- Apr 10, 2008
Brokerage is the fee they charge for clearing the customs, you will still pay the applicable taxes, as well as taxes on the brokerage fees. For example, I received a 77$CAN package recently, it costs 20$ in shipping. Unfortunately, they chose UPS standard. So, in addition to the 10$ in taxes, UPS charge a 30$ brokerage fee, and an additional 4$ taxes on the fee. In comparaison, IF Canada Post decides to tax your package, they will charge a 5$ brokerage fee, no matter the value of the package, plus taxes. Luckily, they don't charge taxes on low value packages, and, often, some larger value ones pass through untaxed.