]For many American companies, their biggest international opportunity is just north of the border: Canada. Trade between Canada and The United States remains one of the strongest in the world with Canadians increasingly ordering direct online from American merchants.
The growth in e-commerce is contributing to significant growth in USA to Canada cross-border volumes. Canadian consumers are interested in globally purchasing goods from American and other international sites.
Optimal Shipping Solutions from the USA to Canada: A Detailed Review
There are a few options for shipping freight between USA and Canada.
- Air freight: This is the fastest option with economy air options
- Truck and Rail: Less than Truck load (LTL) and full truck load are popular options.
- Local USPS options are generally best for individuals shipping small packages and personal items to Canada
- FedEX , DHL, UPS air options are well known with information readily available via their websites.
When choosing a shipping method, you will need to consider factors such as the size and weight of your freight, the time frame in which you need it to arrive, and your budget. It may be helpful to compare quotes from different carriers to find the best option for your needs.
Download Useful PDF: Shipping to Canada Explained
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only.
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The core carriers for shipping to Canada usually involves using a combination of FedEx, UPS, USPS and Purolator International. If you need Canadian further Canadian logistics support for such things as returns and customer support, you can rely on our team.
The most common question we get is regarding import fees to Canada: Read more about common Canadian import fees.
Shipping Duty Free to Canada from the USA for e-commerce orders:
As part of the USMCA CUSMA (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 the New NAFTA/USMCA/ CUSMA
CUSMA/USMCA Shipping to Canada from the USA
Key parcel shipping provisions of CUSMA USMCA (i.e. new NAFTA) include:
- Duty free and tax free entry for most parcels shipped courier* valued under CA$40
- Duty free entry for most Mexican parcels shipped courier *valued under CA$150
- Simplified "Certification of Origin" for shipments shipped courier valued under CA$3,300
The Most Favoured Nation (MFN) tariff rates of Canada are generally applicable for imports from the USA to Canada valued over CA$150. Goods that meet CUSMA rules of origin can qualify for preferential duty free import to Canada. The MFN tariff rates of Canada apply to goods imported to Canada that do not meet the rules of origin (non-originating goods) under the CUSMA.
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.”
Ship from the USA via USPS, FedEx, UPS and LTL to Canada
Contact Jet for an LTL rate to Canada from the USA
USA Companies can be Canadian Importer of Record
Canada’s non-resident importer program enables United States exporters to obtain a business number and act as the “importer of record.”Being able to act as the importer of record removes the burden of customs clearance from the Canadian customer and can facilitates the sale.
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 via US Postal Service
Canada is the largest international destination for USPS parcels. USPS offers a great choice for individuals shipping to Canada. Among the most popular US Postal post options is the International Flat Rate Boxes to Canada. USPS shipments are imported to Canada and delivered via Canada Post
Importing parcels 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. Gifts benefit from a higher low value threshold of $60.
CUSMA COO process for parcels to Canada with low-value shipments
For low value shipments (see graphic above), a shorter certifying statement added to the commercial invoice (or any shipping document) can used to request preferential duty free import to Canada:
“I hereby certify that the goods covered by this shipment qualifies as an originating good for the purposes of preferential tariff treatment under USMCA/CUSMA.”
Sending Gifts to Canada via USPS
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.
Reverse Logistics: Getting a Canadian address
Jet Worldwide helps American e-commerce shippers manage their returns. Jet Worldwide can receive, process, record, update, re-label and return as needed. Our solutions can be built for low volume returns up to enterprise size return processes. Contact our team to help build your return processes from Canada.
Shipping from the USA to Canada via FedEx or UPS
FedEx and UPS are by far the most dominant carriers in North America. They also 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. Get our lowest shipping rates to Canada.
FedEx USA shipping options to Canada Include:
- FedEx International Priority to Canada: 1-2 business days
- FedEx International Economy Canada: 2-3 business days
- FedEx International Ground Canada: 2-6 business days
- Get a price estimate to compare parcel shipping costs.
UPS USA 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: 2-6 days Ground
Reverse logistics: Shipping Returns from Canada to the US
Handling returns in Canada is a key aspect to a successful e-commerce strategy. Jet Worldwide can assist shippers to manage small to enterprise return programs from Canada back to the US. For a review and a proposal on how to manage your parcel returns from Canada, contact our reverse logistics team.
Returns from Canada processes can be built to your specifications to include defining and processes to handle replenishment orders, return material, non-conformance, and documented disposal.
Clearance and Entry Fees to Canada via UPS and FedEx
Carrier clearance fees in Canada vary by the service type. 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 NAFTA 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.
Sample Clearance fees for Ground Shipments sent to Canada
As a rough guide, here are some estimated charges for entry preparation sent via FedEx or UPS ground to Canada. Their entry preparation fees and processes are very similar.
Approximate Entry Preparation Fees for Ground Shipments to Canada (see graphic above).
Exact FedEx ground and UPS ground entry preparation fees can be found online and can be negotiated for high volume shippers.
For US merchants 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. American companies can establish themselves as a foreign importer of record and do one consolidated entry for many individual parcels.
PDF Presentation: Shipping USA to Canada. A Complete Guide.
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 a Canadian domestic carrier for delivery across Canada. Get information from our Canadian team on shipping your American parcels to Canada.
Shipping from the USA to Canada for Canadian companies
There is a demand from Canadian companies who are looking for cost effective solutions for receiving goods from their American suppliers. 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 USA to Canada.
Other 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
- Federal and provincial sales taxes (read about Canadian import fees)
- 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
- Tariff classification for all imports (read more about HS Codes)
- 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
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.Registering in 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.
Canadian Address for Returns, Storage and Distribution
For specific items, American shippers find it cost effective to store and distribute from their goods stored in Canada for on demand distribution. For information on Canadian warehouse solutions, contact our parcel logistics team
Managing Canadian Amazon Removal Orders to USA
Simplified processing for your customer: A return address in Canada, consolidation and shipping back to the USA via low cost ground.
Discover economical parcel delivery solutions tailored to your needs and streamline your cross-border shipping today with Jet Worldwide. Contact us and let's make shipping from the USA to Canada hassle-free.
