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UPS brokerage fees in Canada: what you're actually paying for

The UPS bill at your door is usually three or four charges rolled into one. Here's how to read it.

UPS is the courier most Canadians associate with surprise brokerage bills, mostly because so many US stores ship with UPS Standard, its ground service into Canada. The bill arrives by email or on a sticker at the door, and it's rarely clear what you're paying for.

What's on a UPS import bill

A typical UPS bill for an import into Canada combines some or all of these:

  • GST/HST and any PST collected at the border. This goes to the government.
  • Customs duty. Also government. Often zero for goods that qualify as made in the US or Mexico.
  • Entry preparation fee. UPS's charge for preparing your customs declaration. On ground shipments it's typically tiered by the value of the goods, so it rises as the order gets more expensive.
  • Disbursement fee. A charge for paying the duty and tax on your behalf, calculated as a percentage of those amounts with a minimum charge.

UPS publishes these charges in its Canadian rate and service guide. Most people never look, and they aren't shown at the store's checkout.

Why ground and express bills look so different

With UPS's express air services, the entry preparation is generally built into the shipping price the sender paid. With UPS Standard (ground), it usually isn't, so it lands on you at delivery. That's why two orders of similar value from the same store can produce very different bills, depending on which service the store chose.

When a UPS bill is worth questioning

  • You were charged duty on goods that should qualify as duty free under CUSMA
  • Tax or duty was charged on a US order under CAD $40
  • The value UPS declared is higher than what you actually paid, for example because shipping or a currency conversion was counted wrong
  • Fees appear that don't match UPS's published schedule for your shipment

If duty or tax was wrong, you can ask CBSA for an adjustment and refund. UPS's own fees are a separate conversation with UPS.

If you import through UPS regularly

For a business, UPS brokerage fees on every shipment add up. Regular importers can usually arrange to use their own customs broker instead of UPS's default brokerage, often at a much lower cost per shipment. Our broker audit shows you what that switch would likely save.

Got a UPS bill you're not sure about? Send us a photo and we'll break it down for you, free.

Waybilled is independent and not affiliated with UPS.