Shopping Discussion

Question About Courier and Import Taxes

  • Last Updated:
  • Feb 13th, 2021 5:55 pm
Newbie
Feb 3, 2021
93 posts
26 upvotes

Question About Courier and Import Taxes

Good evening everyone! Hope you're all well! Anyways I ordered a product from a merchant in Europe, they have a shipping contract with a major reputable international courier/shipping service, thus they collected just under a hundred dollars from me for the shipping charge, my order was worth a bit more than a thousand dollars and they waived their VAT with the understanding the consumer is responsible for any customs charges or sales tax. The product I purchased is only subject to sales tax. I contacted the courier in hopes I could pay them in advance and not have to pay any bond/brokerage charges as I'm already effective paying a hundred dollars to have my order shipped.

Their phone reps were frustrating to deal with giving me conflicting information[I had to place a couple calls as initially I was still waiting on the tracking number and was just calling with a general inquiry, then I was told they couldn't take payment info until it was received at the border, etc.]. I was told I could avoid the brokerage fee by paying online or over phone when the order arrived at the border and that they'd call me when it arrived. They didn't call me, when the tracking indicated it should be arriving, so I called again after receiving an email asking me to pay the taxes and the brokerage fee and was told I could save 5$ by paying online or pay full price over the phone[as opposed to being told before that phone or web in advance would both avoid the brokerage charge] or when it arrived and that the brokerage fee was mandatory regardless of payment method.

I didn't have access to a secure computer and figured I'd deal with payment upon it's arrival. They dropped the package off. I didn't hear them do so or ring the doorbell and just discovered it when I went to check the door. There was a COD Slip on the parcel, however they made no attempt to collect or get me to sign for the package[which the emails seemed to suggest would be required, and which one would think would make sense as it'd be a fairly expensive package to have get stolen]...

This all occurred a while ago and they haven't contacted me any further about the owed funds. Is this common? Has anyone else experienced this? I'm just surprised they'd release the package without collecting the balance due. I don't mind paying the taxes as it was an expected expense, however I'd rather not pay the brokerage fees. The Additional fees are 15$ or 10$ if I get the 5$ discount. Is there anyway to get the brokerage fee waived?

I know it's not that much overall, however it's still an extra 10-15$ when they were already paid 100$ for their service... Is the reason for the fee because they posted the funds for me or because they had to deal with customs? The latter seems like it goes with the territory and should be covered in base charge and I tried to arrange to pay in advance. Any insight anyone could provide would be immensely appreciated. Feel free to ask for any required clarification. Thanks so much in advance!
6 replies
Deal Expert
User avatar
Jan 9, 2011
19728 posts
28596 upvotes
Vancouver
$15 is cheap for brokerage. You should be glad it’s not $60. I’d pay it without a second thought. I’d be far more outraged that a $1,000 package was dumped on the doorstep for porch pirates. I now use flexdelivery for anything that’s not flat mail. Not taking any chances with drop and dash, which is how they all do it nowadays.
Newbie
Feb 3, 2021
93 posts
26 upvotes
Thanks for your insight. I haven't really ordered from abroad so I wasn't sure if the brokerage fees people always lament had at least improved or if maybe the objection was just on principle or in regards to purchases where 15$ is a greater percentage of the purchase... 'Cause I know some people strongly advocate clearing it yourself too, however I wasn't going to make a special trip to the only office you can do that at out by the nearest airport over 15$ lol... Is it normal for couriers to just drop the collateral at the door prior to receiving the taxes or do you figure this was a blunder? I would have thought this practice'd be a bit risky to their bottom line? Out of curiosity if I don't rush to pay pronto do you think they'll just wait a bit to contact me out of the blue with a late fee? Thanks again, appreciate the input!
Deal Expert
User avatar
Jan 9, 2011
19728 posts
28596 upvotes
Vancouver
GloryFades wrote: Is it normal for couriers to just drop the collateral at the door prior to receiving the taxes or do you figure this was a blunder?
During the pandemic, all bets are off so far as drop & dash go. Chances are it'll just be left on our doorsteps for the porch pirates. Even if we're home, couriers don't knock anymore either, making it easier for porch pirates to find dumped deliveries before we will. I have stopped ordering anything for home delivery. Everything I order I get sent to the post office where I go pick it up.
Deal Addict
User avatar
Nov 25, 2004
4495 posts
3437 upvotes
London
GloryFades wrote: Thanks for your insight. I haven't really ordered from abroad so I wasn't sure if the brokerage fees people always lament had at least improved or if maybe the objection was just on principle or in regards to purchases where 15$ is a greater percentage of the purchase... 'Cause I know some people strongly advocate clearing it yourself too, however I wasn't going to make a special trip to the only office you can do that at out by the nearest airport over 15$ lol... Is it normal for couriers to just drop the collateral at the door prior to receiving the taxes or do you figure this was a blunder? I would have thought this practice'd be a bit risky to their bottom line? Out of curiosity if I don't rush to pay pronto do you think they'll just wait a bit to contact me out of the blue with a late fee? Thanks again, appreciate the input!
the fees u are talking about are on ground packages. its kind of hard to ship ground from Europe they have to ship at least expedited witch have all those rip off fees already in the shipping fee u still have to pay tax but no extra fees.

