Although the U.S. and Canada are among the world’s largest trading partners, parcel shipping and clearance are subject to a unique set of rules and Canadian customs mandates. The new NAFTA (USMCA/ CUSMA) makes shipping orders to Canada easier than ever.
Canadians and Americans are the world’s largest trading partners. American companies are searching for Canadian Logistics Support.
In this shipping guide to Canada, we review the following things to know when shipping to Canada:
- Free Trade, USMCA/ CUSMA and duty free import to Canada
- Common Import Fees for ecommerce and parcel imports to Canada
- Common carrier options for shipping Canada from the USA
- CBSA assessment and revenue (CARM) registration
- Reverse logistics and leading Canadian domestic carriers
- Additional resources for shipping to Canada and shipping from Canada
What does it cost to ship to Canada from the USA?
The cost of sending to Canada depends on the size and weight of the shipment, pickup and delivery address, service type, carrier discount and fuel surcharge.
Are there any import fees to Canada from the USA?
All shipments to Canada from the USA are subject to customs clearance and potential duty and taxes. Low value goods and items that qualify as USA origin under the CUSMA can be imported duty free.
What is the cheapest way to send to Canada
The cheapest option for individuals shipping personal items and small packages to Canada is via the US Postal Service. The USPS has a great online rate tool. For businesses, the best option is either economy air, ground or LTL. Get a shipping rate to Canada from the USA.
Export declaration /EEI for shipments to Canada
Electronic Export Information (EEI)
US Foreign Trade Regulations (FTR) mandates export declarations be done via the Automated Export System (AES).Specified timeframes and shipment data is required prior to export. This information was formerly called the Shipper's Export Declaration (SED). EEI’s are used for statisticaldata collection and to enforce export regulations.
EEI’s are not required for most shipments destined to Canada via exception code 30.36.The exemption does not apply for shipments otherwise requiring an export permit or ultimately destined to a third country.
Things to consider when shipping to Canada from USA include:
- Importer of record: The importer of record includes having to obtain an importer number. If to direct to consumers, the consumer can be the importer of record
- Tariff classification for all imports (read more about HS Codes)
- Provincial licenses may be required even if selling direct to consumers
- Health Canada approvals for related products
- Safe Foods for Canadians Act certifications for some food items
- Federal and provincial sales taxes (read about Canadian import fees)
- Country of Origin must be declared for all imports
- Valuation is an important part of the declaration to the CBSA (read more about valuation)
- Labeling for goods to Canada may require both French and English
- Certification of origin if duty free import requested under CUSMA/USMCA
Registration with Canadian Customs via CARM for US Imports
CBSA demands all importers register in the CARM system.This system facilitates all aspects of importing. CARM requires importers to assign a customs broker and to have a surety bond (or deposit) to guarantee payment of duty and taxes. How to register for CARM.
Shipping orders US to Canada Duty Free
As part of the USMCA (the "new NAFTA), Canada has raised their low value duty threshold ( de minimis threshold) to $150 CAD (around $110 USD). Local sales taxes will still apply (but often times, businesses can claim this charge back). This higher duty free threshold helps businesses and e-commerce merchants in the United States ship to Canadian customers.Read about USMCA/ CUSMA/T-MEC
Shipping between USA and Canada via Jet Worldwide
Jet Worldwide is a trusted brand that has been providing international shipping solutions for over 40 years.- Shipping between Canada and USA for trucking, courier and online orders.
- Get transparency and world class - Canadian - logistics support.
Ready to streamline your e-commerce shipping to Canada? Consult with Jetship's logistics team
Carrier Options for Shipping USA to Canada
Sending parcels to Canada via the US postal Service / USPS
Canada is the largest international destination for the USPS. The USPS is the best option for individuals shipping small parcel and personal items to Canada. Shipments sent via USPS are imported and delivered to Canada via Canada Post.
Shipping to Canada via FedEx and UPS
FedEx and UPS are North America's largest carriers and offer reliable transport from the USA to Canada. Their ground services are especially popular (but are subject to expensive clearance fees - see below). Get a comparison quote for shipping Canada from US.
FedEx and UPS Service Options to Canada include
- Air Express / priority
- Economy Air options
- Ground shipping to Canada
It is important to note that ground shipping does not include customs entry preparation. This service is most often included with air express options.
Shipping to Canada from the USA via Jet Worldwide
Jet Worldwide serves to supplement your options for shipping to Canada. Our team provides LTL and parcel solutions.Most importantly, we provide Canadian logistics support to help you build the best shipping solution.
See PDF Presentation: Shipping USA to Canada
Do I need to file an export declaration /EEI for shipments to Canada?
Electronic Export Information (EEI)
US Foreign Trade Regulations (FTR) mandates export declarations be done via the Automated Export System (AES). Specified timeframes and shipment data is required prior to export. This information was formerly called the Shipper's Export Declaration (SED). EEI’s are used for statistical data collection and to enforce export regulations.
