UPS Imposes New Audit Fee

by LJM Group

Effective June 4th, 2018, UPS is penalizing customers for entering incorrect box dimensions.

This new Audit Fee is an attempt to force businesses to be more precise and accurate in their calculations, and thus ship more efficiently.

As stated by UPS:

  • The Audit Fee will be assessed if the average shipping charge correction in an invoice week is more than $5.00. The Audit Fee will be the greater of $1.00 per package subject to a shipping charge correction or 6% of the total amount of shipping charge corrections during the applicable invoicing period. Review the applicable UPS Rate and Service Guide starting on June 4, 2018 for further detail.

Reasons why you would be issued a SCC are as follows:

  • Incorrect or missing package dimensions resulting in corrected dimensional weight billed
  • Incorrect weight entered resulting in a reweigh or dimensional adjustment
  • Incorrect or missing package dimensions resulting in additional surcharges (like Additional Handling, Large Package Surcharge and Over the Max) with the updated dimensions

By charging an Audit Fee, UPS is effectively demanding that shippers correctly label their boxes and will now punish shippers who enter incorrect dimensional information either deliberately or by accident.

If you ship using UPS, it’s extremely wise to measure twice and ship once, to avoid these fees adding up on your monthly invoices.

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