Are UPS allowed to charge brokerage fees

JustSO

I have purchased wine from Spain which cost EUR25 and shipping costEUR30 but UPS won't release it to me unless I pay their brokerage charge of GBP23 which in consideration of the cost of the item is extortionate and actually ammounts to the cost of the wine. I also understood the value to be well below the threshold for having to pay duty. Is this allowed to be charged and can it be claimed back if I pay it.

visidigi

Yes they can charge it to cover the prepay - its a minimum fee or a %, whichever is greater.
Yes you can not pay it next time by choosing a broker yourself (unlikely to be cheaper) or doing the clearance yourself.(an absolute pain).
What are you going to claim back exactly? They have provided the service.

prowla

Yes - their fees are stated up-front.

£23 does seem awfully high, though - is it all their fee or import duty + tax + fee on 55 Euros?

Sandtree

You paid €30 postage for a €25 bottle of wine? 

As you are importing wine there will be excise duty to pay as well as VAT and unlike customs duty, excise duty has no minimum value before it applies.

I've never had to deal with Excise but wonder if this is the trigger of the higher brokerage? That said if you think that is the total charge rather than just the brokerage then it may add up across the three fees

Caz3121

JustSO said:

I have purchased wine from Spain which cost EUR25 and shipping costEUR30 but UPS won't release it to me unless I pay their brokerage charge of GBP23 which in consideration of the cost of the item is extortionate and actually ammounts to the cost of the wine. I also understood the value to be well below the threshold for having to pay duty. Is this allowed to be charged and can it be claimed back if I pay it.

https://www.jancisrobinson.com/articles/importing-wine-post-brexit
how is the £23 broken down....looks like c£9.50 would be VAT, there would be Excise Duty and the UPS handling charge for managing the clearance on your behalf

MattMattMattUK

JustSO said:

I have purchased wine from Spain which cost EUR25 and shipping costEUR30 but UPS won't release it to me unless I pay their brokerage charge of GBP23 which in consideration of the cost of the item is extortionate and actually ammounts to the cost of the wine. I also understood the value to be well below the threshold for having to pay duty. Is this allowed to be charged and can it be claimed back if I pay it.

For customs purposes the value of the goods is €55, customs fees are changed on goods, freight and insurance (So someone can not charge a pound for the item and a hundred for the insurance and fright). To import wine you will be charged duty (excise goods are exempt from the threshold), you will the be charged VAT on the value of the goods, freight, insurance and duty, finally UPS will charge you a fee for their services, this is usually higher for excise goods than it is for a general import due to the additional handling that excise goods require.

mattyprice4004

You need to read up on the fees, duties and taxes due BEFORE ordering from the EU - with all due respect it's quite clear you didn't, and post-Brexit this will be a common theme. 
You have likely been charged VAT (on the whole amount inc shipping) and then UPS' fee on top - they don't work for free, and they pay the VAT in advance and then reclaim it from you later. 
In short, thanks to the mindless many that voted for Brexit this is now just how the process is, and it's an absolute nightmare. 
Yes, the fees are valid and no, you can't claim them back. 

sheramber

JustSO said:

I have purchased wine from Spain which cost EUR25 and shipping costEUR30 but UPS won't release it to me unless I pay their brokerage charge of GBP23 which in consideration of the cost of the item is extortionate and actually ammounts to the cost of the wine. I also understood the value to be well below the threshold for having to pay duty. Is this allowed to be charged and can it be claimed back if I pay it.

There is no minimum for paying duty now- since 1 Jan.

powerful_Rogue

mattyprice4004 said:

You need to read up on the fees, duties and taxes due BEFORE ordering from the EU - with all due respect it's quite clear you didn't, and post-Brexit this will be a common theme. 
You have likely been charged VAT (on the whole amount inc shipping) and then UPS' fee on top - they don't work for free, and they pay the VAT in advance and then reclaim it from you later. 
In short, thanks to the mindless many that voted for Brexit this is now just how the process is, and it's an absolute nightmare. 
Yes, the fees are valid and no, you can't claim them back. 

Bit harsh just because you diasgree with what people voted.

Regardless, even before there was customs duties on excise goods if you was not travelling with them.

Sandtree

sheramber said:

JustSO said:

I have purchased wine from Spain which cost EUR25 and shipping costEUR30 but UPS won't release it to me unless I pay their brokerage charge of GBP23 which in consideration of the cost of the item is extortionate and actually ammounts to the cost of the wine. I also understood the value to be well below the threshold for having to pay duty. Is this allowed to be charged and can it be claimed back if I pay it.

There is no minimum for paying duty now- since 1 Jan.

Yes there is for customs duty, its VAT that the low value threshold was removed for. https://www.gov.uk/goods-sent-from-abroad/tax-and-duty

What there is no minimum, and never was, was for excise duty