Why did UPS or FedEx charge a fee on top of the duty?
Couriers charge their own fee for clearing a parcel through customs, separate from duty and tax. Here is what it is, why it can be bigger than the duty, and how stores avoid it.
By the Othermile team
Short answer: the extra charge is the courier's own fee for clearing the parcel through customs, often called brokerage or a clearance fee. It is not a government charge. It is added to any duty and sales tax, and on a small order it can be the biggest part of the bill.
What the courier is charging for
When a parcel crosses the border, someone has to declare it to customs and pay any duty and tax up front. Couriers such as UPS, FedEx, Purolator and DHL do that for you, then collect the money at the door with a fee for the service. The fee usually depends on the value of the parcel and on the service used, and it is separate from:
- Duty: set by the product's tariff code and where it was made.
- Sales tax: GST or HST into Canada, charged on the value plus any duty.
Canada Post works differently: it adds a flat handling fee of C$9.95 on mail that owes duty or tax.
Why the fee can be bigger than the duty
Many small parcels owe little or no duty. A US made T shirt worth C$80 sent by courier to Ontario owes no duty, but it owes 13% HST, about C$10.40. The courier's clearance fee comes on top, so the shopper can pay more in fees than in tax.
How stores avoid the surprise
- Charge it at checkout. When the store pays the border charges (shipping duty paid), the courier bills the store, and the customer pays nothing at the door.
- Pick the service with care. Some services include clearance, and fees differ between carriers.
- Show the cost before checkout. A line on the product or cart page saying what a customer in Canada may pay at the door stops the surprise and the refused parcel.
Check your own numbers
- One parcel: the free border fee checker.
- Your store's last 90 days: the free border cost audit, which reads your orders export in your browser.
- Every order, before it ships: Othermile checks each one against your limits and holds the costly ones for your OK.
These are estimates from the official rules, not customs advice.
This guide explains public rules in plain language for general information. It is not customs, tax or legal advice; the exact tariff code, your paperwork and the carrier decide the final amount.
See what your own orders cost at the border.
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Keep reading
Will my US customer pay duty on an order from my Canadian store?
Since August 2025 the US charges duty on small parcels too. Goods that qualify as made in North America can still enter free; others pay their duty and sometimes extra tariffs.
Do I pay duty on a parcel from the US to Canada?
Often no duty, but often tax. It depends on the value, on mail or courier, and on where the goods were made. Here are the limits and two worked examples.
What your Canadian customers pay at the door, and why
Duty, sales tax and a handling fee can turn a C$45 order into a C$57 surprise. Here is what the charge is made of, why mail and courier differ so much, and four ways to stop it.