Brokerage Fees UPS: 7 Ways to Avoid Them

UPS brokerage fees are charges imposed by UPS when they act as your customs broker for international shipments, particularly to Canada and Mexico. These fees vary depending on shipment value and service type, with recent increases taking effect in 2025-2026 that have raised entry preparation fees by a small amount per entry across different services.

Because Brokerage Fees UPS charges are applied automatically during customs clearance, most shippers don’t see the exact amount until the invoice arrives after delivery.

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For more information, see our complete guide: home shipping services.

For more information, see our complete guide: home shipping services.

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Q: How much do UPS brokerage fees cost in 2026? → A: UPS charges a minimum fee (see current UPS pricing) for Canada shipments when they pay duties and taxes on your behalf (2.7% of total), plus entry preparation fees that increased by a small amount per entry as of September 2025.

Understanding these costs upfront helps businesses and individuals make informed shipping decisions and explore alternatives like ParcelPath’s discounted UPS rates, which can reduce overall shipping expenses by 60-89% compared to retail pricing.

What Are UPS Brokerage Fees and How Much Do They Cost?

UPS brokerage fees are service charges assessed when UPS acts as a customs broker to clear your packages through international customs departments. UPS automatically handles customs clearance for most international shipments, charging these fees for their brokerage services whether you requested them or not.

As of September 2025, UPS increased entry preparation fees significantly across all service types. Entry preparation fees for air and ocean imports increased, while ground import fees increased per entry. These increases affect all shipments cleared by UPS Supply Chain Solutions entering the United States.

Current UPS Brokerage Fee Structure for 2026

UPS brokerage fees vary based on destination country and shipment characteristics. For Canada shipments specifically, UPS charges 2.7% of the total duty and tax amount, with a minimum fee when they pay duties and taxes on your behalf. An additional C.O.D. charge applies when duties and taxes haven’t been prepaid.

Reviewing the Brokerage Fees UPS structure before shipping helps avoid surprise C.O.D. charges at delivery.

For U.S. import shipments, a disbursement fee of 2% of duty and tax applies with a set minimum. Formal entries incur a Merchandise Processing Fee (MPF) of 0.3464% of the entered value, ranging from a set minimum to a set maximum.

Premium air international UPS services like UPS Worldwide Express and UPS Worldwide Express Saver include entry preparation fees in their shipping costs. However, UPS Standard service to ground destinations typically charges these fees separately unless the item value exceeds the Canada duty threshold. Understanding how long UPS delivery takes for international services can help you plan around these fee structures.

Why Does UPS Charge Brokerage Fees for International Shipments?

UPS charges brokerage fees because they automatically act as the customs broker for international shipments, handling all customs clearance procedures on behalf of the shipper and recipient. This service includes preparing customs documentation, calculating duties and taxes, and ensuring compliance with destination country regulations.

The two primary components of UPS brokerage fees are entry preparation fees and disbursement fees. Entry preparation fees cover the administrative work of processing customs documentation and clearance procedures. Recent fee increases in September 2025 raised these charges across all import types, reflecting increased operational costs and regulatory requirements.

Disbursement fees apply when UPS pays duties, taxes, or other charges on your behalf to customs authorities. As of 2026, UPS charges a disbursement fee of 3.5% of outlays with a set minimum for U.S. imports, while Canada shipments incur the 2.7% fee structure mentioned earlier.

Which UPS Services Include Brokerage Fees?

UPS includes brokerage fees differently depending on the service level selected. Premium air services like UPS Worldwide Express, UPS Worldwide Express Saver, and UPS Worldwide Expedited typically include entry preparation fees in their published shipping rates, making the total cost more transparent upfront. If you’re wondering about international shipping options with UPS, comparing these different service levels is crucial for managing total costs.

UPS Standard service, which uses ground transportation to Canada and Mexico, charges brokerage fees separately in most cases. For Canada specifically, routine customs clearance fees only apply when the item value for duty purposes exceeds the threshold, providing some relief for lower-value shipments.

Understanding which services include these fees helps shippers compare true total costs. While premium services may appear more expensive initially, the included brokerage handling can make them competitive when factoring in all fees for UPS Standard shipments.

How Can You Avoid or Minimize UPS Brokerage Fees?

Several strategies can help reduce or eliminate UPS brokerage fees when shipping internationally. The most effective approach is understanding which fees are mandatory versus optional and taking proactive steps to handle certain processes independently.