EEI’s are not required for most shipments destined to Canada via exception code 30.36. Th exemption does not apply for shipments otherwise requiring an export permit or ultimately destined to a third country.
Shipping to Canada from the USA via Purolator International
Purolator's USA offices provide delivery to Canada for large bulk shippers. They can develop unique low cost services for US companies who have large regular "north bound volume."
Customs clearance information for parcels imported to Canada from the USA
Parcel shipments shipped from the United States to Canada must comply with Canada Border Services Agency (CBSA) and Canada Revenue (CRA).
Parcels shipped from the USA that are valued over $40 CAD, are subject to Canadian duty and taxes.
For parcels from the USA cleared using USMCA duty free status must be accompanied by a certification of origin. (See note above on New NAFTA / USMCA)
- Goods and Services Tax: Most goods entering Canada are subject GST (Good and Services Tax) of 5%.
- Shipments to Canada from the USA valued under $40 CAD can be cleared duty free and tax free
- Shipments from the US to Canada under $150 CAD can be cleared duty free (but still subjected to federal and provincial sales tax).
- Shipments sent to the provinces of Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, and Ontario from the USA are subject to a “harmonizes” provincial sales tax (HST). For parcels to these provinces, the GST is combined with the provincial tax rate to form the HST. See chart below for applicable rates. HST is administered by the CRA and Canadian businesses that collect GST/ HST must be registered.
- Provincial Sales Taxes / PST: Most of the "non HST provinces" process and impose their own taxes and not via the Canada Revenue Agency/ CRA.
Tax rates per province and territory:
- Alberta: PST 5%
- British Columbia: GST 5% + PST 7%
- Manitoba: GST 5% + PST 7%
- New Brunswick: HST 13%
- Newfoundland and Labrador: HST 13%
- Northwest Territories: GST 5%
- Nova Scotia: HST 15%
- Nunavet: GST 5%
- Ontario: HST 13%
- Prince Edward Island: HST 14%
- Quebec: GST 5% + PST (QST) 9.975%
- Saskatchewan: GST 5% + PST 5%
- Yukon: GST 5%
Duty rates to Canada for goods shipped from the USA
Although parcels containing goods made in the USA (US origin) may qualify for preferential duty free entry, most e-commerce goods shipped to Canada are made elsewhere (usually Asia) and thus not eligible for duty free entry under CUSMA. Furthermore, shipments sent via ground to Canada are subject to customs entry preparation fee (see below).
Parcels imported from the USA to Canada are subject to classification via the international Harmonized System(HS) code. For imports to Canada, the six-digit harmonized system code is supplemented by a four-digit code unique to Canada.
USMCA / CUSMA allows for duty free import to Canada for goods valued under $150 CAD. But higher value e-commerce orders are subject to duty.
Common Canadian Import Fees for Shipments from the US
Common import fees for consignments shipped via air to Canada can include duty, taxes and carrier fees.
CARM
The Canadian Customs online portal which is designed to streamline processes and a useful too for Canadian importers. Read more about CBSA Assessment and Revenu Management (CARM)
Shipping your parcel to Canada from the USA:
There are many Canadian business and consumer communities in the USA including in Florida, Texas and California. If you wish to send parcels from South Florida (including Fort Lauderdale and Miami), Texas (parcel shipping from Houston to Calgary is common), California and Arizona.... contact our team today!
Shipping your parcel ground to Canada from the USA:
Ground shipping to Canada is often the most cost effective method for shipping to Canada. The advantages of ground can be mitigated, however, by entry preparation fees (that may otherwise be included for express) and longer transit times. Contact Jet for a quote on economy express.
Reverse Logistics from Canada: Returns from Canada to the US
A challenge for many US companies is handling Canada returns. Jet Worldwide has enterprise sized solutions as well as low volume return solutions. For many, they just need a Canada address for returns and a standard operating procedure for managing the returned goods.
Ecommerce sellers to Canada often inquire as to alternative shipping options within Canada. We have created this post to assist with these inquiries we get on this subject.
Canadian Carriers to Consider For Domestic Shipping
- Canada Post: Most well know and leader for Canadian e-commerce deliveries.
- Dicom: A division of Royal Mail/ General Logistics Systems (GLS) attempting to capture a greater share of business to consumer market.
- Purolator: A division of Canada Post and leading Canadian carrier. Purolator offers access to Canada for large US shippers to Canada via their Purolator International subsidiary.
- Nationex:A privately held firm specializing in business to business ground shipping in eastern Canada.
- TFI Carriers: A financial holding company of the wealthy Saputo family, TFI parcel carriers (representing around 15% of total revenue) include Canpar, ICS and , Loomis.
- Intelcom: Primarily serving major ecommerce sellers with independent "gig economy" drivers offering low cost parcel delivery.
- FedEx and UPS: Well known carriers offering ground and express across Canada
For a quote for shipping online orders, provide details including shipping volume, item(s) being shipped, average value and weight of each parcel. The more details the better :).
