Shopping Discussion

UPS wants me to pay brokerage fee AFTER I received my package

  • Last Updated:
  • Sep 21st, 2021 6:58 pm
[OP]
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Sep 9, 2014
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UPS wants me to pay brokerage fee AFTER I received my package

Hello,

I recently purchased a graphic card from EVGA (379$USD = 530$ CAD) from the USA and it was shipped via UPS Standard.
I received the package two weeks ago at my front door. The driver just drove off. I was really happy! I thought I didn't have to pay any duty/customs fees.
Surprise!!! Two weeks after, I just received by mail, an invoice for brokerage fees. It's $170!
My package was not taken hostage for payment before release. I was not given the chance to self-clear with CSBA. Now UPS is seeking money.

I looked at EVGA's term and conditions for shipping to Canada. See below.
There is a term and condition as shown below (word per word from EVGA website)
• Shipping to Canada or Mexico:
o The below shipping fees do not include any additional Customs or Duties fees charged by the shipper or by your countries Customs Department. UPS will require that these fees are paid prior to delivering the shipment to the shipping address. If these fees are not paid upon delivery then the package will be returned to EVGA and any shipping fees or customs fees charged to EVGA will be deducted from your refund. Please check with the Customs Department for your country with the order total if you do need an estimation of these fees prior to placing your order.


Question: Can I not pay the duty/customs fees? Should I pay?

Thank you for chiming in.

TL;DR - Final result: I only paid 15% sales tax (Quebec).

OK, guys thank you for reading, I hope my story will benefit others in the future.

Here is the final result:
I called UPS and told them that the shipper says that UPS must knock on your door and present the invoice before releasing the package. This provides the buyer two options: to pay the invoice and accept UPS being the broker and pay the outrageous invoice OR to refuse package and self-clear at CSBA OR simply refuse the package to be returned to the seller.

I told UPS that they were dishonest, unethical and unprofessional. They dropped off my package without any consent and that they're charging me the full amount for which I could refuse.

Customs brokerage fees:
- 71.95$ Preperation for declaration fee.
- 6.00$ Entry Preparation Fees
- 7.78 TVQ (additional taxes)
- 3.90 TPS/TVH customs fee
Total = $89.63 related to brokerage fees.

Negotiation:
At first, the lady said "The only amount I can wave is the brokerage fee of $71.95."
I replied and said I refuse to pay the total amount of $89.63. That's the total amount related to all the UPS brokerage fees. If I self-clear, I would not pay a dime. So the only amount I'm paying is sales tax in Quebec of 15%. I'm doing you a favor to contact you to resolve this issue. Otherwise, I won't pay.
Then she said "Let me see what I can do for you sir... OK sir, we can settle for only duty fees (15%). Thank you very much for your understanding sir."

I think that's very fair and I was very lucky. Best wishes for all other people who experience same situation as me.

QED.
Last edited by ericli007 on Sep 15th, 2020 12:43 pm, edited 2 times in total.
45 replies
Deal Addict
Apr 25, 2001
4127 posts
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Toronto
Sorry, but you will need to pay those fees. Use this as a valuable lesson and never use UPS for shipping items to Canada from the US.
"The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn."

Alvin Toffler
[OP]
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Sep 9, 2014
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Montreal, QC
maddawg wrote: Sorry, but you will need to pay those fees. Use this as a valuable lesson and never use UPS for shipping items to Canada from the US.
Hey maddawg, I was going to message you privately. I saw you comment on this post ups-wants-me-pay-brokerage-fee-after-i- ... e-2120213/
Just ignore the charges. Package was refused, so if UPS have a problem let them go after the shipper. Sure let them send a collection agency after you and ignore the calls.
It seems like for some reason, your argument is different from the other post.
Can you elaborate as to why I need to pay?
The other guy refused the package. Me, I didn't have any choice. That's not my fault. They forced me to accept the package. How's it any different?
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Mar 7, 2007
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What a weird situation.

