Canada Brokerage Fees - Fed Ex

FEDEX/ UPS/ DHL or any other transport company charge to take over the Cdn/ US border. They have to physically go down to customs and have the item cleared. There is a cost to it as you have found out.

You can have this charge made 0 ahead of time and get the paperwork from UPS/ FEDEX et al and clear it yourself. That would mean you would take the shipping document and the customs form (commercial invoice)to Canada Customs and clear it.

You would only pay sales tax on the item. The same as you would walking into any store in Canada.

I believe the exemption for sales tax is if it is marked a gift and the value does not exceed $35 Cdn. Then you would not pay sales tax. If you clear the customs with FEDEX/ UPS etc., you would still be subject to the charge for brokerage.

The post office charges $8.00 Cdn for that service, regardless the value.

Conversely, when Americans buy from Canada, they have little or no fees. They do not pay sales tax or duty when they get the item from Canada regardless the amount. They might pay a brokerage fee. The most anyone has mentioned to me (in excess of 700 packages sent) is $16.00. So their fears of getting packages from Canada are really unfounded).

So if you wish to make it cheap coming from the US, clear them via customs yourself. You have to call UPS/ FEDEX right away and let them know you wish to do so so they do not go to customs. You will have to weigh what cost you associate with you going to UPS/ FEDEX to get the paper work, go to customs, go back to UPS/ FEDEX and get the package.

I have been sending/ receiving packages from the US for 8+ years (probably 1000 plus) so I have had good experience and knowledge with this. I have also cleared countless packages with customs so I have had a lot of experience.

I keep in touch with buyers so I have had a good idea what US buyers pay. 99% of them do not even get billed the $16 brokerage fee.

PS. You can also have the brokerage fee made zero. Ship it air vs ground. They do not charge brokerage on an air shipment. I have found if you ship air, the cost is almost the same for the air shipment as is the ground shipment and the brokerage fee. However, you get the package in 1 or 2 days vs 5- 7 business days with ground. For smaller/ lighter packages, I use air.

If the cost is what gets you, then you ship ground and clear it yourself.

Hope that helps. I have paid a lot of brokerage fees on some items as my time/ cost is more than what UPS/ FEDEX charge. Your opinion of your cost/ time will be your own.
thanks

FEDEX is not a broker. They have a wholy owned corporation to do it. FEDEX trade network. It is really FEDEX as FEDEX owns FEDEX trade network. Just a different part of the umbrella.

someone made a mention that you did not pay when you sent to China et al. The cost is for the buyer/ importer. Not the sender.

I find some think that they are going to be hit with a fee if they send something. not true. Customs is like sales tax. The buyer pays the tax. Not the sender unless the sender marks that they are going to pay.

That does not happen too often.

Riffer is correct. You only pay on ground. Not on air. I send small items via air as it usually works out to be the same price for an air shipment (with no brokerage) versus a ground shipment and brokerage. You end up getting the item in one or two days vs 5 - 7 days with ground.

UPS/ FEDEX ground/ DHL etc. are all the same. FEDEX ground used to charge less than UPS, but they are really the same amounts for brokerage. It is no different for companies that import. They have a customs broker and pay those fees.