CALGARY – Shoppers ordering items from the United States are advised to ask about shipping and handling fees to Canada before finalizing their purchase.
Most Canadian consumers know they must pay duty and GST on products purchased in the U.S. but many people are surprised to find out they have to pay brokerage fees as well.
Craig Van Horne purchased $40 in computer and video cables on a U.S. website and paid $23 to have it shipped by courier; what he didn’t expect was another $26 in brokerage fees.
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He says those charges were not made clear when it ordered it and feels he’s being gouged by the courier company.
“From 40 dollars to 119 dollars you’re charged a flat rate of 19.25 I think – that’s steep. So my shipment was 42 dollars so I got dinged almost 50 per cent,” says Van Horne.
Anything over $20 shipped from the United States to Canada is subject to customs brokerage fees.
Online retailers with high volumes can negotiate lower fees and build them into their delivery costs.
Smaller companies hire a shipper who contracts with a courier company; those shippers often don’t explain the extra fees for Canadian deliveries so it’s up to the consumer to ask.
“The very first one is to ask the question – who is responsible for the payment of duties and taxes,” says Shelley Gares, UPS Canada . “If the shipper says we pay the duties and taxes and we have arranged a brokerage then the consumer in Canada is not responsible for it.”
All major courier companies will list brokerage rates on their websites. Typically express and expedited delivers include the brokerage.
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