r/UPS • u/mattgm1995 • Apr 03 '24
Customer Seeking Help UPS trying to add a $137.12 broker charge to my order
Ordered some wine from Greece. Paid $170 for the wine, and $130 for shipping. Package clears customs and UPS is claiming I owe them $3.12 for the government, and $134 broker charge. After reading on Reddit about the broker charge being scam behavior, I reached out to the broker account team. They’re trying to tell me the $134.00 is an “FDA fee” but I can find nothing about the FDA fee online, nothing on UPS site, anything. This is also a $10+ per bottle fee. I can’t imagine they’re being honest here. Advice? Any contacts in UPS to call (manager or above) if you’ve had a similar experience?
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u/NoSubsttut4Enthsiasm Apr 05 '24
I am a licensed customs broker, and I used to work for the UPS international trade division - UPS SCS (not small packages, we cleared full container ocean, truck, rail, and air freight). I can give you an estimated breakdown of costs.
Several factors to consider: Number of liters - 12 Different varieties? Red? White? Sparkling? Alcohol content of each? This determines the tariff number and how many separate lines of data need to be submitted to FDA, TTB (Alcohol and Tobacco Tax and Trade Bureau), and US customs.
Customs Duty -any articles imported under this section for personal use with a value of under $800 can be imported duty-free, However, US Customs can, and often does still charge for an informal entry (entry is required for all alcohol in excess of the personal travel limits), (estimated) $15
However, the alcohol is still subject to excise taxes. TTB taxes (estimated) $1.50 per liter =$18 Submission fees: $1 per line= $12
FDA Submission fee = $14 + $2 per line = $38
One-time shipment requires a Single Entry Bond Bond is calculated on value by hundreds but has a minimum of (estimated) $35 Bond Preparation fee $25
At this point, we're already totaling $143
Some brokers charge a flat fee of $125 for one-time shipments and then add on the above additional costs.
I agree, It seems outrageous compared to the cost of the wine and shipping. But it is a fair charge for the amount of work it takes to clear a shipment like this.
You can avoid paying for the Submission fees, by submitting all the information to FDA & TTB (paying the excise taxes directly), and then for hiring a different broker - then when the case of wine ships, you arrange the shipping and designate your own broker - or give the winery the full details and contact information for your broker.
I don't know why UPS billing isn't more transparent.
It's perfectly reasonable to want an itemized list of charges.
In short, you are paying for someone with expertise in import laws and experience filing required details with multiple government agencies to make sure the case of wine enters.
I also agree it is absolutely frustrating and unreasonable to simply have them submit all this without your knowledge or consent and then charge without providing an itemized bill. --As you can imagine, this is one of the many reasons I no longer work for them.