Processing packages through customs independently eliminates entry preparation fees entirely. This involves completing customs forms yourself, ensuring proper documentation, and arranging for the recipient to handle customs clearance directly. While this requires more effort, it can save on per-shipment fees depending on the fee structure. For proper documentation, knowing how UPS tracks and scans packages throughout the customs process is essential.

Pre-paying duties and taxes directly to customs authorities avoids UPS disbursement fees. When duties and taxes are settled before shipment or upon arrival through official customs channels, UPS cannot charge their percentage-based disbursement fees for handling these payments.

Alternative Shipping Services That Reduce Brokerage Costs

Choosing shipping services during off-peak times can reduce overall costs, though brokerage fees themselves remain constant. However, lower base shipping rates during off-peak periods make the total cost more manageable even with brokerage fees included. For those shipping to specific international destinations, learning about UPS delivery to Mexico can help you understand regional fee variations.

Splitting high-value shipments into multiple lower-value packages may trigger different fee thresholds. For Canada shipments, keeping individual package values under the duty threshold can avoid routine customs clearance fees with UPS Standard service, though this strategy requires careful consideration of total shipping costs versus brokerage savings.

Comparing Brokerage Fees UPS totals against a flat-rate USPS international option is often the simplest way to confirm which carrier is cheaper for a specific shipment.

What Happens If You Don’t Pay UPS Brokerage Fees?

Refusing to pay UPS brokerage fees results in significant shipping delays and potential package return to sender. UPS will hold packages at customs facilities until all brokerage fees, duties, and taxes are paid in full, regardless of the recipient’s preference.

Unpaid brokerage fees can accumulate storage charges at customs facilities, adding to the total cost burden. After a certain period (typically 15-30 days depending on the destination country), customs authorities may return packages to the sender at the shipper’s expense or dispose of them according to local regulations. Understanding UPS delivery attempt policies is also important for international shipments with outstanding fees.

Recipients cannot bypass UPS brokerage fees by arranging independent customs clearance after UPS has already initiated the clearance process. Once UPS begins acting as the customs broker, they maintain control of the clearance procedure and associated fees until completion or package abandonment.

Recent Changes to UPS Brokerage Fee Policies

UPS implemented significant brokerage fee increases throughout 2025-2026, reflecting broader industry trends toward higher customs processing costs. The September 2025 increases of a small amount per entry affect all importers using UPS Supply Chain Solutions for customs clearance.

Additional administrative fees introduced in 2025 include a charge for printed invoice copies and fees for check or wire transfer payments. Late payment penalties increased from 8% to 9.9% of past-due balances, making timely payment of brokerage fees more critical.

Recent tariff policy changes have led to increased scrutiny of international shipments, potentially triggering more formal entry procedures and higher associated fees. Shippers should factor these evolving costs into their international shipping budgets and consider alternatives when possible.

How Does ParcelPath Help Save Money on UPS Shipping Costs?

ParcelPath offers discounted UPS shipping rates starting at 60-89% below retail pricing, helping offset the impact of unavoidable brokerage fees on total shipping costs. While ParcelPath cannot eliminate UPS brokerage fees themselves (as these are imposed by UPS regardless of how you purchase shipping), the significant savings on base shipping rates make international shipping more affordable overall.

The ParcelPath platform provides transparent rate comparison tools that show total estimated costs including potential brokerage fees upfront. This visibility helps shippers make informed decisions about service levels and destinations before committing to shipments.

ParcelPath’s 100% free platform eliminates subscription fees that other shipping platforms charge, ensuring that saved shipping costs aren’t offset by monthly or annual platform fees. Small businesses and individuals can access commercial UPS rates without minimum volume commitments or long-term contracts.

Smart Shipping Strategies to Minimize Total International Costs

Combining ParcelPath’s discounted rates with strategic service selection optimizes total shipping costs. Choosing UPS Worldwide Express through ParcelPath includes entry preparation fees in the discounted shipping rate, providing both speed and cost transparency.

For Canada and Mexico shipments, comparing UPS Standard rates through ParcelPath against USPS international services helps identify the most cost-effective option. USPS doesn’t charge separate brokerage fees, while ParcelPath’s UPS discounts may make UPS competitive even with brokerage fees included. The key differences between UPS and USPS become especially important when evaluating total international shipping costs.

Businesses shipping regularly to the same international destinations should calculate total monthly costs including all fees across different carriers and service levels. ParcelPath’s rate comparison tools make these calculations straightforward, enabling data-driven shipping decisions.

Tracking Brokerage Fees UPS charges month over month also helps businesses decide when it’s worth switching a shipping lane to USPS entirely.