What are customs disbursement fees?

If you have ever had a package held at the border, you probably saw a charge on your bill called a "disbursement fee," "handling fee," or "brokerage fee." It can be frustrating when the fee is almost as much as the tax itself.

1. What is a disbursement fee?

A disbursement fee is what a courier (like DHL, FedEx, or UPS) charges you for paying the customs duties and taxes to the government on your behalf.

Think of it as a small loan. Instead of the package stopping at the border for days while they wait for you to pay the tax, the courier pays it immediately to keep the package moving. They then bill you for the tax plus a fee for the service.

2. Why do I have to pay it?

Couriers are private companies, not government agencies. They don't have to handle your taxes for free. They justify these fees by saying it covers the administrative costs of the paperwork and the financial risk of paying money they might not get back from you.

3. How much are these fees?

The amount varies by courier and country. Here are some typical examples:

• DHL: Often charges around 2% of the tax amount, with a minimum of £11 or €15.
• FedEx: Usually charges a flat fee of about £12 or €15 for low-value shipments.
• UPS: Can charge "brokerage fees" that scale with the value of the package.
• Royal Mail: Charges a flat "handling fee" of £8.

4. Can I avoid paying these fees?

The easiest way to avoid these fees is to pay VAT at checkout. When a store uses a system like IOSS (in the EU) or handles UK VAT correctly, there is no tax to pay when the package arrives. Since the courier doesn't have to do any extra work, they won't charge a fee.

Another way is to use a slower, postal-based shipping method (like China Post or USPS) instead of an express courier (like DHL or FedEx). While postal services still charge fees, they are usually lower and sometimes packages aren't stopped at all.

5. What if I refuse to pay?

If you refuse to pay the disbursement fee, the courier will not deliver your package. After a few weeks, they will either return it to the seller or destroy it. In most cases, you won't get a refund for the item from the seller because it's your responsibility to pay import fees.