Our team has put together this Guide on Import Fees to Canada. We review duty free thresholds, free trade, entry preparation and common carrier fees. Contact our team for rates and additional support. The best way to minimize import fees is to understand them. See the contact form at the bottom of this page.
The majority of consignements that import to Canada are subject to duty, taxes and fees. Goods that ship from the USA and Mexico benefit from higher duty free thresholds (see below). However, they are otherwise subject to the standard import process.
Canada has free trade agreements with most of the world's leading economies. Major trade agreements include the UK/CUKTCA, European Union/ CETA and Japan-Asia Pacific /CPTPP.These agreements that can minimize import fees. The agreements reduce the overall import fees to Canada.
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As part of the USMCA, Canada has a higher duty free threshold.The regulatory term is "de minimis threshold." Goods that ship from the USA with a value under CA $150can import duty free. Local sales taxes still apply. Useful information regarding low value duty free thresholds.
Canada's higher duty free threshold helps businesses in the United States sell to the Canadian market.
Read More: Questions and Answers regarding import fees to Canada from the USA.
The default duty free threshold for imports to Canada is CA$20. Qualifying origin goods import duty free.
Qualifying goods must meet the rules of origin of the relevant agreement. Canada has free trade agreements with most of the world’s leading economies.
Goods from the USA do not import duty free. Country of origin refers to country for manufacture. Consignments that qualify for duty free status via a Canadian free trade agreement must include a certification of origin.
VERIFY AND BENEFIT FROM CANADA'S FREE TRADE AGREEMENTS
Tariff information to Canada is via the HS tariff regime. Canada’s Most Favour Nation (MFN) tariff rates are applicable for imports from most countries.
Read More: UNDERSTANDING CUSTOMS DUTY CALCULATION
A certification of origin. is necessary to claim preferential duty free import. An origin declarations on shipping documents is often acceptable versus having to produce a separate certificate.
Read More: Country from where goods ship from versus their country of origin
Goods from the USA to Canada can qualify for duty free import in two ways. Consignments under the CA$150 import duty free. Secondly, goods that qualify as "US Origin" under CUSMA rules also import duty free.
In addition to the USA and Mexico, Canada has free trade agreements with most of the world's leading economies. The notable exceptions being China and India.
List of originating countries that may benefit from preferential duty free import to Canada.
Request a detailed invoice from the carrier or broker. If this is for your business, request a review from Jet's team.
The most common import fees to Canada or duty, taxes, entry preparation and carrier fees.
Customs fees are unavoidable in most cases. However, you can reduce import fees by choosing air versus ground shipping. Also, many report that import fees via the post are less than via a commercial carrier. Even if they are technically subject to the same duty and taxes. This post explains the most common fees you should expect.
Shipping from the US does not alone guarantee duty free import to Canada. Goods under the low value threshold and or USA origin can import duty free.
Goods that are made in the USA may qualify for duty free import if they meet the "rules of origin" under CUSMA.
Consignments valued less than CA$20 can clear duty free. Most goods with a value under CA$40 via courier from the USA or Mexico can import free of duty and tax free.
Shipments with a value under CA$150 via courier from Mexico or USA can clear duty free. However, goods with value over CA$40 are subject to federal and provincial tax.
There is common perception that shipments from China are subject to lower import fees.This is especially true when discussing shipments from the USA to Canada versus from China to Canada.A couple of points to consider:
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 a non-resident importer streamlines customs clearance. Useful information regarding valuation for non-resident imports to Canada.
Technically speaking, the same rules of import duty and taxes apply to postal imports. In practice, many report that Canada Post imports are less often charged import fees. Canada Post charge recipients a handling fee of around CA$10 in addition to duty and taxes.
Postal shipments from Temu, Alibaba, Shein and other China sellers often import with a false value. Being under the CAD$20 duty free threshold provides duty and tax free import.
Quotes from online forums:
"super weird how AliExpress orders never get dinged" for import fees
"Why is it that not a single package I've received from AliExpress has been dinged for customs?"
"as for AliExpress, Canada Post and CBSA is lazy, please don't spoil a good thing" (referring to no import fees)
A common complaint about import fees relate to UPS ground shipments. Ground shipments via UPS do not include "customs entry preparation." This fee calculates on the value of the shipment. We outline this in more detail below and include a link to UPS and FedEx ground brokerage fees.
