8 mins read

Hidden Fees in Cross-Border Shipping and How to Avoid It

Sahiba Cuccria

September 26, 2025

Sahiba Cuccria is a Marketing and Content specialist at eShipper. She creates clear, practical content that helps businesses understand complex shipping processes and improve their supply chain efficiency.

Hidden Fees in Cross-Border Shipping

As a Canadian seller, you’ve likely noticed the surge in cross-border shipping fees with the United States. According to Grandview Research, the global logistics market is likely to reach USD 5,951.0 billion by 2030, growing at a CAGR of 7.2% from 2024 to 2030. This means demand for fast, reliable, and cost-effective shipping is only going to increase.

However, with new regulations, evolving tariffs, and the upcoming end of the De Minimis program under Section 321, your shipments to the U.S. may attract unexpected costs. While CUSMA exemptions still apply for certain goods, any product outside the criteria can be subject to hidden customs charges. 

If you’re not prepared, these fees can affect your shipments and your customer experience too. As a seller, that’s the last thing you’d want for your business. 

To help you navigate better, this guide will break down the direct vs. hidden costs of cross-border shipping fees, show you where sellers like you might face additional charges, and offer practical strategies to reduce these fees to ensure you stay compliant every step of the way.

Direct vs. Hidden Costs in Cross-Border Shipping

When shipping products to the U.S., some costs are transparent:

  • Duties, tariffs, and brokerage fees for DDP or DDU services
  • Applicable taxes and customs processing fees

Other costs are less obvious and can catch sellers off guard, including:

  • Hidden customs charges for non-CUSMA products
  • Fees due to shipment handling, delays, or address corrections
  • Stacking of multiple tariffs such as IEEPA, Section 232, and reciprocal tariffs

Understanding these distinctions can help you manage your shipping strategy as a seller and avoid unexpected expenses.

Major Hidden Fee Categories

Brokerage Fees

Brokerage fees (Canada/U.S. shipments) now apply to most shipments, except where express or expedited services include them. As a seller you should be aware that:

  • Every non-exempt product may attract a per-package brokerage fee.
  • Consolidation of shipments can reduce the overall cost.
  • Missing or inaccurate customs documentation can increase fees.

Tariffs and Duties

Canadian goods shipped to the U.S. may be subject to:

  • 35% tariffs for non-CUSMA eligible products
  • CUSMA exemptions for eligible products, avoiding IEEPA and other new tariffs
  • Reciprocal tariffs that vary by country (Canada and Mexico excluded from certain charges)
  • Section 232 tariffs on automobiles, auto parts, copper, steel, and aluminum derivatives

Tariff stacking hierarchy allows up to 32 tariff numbers per commodity, which creates complex duty calculations.

Example Table: Duties and Fees Impact

Product ScenarioDuties/Fees without CUSMADuties/Fees with CUSMA
Canadian-made, China-sourced components$887$0
Canadian-made, non-CUSMA$1,000+$0
Canadian-made, CUSMA-certified$0$0

Note: Misrepresentation of a product’s country of origin can trigger penalty charges and additional scrutiny from customs authorities. Additionally, if a product is 50% Canadian and 50% Chinese in origin, duties and fees may still apply even under the CUSMA (Canada-United States-Mexico Agreement), depending on whether the product meets CUSMA's "rules of origin" requirements for preferential tariff treatment.

Package Handling and Storage

As a seller, you may also face:

  • Oversize package surcharges
  • Delivery reattempt fees
  • Storage fees for shipments held in transit or at customs

For instance, Canadian appliance prices have risen due to U.S. counter-tariffs and rising steel prices. According to the BBC, refrigerators and freezers increased by 2% on average, and dishwashing and laundry appliances rose 4.5% year-over-year.

Currency Conversion Fees

Shipments billed in USD may incur conversion charges depending on the bank or payment processor used. This adds to the hidden cost of cross border shipping fees.

Consumer Behaviour: Preference for Canadian-Made Goods

Demand for Canadian-made goods is increasing due to trade tensions and tariffs. Canadians prefer domestic products, creating an opportunity for you as a seller:

  • According to the National Post, consumers are more loyal to Canadian goods and avoid “Made in America” products.
  • NielsenIQ reports that 45% of consumers show heightened loyalty to Canadian-made products.

You can capitalize on this trend but should carefully manage cross border shipping fees to maintain competitiveness.

Export Market Concentration

Data from Statistics Canada shows:

  • Top 50 exporting enterprises generated nearly 50% of Canadian goods exports in 2024.
  • 84 enterprises exported over $1 billion worth of goods each.

As a small business owner, you may need strategies to reduce hidden customs charges and remain competitive internationally.

De Minimis Section 321 and Impact on Fees

Fiscal YearTotal De MinimisTotal De Minimis Value (USD)
2020636.7M67B
2021771.5M43.5B
2022685.4M46.5B
20231B54.5B
20241.36B64.6B
2025 (May–June)59.3M6B

The decline in 2025 reflects the end of Section 321, meaning more shipments are now subject to brokerage and customs charges.

eShipper U.S. Shipping Solutions

Sellers looking to manage cross border shipping fees efficiently can rely on eShipper’s tailored services. At eShipper, solutions are designed to minimize hidden customs charges, simplify customs clearance, and ensure smooth delivery to U.S. customers.

