Marketplace Consumer News CBC.ca
Air Date: December 5, 2000
Producer/Reporter: Christian Côté | Researcher: Maxine Sidran
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More and more Canadians are turning to the Internet to do at least some of their holiday shopping.

Delores Friesen of Winnipeg likes a good bargain. So when she ordered some books online, she chose to have them shipped by "ground." It's slower, but cheaper.

Tthe books cost about $78. The shipping - by United Parcel Service was another $15. Friesen told us she thought those were the only charges she would have to pay.

Friesen was wrong. Before giving her the books, UPS wanted another $31.00.

The $31.00 Friesen paid was for a service called "clearing customs."

When goods come across the border there may be duty and taxes due. Couriers will take care of this for you, charging what's called a "brokerage fee." You won't see the charge on items going by air because it's included in the price. The brokerage fee applies only on items shipped by ground.

"I was surprised and frustrated that I didn't know that when I ordered the books," Friesen said.

This isn't the first time UPS customers have voiced their anger at what appears to be a hidden fee.

Last year CBC Regina and Ottawa aired stories of consumers upset with the brokerage fee. At the time, UPS spokesperson Joe Tavares said, "In this case if he was not aware of it up front I can certainly appreciate his surprise."

Phil Cahly of the Canadian Courier Association adds consumers wouldn't be surprised if the stores they buy from in the U.S. told them about the brokerage fee.

"There's been a large explosion in e-commerce and retailers aren't aware of customs formalities themselves. They should be telling their customers, but some aren't doing it," Cahly said.

A UPS spokesperson told Marketplace their website, and U.S. rate guide clearly state the consumer is responsible for all brokerage charges, duty and taxes. But when we asked if UPS shows clients this information, or tells its clients that Canadian customers will have to pay a brokerage fee - the spokesperson couldn't say.

here's the link to the full article: http://cbc.ca/consumers/market/file...fees/index.html

There is a short article linked to Doreen's posted URL,
http://cbc.ca/consumers/market/file...fees/steps.html
which advises, basically, to ask the seller of the product to clearly mark the package "Customer will Clear Customs" so that the courier company does not automatically do the job (and charge the fees).

Another thing I would recommend, when getting a bill from UPS for "Brokerage" or "Clearing Customs" fees, is to require from them a detailed breakdown of that fee... for instance, in the story a fee of $31 covers exactly what? Canada Customs' $5.00 service charge and a percentage of the product? GST? PST? Some other costs?

Hi all,

I think this is important news all year, for those of us who order lowcarb specialties, as well as now for the holidays when many of us are ordering books and other gifts online.

hope this helps in some way,

Doreen