Yes. If the goods to Canada qualify under the country of origin rules. Online orders with qualifying goods can benefit from preferential duty free import.
Large volume e-commerce commerce imports can consolidate and clear as a non-resident importer.
Yes. The North American Free trade agreement has names specific to each country. Three names, one agreement.
Canada's free trade agreements provide abenefit of a simplified Certification of Origin.Consignments with a value under CA$3,300 have simpler processes. In such cases, customs may accept a shorter certifying statement on the commercial invoice or other shipping document.
Useful information on navigating Canadian Customs Clearance
The country of origin useful for Canadian customs to determine if duty free import applies.
Read more: Understanding a certificate of origin
Goods import to Canada with a value over CA$20 are subject to duty and taxes.
Consignments with a value under CA$3,300 can import via Canada's low value system (LVS). Goods via courier from the USA and Mexico benefit from a higher "duty free threshold."
When shipping internationally, it is important to declare the correct value.
The de minimus rules apply from where the goods ship from. They do not apply to the country of origin. (The country of origin refers to the place of manufacture).
Goods that trans-ship via the United States or Mexico do not benefit from the higher duty free thresholds.
The word “courier” means a commercial carrier other than goods that import by mail. Goods that ship to Canada via USPS or Correos/ Mexican Post are postal imports . Certain goods do not benefit from the de minimis rules.
For shipments to Canada from Mexico and USA via courier
Certain types of goods are exempt from the de minimis rules:
1. Customs duties, excise tax and GST/HST/PST apply to on alcohol, tobacco products, and cannabis.
2. Customs duties, excise tax and GST/HST/PST apply on certain commercial transactions:
3. Orders cannot be split up in order to "game the system." The value declaration of the import must reflect all the items ordered by the customer.
Common import fees for consignments shipping via air to Canada can include:
Some commodities are subject to additional fees. There are costs associated with additional steps. These include: quarantine for agricultural products, excise tax for alcohol and tobacco, and customs bond for high value imports.
Read More: Non tariff barriers and cross border shipping.
Shipments arriving via ocean container are subject to a range of fees that can include:
Learn more: Realizing the benefits of ocean freight to and from Canada.
Similar to all major economies that adhere to WTO rules. Import duty assessment is on the declared value, commodity / H.S. Code, and country of origin. The duty rate for common imports such as clothing, can be as high as 20%.
The Most Favoured Nation (MFN) tariff rates apply to most imports to Canada. This includes goods that do not otherwise meet the rules of origin of a Canadian free trade agreement.
Ship from USA ≠ Country of Origin USA
A common misperception is that, with USMCA, all goods from the USA to Canada can enter duty free. For the USMCA/CUSMA (and all other trade agreements), the country of origin refers to the place of manufacture and production.
For example, goods sold by a US seller from China cannot import to Canada duty free under the USMCA/CUSMA country of origin rules.
Canada employs a simplified classification and duty rate system. The Generic Harmonized System (GHS) applies to shipments under 500 Canadian dollars. This process allows classification under three ‘dummy’ HS codes (or ‘buckets’). Each bucket is then assigned a rate depending on whether the goods are imported from a country having a Free Trade Agreement with Canada. The use of GHS is optional.
GHS codes can apply if they can otherwise be classified in accordance with the provisions of Chapters 1 to 97. The GHS code is applicable if the duty rate is within 5 percentage of the actual HS code.
The Harmonized System (HS) is via the World Customs Organization (WCO). It and serves as the foundation for the import classification systems in Canada. The HS assigns specific six-digit codes for all products and commodities.
A customs entry is necessary for every consignment to Canada. Most express and postal shipments include the “Customs Entry Preparation Fee" for standard customs entries.
Shipments via FedEx and UPS ground are subject to a "customs preparation fee"
For shipments via FedEx and UPS Ground to Canada, the Customs Preparation fee applies. For high volume shippers, this fee can be negotiated.Most carriers base the entry preparation fee on the “value for duty” of the consignment.