1. National Carriers – DDU / DDP

  • DDP (Delivered Duty Paid): Duties, tariffs, and clearance fees are prepaid by the seller.
  • DDU (Delivered Duty Unpaid): Duties, tariffs, and fees are collected from the customer upon delivery.
  • Express and Expedited Services: Brokerage fees are included, subject to terms and conditions.

2. Cross Border Services – DDP

Continue using carriers like USPS and DHL eCommerce, with customs clearance handled in advance by a licensed broker.

Benefits:

  • Brokerage fees are applied per package; consolidation options reduce costs.
  • Tariffs & duties are calculated upfront based on HTS code; CUSMA-certified products are exempt.

How it works:

  • Generate USPS/DHL labels as usual.
  • Contact your eShipper Account Manager to get set up.

3. Canada Post

  • DDU is replaced with DDP to prepay duties and fees.

4. UPS Shipments – Clearance Changes Effective August 29

  • UPS will clear all U.S.-bound shipments directly; third-party brokerage is no longer available.

What this means for you as a seller:

  • Shipment costs include entry fees, brokerage fees, and applicable tariffs/duties.
  • Required documents: Certificate of Origin (for CUSMA shipments), invoices, and customs forms.
  • eShipper can handle UPS clearance on your behalf.

Strategies to Minimize Hidden Fees

  1. Use DDP shipping services to prepay tariffs, duties, and brokerage fees.
  2. Verify CUSMA eligibility for duty-free shipping.
  3. Accurately classify products using HTS codes.
  4. Consolidate shipments to reduce per-package fees.
  5. Submit all documentation in advance to avoid storage and delay fees.
  6. Track charges to identify opportunities for cost reduction.

Additionally, you should:

Declare the Correct Sale Value

Always declare the sale price of your goods, not the purchase cost. Under-declaring may seem tempting, but it can trigger penalties, re-assessments, and even seizure of shipments.

Work with a Licensed Customs Broker

A broker ensures your HTS codes, tariff classifications, and certificates of origin are correct. Mistakes in these areas are one of the top reasons sellers get hit with unexpected duties or reprocessing fees.

Leverage Landed Cost Calculations

Ask your logistics provider for a full landed cost estimate (including duties, brokerage, and surcharges) before confirming shipments. This gives you price transparency and avoids surprises that eat into profit margins.

Stay Ahead of Regulatory Updates

Tariff rules under Section 232, reciprocal tariffs, and the recent removal of the U.S. De Minimis threshold can change quickly. By monitoring updates—or relying on a partner like eShipper that tracks them—you prevent last-minute costs.

Use Technology to Track Fee Patterns

Many multi-carrier platforms provide detailed reporting on your shipments. Reviewing these reports helps identify recurring hidden fees such as reattempt charges or dimensional surcharges, so you can adjust your shipping strategy.

Negotiate with Carriers

Sellers often overlook the fact that carriers may waive or reduce certain handling fees for high-volume shippers. Even small businesses can benefit by consolidating through a platform like eShipper to access enterprise-level discounts.

Prevention Checklist

Prevention checklist

Case Study: Appliance Exporter

A Canadian appliance seller shipping to the U.S. initially used DDU. Hidden fees, including brokerage fees and tariffs, caused delivery delays and customer complaints. By switching to DDP, consolidating shipments, and pre-submitting documentation, the seller eliminated hidden charges and improved delivery experience.

Comparison Table: Canada → U.S. vs. U.S. → Canada Fees

Fee TypeCanada → U.S.U.S. → Canada
Brokerage FeesApplies except DDPApplies except express services
Tariffs35% non-CUSMAReciprocal tariffs may apply
Storage FeesPossible for delayed customs clearanceSame
Oversize PackageYesYes
Delivery ReattemptYesYes

Conclusion

Navigating cross border shipping fees can be challenging for you if you are a Canadian seller, especially with the end of the De Minimis program and evolving tariffs and duties. Hidden customs charges, brokerage fees, and other handling costs can impact your shipments if not carefully managed.

By using DDP shipping, verifying CUSMA eligibility, consolidating shipments, and submitting accurate documentation in advance, you can minimize unexpected charges and ensure smooth delivery to U.S. customers. Staying informed about tariffs, fees, and regulatory changes is essential for maintaining competitiveness.

With the right strategies and solutions offered by leading logistics solution providers like eShipper, you can continue exporting efficiently to the U.S. while keeping costs manageable.

FAQ

How much is cross-border shipping?

Costs vary depending on carrier, service type (DDP or DDU), package size, and destination. Hidden customs charges and brokerage fees may apply.

What is a hidden shipping fee?

Fees not immediately visible when creating a shipping label, such as customs brokerage, storage, or oversize surcharges.

What are the hidden costs of shipping?

Examples include brokerage fees, tariffs for non-CUSMA goods, delivery reattempt charges, storage fees, and currency conversion fees.

How to avoid brokerage fees for Canada/U.S. Shipments?

Use DDP services, verify CUSMA eligibility, consolidate shipments, and pre-submit all customs documentation

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