So, I actually got a call from UPS later yesterday. They were saying that:

1) CBSA (Customs) wants a purchase order or invoice related to the shipped good and I need to provide it to UPS brokerage team and

2) no brokerage was assigned to the clearing of the package, thus, I can hire them to do the job (although I've already paid ICOD charges long before the item got to Canada).

My shipment is actually a return to me from someone who had repaired my item (wristwatch) by a close friend in Denmark. The watch was given to me 3 years ago without an original sales receipt, and the quoted value of the item on the package reflects the service cost, and not the value of the actual item. Perhaps this is why it got flagged in the first place.

ANYWAYS, I've bitten the bullet and let UPS take over re: brokering. I am assuming that if customs decides to charge me duties on the item and not the service, I'll be looking at some hefty duties along with a juicy brokerage fee on top.