I recently placed an order with Plitron and instead of the package, UPS left a note stating that I owe brokerage fees. I have purchased several transformers from Plitron over the years and was never charged brokerage fees.
Has anybody had a similar experience?
Has anybody had a similar experience?
In Finland it is common that companies like UPS do not allow recipient to do the customs stuff.
However when I order from DigiKey I can select correct incoterm (now I do not remember which it is) and then I only need to pay VAT (24% in Finland) to UPS.
UPS says they charge something like 9€ brokerage per tariff heading. But only of companies. Not Private Persons (thanks holy spaghetti monster for that, or UPS)
So unless I can find my item et TME or Elfa then I can order from DigiKey for a reasonably reasonable price 🙂
Of course it is different in US, I just thought I would write about my experience with UPS.
However when I order from DigiKey I can select correct incoterm (now I do not remember which it is) and then I only need to pay VAT (24% in Finland) to UPS.
UPS says they charge something like 9€ brokerage per tariff heading. But only of companies. Not Private Persons (thanks holy spaghetti monster for that, or UPS)
So unless I can find my item et TME or Elfa then I can order from DigiKey for a reasonably reasonable price 🙂
Of course it is different in US, I just thought I would write about my experience with UPS.
UPS, and other courier companies like Fedex, can charge you with this socalled brokerage fee.
This only seems to happen in your "free" country
It has to do with the fact that UPS "do" the customs duties for you, and charge you "accordingly" and quite often quite a bit more than "accordingly".
It seems to be an arbitrary thing, sometimes you're lucky, sometimes not.
Also the tariff upon which the fee is based seems to be dependent on the guy or woman who does the handling.
Indeed, an incorrect class / coding on the HS Tariff code can mess you up, regardless of who processes the paperwork.
I happen to reside on the northern side of the 49th, and the vast majority of US vendors from whom we import directly - both production materials and repair parts for large machines - are not licensed to collect CDN taxes. Therefore it falls upon the carrier to collect.
Probably a month doesn't go by when I don't see an invoice from UPS on which the brokerage fee is higher than the assessed duty / GST - then of course we on the northern side of the 49th get the privilege of paying GST / HST on the brokerage fee itself.
Last week, a COD from UPS for non-warranty parts for an thickness sander:
- Value for Duty $191.35
- Duty rate @ 0% = 0. (2 separate HS codes for machine parts )
- GST 5% = $9.57
- Brokerage Fee = $10.00
- Brokerage GST = .50
It is what it is, - sigh
I happen to reside on the northern side of the 49th, and the vast majority of US vendors from whom we import directly - both production materials and repair parts for large machines - are not licensed to collect CDN taxes. Therefore it falls upon the carrier to collect.
Probably a month doesn't go by when I don't see an invoice from UPS on which the brokerage fee is higher than the assessed duty / GST - then of course we on the northern side of the 49th get the privilege of paying GST / HST on the brokerage fee itself.
Last week, a COD from UPS for non-warranty parts for an thickness sander:
- Value for Duty $191.35
- Duty rate @ 0% = 0. (2 separate HS codes for machine parts )
- GST 5% = $9.57
- Brokerage Fee = $10.00
- Brokerage GST = .50
It is what it is, - sigh
Chris you are lucky, I once received an order that was shipped UPS, the total value was around $40 and they wanted >$30 in "brokerage fees" + GST. It is a ripoff. I could have sworn there was a free trade agreement between Canada and USA (hence your $0 duty). I think USPS/Canada Post charge a flat $5 fee for "brokerage", and at least they seem embarrassed about it.
Now sometimes when I put together an order from Mouser and it comes to less than $100 (edit: or is it $200? I haven't ordered in a while) I throw in a few things to get it a bit higher, so they automatically upgrade the shipping to "premium", which means nothing to me except: They waive the brokerage fees!
Now sometimes when I put together an order from Mouser and it comes to less than $100 (edit: or is it $200? I haven't ordered in a while) I throw in a few things to get it a bit higher, so they automatically upgrade the shipping to "premium", which means nothing to me except: They waive the brokerage fees!
I bought a pair of Plitron OPT's about 6 years ago. As you stated, I got a ransom note demanding $20 in order to get my OPT's.
NAFTA (North American Free Trade Agreement) states that trade between US, Canada and Mexico is duty free. It says nothing about "brokerage fees" which seems to be a random ransom fee charged by shipping agents for "filling out forms." Nevermind that the necessary forms are already filled out by the shipper in most cases.
My experience also.
So called 'free trade' is a joke when the corporate sector gets to work on the shipping costs.
