Brokerage Fees Add on to Shipping Costs
When receiving an order, you may be asked to pay taxes and brokerage fees by the courier (UPS/Fed-Ex) before the items are released. You have already bought the product, you’ve paid the shipping and now there are more charges? Here is the reason paying directly to the shipper saves you money.
When items are purchased taxes must be paid. Taxes (Duties) are different in every state, city, province, parish, county, etc… Brokerage fees are the fees that the courier charges to transport the product between countries, serving as the broker. When the courier charges you, the purchaser directly, it insures all proper taxes and fees are paid, and there has been no mark-up or surcharge from the supplier (Causing the purchase price to remain low)
Customers are surprised when the UPS driver asks them to pay. This can often result in delays if the receiver does not have the ability to pay straight away. While AudioConexus can’t estimate the taxes, duty and brokerage for every country, we do want our customers to know that they exist and it is the responsibility of the “importer” to pay.
What Are These and Why Do I Need To Pay Them?
A brokerage fee compensates a broker (UPS) for executing a transaction, typically at the percentage of the transaction value. This fee is collected on delivery.
The duties are the import costs determined by value of the goods, the Harmonized Code and the Country of Origin. The tax is what is added to any item purchased in your country/state/province. Your broker pays both of these to the proper authority on your behalf, thus earning their brokerage fee.
These fees rely on the declared value of the goods (the value is set by the shipper). If the value is below a certain amount, the fee can be overlooked. This cut off is dependent on the import country (i.e. >$20 for Canada and >$800 for the US).
As a shipper, AudioConexus has a fiduciary responsibility to represent the true selling price on all documents for international shipments. While we can empathize with our clients over unexpected fees on delivery, we also understand the importance of taxes and how they support every country’s infrastructure and public service employees.
If you have any questions about AudioConexus’ shipping process, brokerage, duties, your Sales Representative will be happy to answer them!