I would tell them I refuse "delivery". I would contact the seller and UPS, and ask them to arrange for pickup of the (used) item to return it to the seller.
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ericli007 wrote: Hey maddawg, I was going to message you privately. I saw you comment on this post ups-wants-me-pay-brokerage-fee-after-i- ... e-2120213/


It seems like for some reason, your argument is different from the other post.
Can you elaborate as to why I need to pay?
The other guy refused the package. Me, I didn't have any choice. That's not my fault. They forced me to accept the package. How's it any different?
They didn't force you, I would say that they "tricked" you into accepting delivery without the knowledge that they would send you an invoice for an unspecified amount later.

If you had known they were going to send you an invoice for an extra $170, you would probably refused delivery. But UPS decided to entrap you, to make it harder to refuse these charges.
[OP]
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motomondo wrote: What a weird situation.

I would tell them I refuse "delivery". I would contact the seller and UPS, and ask them to arrange for pickup of the (used) item to return it to the seller.
Hehe. I called UPS. They said the shipper authorized UPS to be the custom's broker and act on their behalf to ship it to buyer. I replied to UPS and told them that I did not authorize you to act as my broker. I would self-clear at CSBA. Then the UPS rep didn't know what to say...
If I return the used item to EVGA, they're going to charge me the customs/brokerage fee as per their return policy.

I don't think this is a valuable lesson for me. It's more like a valuable lesson for UPS. Have customers pay first before releasing packages..?

Thanks for your suggestion, but I'm not returning the item. It would be too costly!
[OP]
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motomondo wrote: They didn't force you, I would say that they "tricked" you into accepting delivery without the knowledge that they would send you an invoice for an unspecified amount later.

If you had known they were going to send you an invoice for an extra $170, you would probably refused delivery. But UPS decided to entrap you, to make it harder to refuse these charges.
EXACTLY! How unethical is that!! Ummmm is that even legal?

Someone gave an argument as follows:
If I show up at your house uninvited and mow your lawn, then present you with a bill for $500, do you have to pay it?

It's similar in that sense...? I suppose?
Deal Guru
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Oct 5, 2008
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Fedex bills after the fact.

UPS usually hold your item ransom until they receive payment.

I suspect they will refer it to collections if you don't pay,
[OP]
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Just called EVGA, they confirm UPS messed up. They shouldn't have released the package prior to payment of customs/duty fees.
That's one problem solved.
[OP]
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Swerny wrote: Fedex bills after the fact.

UPS usually hold your item ransom until they receive payment.

I suspect they will refer it to collections if you don't pay,
:O Thanks for sharing. I don't know how FeDex works...
[OP]
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Sep 9, 2014
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OK, guys thank you for reading, I hope my story will benefit others in the future.

Here is the final result:
I called UPS and told them that the shipper says that UPS must knock on your door and present the invoice before releasing the package. This provides the buyer two options: to pay the invoice and accept UPS being the broker and pay the outrageous invoice OR to refuse package and self-clear at CSBA OR simply refuse the package to be returned to the seller.

I told UPS that they were dishonest, unethical and unprofessional. They dropped off my package without any consent and that they're charging me the full amount for which I could refuse.

Customs brokerage fees:
- 71.95$ Preperation for declaration fee.
- 6.00$ Entry Preparation Fees
- 7.78 TVQ (additional taxes)
- 3.90 TPS/TVH customs fee
Total = $89.63 related to brokerage fees.

Negotiation:
At first, the lady said "The only amount I can wave is the brokerage fee of $71.95."
I replied and said I refuse to pay the total amount of $89.63. That's the total amount related to all the UPS brokerage fees. If I self-clear, I would not pay a dime. So the only amount I'm paying is sales tax in Quebec of 15%. I'm doing you a favor to contact you to resolve this issue. Otherwise, I won't pay.
Then she said "Let me see what I can do for you sir... OK sir, we can settle for only duty fees (15%). Thank you very much for your understanding sir."

I think that's very fair and I was very lucky. Best wishes for all other people who experience same situation as me.

