Shipping parcels from the USA to Canada is dominated by FedEx and UPS. Their USA networks are unrivalled and their ground service offers the lowest cost for large parcels. But when shipping times and clearance costs are considered, ground shipping from the USA to Canada is not always as low as it may seem. Read about the New NAFTA/USMCA/ CUSMA/T-MEC EFFECTIVE JULY 2020 easier duty free access to Canada from the US.
Due to Canadian clearance costs, shipping parcels via ground from the USA to Canada is not always the most cost efficient method.
CUSMA/USMCA Shipping to Canada from the USA
Key provisions for shipping courier to Canada under CUSMA USMCA include:
- Duty free and tax free entry for most US origin parcels valued under CA$40
- Duty free entry for most parcels shipped from the US valued under CA$150
- Simplified "Certification of Origin" for shipments valued under CA$3,300
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only and is not intended to, constitute legal and/or tax advice. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is”; no representations are made that the content is error-free.
For an LTL shipping rate to Canada: Contact Jet's Canadian Logistics Team.
Clearance cost of ground shipment to Canada
The "clearance preparation" cost can be significant if your parcel is valued as little as $200 CAD. The additional cost clearance can mitigate - or even eliminate - the lower price of shipping ground from the USA.
Canadian companies who receive many shipments from the USA often calculate their shipping cost separate from their clearance cost. And thus, do not realize they can send via Jet's economy express for about the same (or even less) from the USA with a much faster transit time.
Disbursement fee versus Entry Fee
For express shipments from the USA, clearance is included but carriers charge a "disbursement fee" . The fee's average between $15 and $20 and are calculated as a percentage (usually 2.5 to 3%) of the amount of duty/ taxes the carrier paid to Canadian customs on behalf of the importer. As the above chart shows, Entry fees are much higher.
The advantage of Jet's economy express service from the USA to Canada include:
- 1-3 day delivery from across the USA to Canada
- No charge clearance preparation cost
- Get a quote for shipping parcels Canada from US
Large volume e-commerce shipping from USA to Canada:
In addition to our individual parcel service Jet advises US companies on the best methods for shipping their e-commerce parcels from the USA to Canada. Using direct injection processes, American retailers can better serve their Canadian customers.
Ship to Jet Canada for storage and distribution
In addition to our direct injection, Jet helps American companies manage their distribution needs in Canada with low minimum storage, pick/ pack and on demand next day delivery across Canada.
Handling Returns from Canada to the USA
Need an address and a company to manage your returns from Canada? Contact our Canadian reverse logistics department. Get a Canadian address for your returns.
Reminder: The information in this blog is for general information only.