Useful PDF: FedEX and UPS import fees to Canada 2024
Even when entry preparation fee free, carriers charge a fee to cover their cost to advance the duty cost on behalf of the receiver. The charges calculate as a percentage (around 2.5%) of the duty and taxes paid. The minimum charge is around $15
In addition to the disbursement fee, carriers charge a processing fee. This averages around $6. It applies to both ground or air shipments
"Entry preparation" for air express consignments is inclusive. Shipments above $3,300 or otherwise requiring additional processes are subject to additional fees
View Accompanying PDF Presentation: Import Fees To Canada
An importer can clear goods on their own behalf. In practice, most find value in using a professional brokerage. Visit the Canada Border Services Agency for details on self clearing goods.
Registration in Canadian Customs CARM portal is necessary for all commercial importers.
As a rule, GST/HST/PST is payable on goods importing to Canada. The amount of tax is on the value of the goods, including customs duties.
The federal tax is the Goods and services Tax or GST. The provincial tax often shows as PST. Some provinces incorporate both taxes which together are the Harmonized Sales Tax or HST. This is a combination of the PST and the GST.
Duty Free ≠ Tax Free
Even goods that benefit from preferential duty free entry are subject to Federal and provincial sales tax.
Any item mailed to Canada may be subject to the Goods and Services Tax (GST) and/or duty. The taxable value is the cost of the goods plus duty.
Most businesses in Canada are registered. Generally, commercial activity over $30,000 in yearly sales requires registration.
Registered businesses can recover the GST/HST/PST for importing goods. This payment is an input. The term inputs refers to property or services used or consumed in the course of your commercial activities.
Registrant: A person or entity that is registered or is required to be registered for the GST/HST/PST. Generally, commercial activity over $30,000 in yearly sales requires registration. Registrants report the taxes you collect as well as the amounts that you paid. The amounts paid can be claimed back as a credit (ITC) or refund (ITR).
“If the answer is yes, you can likely recover the tax.
Confirm this with your accountant. Many do not realize that they can actually claim back a significant portion of their import fees. For international businesses shipping to Canada, you should mention this possibility to your customer (if they are a business).
Low-value shipments with a value under CA$3,300. Under CBSA regulations, low-value shipments can clear for delivery pending payment of duty/ taxes.
Canadian customs / CBSA assess duties and taxes on criteria that includes:
For eligible gifts to Canada with a value less than CAD$60 per shipment can import duty/ tax free. Shipments of gifts over CAD$60 is subject to duties and taxes. Identify each gift with a clear description. Include the work gift
Many prefer import via Canada Post. It seems they more often deliver without duty or tax. While a benefits to the buyer, the inconsistency creates confusion. A disadvantage of postal clearance is the lower duty free threshold. Postal shipments have a $20 threshold versus $150 for courier. See graphic above.
This "postal clearance advantage" is not an official policy but present nevertheless. The undervaluing of postal imports from Asia to below the de minimis threshold of $20 is not uncommon.
The default option for most carriers to Canada is "EXW. “ The receiver is responsible for import fees. If you wish to pay the import fees on behalf the Canadian receiver, choose a delivery duty paid option.
Read more about international shipping terms.
Companies that regularly ship to Canada may consider becoming a non-resident importer. This has the advantage of clearing multiple shipments in one entry. An important point to consider is the Value for Duty for non-resident imports to Canada.
Read more about CBSA Assessment and Revenue Management (CARM)
If you are importing to Canada, it is important to become familiar with Canadian Customs online portal to streamline import processes.
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Jet Worldwide assists international companies manage their Canadian returns. Gain the advantage of having a Canadian address to receive goods your behalf. Contact our Canadian logistics team for details.
Jet Worldwide can help you send packages from virtually everywhere to Canada. Contact our team for information on importing to Canada. Fill in form below for an international shipping quote
Once you understand the import fees, the next step finding the best shipping options to Canada. Here are some common shipping options that you might consider:
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Additional Resources
For the most part, personal effects can import to Canada duty free and tax free.
If only a small amount of personal effects to Canada, it is usually best to bring them with as the excess baggage fees. Airlines excess baggage fees are usually much less costly than shipping your personal goods separately. import clearance of accompanying baggage is much simpler. For larger household moves, best to contact a moving specialists.
Here are some notes on sending personal effects to Canada during a transfer of residence:
During a transfer of residence, duty and tax relief are available for most personal effects. Minimum requirements include: Copies of passport, a detailed list of contents with estimated value.
A link to the CBSA web page on importing personal effects to Canada :https://www.cbsa-asfc.gc.ca/travel-voyage/mrc-drc-eng.html
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