As cross border trade has been the subject of geopolitical headlines, American’s northern neighbour, Canada, is increasingly recognized for the opportunity it represents. US merchants are coming to realize that the greatest opportunities are right next door. Thanks to the new USMCA/ CUSMA Free Trade Agreement, duty free shipping Canada from the US is more available.

Long border - deep in trade

America’s Northern border with Canada is the longest international border in the world measuring over 5,000 miles. Canada remains a leading export market from the US with billions of dollars in goods exported each year.

• Canada customs and carrier fees
• Carrier fees for entry preparation of ground shipments
• USMCA CUSMA duty free entry
• Reverse logistics and Canada based support
• Large commodity trade for goods and services

Note: Information in this post and all Jet Worldwide online content is for general information only.

Transitioning from commodities to e-commerce

With the growth of e-commerce, American online merchants are now increasingly looking at shipping to Canada. Business to business (B2B) and consumers (B2C) online interactions to Canada represent a huge opportunity for US e-commerce merchants. Canadian businesses looking online to purchase supplies that are used in their products and services. Shipping Canada from US presents great opportunity in both countries.

As part of thep (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 small businesses and e-commerce merchants in the United States ship to Canadian customers.

Jet Worldwide provides American merchants shipping options to Canada to facilitate their e-commerce procurement / online sales to Canada.

Shipping Parcels from the US to Canada

Things to Consider Shipping to Canada

Customs, Duties, taxes and import fees to Canada:

Free trade to Canada… but not for parcels

New shippers to Canada are surprised to learn that parcels shipped from the US to Canada are subject to duty and regulatory compliance issues. The NAFTA free trade agreement - including the new NAFTA/ USMCA - allows for duty free status only for goods that meet the “rules of origin.” Shipping Canada from US for parcels mostly involves different clearance (LVS) processes.

The vast majority of items shipped via parcel from the US to Canada are not certified as meeting NAFTA rules of origin and thus not granted tax free entry to Canada. Read about the New NAFTA/USMCA/ CUSMA/T-MEC EFFECTIVE JULY 2020

Parcels shipped from the US to Canada are subject to duty and taxes

The majority of parcels shipped to the US can be imported duty free if shipped via courier.

Shipment that can be cleared duty free to Canada include:

• Shipments shipped courier valued under $40 CAD: Duty free/ tax free
• Shipments shipped courier valued under $150 CAD: Duty Free
• Shipments with a CUSMA Certification of Origin

CUSMA COO process for parcels to Canada with low-value shipments

For low value shipments (see graphic above), customs may accept a shorter 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/CUSMA.”

Shipped from the US Versus being US Origin

It is important to note that goods shipped from the US are not automatically granted US origin status. The USMCA/CUSMA defines country of origin as goods that are raised, grown, or manufactured in the country. Many e-commerce goods sold by US merchants are goods made elsewhere (mostly Asia) and being resold. Goods shipped from the Us - but made elsewhere - qualify under the duty free low value thresholds of CA$40/$150 mentioned above but do not qualify under USMCA CUSMA free trade provisions.

Single Entry for a consolidation of Parcels to Canada

Most large volume shippers to Canada establish themselves with Canada Customs as a “foreign importer of record.” Using this designation, shippers to Canada can benefit from a single customs entry for multiple shipments. This form of entry consolidates all the various packages which greatly reduces the cost of having to do a single entry for each parcel.

Single Entry for each parcel

Most carriers to Canada - including FedEx and UPS - utilize the Low Value System (LVS) system of clearance. The LVA system process allows for express clearance and for the classification and duty to be assessed following the provisional clearance.

In addition to the duty and taxes, carriers charge fees related to the clearance and prepayment of duty. This fee is most commonly calculated on the amount of duty and taxes with the minimum charge averaging around $18 CAD per parcel.

Shipping Canada from US

Parcel Carrier Shipping Options

Shipping from the US to Canada: USPS Options

Canada is the largest international destination for US Postal parcels. USPS offers a great choice for shipping to Canada. Among the most popular US Postal post options from Texas is the International Flat Rate Boxes to Canada. Shipping Canada from US via USPS are delivered by Canada Post.

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

The largest international destination for USPS parcels is to Canada. For e-commerce shippers using Shopify and e-bay, the flat rate boxes are a popular choice. However, shippers are increasingly looking to ship courier to take advantage of new USMCA/ CUSMA $150 CAD duty free threhsold.