I think CanadaPost has increased their flat rate brokerage/handling fee a bit from $5. UPS are charging $35-40 (?) minimum these days or a percentage of the declared value (15%?? I forget), whichever is higher on Ground shipments. FedEX is worse - they just deliver the parcel and then send you a dunning letter/invoice later.
The higher priced options with UPS (Air?) sometimes include the brokerage charges - so worth checking.
I think that both Digikey and Mouser have flat rate shipping to Canada nowadays, but I haven't ordered from them in a year or so.
When possible I deal with smaller companies that will use USPS, but with some stuff like paint, ground UPS is the only option.
Can't fall asleep? - try parsing through the HSTA Tariff Code list -
https://www.usitc.gov/tata/hts/bychapter/index.htm
Chapter 84 is the one that applies to the machine parts referenced above - it runs a total of 124 pages. Can you imagine working as a classification officer and document coder and trying to keep on top of where to pigeonhole new technologies?
But don't worry, 45 will soon have a much better & simpler deal in place - once agreement can be found on which 2 to trash.
https://www.usitc.gov/tata/hts/bychapter/index.htm
Chapter 84 is the one that applies to the machine parts referenced above - it runs a total of 124 pages. Can you imagine working as a classification officer and document coder and trying to keep on top of where to pigeonhole new technologies?
But don't worry, 45 will soon have a much better & simpler deal in place - once agreement can be found on which 2 to trash.
Well, UPS isn't doing the coding work (IME the shipper provides that info), so they are charging $40 (or much much more) for 'our computer to talk to your computer' (UPS to CanadaCustoms) for 1 millisecond or so...
The UPS cross border rates are already (astronomically) higher than the 'within the USA' rates, and then they tack on the 'brokerage' charges. It's strictly 'what the market will bear'.....
It seems strange to me that the sellers in the USA don't put on pressure to get shipping rates more rational, and also to force Canada Customs to put the 'trigger point' for charging HST/GST/PST at the same amount ($1000?) as the US does. I guess it's easier to blame 'unfair competition'...
The UPS cross border rates are already (astronomically) higher than the 'within the USA' rates, and then they tack on the 'brokerage' charges. It's strictly 'what the market will bear'.....
It seems strange to me that the sellers in the USA don't put on pressure to get shipping rates more rational, and also to force Canada Customs to put the 'trigger point' for charging HST/GST/PST at the same amount ($1000?) as the US does. I guess it's easier to blame 'unfair competition'...
My fairly recent experience is $10 for Canadapost flat rate brokerage/handling fees.
A few months ago a friend sent me something via FedEx. I was charged sales tax,
($15 or so) which I don't mind, but FedEx tagged on another $60 or so of brokerage,
bond fees, fees to collect brokerage and bond fees (not joking) and HST on top of that.
The more expensive UPS service waive brokerage fees but there's still the bond fees.
In fact, it seems the min UPS bond fees ($10) is higher on their more expensive
service than for UPS ground. ($6).
Ordering from Digikey is great.
Dennis
A few months ago a friend sent me something via FedEx. I was charged sales tax,
($15 or so) which I don't mind, but FedEx tagged on another $60 or so of brokerage,
bond fees, fees to collect brokerage and bond fees (not joking) and HST on top of that.
The more expensive UPS service waive brokerage fees but there's still the bond fees.
In fact, it seems the min UPS bond fees ($10) is higher on their more expensive
service than for UPS ground. ($6).
Ordering from Digikey is great.
Dennis
>> - Value for Duty $191.35
>> - Duty rate @ 0% = 0.
>> - GST 5% = $9.57
> I could have sworn there was a free trade agreement between Canada and USA
And the duty was zero, as you note. As the InterNATIONAL agreement says.
GST and variants are what we in NJ knew as Sales Tax, or "Governor's Cigar". You buy something, and you pay 3%-8% more which goes to the state. The merchant who collects this MUST have a form from the state treasurer. There are also city sales taxes. The paperwork to legally collect taxes in all states and cities is massive. Apparently many US vendors give-up also trying to do the several Canadian "sales Taxes".
Inside the US is more interesting. The Sales Tax laws were written when there were physical stores. It is not clear a state can require an out of state vendor to collect the tax. Instead the buyer is required to report and pay the uncollected sales tax. There is a line on the state income tax form for this. It is often "overlooked". Some states are losing significant revenue to on-line vendors who meticulously avoid having a "store" in a state.
I dunno GST. I know in the states the store is not allowed to charge for the service of collecting Sales Tax. I remember when it was new, stores had to have tables or calculators to figure the tax and it took extra seconds. So I dunno if UPS et al ought to be charging "brokerage" to collect GST.
