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 consignments 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 can minimize import fees and reduce the overall import cost to Canada.
The Canadian government has imposed tariffs on goods from the USA in response to US tariffs on Canadian goods. The “countermeasures” will likely both remain in place and be updated as negotiations proceed.
The Government of Canada website on 25% surcharge
These tariffs are often referred to as a surtax. The additional tariffs apply to new and used goods marked as “made in the US,” “produced in the US,” or “originating in the US,” or goods that have no country of origin marking.
The surcharge applies on purchased US goods importing to Canada that:
The regulations and possibility to reclaim surtax charges are updated regularly.
As part of the USMCA, Canada has a higher duty-free threshold (the regulatory term is “de minimis”). Goods that ship from the USA with a value under CA$150 can 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 for non-USA/Mexico origin. Qualifying origin goods can import duty-free under relevant FTAs.
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.
Accompanying International Shipping Guide to Canada (PDF)
Goods from the USA do not automatically import duty-free. Country of origin refers to the place of 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-Favoured-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 declaration on shipping documents is often acceptable versus having to produce a separate certificate.
Read More: Country from where goods ship versus their country of origin
Goods from the USA to Canada can qualify for duty-free import in two ways. Consignments under CA$150 import duty-free. Secondly, goods that qualify as “US Origin” under CUSMA rules also import duty-free.
Import duty to Canada is most commonly calculated as a percentage of the value. The correct value to declare is most often the transaction value — the price paid or payable for the goods.
The rate or percentage of duty is determined by the HS classification of the importing goods.
In addition to the USA and Mexico, Canada has free trade agreements with most of the world's leading economies. The notable exceptions include China and India.
List of originating countries that may benefit from preferential duty-free import to Canada (PDF)
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 are 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 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 a 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 (NRI) program enables United States exporters to obtain a business number and act as the importer of record. Being able to act as an NRI streamlines customs clearance. Useful information regarding valuation for non-resident imports to Canada.
Technically, 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 charges 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 an understated value. Being under the CA$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 relates to UPS Ground shipments. Ground shipments via UPS do not include “customs entry preparation.” This fee is calculated 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 qualify under the country of origin rules. Online orders with qualifying goods can benefit from preferential duty-free import.
Large volume e-commerce imports can consolidate and clear as a non-resident importer.
Yes. The North American trade agreement has names specific to each country — three names, one agreement.
Canada's free trade agreements provide a benefit 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 is 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 minimis rules apply to where the goods ship from. They do not apply to the country of origin (which 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 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 to “game the system.” The declared value must reflect all items ordered by the customer.
Common import fees for consignments shipping via air to Canada can include:
Some commodities are subject to additional fees. 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 in Canada is based 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 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 for shipments under CA$500, known as the Generic Harmonized System (GHS). 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 with a Free Trade Agreement (FTA) 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% of the actual HS code.
The Harmonized System (HS) is defined by the World Customs Organization (WCO) and serves as the foundation for the import classification system 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 a standard “Customs Entry Preparation” fee in the service price for typical entries.
Shipments via FedEx Ground and UPS Ground are typically subject to an additional “customs entry preparation” (brokerage) fee, often based on the value for duty of the consignment.
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 or UPS import fees to Canada (Ground, 2024)
Even when entry preparation is included, carriers charge a disbursement fee to cover advancing duty & taxes on behalf of the receiver. This fee is commonly around 2–3% of the advanced amount, with a minimum of roughly CA$15.
In addition to the disbursement fee, carriers often charge a processing fee (averages around CA$6). This may apply to ground or air shipments.
“Entry preparation” for air express consignments is generally inclusive. Shipments above CA$3,300 or those requiring additional processes may incur extra fees.
View Accompanying PDF Presentation: Import Fees To Canada
Customs brokerage fees vary. For regular importers, it is often best to use an independent broker familiar with your commodities and flow. The cost for an independent customs broker can exceed CA$100 per import depending on complexity. Read more about Canadian customs brokers.
Yes, importers can clear goods on their own behalf (self-clear). In practice, many find value in using a professional broker. See the CBSA website for official details on self-clearing.
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 based on the value of the goods, including customs duties and applicable fees.
The Goods and Services Tax (GST) is the federal tax (5%). Some provinces levy Provincial Sales Tax (PST). Others participate in the Harmonized Sales Tax (HST), combining GST and PST into a single rate.
Duty-Free ≠ Tax-Free
Even goods that qualify for duty-free entry may still be subject to GST/HST/PST.
Most Canadian businesses must register for GST/HST/PST when commercial activity exceeds ~CA$30,000/year. Registered businesses can often recover GST/HST/PST paid on imports as Input Tax Credits (ITCs) or Input Tax Refunds (ITRs) when the goods are used in commercial activities.
If yes, you can likely recover the tax. Confirm with your accountant. International sellers shipping to Canadian businesses should also mention potential tax recovery to customers.
Low-value shipments (under CA$3,300) can clear under CBSA’s CLVS (Courier Low Value Shipment) program. CBSA assesses duties and taxes based on:
Eligible gifts to Canada valued under CA$60 per shipment can import duty- and tax-free. For gifts over CA$60, duties and taxes apply. Identify each gift clearly on documentation.
Many shippers prefer postal imports (e.g., Canada Post), which anecdotally see fewer duty/tax assessments than courier imports. However, the postal duty-free threshold is only CA$20 (vs. CA$150 via courier from the USA/Mexico). Undervaluation is a known issue with some overseas postal shipments.
The default for most carriers is often similar to EXW/DDU — the receiver pays import fees. If you want to prepay import fees for the consignee, select a DDP option. Learn more: Incoterms for international shipping.
Companies regularly shipping to Canada may consider becoming a Non-Resident Importer. This can enable clearing multiple shipments under one entry. Pay close attention to Value for Duty rules for NRIs.
Read more about CBSA Assessment and Revenue Management (CARM)
If you import to Canada, get familiar with the CARM portal to streamline commercial import processes.
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Jet Worldwide can help you send packages from virtually anywhere to Canada. Contact our team for information on importing to Canada. Fill out the form below for an international shipping quote.
Once you understand import fees, select the best mode for your shipment:
We’re happy to help with your shipments to Canada. Please provide product type, volumes, sizes/weights, and preferred mode (air or ocean).
Additional Resources
Personal effects can generally import to Canada duty- and tax-free under transfer of residence rules. If only a small quantity, it’s usually cheaper and simpler to bring items as excess baggage versus shipping separately. For full households, contact a moving specialist.
Notes for personal effects to Canada (transfer of residence):
CBSA reference: https://www.cbsa-asfc.gc.ca/travel-voyage/mrc-drc-eng.html
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