Quote -> Quote - erm Starlet?

the problem is not the Custom and Tariff fees. it's the PROCESSING fee UPS add on.

I found the charge I got hit with - Custom and Tarriff - $8. UPS "processing fee" $37.

afaik, that is still out of our control, and part of the processing through customs.

Actually, it is in SM's control :)
They simply have to either switch carriers or offer a choice of carrier to their customer at the time of order processing. 

In a nutshell, people are not complaining about legitimate charges such as taxes and duty. What they are complaining about are the additional fees that UPS tacks on such as "UPS processing fee" , the "COD fee" that they tack on on top of the duty, taxes and processing fee because they are having to now collect money from you at your door.  And to top that off, they add tax to the whole kit and caboodle.  

The class action lawsuits sum it up nicely:

Quote - UPS failed to obtain consumers’ consent to act as a customs broker; to disclose the existence and/or amount of the brokerage fee; and to provide consumers with the opportunity or disclose to them how to arrange for customs clearance by themselves.

There are ways for the customer to avoid having to pay these extortion fees from UPS:

1.  The company shipping the item could send it via another carrier such as:
   FedEx
   USPS
   UPS Worldwide Express
   UPS worldwide Express saver
   UPS Worldwide Expedited

2.  The customer can attend at the UPS office in their city and process the package through on their own. This way they pay only the applicable taxes and duty.

However, neither are in the control of the customer because:

1.  The company shipping the parcel determines the mode of shipping.

2.  UPS doesn't contact the customer to let them know there is a package there for them. They do not give the customer a choice of whether they want to clear the package themselves or if they want UPS to do it for them.  UPS  just goes ahead and acts as the broker and then charges their fees for having done so.

"It is good to see ourselves as others see us. Try as we may, we are never
able to know ourselves fully as we are, especially the evil side of us.
This we can do only if we are not angry with our critics but will take in good
heart whatever they might have to say." - Ghandi