UPS, or the United Parcel Service, is one of the most significant shipping and logistics companies in the world right now. As of 2022, UPS has almost 1800 operating facilities worldwide and a global workforce of 500,000. However, UPS's massive network of operations does not relieve the concerns of UPS brokerage fees for businesses and individuals. What brokerage fees are charged by UPS, and where does it apply? The following post helps you find the answer alongside some exciting pointers on avoiding brokerage fees.
UPS brokerage fees are customs duties imposed by UPS for international shipments from the US to Mexico and Canada. These fees help cover the costs of manually clearing shipments through customs, since UPS uses ground transportation for deliveries to these countries.
The brokerage fees include entry preparation fees for moving packages through customs and bond fees to cover any tax and duty collection obligations. By understanding what these fees entail, you can better avoid them.
While UPS brokerage fees are common for shipments to Mexico and Canada, there are some ways to avoid incurring these extra charges:
Opt for a UPS shipping service that includes tracking and insurance to ensure delivery and protect against any shipment issues.
Some shipping companies don't charge brokerage fees at all, so do your research to find one that meets your needs.
Look for an international shipping option that bakes brokerage fees into the base pricing so you don't have to pay extra.
UPS offers discounted rates for shipments sent during low volume periods, which could offset brokerage fees.
UPS charges brokerage fees on shipments worth over $200, so try splitting up products into multiple packages under that threshold.
In addition to the above methods, you can take other steps to avoid UPS brokerage fees:
Understand how UPS calculates fees based on shipment value so you can optimize packaging and contents.
Services like DHL and USPS offer more affordable international shipping without levying brokerage fees in most cases.
Rather than only using UPS Standard which charges brokerage fees, consider these other UPS worldwide shipping options:
2-day guaranteed delivery to most destinations globally.
1-day guaranteed delivery to major cities globally.
3-day delivery to most global destinations.
5-7 day delivery worldwide for the most affordable rates.
While UPS brokerage fees can quickly increase shipping costs, this guide outlines several ways to avoid them. We hope these tips help you save on your international orders!
Recommended: How to Get Free Shipping Supplies from USPS, UPS, FedEx, and DHL
UPS brokerage fees are charges levied by UPS to cover customs clearance, duties, taxes and their own fees when shipping items internationally to Canada and Mexico.
Since UPS uses ground transportation for deliveries to Canada and Mexico, they manually clear shipments through customs in those countries. The brokerage fees help pay for this additional handling.
UPS brokerage fees include customs entry preparation charges, bond fees to account for any tax/duty collection, and UPS’ own brokerage charges.
Yes, there are several tips covered in this article that allow you to legally avoid UPS brokerage fees, like using alternate carriers, splitting shipments, or selecting brokerage-inclusive services.
No, UPS only charges brokerage fees for shipments from the US to Canada and Mexico which require manual customs clearance.
The easiest approach is to use a different shipping carrier like DHL or USPS that doesn’t charge brokerage fees at all on international shipments to Canada/Mexico.