Multiple UPS customers are reporting significant tariff classification errors affecting shipments to the United States, with many being incorrectly charged the 200% Russian aluminum duty rate for goods containing no aluminum. The shipping giant faces growing complaints about erroneous billing, package delays, and communication challenges as customers struggle to resolve these costly mistakes.
Widespread Tariff Misclassification Issues
According to investigations by Business Insider, numerous UPS customers have received bills applying the maximum tariff rate for Russian aluminum to shipments containing entirely different materials. The 200% duty rate represents one of the highest tariffs that American customs officials can charge, yet customers report this rate being applied to everything from steel swords to carbon fiber auto parts.
One California-based business discovered their $1,098 shipment of Canadian steel swords had been tariffed at $2,074 after UPS classified the items as eight pounds of bulk aluminum from Russia. Despite the supplier using correct classification codes for outdoor sporting equipment, the shipment was processed under the incorrect category, leaving the business facing substantial unexpected costs.
Customer Experiences with Erroneous Charges
Sean Dickinson, facilities manager at SoCal Swords, described the frustration of receiving a tariff bill nearly double the value of his actual shipment. “We ordered recreational swords from a Canadian artisan, only to discover UPS had categorized them as Russian aluminum,” Dickinson explained. “Now we’re concerned they won’t release our shipment without payment at this incorrect rate.”
The problem extends beyond individual consumers to business owners shipping between North American countries. Kunal Sharma, a Canadian auto-parts business owner, shipped a $200 carbon-fiber car part to a US customer only to encounter a $400 customs bill incorrectly applying the Russian aluminum tariff. “There’s not any aluminum in this product,” Sharma emphasized, noting the complete mismatch between the actual shipment contents and the applied tariff classification.
Systemic Challenges and Customer Service Failures
Matt Collinson, president of Canada-based Mr. Speedometer, reported that erroneous tariff charges began appearing shortly after the end of the de minimis tariff exemption in late August. “It’s almost as if UPS’s system is so slammed that they don’t know how to handle the volume, or they just have people not knowing what they’re doing,” Collinson stated. “A lot of stuff is clearly falling through the cracks.”
Collinson’s experience highlights the broader systemic issues, with packages being returned, customers facing unexpected tariffs, and some shipments left in indefinite limbo. The business impact has been substantial, costing thousands in reshipping costs and tariff fees, plus countless hours spent on customer service calls attempting to resolve the classification errors.
UPS’s Official Response and Process Explanation
When contacted for comment, a UPS spokesperson declined to address the specific instances of seemingly inaccurate tariff rates. The company emphasized that “UPS uses customer-supplied information about a shipment to calculate the duties and fees, based on regulations from CBP and other government agencies.”
The spokesperson described UPS’s “rating” process, which considers specific imported items and their country of origin, noting that UPS brokers are “highly trained and use sophisticated technology to ensure accuracy in calculating the appropriate duty and fees due.” However, this assurance contrasts sharply with customer experiences of repeated classification errors affecting multiple shipments.
Broader Implications for International Shipping
The tariff classification issues coincide with other logistical challenges affecting UPS shipments bound for the United States. Business Insider previously reported that UPS had warned some customers their packages were marked for destruction after sitting for extended periods at UPS facilities. This combination of classification errors and shipping delays creates significant uncertainty for businesses relying on international shipping.
Jim Legary, chief operating officer of Canadian company Aquaventronics, experienced different but equally problematic tariff issues. Shipments that should have been duty-free under the United States-Mexico-Canada Agreement were instead tariffed at 35%, generating unexpected bills of approximately 1,100 Canadian dollars. Despite reaching out to UPS executives and receiving promises of investigation, Legary reported no resolution or reimbursement months later.
Technological Context and Industry Parallels
These shipping and classification challenges emerge as other industries face their own technological implementation issues. Recent developments in artificial intelligence systems demonstrate how complex classification tasks can generate errors when systems are overwhelmed or improperly configured. As AI supercomputing advances, the expectation for accurate automated classification increases across all industries, including logistics and customs processing.
The situation also parallels challenges in other technology sectors where system updates and policy changes create temporary disruptions. Recent Windows 11 updates and Firefox VPN integration tests show how even established technology companies face implementation challenges when deploying new systems or policies. Similarly, browser security enhancements and brand stability concerns in other sectors reflect the broader pattern of technological growing pains affecting customer experiences.
Resolution Challenges and Customer Impact
Customers report extreme difficulty contesting the erroneous charges, with many describing the process as laborious and often impossible. The combination of high tariff rates, classification errors, and limited customer service options creates significant financial pressure, particularly for small businesses operating with tight margins.
In one documented case, a customer needing a $53 rotational cable for a Ford vehicle paid a 250% tariff charge because they urgently required the part. The invoice showed most of this charge came from the incorrect application of the 200% Russian aluminum tariff, demonstrating how these classification errors directly impact end consumers beyond the shipping customers themselves.
As technology supply chains evolve and international trade becomes increasingly complex, accurate classification and transparent communication become critical for shipping providers. The current situation at UPS highlights the need for improved systems, better customer communication, and more efficient dispute resolution processes for tariff classification errors affecting international shipments.
