On another thread there was some discussion on whether choice of delivery method really makes a measurable difference to average to import costs.

Based on a recent experience, I thought I’d post two case studies on how much it cost to import identical parcels worth $156.02 by two different methods. (My actual example was US to Canada, but the numbers are similar when importing to US or UK).

Case study: Two deliveries. Exact same items. Exact same value. Exact same retailer. Exact same customs declaration. Fully accurate declaration. Only difference -- delivery company. Item value $156.06.

Import costs via UPS:

GST $7.80
PST $10.92
UPS Brokerage Fees $41.05 (including taxes on their brokerage fees)
Total = $59.77

Import costs via USPS / Canada Post:

GST $7.80
PST $10.92
Canada Post Brokerage Fees $5
Total = $23.72

GST is General Sales Tax (5%). PST is Provincial Sales Tax (7%).

In the first case, the total import cost adds up to 38% extra on the original order value -- so it’s pretty significant cost. Worth thinking about!

Obviously there is an enormous difference between these two costs. The entire difference is due to UPS having a very much higher fee for collecting the very same taxes and duties. (Note: FedEx is much the same).

One delivery method incurs at least 60% less total import costs over the other.

There is a separate issue in that the second method is cleared by government agents (the CBSA), rather than a private customs broker (UPS), and the government agents often waive duty. UPS never do.

The bottom line here is that the second delivery method is always, repeatably, at least 60% cheaper than the first. Sometimes it is 100% cheaper (if duty/taxes are waived entirely), but it is NEVER less than 60% cheaper.

By careful choice of delivery service, the total import cost can be reduced significantly, and reliably so. Thus, to some extent, I tend to consider available delivery methods when making my purchasing decisions.

In my personal situation, this means if duty is involved, I’m happy to receive a parcel sent via USPS, or Japan Post, or Royal Mail, etc. but will think twice if FedEx, UPS or DHL are involved.

I hope this shared experience might help others considering international purchases.

Mike