are an utter and complete SCAM. Good luck! ~ karen
Melanie
I had earmarked this post a while ago. I was once burned by FedEx when they sent me a letter requesting 100% of what I paid for a parcel long after it had arrived. Well, good thing that I had as I needed to refer to it today! UPS informed me in advance of fees due. I called and said that I will self clear. She said that brokerage is "only $10." It's a $30 item! I will be likely do this again as my order was split in two. Thank you for telling us about this!
Dan
omg i love you, my gf and I were so angry! She ordered some items for my bday but they charged so much I told her to just return it and not pay the duties. I will try and do this for the next package that is due to arrive, we were hoping this does not happen the second time.
Karen
Oh trust me, I know all about that anger, lol. It WILL work. It might seem like a bit of a pain but trust me, it's more of a pain for the courier so that's kind of fun. ;) ~ karen!
Kim
I live in Canada and once ordered a bunch of candle kits from the US. I received an email from UPS asking me to contact them. When I called, the man explained it all to me and after finding out my fee would have been around $40, I told him I would take the "self-clear" option. To my surprise, he told me I would have to drive all the way out to the port-of-entry CBSA office in order to self-clear (which was about 6 hours away). Does this sound right? I don't understand why I couldn't just do this at the office in my city. Has anyone else come across this issue?
Karen
Hi Kim. NO, you do not have to drive to the port of entry office. You do have to use the type of CBSA office I describe in the post though because not all CBSA offices will collect duty. If you click through to my link and can find an appropriate office closer to you (most airports have them) then you can use that one. Don't forget he needs to email you your invoice etc. so you can take them with you to be stamped at the office. ~ karen!
Sue mcnenly
Funny.....I order from the us weekly, and have always called this fee The UPS 'I touched it' fee? Also, thank you for showing people the diff between brokerage and duty. I get nuts when I hear people say that they don't order from the us because of the duty. There is no duty at all on us made items, and many other worldwide goods. Semantics, I know, but I like that you have sound a light on the real culprit. Thanks for sharing this. I'll check into it in the future. Sometimes it's worth an extra $25 just to stay home and have something arrive without you lifting a finger, but other times not. Btw...I get my big stuff shipped to ups in Lewiston. All I pay coming over the border is hst, which I would pay anyway.