canada post now lets u pay the fees online if u track the package online once it clears customs it will tell u up front if any fees are due. ups also do not sure if they require u to setup a my choice account they may or may not i have one so not sure dhl also contacts u via text if the shipper provided your phone number witch i believe is starting to be a requirement for couriers. fedex seems to be the only one stick with the sneaky leave the package and sneak a bill a the mail to u weeks months later after its to late to change ur mind.
Deal Expert
Feb 7, 2017
27765 posts
27802 upvotes
Eastern Ontario
You sound new to the importing game
(International Online Shopping)

Items coming into Canada are subject to
Duty & Taxes (tax is based on where you live ... GST or HST )
Duty is dependent upon what you import and where it is made

Here’s the CBSA Calculator for that
https://www.cbsa-asfc.gc.ca/travel-voya ... l-eng.html

Shipping and Brokerage Fees are set by the company that does the shipping
Post is usually cheaper than Courier ... but it’s also slower *

Post or Courier ... someone still has to do the paperwork and labour involved in getting the item presented Canada Customs
That’s the Brokerage part
Someone acting on your behalf
And fees vary by Co
(Canada Post for example is a $ 9.99 flat rate fee )

So it can be anywhere from that $ 10 amount up to much much more than that
Dependent on WHAT Co you use

Not uncommon therefore to see RFDers on here wailing about how much it costs to import something
When it all adds up ... Shipping, Brokerage, Duty & Tax
(Not to mention the cost to purchase with Exchange Rates & CC / Bank Fees)
Not uncommon for something listed at $ 25 US
To end up costing $ 50+ Cdn by the time it gets to the buyers doorstep

During Covid, it’s pretty common for Courier Cos to drop & go
Without requiring signatures
It’s also the norm now for many to BILL YA LATER
Be it with a COD Notice ... or if they have it ... right to your CC when you buy / arrange for shipping

Self clearing is do-able
But usually has to be arranged ahead of time
So the pkg actually STOPS at the Border ... isn’t delivered
And then you go pick it up / clear it
Most Courier Cos are reluctant (to say the least) to do this
Cuz often their Brokerage Fee is their biggest point of profit

And well although it can be a savings for you the Customer
It can also be a huge hassle cuz you got to drive somewhere like a major Airport or Land Crossing etc
And often during “office hours” to get it done
Many say ... Brokerage Fees are a rip off
But there isn’t much of an alternative

There are several RFD threads on self clearing
Here’s one = how-save-14-95-dhl-fees-self-clearing-packages-2076527/

* For the consumer it’s a balancing act / mathematical equation
Although Brokerage Fees are less for Postal use
Postal Shipping Fees may be more than a courier
And Courier is ALWAYS quicker
During Covid the Canada Post CBSA Backlog has been LEGENDARY

Also if importing from the USA now
Sometimes using a Courier now makes more sense cuz of the USMCA Trade Agreement (replaces NAFTA) where there’s a break on Cdn Duty and / or Taxes for items under $ 150 Cdn

https://www.cbsa-asfc.gc.ca/publication ... 8-eng.html

No differences tho if you use Postal Services
Newbie
Feb 3, 2021
93 posts
26 upvotes
Thanks So Much For Your Detailed Response. Appreciate It! You're Correct, prior to this I haven't had to Import anything... lol... So while I tried to read up on the process you do encounter some conflicting information about the fees and the couriers themselves presumably aren't going to aid you in avoiding unnecessary fees they wish to charge. Fortunately my order was only subject to standard sales taxes and not any additional tariffs... My Package had a COD Slip with it, however it was one that was formatted for the Driver to collect the funds upon delivery. Do you know roughly when they'll want payment by? Like how long the consumer has prior to receiving the notice? Will they likely email first, or just eventually mail you a notice? When they mail the notice will you incur any penalties[late fees or whatever?], or only if you still don't pay it upon receipt of notice? Just curious what the options are as thus far there hasn't been any indication other than "pay upon delivery" which didn't happen. As I don't want to 'cause any problems or incur additional charges, however if they're in no rush to recover the funds I'm not in any particular rush either and wouldn't mind paying a bit later... lol... Thanks again for your insight! Immensely Appreciated!

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