UPS Now Charges Bond Fees when Shipping Expedited to Canada

October 5th, 2011

Canadians beware: Expect to pay an extra $10 to UPS when shipping a parcel with expedited service class from the US to Canada.

Smart Canadian shoppers will know to look out for Tax, Duty, and Brokerage Fees when buying from the US. Sales tax is unavoidable, most photography items are duty free, and brokerage fees are courier companies trying to get a piece of your hard earned cash.

Savvy shoppers already know to avoid UPS Ground, as it incurs sky-high brokerage fees that can be as expensive as the item that you bought. Previously, shipping by UPS Air (that's UPS Worldwide Expedited, Saver, or Express) was fully brokerage fee free, and all that was due was the tax and duty (if applicable). UPS pays the tax on your behalf, and bills you for the amount afterwards. However, a recent change has UPS is charging $10 (or 2.7% of the tax owed, whichever is greater) for the service of paying the fees on your behalf.

You can't avoid this bond fee, unless you are a frequent importer and have a pre-paid account with UPS. On average, this makes shipping to Canada from the US about 30% more expensive.

Another way of avoiding this fee is to consider stores such as B&H Photo Video, which feature Ground Purolator shipping to Canada, where all taxes, duties, and fees are paid up-front.

All PhotoPrice calculations are now updated to include the $10 or 2.7% of tax owed bond fee.

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