Canada Brokerage Fees - Fed Ex


Just thought I would share this. I had an item shipped from the US worth $50 and I paid just $18.50 brokerage fees to Fed Ex. (This is on top of the shipping charges).

This brokerage fee was just to pay roughly $3 worth of canadian tax. The brokerage fee amounts to roughly a 600% mark up for handling these duties(service includes a letter sent to me, processing my check and paying the customs duty and any costs incurred for non payments by others)

Here are Fed Ex brokerage rates for clearing customs to Canada;

Value for Duty ($); Fees
$0 - 20; No Charge
$20 - 40; $6.50
$40 - 75; $18.50
$75 - 100; $19.00
$100 - 200; $28.00
$200 - 350, $36.00
$350 - 500, $40.50
$500 - 750, $46.25
$750 - 1000, $52.25
$1000 - 1250, $57.50
$1250 - 1600, $60.25
$1600 - 5000, $64.25

As can be seen the threshold above $40 Canadian is where it starts to become a very high fee in relation to the duties/value of the item shipped.

At $40 the fee is 46% of the value of the item shipped.

At $1600 the fee is 4% of value of the item shipped.

According to the above table and value of your item shipped, you should consider whether to use Fed Ex or not and advise the sender accordingly.
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Showing 1 response by butsy

I've had several items shipped from the USA to Canada by USPS after I got wise to the UPS/Fedex rates. It has become a deal maker whether or not the seller will ship USPS. Sometimes there is a $5 fee for handling by Canada Post plus PST&GST. I can live with the that. The only problem is the limiting weight of I think 60 pounds.