UPS charges a fee at customs to broker duty and tax payment. This article explains the brokerage fee and how you can avoid them.
What Are UPS Brokerage Fees?
When an international shipment arrives in a country, UPS works with local customs to broker the owed duty and tax payment. They charge a brokerage fee depending on the value of the shipment.
Brokerage fees only apply to UPS Standard or other services that have outsourced UPS to deliver the parcel.
How to Avoid UPS Brokerage Fees?
UPS does not charge brokerage fees for the following services: UPS Worldwide Express Plus, UPS Worldwide Express Freight, UPS Worldwide Express Saver, and UPS Worldwide Expedited. Though these services are faster, the downside is they cost more. So based on the UPS Brokerage Fees breakdown, it's up to you to calculate what is cheaper and creates a more satisfactory customer experience.
There are other options too..
When shipping products through Hybrid and Postal services, brokerage fees are far less. Easyship offers a variety of options. We recommend the following services:
What Happens if You Don't Pay?
Brokerage fees are a requirement for delivery, and often times, duties and taxes have already been covered by the courier. If the receiver does not pay brokerage fees, the courier may bill the shippers account, or abandon the shipment.