An enlightened bureaucracy could have sales records cc:ed to a central office, and cross-check those against individual tax returns. If you "forget" to report $9.57 due, they know you owe. Of course at $10-$30 a box, UPS will lobby against it.
>> - Duty rate @ 0% = 0.
>> - GST 5% = $9.57
> I could have sworn there was a free trade agreement between Canada and USA
And the duty was zero, as you note. As the InterNATIONAL agreement says.
GST and variants are what we in NJ knew as Sales Tax, or "Governor's Cigar". You buy something, and you pay 3%-8% more which goes to the state. The merchant who collects this MUST have a form from the state treasurer. There are also city sales taxes. The paperwork to legally collect taxes in all states and cities is massive. Apparently many US vendors give-up also trying to do the several Canadian "sales Taxes".
Inside the US is more interesting. The Sales Tax laws were written when there were physical stores. It is not clear a state can require an out of state vendor to collect the tax. Instead the buyer is required to report and pay the uncollected sales tax. There is a line on the state income tax form for this. It is often "overlooked". Some states are losing significant revenue to on-line vendors who meticulously avoid having a "store" in a state.
I dunno GST. I know in the states the store is not allowed to charge for the service of collecting Sales Tax. I remember when it was new, stores had to have tables or calculators to figure the tax and it took extra seconds. So I dunno if UPS et al ought to be charging "brokerage" to collect GST.
An enlightened bureaucracy could have sales records cc:ed to a central office, and cross-check those against individual tax returns. If you "forget" to report $9.57 due, they know you owe. Of course at $10-$30 a box, UPS will lobby against it.
US vendors aren't expected to collect Canadian sales taxes. Sales taxes are COD at the door and that's the reason that CanadaPost charges a flat rate of $10 IF they have to collect sales tax (and duty if applicable), which is seldom charged on smaller value (under $100, but it's a semi-random 'triggerpont', depending on the season and the whim of the Customs office). UPS and FedEX charge 3-4-5-10 times more to do the exact same thing.
Some US companies that do a lot of Canadian business (LL Bean, LandsEnd ?) have a Canadian warehousing operation and ship from within Canada after invoicing for sales tax. Amazon.ca and digikey.ca and mouser.ca and newegg.ca do similar things though it's not clear where the 'warehouse' actually is.
Plitron has (had?) a warehousing / shipping operation in Buffalo NY. The US orders shipped from there without the usual BS. The OPT's that I ordered were from their "surplus transformers" page which are all stocked in Toronto. Perhaps the OP's transformers were only stocked in Toronto?
Yup, this whole Gordian Knot of multiple taxation jurisdictions can get very confounding, and in the case of our province, the end user is responsible for self-reporting and remitting Provincial Sales Tax ( PST currently at 7% in BC) when appropriate. Honest.
As a registered manufacturing business, we have no option - and the full body cavity search forensic audit we enjoyed a few years back "clarified" the procedures to follow, and what goods / services might be exempt from the PST. The Tax Auditor that visited us was a pretty smart cookie, and even though it's been over a decade, we still affectionately remember "Sheila the shark"
Whether you like the idea of government taxation or not, rendering unto Caesar is inevitable, We used to have something called HST - which if for no other reason than the simplification of administration by the business owner / taxpayer, I'd be inclined to categorize as lesser of the two evils. Then of course a political move was made to "renegotiate a horrible deal" Any of that sound familiar?
We have several US based suppliers who are registered tax collectors for Federal and Provincial sales tax. So it's more than a bit frustrating to get a COD bill for the brokerage fees + GST for paperwork that confirms, -" NOPE, no duty, or other taxes payable, thanks very much for your patronage"
John - some of those warehouses are in the cloud, from which Amazon may be delivering by drone and parachute 😉
As a registered manufacturing business, we have no option - and the full body cavity search forensic audit we enjoyed a few years back "clarified" the procedures to follow, and what goods / services might be exempt from the PST. The Tax Auditor that visited us was a pretty smart cookie, and even though it's been over a decade, we still affectionately remember "Sheila the shark"
Whether you like the idea of government taxation or not, rendering unto Caesar is inevitable, We used to have something called HST - which if for no other reason than the simplification of administration by the business owner / taxpayer, I'd be inclined to categorize as lesser of the two evils. Then of course a political move was made to "renegotiate a horrible deal" Any of that sound familiar?
We have several US based suppliers who are registered tax collectors for Federal and Provincial sales tax. So it's more than a bit frustrating to get a COD bill for the brokerage fees + GST for paperwork that confirms, -" NOPE, no duty, or other taxes payable, thanks very much for your patronage"
John - some of those warehouses are in the cloud, from which Amazon may be delivering by drone and parachute 😉
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