Frequently Asked Questions About UPS Duties & Taxes
Who pays UPS duties and taxes?
The Importer of Record is responsible for duties and taxes unless otherwise specified when the shipment is prepared, and the amounts themselves are set by the destination country, not by UPS. UPS Customs Brokerage can clear an import without a UPS Importer Account, but then everything owing must be paid online before delivery or C.O.D. at the door, plus a $6.00 Import Collect on Delivery fee. With a UPS Importer Account, charges simply bill to the account.
How much are UPS brokerage fees?
UPS calls this entry preparation, and it is tiered by declared value for duty, from $0.00 on shipments valued $20.00 or under up to $141.30 on a $2,500 shipment. It is free entirely when the shipment arrives via a Worldwide Express service. See the full fee scale in the table above.
What is CARM and do I need it?
The CARM Client Portal is mandatory for all commercial importers into Canada, including non-resident importers, regardless of which carrier they use. When you are shipping through UPS, you must designate a customs broker through a signed General Agency Agreement granting Power of Attorney, and separately delegate authority to UPS in the CCP for UPS to handle your Commercial Accounting Declarations, corrections, and rulings. A one-time $250.00 CARM Set Up Fee applies.
Does CUSMA lower my duty rate?
Yes, for goods imported into Canada from the U.S. or Mexico. Ask your supplier for a CUSMA Certificate of Origin and the shipment gets rated at the lowest rate allowed under CUSMA Rules of Origin, instead of the standard rate.
How can I avoid the UPS disbursement fee?
When UPS remits duty and tax to the Canada Border Services Agency on your behalf, it invoices the amount plus a Disbursement Fee. You can avoid this fee with a Prepayment or Electronic Funds Transfer (EFT) plan on file. See our UPS Customs & Duties guide for the full picture.
