So I just got off the phone with UPS in regards to a deliver from the US which they’ve tried twice to deliver to me. I am actually in disbelief in how ridiculously stupid there business model is for delivering items across the border.
Long story short, I had two FREE items shipped to me from a company in the US… keep that in mind, I did not pay for these items, they were sent to me for free.
Two days ago, I received a yellow delivery notice on my door and at the bottom of the notice they had a Brokerage Amount owed to UPS in the amount of $33.52. My first thought…. you have GOT to be kidding me… not only was this item free to myself, but the shipper had already PAID for the shipment to Canada.. and now they want ME to pay for the ‘brokerage’ of getting it across the border?? If I was to pay it, why then do we pay more for International shipping?? (US to Canada is considered International).
Ok, that’s not the truly ridiculous part however.. get this.. the VALUE written on the shipping invoice when they originally sent the package was $50…. sooo, doing the quick math here… UPS wants to charge me a 68% TAX for taking it across the border!!!! But wait.. it gets better!!
So I called and didn’t get upset, but advised the agent whom was quite nice as to the problem I have with this, to which he replied that “smaller items generally do have larger brokerage fees” (again.. making no sense to me, but whatever).. so I told him that I’m not going to be accepting it, and that they can ship it back to the original sender.. I said “I hope it costs them $100 to do it too, bunch of crooks”.. Anyhow, he told me that it would likely be an ‘abandoned shipment’ and not returned to the sender!!! To which I then replied.. “So, let me get this straight.. since I don’t want to pay the almost 70% tax you are charging to deliver it, you aren’t going to deliver them item to anyone?”…. “yep”.. I then laughed at him.
He then offered to transfer me to an agent in the brokerage in hopes that I could likely get the brokerage amount reduced, I laughed again.. I said.. “I am not paying YOU for something I didn’t even have to pay for in the first place – didn’t they already pay for the shipping??”.. he apologized and we hung up, quite civil actually.
So in summary.. UPS employees at the brokerage or some big warehouse are getting extremely rich and obtaining an extremely large amount of goods that people are refusing to pay the outrageous brokerage fees for. What a SCAM! Good for the investors I’m sure though.. hell, maybe they’ll end up on Ebay and they’ll turn a big profit from all the items that don’t belong to them.
I’m still in disbelief….

This doesn't surprise me as you must claim any free gifts you take back from vacation as well so I don't think that part is UPSs fault. They don't care what you paid, they want to know what it's worth.
As for brokerage (and this applies to any carrier), correct me if I'm wrong but brokerage is not necessarily sales tax or duty tax but the cost of clearing a package through customs. There is also a list of product categories and different prices attached to them.
I never called it sales tax or duty tax.. I just said TAX.. as in.. they are imposing a financial charge on me, and personally I don't care if they called it a smiley fund as it's still 68% of the value.. retarded.
There's a great post http://forums.beyond.ca/showthread/t-63215.html on brokerage and what it's all about.
I don't have a problem with brokerage.. I have a huge problem with the amount.. (although I must admit during original post I was pretty pissed off at the idea they would keep it themselves rather than deliver it to someone)
You also claim duty and tax when you cross the border yourself.. not brokerage… brokerage is just the charge for them doing the 'clearing'.. still a rip
Ok, fair enough. Although you still sound very pissed, if it makes you feel any better, I've had brokerage fees before that cost more then the items listed value.
Here's my recent experience… this CAN'T BE LEGAL!!!
Start at the bottom of the email thread…
(If you get anywhere with your case let me know)
____
No keep the package for now.
I will seek advice to understand if these UPS practices are legal:
1. I refused the package and requested that you return it to the sender. I will get information to understand if you are obliged to return it to sender as I requested, or if you can legally hold the package hostage until you get paid.
2. When I refused to pay roughly $60 COD, a weekly later UPS tried to deliver it again at a cost of roughly $35. I checked the bill and the taxes for revenue Canada were removed. This as far as I’m concerned is a scam to give me the perception the costs were reduced so I accept the package, later realizing that I owe the remaining to Revenue Canada. I refused the package a second time.
3. As a result of #2, you are now calling me repeatedly (dialler) to make arrangements to pay the taxes on an item that was not delivered.
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From: lynnehall@ups.com [mailto:lynnehall@ups.com]
Sent: June 1, 2010 8:40 AM
To: Gary
Subject: RE: Tracking # 1Z78F182DK47191287
Importance: High
Gary as I stated before this package was requested to be abandoned by Marlene Houston on April 9, 2010. I can attempt to ask Canada to have this package returned to you. As per Canada policy once a package has been abandoned they will not retrieve it, but I will ask if they will return this package. If I succeed in getting this package returned to you it will be at a cost of approximately $75.49 USD. Please let me know if you are willing to pay the charges to get this package returned, and I will contact UPS Canada to see if they will even retrieve it and then I'll be able to give you a more definite amount on the charge to have this package returned. You need to let me know as soon as possible, and I will try to get Canada to retrieve your package. There is no guarantee that this will be done, but I will ask.
Lynne A. Hall/ISRG Dept
Phone: 866-225-8308 ext 3455
Fax: 502-374-1775
E-mail: sdf0lah@ups.com
——————————————————————————–
From: Gary
Sent: Saturday, May 29, 2010 4:02 PM
To: Hall Lynne (sdf0lah); Customer Service1
Subject: RE: Tracking # 1Z78F182DK47191287
Hi, I did not get a response.
