UPS and Fedex Class action law suits have been filed in Canada.  Sellers who ship via UPS or Fedex may not be aware that their customers are required to pay a 'brokerage fee' plus a C.O.D. fee to collect the brokerage fee (!) to United Parcel Service/Fedex.  These fees are based on the declared value of the item and are steep, ranging from about $25 to $70 US. In comparison, there are usually no brokerage fees for items sent by mail (though Canada Post sometimes charges $5.00 for items over $20). 

The website of the lawyer handling the class action lawsuit in BC states: the lawsuit claims that on the purchase of goods from the US, UPS fails to obtain consumers' consent to act as customs broker, or to disclose the existence or amount of the Brokerage Fee which they charge, or to provide consumers with the opportunity to arrange for customs clearance by themselves. It also claims that the amount of the Brokerage Fee charged is grossly excessive.

There are folks who refuse to purchase from sellers who deliver goods by UPS or Fedex for exactly this reason, and I'm one of them.  Imagine having your package delivered by a person who won't turn it over unless you pay a large fee that you've had no advance notice of.  Once stung by these fees, it's not an experience easily forgotten. 

Some horror stories from Canadian eBay buyers are here:Discussion forum on UPS brokerage fee

In the meantime, if you have an item on the way via UPS or Fedex and want to avoid exhorbitant brokerage fees, get the tracking number from the seller, call the courier company, and tell them you want to broker it yourself.  When the item arrives, pick up the paperwork from the courier company, walk it over to Canada Customs (usually right near by), they'll process it, stamp the forms, and you can return to UPS or Fedex and pick up your package.  Do not wait until UPS or Fedex delivers your package to you!  Also, make sure your seller knows that the declared value is ONLY the amount you paid for the item (not including shipping), and take your proof of the amount you paid with you to ensure you aren't overcharged on duty and taxes by Canada Customs.

Update May 2008: There is litigation seeking compensation for Canadians in all provinces who have been required to pay improper fees charged by courier companies (such as UPS and Fedex) for delivery of international courier parcels.  For more information or to join a lawsuit go to: classaction.ca, merchantlaw.com, and poynerbaxter.com 

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