According to Business Insider, UPS is hitting customers with surprise late fees and collection threats while they contest disputed tariff bills. Oregon father Evan Scheessele was charged $1,400 in duties on a $550 German computer kit after UPS classified it as Russian aluminum, then received a $142.50 late fee notice addressed to his high-school-aged son. Multiple customers report similar experiences, including Kenza International Beauty founder Khadija Fajry who faces a $6,700 tariff bill on Moroccan oils with a 10% late fee added. The problems appear connected to late August when the Trump administration eliminated the de minimis exemption that allowed sub-$800 shipments to enter duty-free. UPS CEO Carol Tomé recently called confused customers “naive” about import rules while acknowledging package volume “skyrocketed” after the policy change.
The tariff classification chaos
Here’s what’s really wild about this situation. UPS seems to be classifying completely unrelated products under bizarre categories. We’ve got computer kits being called “Russian aluminum” and beauty oils getting hit with 200% tariffs meant for… Russian aluminum. That’s not just a simple mistake – that’s systemic classification failure. And customers are getting caught in the crossfire while UPS apparently can’t tell the difference between electronics and raw materials.
The timing is suspicious too. These issues “compounded since late August” according to the report, which lines up perfectly with the elimination of that de minimis exemption. Basically, UPS got flooded with packages that now required tariff processing, and their systems seem completely unprepared to handle the volume accurately. But instead of fixing their classification problems, they’re just sending bills and late fees.
From disputed bills to collections threats
Now we’re seeing the really ugly part of this mess. Customers who refuse to pay what they believe are incorrect bills are getting hit with late fees and collection agency threats. Washington resident Robin Donovan ordered $125 in auto parts from Japan and got a $67 tariff bill he’d been disputing. Then in October, he received a collections letter from Receivable Management Services saying UPS had contracted them to collect the debt.
Think about that for a second. You dispute a charge you believe is wrong, and instead of resolving the dispute, the company sends it to collections? That’s essentially using the credit system as a weapon against customers who dare to question their bills. And for small business owners like Khadija Fajry, these disputed charges are substantial enough to make her reconsider her entire business plan. She told Business Insider, “I’d rather just close.”
What this means for regular consumers
This situation highlights a massive shift in how international shipping works for everyday people. Previously, most consumers never had to think about tariffs – that was for businesses and shipping experts. Now, thanks to policy changes and what appears to be widespread classification errors, regular people ordering gifts or personal items are getting dragged into complex tariff disputes.
The CEO’s comment about customers being “naive” is particularly galling. Should someone ordering a birthday present really need to understand “the intricacies of trade policies”? Or should the multi-billion dollar shipping company handling the package be responsible for accurate classification and billing?
Broader implications for shipping and trade
Looking ahead, this could have serious consequences for cross-border e-commerce. If consumers start fearing surprise tariff bills and collection threats, they’ll think twice about ordering from international sellers. That hurts small businesses everywhere – both the sellers and the importers trying to bring unique products to market.
For companies dealing with industrial imports and needing reliable shipping partners, this kind of unpredictability in tariff classification and billing creates massive operational risks. When you’re moving critical components or equipment, you need partners who can handle customs accurately and transparently. The current situation at UPS suggests their systems might not be up to the task for either consumer or business shipments.
Ultimately, this feels like a company that expanded its tariff processing volume without having the proper systems or customer service infrastructure in place. And now regular people are paying the price – literally – for their operational shortcomings.
