Brokerage C.O.D.'s

Discussion in 'UPS Discussions' started by brownedout, Jan 24, 2012.

  1. brownedout

    brownedout New Member

    I don't believe this has ever been covered before. I did a search which turned up nothing. If it has, I do apoligize. This new, about 2 to 3 years now, system of collecting brokerage fees is the absolute pits. I have had numerous problems with these before, but nothing like tonights. If you have never had one, consider yourself lucky. Stop shows in edd as a COD ($). You pull the package and it's an international. After scanning the COD,, screen pops up with the amount due after the letters BF (Brokerage Fee). This amount does not have to be entered by service provider like regular c.o.d.'s it is already displayed for us. Big arrow down from there (I believe) brings another screen which explains to consignee that a brokerage fee is applied to the shipment for the amount specified with a brokerage accounting phone number. Now this is the only place that the consignee can view that there is a fee, amount due. Unlike the old "paper system" which had the white tags with green print. These old tags also explained that the fee was for tax, value added tax, duty, custom charges, amongst others. And most important the customer had a receipt. This paperless system with no receipt, no remnant of an amount due on the package, no clear explanation for said amount due is just the worst. It is expected that the cosignee just wants their shipment and will pay, this is usually not the case. Add to the fact that there is a very often a language barrier, and the matter gets even more complicated. That's logistics!
  2. tourists24

    tourists24 Well-Known Member

    I have a customer that gets packages with a brokerage fee at least once or twice a month. I dont understand what the fee is for exactly so when he asks I simply tell him I dont know; but make the check out to UPS lol. Is kind of a pain but I try and handle it like any other COD....
  3. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    The fee is as it implies--it pays for the processing of the package through customs. We have brokerage houses along the border that perform the same function for their customers.
  4. tourists24

    tourists24 Well-Known Member

    yeah I kinda figured that, but not all international deliveries require a charge at time of delivery. And since I dont know exactly how the process works I dont know exactly what to tell a customer that wants to know the exact reason for the charge or how "x" amount was arrived at. Ive asked several sups at my center and they tell me sort of the same as you, but cant answer the "why" only for certain packages
  5. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    aj could give a much better explanation that I but I will try to explain. Normally when the consignee orders something internationally and uses a credit card the price of the item plus all of the fees are added to the card and the shipment is sent PP (prepaid). If the consignee chooses one of our premium services we pay the brokerage fees. If the shipment is sent ground and the BF are not prepaid they must be paid at the time of delivery. As I stated earlier the fees are to cover the cost of processing the shipment through customs.
  6. tourists24

    tourists24 Well-Known Member

    Thanks for the explanation.... It helps understand things better. Only in my specific case my customer always uses NDA saver from Indonesia yet still gets a brokerage fee.

    Yet you explained it much better than anyone in my center has
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

  8. cino321

    cino321 Active Member

    These stops are usually a night mare unless the customer is already accustomed to getting deliveries that have brokerage fee's associated with them.

    Being that I as a driver do not have a specific answer as to why the fee is being applied to the shipment, I explain to the customer that they can either pay the amount with a check or money order, or if they have more questions I leave them the 1-800 number provided in the DIAD in the brokerage fee screen and let them call explaining that I will be back the following the day.
  9. barnyard

    barnyard KTM rider Staff Member

    This explains WHAT the fees are, but not the WHY.

    My understanding is that UPS saw owning their own customs brokerage as another revenue stream. Our fees are higher than govt brokerage houses. It is advertised as being faster, but according to our Canadian customers, it is significantly more expensive and not at all faster.

    We lose accounts over this.
  10. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Could not of said it better myself. Want your package pay me now if you have more questions call 800 number and I'll see you tomorrow
  11. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    This may be a litle off topic but it's about internationals so here we go... I have a pick up that ships probably 2-5 packages a day international. They told me they use the post office for all international packages not because of the price but because there is a lot less paper work to fill out. Can anyone explain to me why this is.
  12. barnyard

    barnyard KTM rider Staff Member

    I am guessing they are using USPS online and not using UPS worldship.

    It would be worth it to you to turn in a lead for that stop. UPS has done quite a bit to make it easier to ship Internationals (except to Canada.)
  13. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Tell that customer about paperless invoices.
  14. UPSBOT

    UPSBOT When UPS Was Fun

    I get about ten of these a month. Almost all of them are NDA. I take them to the dock and the receiver refuses them as "No COD's". I bring them back to the building and give them to the clerk who then holds them for three days. On the fourth day I get them back with a letter from UPS Customs voiding the BF. I enter zero in the BF screen. I've been doing this for years, no problems yet. For the first year I made copies of the letter. I was told we would never send that many NDA Internationals back to China.
  15. DS

    DS Fenderbender

    Up here we get this every day.Today, I had 5.Occasionally there is no paperwork explaining the breakdown of the charges.
    I personally believe it's a total ripoff,why it would cost almost as much as the product itself,just for someone to add a brokerage fee,duty,and taxes.
    I get screamed at so often I suggest to customers to use usps next time,as they have a flat $5 fee,regardless of the cost of the item.
    The premium services are supposed to be exempt from this,but it is not always so.
    It's a riot when it's a multiple piece shipment that is broken down into say 10 different COD's.
  16. tourists24

    tourists24 Well-Known Member

    Lol... glad Im not the only one it happens to... I simply say I dont know what the brokerage charge is for but you owe UPS "x" amount....
  17. klein

    klein Für Meno :)

    Been there too often myself and got sh.t on ! And no time to explain. And I know exactly what you mean, with muliple packages, and each one carries a COD (huge mistake by UPS) - they get it refunded after complaining or even refusing the packages (I even told customers to refuse it, until it's billed right). Was like over $100 per box !
    (For those that don't know much about bokerage fees - if you order a $300 home theatre for example, and it arrives in 4 boxes - 1 for the receiver, 2 for the front speakers, and another box for center and rear speakers, - the whole system should have a brokerage fee of around $100.
    But, because it came in 4 boxes, it will be $100 per box for a total of $400 brokerage fee for the shipment ! (If labelled 1 of 1 each box, instead of 1 out of 4, 2 out of 4, etc).

    I also told customers to order thru United States Postal office instead.
    Because if they order a a CD or DVD from the US, the brokerage fee is more then they paid for that item !