UPS Brokerage Fees: Definition & Tips to Avoid Them

Virginia Miller

May 31, 2024

In this article

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.

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What are UPS Brokerage Fees, and What Do They Cover?

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.

How to Avoid UPS Brokerage Fees

While UPS brokerage fees are common for shipments to Mexico and Canada, there are some ways to avoid incurring these extra charges:

Use a Shipping Service with Tracking and Insurance

Opt for a UPS shipping service that includes tracking and insurance to ensure delivery and protect against any shipment issues.

Select a Company Without Brokerage Fees

Some shipping companies don't charge brokerage fees at all, so do your research to find one that meets your needs.

Choose a Service with Fees Included

Look for an international shipping option that bakes brokerage fees into the base pricing so you don't have to pay extra.

Ship During Off-Peak Times

UPS offers discounted rates for shipments sent during low volume periods, which could offset brokerage fees.

Split Up Higher Value Shipments

UPS charges brokerage fees on shipments worth over $200, so try splitting up products into multiple packages under that threshold.

Tips for Avoiding UPS Brokerage Fees

In addition to the above methods, you can take other steps to avoid UPS brokerage fees:

Review UPS' Brokerage Fee Structure

Understand how UPS calculates fees based on shipment value so you can optimize packaging and contents.

Use Alternate Carriers

Services like DHL and USPS offer more affordable international shipping without levying brokerage fees in most cases.

Alternatives to UPS Standard Shipping

Rather than only using UPS Standard which charges brokerage fees, consider these other UPS worldwide shipping options:

UPS Worldwide Expedited

2-day guaranteed delivery to most destinations globally.

UPS Worldwide Express Plus

1-day guaranteed delivery to major cities globally.

UPS Worldwide Express

3-day delivery to most global destinations.

UPS Worldwide Express Saver

5-7 day delivery worldwide for the most affordable rates.

Conclusion

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!

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FAQs

What are UPS brokerage fees?

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.

Why does UPS charge brokerage fees?

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.

What’s included in UPS brokerage fees?

UPS brokerage fees include customs entry preparation charges, bond fees to account for any tax/duty collection, and UPS’ own brokerage charges.

Can I avoid paying UPS brokerage fees?

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.

Does UPS charge brokerage fees for all international shipping?

No, UPS only charges brokerage fees for shipments from the US to Canada and Mexico which require manual customs clearance.

What's the easiest way to avoid UPS brokerage fees?

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.

Can I estimate how much the brokerage fees will be?Yes, UPS provides a brokerage fee estimator on their website so you can calculate expected costs based on shipment specifics like value, weight, origin/destination.

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UPS Brokerage Fees: Definition & Tips to Avoid Them

FAQs

What are UPS brokerage fees?

Why does UPS charge brokerage fees?

What’s included in UPS brokerage fees?

Can I avoid paying UPS brokerage fees?

Does UPS charge brokerage fees for all international shipping?

What's the easiest way to avoid UPS brokerage fees?

Can I estimate how much the brokerage fees will be?Yes, UPS provides a brokerage fee estimator on their website so you can calculate expected costs based on shipment specifics like value, weight, origin/destination.

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