QED.
Deal Addict
Jun 20, 2010
2077 posts
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EVGA has no idea what UPS' process is. UPS will always release the package and invoice you after. It's your duty to contact them you want to clear it yourself.

I'm sure you received a ship notification when the package was shipped. You knew it's a cross border shipment and should've contacted UPS on your intent right away.

Packages are only held if there's missing customs docs (ie commercial invoice). I can't even imagine the cost UPS would incur if they have to chase down every package where duty and taxes are marked for the Consignee
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Aug 29, 2001
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I don't buy stuff from the USA unless the site has a pre-arranged shipping/brokering deal to Canada. They will also typically display all the fees up front.
Otherwise most US companies are not aware Canada exists, don't ship to dem foreigners or don't know anything about customs and you will pay a nice and nasty brokerage fee. (this may be worth it for a hard to find part).

USA RMA is also a nightmare... you may get lucky with a wise shipper or get a nice $$$$ surprise for your repaired product.
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Jun 4, 2013
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I have a could of things shipped by Febfix in March. Had to pay customs after I receive the package. Got a letter about it. But I totally forgot to pay (I see this thread). Nothing happened yet.
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Mar 5, 2006
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I would have just paid the fees, to avoid any possible repercussions...
When importing something you know there will be tax and duty involved, especially for a high value item.
It's up to you to be proactive about it.
This is similar to you knowing you're bring in something over the duty limit when you cross the border, and didn't declare it. Only difference is in this case you have another party "handling" this for you, but paying the duty is still your responsibility.
I wish you luck.
[OP]
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eclone wrote: EVGA has no idea what UPS' process is. UPS will always release the package and invoice you after. It's your duty to contact them you want to clear it yourself.

I'm sure you received a ship notification when the package was shipped. You knew it's a cross border shipment and should've contacted UPS on your intent right away.

Packages are only held if there's missing customs docs (ie commercial invoice). I can't even imagine the cost UPS would incur if they have to chase down every package where duty and taxes are marked for the Consignee
You make a valid point. But, what if I refuse package after seeing the outrageous brokerage fees and decide to return the sender?
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Jun 20, 2010
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ericli007 wrote: You make a valid point. But, what if I refuse package after seeing the outrageous brokerage fees and decide to return the sender?
Unfortunately it would be too late for that.

You got very lucky to have a CSR waive those fees for you. We work with UPS preferred reps and even they require approvals for credit from their supers, which sometimes is a long drawn process.
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sponge5307 wrote: I have a could of things shipped by Febfix in March. Had to pay customs after I receive the package. Got a letter about it. But I totally forgot to pay (I see this thread). Nothing happened yet.
Cool, thanks for sharing your story. I didn't find any posts online about invoice AFTER receiving package, so I decided to start a thread on rfd.
May I know the total amount in CAD$ for your package and how much they were charging for customs? I'm sure UPS decided not to go after collecting agency because it may be too much hassle and not worthwhile. I'm sure they'll chase after you if you have a huge amount owing.
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ericli007 wrote: Cool, thanks for sharing your story. I didn't find any posts online about invoice AFTER receiving package, so I decided to start a thread on rfd.
Fedex does the same thing, where the deliver first and then mail you an invoice.
I went through this recently, but I was able to inform Fedex of the self-clearance after it cleared customs and before they delievered. And Fedex accepted my CBSA B15.

But they still sent me a bill in the mail... I had to contact the Fedex guy who processed my B15 to get this one cleared up and cancel that bill.

This process is getting more confusing now. I'll bet a lot of customers complained about "package ransom," so courier companies came up with an even more sneaky process of delivering first and mailing a bill later. Of course you don't always know in advance if they will do the package ransom, or mail your bill later. So it's hard to know whether you need to inform them before or after the delivery that you're self-clearning.
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I seem to recall a letter from DHL like this a while back that I ignored. The package was delivered so it wasn't held ransom so I just ignored it. So far so good.

I just cleared a UPS shipment on Saturday, emailed the B15 to UPS on Monday and got the package Monday. Seemed quick for them to "process" by B15, so maybe they will send an invoice later. We'll see.

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