How to Avoid UPS Broker Fees From Online Shopping. (2024)

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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.

How to Avoid UPS Broker Fees From Online Shopping. (1)

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.

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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 alsodon'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.

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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.

  1. 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.
  2. The commercial invoice which also has a place for stamping by customs.
  3. 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:

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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 at1-800-742-5877 and press "3". You will be connected to broker services. Tell them you're going to self clear your itemand 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 Canadaso 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.

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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.

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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 applyduty to things they shouldn't. Like paper goods. Instruction manuals, books, concert tickets should all beduty 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 UPS Broker Fees From Online Shopping. (8)

How to Avoid Broker Fees

How to avoid the scam UPS broker fees when receiving online shopping orders.

Instructions

  1. 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.
  2. Email or call UPS and say you are going to self clear your item. Ask them to email you the necessary documents.
  3. Bring those documents to your nearest Canada Border Services Agency (must be Inland offices)
  4. Pay your actual taxes and get your stamped forms back along with the B-15 form they provide.
  5. Email the forms back to UPS to prove you paid your owing taxes.
  6. 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.

How to Self Clear an Item

  1. Do NOT agree to UPS acting as your broker. Not through email or when they're at your door.
  2. Email or call UPS and say you are going to self clear your item. Ask them to email you the necessary documents.
  3. Bring those documents to your nearest Canada Border Services Agency (must be Inland offices)
  4. Pay your taxes and get your stamped forms back along with the B-15 form they provide.
  5. Email the forms back to UPS to prove you paid your owing taxes.
  6. Wait for your package to arrive free of charge.

Go back to top of post.

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.

→Follow me on Instagram where I often make a fool of myself←

How to Avoid UPS Broker Fees From Online Shopping. (9)

How to Avoid UPS Broker Fees From Online Shopping. (2024)

FAQs

How do I avoid UPS customs brokerage charges? ›

How to Avoid UPS Brokerage Fees? UPS does not charge brokerage fees for the following services: UPS Worldwide Express Plus, UPS Worldwide Express Freight, UPS Worldwide Express Saver, and UPS Worldwide Expedited. Though these services are faster, the downside is they cost more.

What happens if you refuse to pay UPS brokerage fees? ›

Someone needs to pay the duties, taxes, and brokerage fees. If you can't, then the shipper needs to. If the shipper doesn't, then one of two things happen: The item is returned to the shipper at their expense.

How to avoid paying brokerage fees? ›

If you are ordering online you may end up having to accept the package by the shipping method used by the company from which you are ordering. But remember you have choice to self-clear to avoid extra fees. And if you are sending a gift a gift to someone you can also prepay the duty and taxes and brokerage fees.

Do I have to pay UPS import fees? ›

Either the shipper or the receiver will be responsible for payment of duties, taxes and fees. In rare instances, these may be charged to a third party.

Why is UPS asking me to pay import fees? ›

Any shipment with a value greater than the current Customs minimum value threshold can be subject to Import Duties and Taxes.

Can you dispute UPS import charges? ›

UPS charge disputes

This can be due to a number of reasons, such as an incomplete HS code classification, inaccurate foreign exchange rates, etc. Luckily, UPS has tools to dispute and appeal duty and tax charges online, without the hassle of waiting for a representative.

Why am I being charged a brokerage fee? ›

A brokerage fee is a fee or commission a broker charges to execute transactions or provide specialized services on behalf of clients. Brokers charge brokerage fees for services such as purchases, sales, consultations, negotiations, and delivery.

Do I get a refund if I don't pay customs? ›

You cannot claim a refund until after payment of the customs charges.

What is the UPS brokerage disbursem*nt fee? ›

A disbursem*nt fee is a fee for amounts paid or processed on behalf of a client. The importer has the option of paying amounts due to U.S. Customs and Border Protection and other government agencies and freight carriers directly.

Can broker fees be negotiated? ›

Real estate agents' fees — a pesky part of the home buying and selling process — aren't necessarily set in stone. Rather they are often negotiable, a fact that could help parties on both sides of a transaction save money.

Can I deduct broker fees? ›

No. Any fees you pay to buy, sell, or hold an asset or to collect interest or dividends are not eligible for income tax deduction. This would include brokerage or transaction fees, management and advisor fees, custodial fees, accounting costs, and fund operating expenses.

What happens if you don't pay UPS an invoice? ›

If your invoice is still not paid by the next invoicing period, they reserve the right to charge a late fee on all unpaid balances, which means a 6% fee on the total unpaid amount, including the late fee. They can also charge collection fees.

Who pays UPS import fees? ›

Either the shipper or the receiver will be responsible for payment of duties, taxes and fees. In rare instances, these may be charged to a third party.

Can I pay UPS import fees online? ›

If you are expecting a shipment from another country and received an email or text notification from UPS indicating that duties, taxes and fees are due, or you tracked your package on UPS.com and see those import fees are due, simply click on the 'Pay Now' link in your notification or tracking results to access the UPS ...

What is the UPS merchandise processing fee? ›

Formal entries MPF is 0.3464% of the entered value; Minimum $29.66, maximum $575.35.

Do I need a UPS customs invoice? ›

The commercial invoice (or pro forma invoice) is required for all cross-border shipments (except for documents, which have no commercial value).

Why is my UPS package being held in customs? ›

Why is my UPS® package being held in customs? Most of the time, your package is held at customs while awaiting the payment of duties and taxes, or simply because of some clearance delay. Once the import or export duty has been paid and your package cleared, it is allowed to continue in transit.

What do I do with UPS customs invoice? ›

It may be used by customs authorities to assess applicable duties and taxes. If you choose not to use UPS Paperless® Invoice, three signed copies — one original and two copies — are required. Place a copy inside your package, or in one package if shipping several. Always be accurate in your declaration.

Does UPS have their own customs broker? ›

UPS provides customs brokerage services for all your shipments. Some additional charges may apply when complex brokerage services are involved.

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