1. WHERE was this package “Abandoned” and why was it not returned to the sender as requested? Is this even legal for you to keep a package that is not delivered? I want this package (GPS) to go back to the sender (Navigon) so they could ship it via USPS for a fraction of the cost.
2. Why do I keep getting recorded calls from UPS that I need to call you and make payment on this package that I refused?
Please confirm when:
1. The package was shipped back to Navigon
2. You remove me from your dialling list; I do not owe any money.
Gary
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From: Gary
Sent: May 25, 2010 11:14 AM
To: 'lynnehall@ups.com'
Subject: RE: Tracking # 1Z78F182DK47191287
Define abandoned. It’s sitting in a UPS depot somewhere and has not been sent back to the sender as requested?
Gary
——————————————————————————–
From: lynnehall@ups.com [mailto:lynnehall@ups.com]
Sent: May 25, 2010 10:45 AM
To: Gary
Subject: RE: Tracking # 1Z78F182DK47191287
Importance: High
Gary,
This package was requested abandoned by Marlene Houston on April 9, 2010.
Lynne A. Hall/ISRG Dept
Phone: 866-225-8308 ext 3455
Fax: 502-374-1775
E-mail: sdf0lah@ups.com
——————————————————————————–
From: Gary
Sent: Tuesday, May 25, 2010 10:41 AM
To: Gary; Hall Lynne (sdf0lah)
Cc: support.us@navigon.com
Subject: RE: Tracking # 1Z78F182DK47191287
Hi Lynne,
Could you confirm this was shipped back to the sender (Navigon) so they could reship using USPS?
Thanks,
Gary
——————————————————————————–
From: Gary
Sent: April 7, 2010 10:38 AM
To: 'lynnehall@ups.com'
Cc: 'support.us@navigon.com'
Subject: RE: Tracking # 1Z78F182DK47191287
Hi Lynne,
The shipping address was correct. I refused the package due to the UPS brokerage fees of $60.80 on a $150 item (which is not even a new purchase but rather an item returned for repair). I requested through Navigon that they ship the item via USPS instead. When you say ‘this package will be abandoned’, I hope you mean it will be returned to the sender as I had requested.
Thanks,
Gary
——————————————————————————–
From: lynnehall@ups.com [mailto:lynnehall@ups.com]
Sent: April 7, 2010 9:37 AM
To: Gary
Subject: RE: Tracking # 1Z78F182DK47191287
Importance: High
Gary,
UPS has a package that they are trying to deliver to you that is being shipped from Logistics Department in Indianapolis, Indiana. This package was shipped out on March 17, 2010. I am needing a good phone number so we can get this package delivered to you. Please reply to this e-mail as soon as possible. The deadline on this package is April 8, 2010. If I haven't heard from you by 4/8 this package will be abandoned. Thank you.
Lynne A. Hall/ISRG Dept
Phone: 866-225-8308 ext 3455
Fax: 502-374-1775
E-mail: sdf0lah@ups.com
Thanks for posting this Gary!!
Wow your experience is so similar to mine it's almost uncanny! Unfortunately in my particular case, the company I was dealing with re-sent them and prepaid the brokerage (I have NO idea why they did this) – however they did, and the issue is a closed one for myself.
UPS sucks – when they have their own brokerage they are free to charge anything they like! It's ludicrous and stupid.. I don't understand how they get away with it.
I got ripped off by UPS for trading a tennis racket with someone in states. i was shocked it was a trade! The guy probably did not know about the this scam ups so I cant blame him. I was stuck and had to pay teh COD brokerage fee of 50 doallrs!
My question is does USPS, fedex and etc do the same thing? I am planning to buy a racket from states but I really dont want to go through this shit again and would appreaciate if anyone can give me advice on how to prevent this.
thanks
Yeah I hear ya Tony – unbelievable eh?
USPS I don’t ever recall being charged brokerage. Fedex does but it seems less if I remember correctly. I think if I were to buy anything from the states again (obviously I’d avoid UPS) but I’d also get them to simply ship it USPS with a tracking number..
A tip if you’re ever sending anything out.. instead of paying for a courier.. simply put some insurance ($1.00 for $100 I think) on your item and you’ll get a tracking number and just send snail.
Good Luck in your search!
Len did you know that you can take care of the duty yourself. It is a hassle, but all you have to do is tell UPS that you would like to clear the package through customs yourself. They will give you a bunch of papers that you have to take to your local customs office (usually near the airport) and you can pay independently. I recently did this for a package I had shipped from the US. The value of the package was $90 Cdn, UPS attempted to charge me $54 in total for brokerage fee, etc. I got them to provide me with the papers went to the local customs office and it cost me a total of $8.11. So in other words UPS was basically trying to rip me off for approx. $45. By the way, the customs office will usually be near empty as most citizens have no idea they can do this themselves. I am in the process of setting up a website to explain the process and provide assistance to anyone who wants help to do this. I will let you know the address once it is up and running.
Andrew .. you my friend.. are a genius!!
Please, please, please keep me in the loop about this process.. we're a small town here and I certainly don't mind doing a little legwork to save myself that type of money!
Great job!!