Importing e-commerce orders to Canada is growing with new technologies and import processes. It is important for both e-commerce sellers and buyers to understand the potential imports costs to Canada.
Even though Canada has free trade agreements with most major countries, duty free access is limited based on value and country of origin. Canadian import fees beyond duty include entry preparation, federal and provincial taxes and carrier disbursement fees. All are covered below.
In this post, our team reviews the issues that can affect your import fees to Canada, including:
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only.
The factors that can affect import fees to Canada can include:
The key difference when importing to Canada from the USA (and Mexico) versus the rest of the world is the USMCA/ CUSMA free trade provisions related to the duty free threshold. The default duty free threshold to Canada is CA$20 , but goods shipped from the USA and Mexico benefit from higher duty free and tax free threshold.
The advantages of USMCA/ CUSMA for goods imported from the USA and Mexico include:
* Note: In addition to USMCA, Canada has major free trade agreements with most of the world's leading economies. See section below for more details.
Even with the USMCA / CUSMA North American free trade, all shipments from the USA are subject to import clearance, duty and taxes.
The Most Favoured Nation (MFN) tariff rates of Canada are generally applicable to imports from all countries.However, shipments that meet rules of origin can qualify for preferential duty free import via the terms of the trade agreement.The MFN tariff rates of Canada apply to goods imported to Canada that do not meet the rules of origin (non-originating goods) under a Canadian free trade agreement. See section below on Canada's other free trade agreements.
Shipments containing printed matter or documents are not subject to Canadian duty. Provincial sales tax may apply when items with a commercial value, such as books, are being imported.
When shipping documents to Canada, it is best to use a minimal declared value (see next section on duty free import).
Printed matter including books, brochures and leaflets can be imported to Canada duty free.
Local Print and ship services: Contact Jet's team if you wish to have a file printed and shipped within Canada for a single document or on demand printing options
View accompanying PDF Review: Import Fees to Canada.
The default "duty free threshold" to Canada is CA$20. But - as mentioned above - can be higher if shipped from the USA or Mexico.
Thanks to Canada's free trade agreement (USMCA/ CUSMA/T-Mec), the duty free threshold for goods shipped via courier from the USA and Mexico to Canada is CA$150. Goods valued under CA$40 from the USA and Mexico can be cleared free of both duty and taxes.
The duty free threshold for goods shipped via USPS and Mexican post remains at CA$20.
The default duty free threshold of CA$20 (mentioned above) applies to imports to Canada. Shipments valued above this threshold are subject to both duty and taxes.
The valuation of goods - especially e-commerce orders - to Canada is getting more attention. Experts estimate that the majority of e-commerce orders from Asia are undervalued to ensure they benefit from the CA$20 duty free threshold. So far, Canadian authorities are surprisingly accepting of this process but we anticipate enforcement will start in much the same way it has in Europe and the UK. Read more: Understanding how to properly declare a value for customs
Canada has free trade agreements with most of the world's major economies. In addition to the USMCA/CUSMA mentioned above, Canada's major free trade agreements include with Europe (CETA), UK (UKTCA), Asia Pacific region (CPTPP), along with agreements with individual countries such as South Korea (CKFTA). Useful information regarding certification of origin and when it is needed.
Read More: Country from where goods were shipped versus country of origin for import to Canada.
Canada's newest trade agreements make it easier to request preferential duty free import for qualifying origin goods. In most cases, an origin declaration can be included on the shipping paperwork (most often as part of the customs invoice). Read More: Canada's free trade agreements
E-commerce orders and parcels imported from countries that have a free trade agreement with Canada can benefit from preferential duty free import. Goods valued under CA$3,300 benefit from less burdensome certification of origin declarations and processes.
It is important to mention that goods that are shipped from a country does not automatically qualify them for duty free import under a free trade agreement.
Each trade agreement has different rules related to country of origin but, generally speaking, the country of origin refers to where the goods were manufactured, grown or raised (in the case of agriculture). For example, an item shipped from Australia that was made in China would not quality for duty free status even though Australia and Canada share a free trade agreement (CPTPP).
Canadian import duties are based on the following three factors:
Even if the goods imported qualify for duty free status, the other fees to consider are the entry preparation fee, Canadian federal/provincial sales tax and carrier fees.
For goods imported via express courier, the entry preparation fee is usually included. Goods shipped to Canada via FedEx or UPS ground are subject to an entry preparation fee.
Common import fees for consignments shipped via air to Canada can include:
Note: The above chart are sample entry preparation fees for ground shipments from the USA to Canada. The actual fees vary by carrier and can be subject to negotiation. Useful PDF: FedEX and UPS import fees to Canada 2024
Read more about CBSA Assessment and Revenue Management (CARM)
The Canadian Customs online portal which is designed to streamline processes and a useful too for Canadian importers.
Jet Worldwide provides Canadian and global logistics. Our support refers to the facilitation of international and Canadian movement of goods. We strengthen your team with insider industry expertise and by not being beholden to a specific carrier or process.
We are happy to help with your North American and global shipping. Provide information regarding the type of goods that will be shipped, volume and shipment characteristics, and any restrictions you aware of that should be taken into account?