UPS brokerage and disbursement fees apply when they handle customs clearance for imported shipments. These fees vary depending on the shipment value, destination, and whether the recipient has a customs broker or relies on UPS for clearance.
1. Brokerage Fees (Customs Clearance Charges)
UPS charges a brokerage fee when they act as the customs broker. The cost depends on the shipment's value:
| Value of Goods (CAD) | UPS Standard Brokerage Fee (CAD) |
|---|---|
| $0.01 - $20.00 | Free (no brokerage fee) |
| $20.01 - $40.00 | $7.00 |
| $40.01 - $100.00 | $19.45 |
| $100.01 - $200.00 | $29.00 |
| $200.01 - $350.00 | $39.40 |
| $350.01 - $500.00 | $50.45 |
| $500.01 - $750.00 | $57.40 |
| $750.01 - $1,000.00 | $65.65 |
| $1,000.01 - $1,250.00 | $72.00 |
| Over $1,250.00 | 2.7% of the value (min. $75) |
(Fees may vary depending on updates from UPS)
2. Disbursement Fees
If UPS pays duties and taxes on behalf of the recipient, they charge an additional disbursement fee. This is typically 2.7% of the amount advanced, with a minimum fee of $6.00 CAD.
3. Additional Fees
- Entry Preparation Fees (for shipments requiring additional customs clearance work)
- COD Fees (if paying duties/taxes on delivery)
- Bond Fees (if the shipment is held in customs temporarily)
How to Avoid Brokerage Fees?
- Self-Clear at Customs: You can request UPS to hold the package and clear it yourself at the local CBSA office.
- Use UPS Express Services: Express shipments (e.g., UPS Worldwide Express) include brokerage fees in the cost.
- Set Up Your Own Broker: If you import frequently, use a third-party customs broker.