USPS Flat rate boxes to Canada -Delivery within 2-3 weeks

Up to 20 pounds

• Priority Mail International Large Flat Rate Box
• Priority Mail International Medium Flat Rate Box
• Get a comparison quote shipping Canada from US

Up to 4 Pounds

• Priority Mail International Small Flat Rate Box
• Priority Mail International DVD Flat Rate priced box
• Priority Mail International Large Video Flat Rate priced box

For e-commerce sellers using Shopify, USPS offers value for small parcels. Contact Jet for shipping larger parcels from the US to Canada.

USPS Global Express Guaranteed to Canada

• Delivery via USPS partner FedEx Canada
• Delivery in 1-3 business days
• Can be less expensive than using FedEx Directly
• Get a quote shipping economy express Canada from US

USPS Priority Mail Express International

• Delivery in 3-5 business days from the US to major Canadian cities
• Estimated average cost: US$68

USPS Priority Mail International to Canada

• Delivery in 2-3 weeks to Canada
• Estimated average cost varies with weight

USPS shipments from the US are imported to Canada and delivered via Canada Post.

Canada Post has strong domestic capabilities with a commanding market share for at home deliveries.

Importing parcels from the US 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$40 (around $30 USD).

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 from the US toCanada via FedEx or UPS

FedEx and UPS are North America’s largest carriers and they offer reliable Canadian parcel delivery via their Canadian affiliates. FedEx and UPS international ground shipping to Canada is a great option for larger parcels but do not include customs clearance.

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 from the US: Up to 6 business days

Get a price estimate to compare parcel shipping costs from Jet Worldwide

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 to Canada: Up to 6 days Ground

Clearance and Entry Fees to Canada via UPS and FedEx

Carrier clearance fees in Canada vary by the service type. Jet can helpUS shippers minimize these fees through single entry consolidated entry. Jet Worldwide can receive and store shipments from the US in Canadian facilities for on-demand distribution within each province and 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 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.

US Shipping toCanada via innovative delivery solutions

See below on our reverse logistics processes Canada to US

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.

Up to dateFedEx ground and UPS ground entry preparation fees can be found online

Shipping a group of parcels consolidated for clearance

For many shippers, sending “pallets of parcels” to Canada via LTL/ truck using a single customs entry and Canadian ground distribution is the best choice. Purolator International, a Canadian based carrier, offers this break bulk service for large industrial and e-commerce merchants shipping from the US to Canada.

Shipping Options via Jet Worldwide

As this blog (hopefully) conveys, Jet Worldwide offers a consultative approach to help US shippers find the best carrier and clearance options to Canada. Jet partners with local US agents as well as major international carriers to move goods.

Jet Worldwide Services include:

• Economy express parcel delivery to Canada from the US
• Canada warehousing and distribution
• Canadian parcel receiving and return services
• Shipper reverse logistics Canada address. Contact our team for a return solution for your Canadian orders.

Canadian storage and distribution

For information on Canadian warehouse and distribution solutions- including providing your Canadian customers with a Canadian return solution ,contact our parcel logistics team.

Canada is the largest international market for most US based e-commerce merchants using on-line shopping platforms including Shopify, Big Commerce, Wix and other sites. USPS offers discounts via such e-commerce shipping platforms and is the lowest cost choice for small parcels.

Jet Worldwide offers low cost parcel delivery to Canada from US for larger parcels shipped via e-commerce parcels. And Canada to US reverse logistics (see below).

Note on USMCA/ CUSMA rules of origin

As mentioned above, single order/ cross border parcels sent to Canada that are valued under CA$3,300 US, can benefit from simple declaration on the customs invoice.

The rules of origin can get complex - especially when the goods contain non-North American origin parts and labour. The importer, exporter or producer are three parties than can certify origin. All should confirm with CUSMA experts to ensure their goods qualify as originating before shipping.

Even for high value shipments, CUSMA has the added benefit of not requiring a separate Certificate of Origin.

The Required Date Elements for CUSMA Certification of Origin/ COO include:

• Indicate the status of the certifier (importer, exporter or producer)
• Certifier name, full address and contact details
• Exporter name, address and contact info (if different than certifier)
• Producer name, address and contact info (if different than certifier)
• Importer name, address and contact info (if different than certifier)
• Description of goods including HS tariff classification number
• Origin criterion
• Blanket date range of certificate (up to 12 months is permitted)
• Signed and dated by the certifier and accompanied by the following statement:“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification.”

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.

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