UPS charges a 'brokerage' fee for performing customs clearance for packages being shipped to Canada, details are available on the UPS website:
http://www.ups.com/content/ca/en/shipping/cost/zones/customs _clearance.html
I've encountered this when purchasing goods from the United States from vendors that ship via UPS standard. Accordingly, whenever possible, I request that they ship via a different carrier that does not charge such fees, such as the United States Postal Service (which then hands off to CanadaPost), or FedEx.
I've never received a shipment via UPS from overseas, whenever I've bought from the United Kingdom, the vendor has always chosen to use the Royal Mail.
Another informative webpage regarding this issue is:
http://www.stokecity.ca/orderfromus.shtml which provides a good overview of the situation from the perspective of shipping from the US to Canada, but is equally (with the exception of NAFTA) valid for shipments from other origins.
Last edited: Oct 27, 2008