Guides · 6 min read

How to avoid brokerage fees from UPS, FedEx, DHL and Purolator

You can't always avoid them. But you can often cut them down, or stop paying twice for the same work.

Courier brokerage fees exist because someone has to clear your shipment through customs, and couriers charge for doing it. You can't make that work disappear, but you can often choose who does it, how it's paid for, and whether you pay extra charges on top.

If you're shopping online

  1. Look for "duties and taxes included" at checkout. Stores that ship delivered duty paid collect everything up front. You see the full price before you buy, and nothing is owed at the door.
  2. Check which service the store uses. Ground courier services often charge entry preparation fees at delivery. Express services often include them. Postal services usually have lower handling charges, though they can be slower.
  3. Know the thresholds. Courier shipments of goods from the US or Mexico are free of duty and tax up to CAD $40, and duty free (but taxable) up to $150. From other countries, the limit is $20.
  4. Ask for a breakdown before you pay. If a bill looks too high, ask the courier which charges are government duty and tax and which are its own fees.
  5. Challenge wrong duty. If duty or tax was charged when it shouldn't have been, you can request an adjustment from CBSA.

If you're importing for a business

For businesses, the bigger saving comes from changing how clearance is handled, not from avoiding it.

  • Use your own customs broker. Most couriers let a shipper or importer name a broker other than the courier's default. A broker you've chosen, with pricing agreed in advance, is often far cheaper per shipment than courier brokerage.
  • Consolidate shipments. One larger shipment cleared once usually costs less in fees than many small parcels cleared separately.
  • Pay duties directly. Disbursement fees are a charge for someone else fronting your duty and tax. If you pay CBSA directly through your own account, that fee may shrink or disappear.
  • Negotiate. If you ship with a courier regularly, brokerage fees are negotiable as part of your account rates.

If you sell to Canadian customers

Surprise fees at the door lead to refused packages and angry reviews. Shipping delivered duty paid, or using a broker so fees are predictable and included in your price, often costs you less than the lost sales.

Not sure where to start?

Send us a courier bill or a few months of invoices. We'll show you what went to the government, what went to the courier, and which of these options would actually save you money.