Canadian companies have been expanding and investing in Alabama in recent years. Key areas of investment include forest and automotive products. With the renewal of the North American free trade agreement USMCA/ CUSMA, more companies are seeking shipping solutions between Canada and Alabama. .
This blog Explores the common shipping options from Alabama for delivery to Canada. We explain:
- Canadian customs clearance processes and costs
- USMCA/ CUSMA benefits. Read about the New NAFTA/USMCA/ CUSMA
- Carrier options Alabama to Canada
- Additional Resources for shipping international
- Manage returns from your Canadian orders
Expand your cross border opportunity to Canada.
Find the best shipping modes, processes and carrier options. Strengthening your transportation team - even if you are a team of one! A trusted brand for over 40 years of cross border shipping. Contact our team for a consultation.
Disclaimer: The information in all Jet Worldwide online content, including this post, is for general information only.
The key provisions of CUSMA USMCA (i.e. new NAFTA) parcel shipping include:
- Duty free and tax free entry for most US parcels shipped courier valued under CA$40
- Duty free entry for most US parcels shipped courier valued under CA$150
- Simplified "Certification of Origin" for shipments shipped courier valued under CA$3,300
For low value shipments (under CAD $3,300 to Canada) a certifying statement added to the commercial invoice or any shipping document
“I hereby certify that the goods covered by this shipment qualifies as an originating good for the purposes of preferential tariff treatment under USMCA/T-MEC/CUSMA.”
Clearance and Entry Fees to Canada via UPS and FedEx
Carrier clearance fees in Canada vary by the service type. Jet can help Alabama based shippers minimize these fees through single entry consolidated entry. Jet Worldwide can receive and store shipments from Alabama in our Canadian facilities for on-demand distribution throughout Canada.
Typically, there are three elements to standard parcel clearance:
Entry preparation
- No charge for express shipments
- Charge for ground shipments based on value of shipment (see below)
Duty
- Calculated using the H.S. classification and can be as high as 20% for clothing
- Many are surprised to learn of duties and how USMCA country of origin duty free is rarely used for parcel shipments from the USA to Canada.
Taxes
- GST, HST, PST: Sales tax is applied based on destination of parcel
Prepayment of duty fees
- If duty and taxes are paid, FedEx and UPS charge for “prepayment” of these fees.
- The charge for payment is usually around 3% of the amount prepaid with minimum charge of between CA$7 and CA$15.
In general, express shipments to Canada are not charged an entry preparation fee by the carrier. However, ground shipments sent via FedEx and UPS to Canada are subject to an entry preparation fee.
The cost advantage of shipping parcels from Arizona to Quebec via ground service is diluted by the Canadian clearance cost and shipping delay.
FedEx ground and UPS ground entry preparation fees can be found online and can be negotiated for high volume shippers.
For Arizona companies with regular volume to Canada, it may be best to establish a high volume parcel import and distribution process. This type of “zone skipping” has the added benefit of lower per shipment clearance cost. Arizona companies can establish themselves as a foreign importer of record and do a consolidated entry for many individual parcels.
Shippers from Alabama can benefit from low cost air shipping to benefit from duty free USMCA CUSMA import to Canada.
The most efficient routing for regular parcel flows is via consolidating parcel volumes for a single shipment for single entry cross border entry. After clearance, the goods can be transferred to a Canadian domestic carrier for delivery across Canada.
Shipping Canada from Alabama for Canadian companies
There is a demand from Canadian companies who are looking for cost effective solutions for receiving goods from their suppliers based in Alabama. Often, ground is too uncertain and air is too costly. Contact Jet for a low cost express solution that includes entry preparation and delivery in 1-3 days from the Arizona to Canada.
Canadian storage and distribution
For information on Canadian warehouse solutions, contact our parcel logistics team.
Accompanying PDF Presentation : Shipping to Canada
Ship Canada from ALABAMA
Shipping Canada via USPS from Alabama
Canada is the largest international destination for US Postal parcels. USPS offers a great choice for individuals shipping small parcels to Canada . Among the most popular US Postal post options from Alabama is the USPS International Flat Rate Boxes to Canada.
Different duty assessment for goods shipped via USPS versus Courier (see above regarding new USMCA/CUSMA duty free thresholds).
For a shipments shipped via USPS for import via Canada Post, duty is assessed differently than for parcels shipped via parcel carriers/ courier:
- CA $20 (around US$14.75) and under: duty and tax free
- Above CA $20duties and taxes apply
As a comparison, goods shipped via courier express benefit from duty free entry for goods valued up to CA$150.
USPS Flat rate boxes to Canada - Delivery within 2-3 weeks
USPS shipments shipped from Alabama are imported to Canada via Canada Post.
Importing parcels from Arizona to Canada via Canada Post
All parcels mailed to Canada are potentially subject to duty and/or taxes. . Canadian Customs (CBSA) collects provincial sales taxes (PST) and Harmonized Sales Taxes (HST) according to the province of residence on most taxable imports valued at over CA$20. See note above on new duty free threshold under USMCA/ New NAFTA.
Dutiable and taxable items mailed to Canada are subject to a handling fee of CA$9.95 per dutiable or taxable parcel. If charges are applied, the parcel will be delivered along with a CBSA Invoice (E14). Canada Post collects the fees on behalf of the CBSA and accepts payment online via credit card and other methods.
Shipping Aerospace and auto industry parts from Alabama to Canada
Jet assists Arizona companies with low cost express delivery of urgent aerospace, automotive and machine parts and equipment for delivery to Canada ... and return from Canada.
Read more: COMMON CANADIAN IMPORT FEES.
Sending Gifts from Alabama to Canada via USPS
The personal connections between Arizona and Canada are stronger than ever thanks to shared employees, employers, universities and tourists. Gifts between individuals can be considered duty and tax exempt, not otherwise restricted and valued under CA$60. To qualify as tax exempt, the gift must be sent to the recipient personally and include a card or other notice indicating that it is a gift. Advertising material and alcohol cannot be cleared as tax exempt gifts.
Shipping to Canada via FedEx or UPS from Alabama
FedEx and UPS are by far the most dominant carriers in North America and have extensive operations throughout Alabama Both have a sizeable presence in Canada and, along with Purolator, are market leaders in the Canadian Market.
The “shipping from USA to Canada offer” via FedEx and UPS are similar. Both companies offer air express delivery, economy air delivery and ground delivery.
FedEx USA shipping options to Canada from Alabama Include:
- FedEx International Priority to Canada: 1-2 business days
- FedEx International Economy Canada: 2-3 business days
- FedEx International Ground Canada from Alabama: Up to 6 business days. See graphic above for sample rates for entry preparation that may apply.
UPS USA Alabama shipping options to Canada Include:
- UPS Worldwide Express: Morning delivery to main cities
- UPS Worldwide Saver: End of day delivery to main cities
- UPS Worldwide Expedited: 2 Day delivery to main cities
- UPS Standard to Canada: 6 + days Ground. See graphic above for sample rates for entry preparation of ground shipments to Canada that may apply.
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