@dizingof
Sorry to bring bad news, but i doubt UPS can do anything to help, they are probably just obeying your country's law.
Here in Argentina it's much harsher than wherever you live though. Here the tax-free import limit is 25 US dollars PER YEAR, (on a single package, that means, you use your whole "tax credit" on the first package you get in the whole fiscal year, even if it's $5) The taxes here are about 50% of the CIF, that is Declared value + Insurance + Freight (yes freight is included) plus a AR$5 (~$1.5) fee to the customs officials for basically taking you to a small room, give you your package and a knife, see you opening it, listing every of it's contents and writing a bill in horrible handwriting (Great value!). Oh, i should add, customs sometimes ignores the "gift" checkbox in the customs declaration forms, and if there is no value or it looks like too low, the law says they have right to estimate the values themselves based on a table i couldn't find anywhere.
If you ship trough UPS you pay UPS do to all that (dealing with your customs, which, having dealt with my own myself, can range from meh to a pretty crappy experience, depending on who is in charge in the precise moment you go), which means an important fee like you listed. For people like me that worse than living in Argentina, lives in any place other than Buenos Aires, things can go worse since they don't bring stuff to the local customs, but are dealt by UPS employees in Buenos Aires. I have heard of many horror stories of exorbitant fees because you did not only have to pay UPS to deal with the customs you also have to pay the shipment from Buenos Aires to wherever you happened to live. That's why i avoid UPS and instead rely on USPS that ships to my local post office.
Lol, i can't believe i wrote such a long rant, hehe, but having a girlfriend abroad gave me some experience and hours of research on the topic.
Anyway, i think you should contact the authorities of your country and/or read up on the tax/import law in your jurisdiction. Maybe if you establish as an official business or importer you can get some tax cuts.
TL;DR
Import law in many countries suck for common people.... but they sometimes make some sense in the context they were created.