Import fees to Canada: A Complete Guide

Understanding Customs and Carrier Fees to Canada

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.

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Complete Guide: Import Fees to Canada

• Canadian surtax on goods shipping from the USA
• Entry preparation (usually inclusive for express shipments but not ground)
• Administration / disbursement fee
• Duty (if goods do not qualify for duty-free status)
• Explaining Canada's duty-free low value thresholds
• Provincial and Federal taxes
• Claiming back Canadian sales tax paid for importing goods
• Canadian Customs Broker Fees
• Registering for CARM
• Managing Canada returns for Canadian online orders
• Get a shipping quote to and from Canada from everywhere!
• Common import fees to Canada via ocean container
• Importing personal effects to Canada duty-free
• Shipping from the US to Canada and from other countries
• A certificate of origin to Canada explained and its benefits
• From where goods ship from versus their country of origin
• Shipping terms to Canada: delivery duty paid or unpaid
• Non-tariff trade barriers
• Valuation for non-resident importers to Canada
• Choosing the best shipping options to Canada
• Read our Complete Guide for Shipping to Canada

Understand and Reduce Import Costs to Canada

JetShip support and rates

Canada Tariffs on US Goods: Countermeasures & Surcharges

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:

1. Exceed personal exemption limits of Canadian residents and “more than reasonable quantity” brought by visitors
2. Are imported by mail and courier
3. Are gifts that may have otherwise been duty and tax exempt
4. Transit through Canada to a third country
5. Are brought into Canada temporarily for demonstration or exhibition

The regulations and possibility to reclaim surtax charges are updated regularly.

Duty-Free Threshold: Shipping to Canada from the USA

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.

Duty-Free Threshold: Shipping to Canada (Non-USA Origin)

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)

Ship-From Country ≠ Country of Origin

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

FAQ Regarding Import Fees to Canada

Can I import online orders USA → Canada duty-free under USMCA?

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.

How to calculate import duties to Canada

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.

Canada import tax explained

Which countries have a Free Trade Agreement with Canada?

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)

How can I verify if the import fees I was charged are correct?

Request a detailed invoice from the carrier or broker. If this is for your business, request a review from Jet's team.

What are the most common import fees to Canada?

The most common import fees to Canada are duty, taxes, entry preparation, and carrier fees.

How to avoid customs fees in Canada

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.

Are all shipments from the USA duty-free to Canada?

Shipping from the USA versus “Made in USA”

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.

What is the duty-free threshold to Canada?

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.

Why do shipments from China sometimes have lower import fees in Canada?

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:

• Shipments from China typically import via Canada Post with a low value (see below)
• Imports via Canada Post in general seem to have less oversight than via commercial carriers
• Many shipments from the USA ship via UPS Ground. These shipments incur a cost for “entry preparation” (see below)

Useful information regarding import fee calculation

Foreign companies acting as Importer of Record in Canada

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.

Are import fees to Canada less via the post office?

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)

Why does UPS charge brokerage 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.

Can e-commerce orders be imported duty-free via Canada's Free Trade Agreements?

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.

Verify if you can benefit from Canada's Free Trade Agreements

Are USMCA, CUSMA and T-MEC the same agreement?

Yes. The North American trade agreement has names specific to each country — three names, one agreement.

• USMCA: USA
• CUSMA: Canada
• T-MEC: Mexico

Certification of Origin (COO) process for parcels to Canada

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

Benefit from having a certificate of origin to Canada

The country of origin is useful for Canadian customs to determine if duty-free import applies.

Read more: Understanding a certificate of origin

Basic rules for importing parcels to Canada

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.

Understand the principles of declaring a value for customs

Duty-Free Thresholds for Canadian imports

CANADA’S DE MINIMIS THRESHOLDS FOR IMPORTS BY COURIER

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.

Duty-Free Thresholds: Courier to Canada from USA & Mexico

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:

• Value under CA$40: Duty-free and tax-free
• Value between CA$40.01 and CA$150.00: Duty-free but not tax-free
• Value over CA$150: Dutiable and taxable

Duty-Free Thresholds: USPS & Mexican Post to Canada

• The postal rules apply. Goods above CA$20 are subject to duty and tax.

Duty-Free Thresholds: Goods to Canada via the USA

• Consignments from other than the USA or Mexico with a value over CA$20 are subject to duty and tax. This includes goods that ship via the USA from another country.

Exceptions to De Minimis Duty-Free Thresholds

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:

• Import goods from a retailer in Canada shipping to the purchaser directly from a place situated out of Canada;
• Import goods through or from an address, a post office box or a telephone number in Canada; and
• Goods that import to a person other than the purchasing person in Canada

3. Orders cannot be split up to “game the system.” The declared value must reflect all items ordered by the customer.

Common Import Fees to Canada

Common import fees for consignments shipping via air to Canada can include:

1. Duty: Items that do not qualify for preferential duty-free import are subject to duty. Read more: Understanding import duty calculation
2. Tax: All imports to Canada are subject to both federal (5%) and provincial sales tax.
3. Entry preparation fee: Inclusive for most consignments via express courier. Goods that import via ground do not include entry preparation. Consignments that require non-standard entries may be subject to additional preparation fees.
4. Disbursement Fee: When duty and taxes apply, carriers charge a fee for prepayment of such fees prior to final delivery. This averages between 2–3% of the fees paid on behalf of the consignee with a minimum fee between CA$10–$20.

Other Possible Canadian Import Fees

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

Ocean Port Import Fees to Canada

Shipments arriving via ocean container are subject to a range of fees that can include:

• Duty (Understanding duty calculation)
• Wharfage Fee
• Terminal Handling Charge (THC)
• Documentation Fee
• Port Security Fee
• Customs Clearance Fee
• Demurrage, Detention and Storage

Learn more: Realizing the benefits of ocean freight to and from Canada

Canadian Duty Rates for International Imports

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 Simplified HS Code (GHS)

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.

What is an HS Code?

Verify and understand how to classify your goods for export/import

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.

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Carriers “Customs Entry Preparation” Fee to Canada

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.

Customs Entry Preparation for Ground Shipments from the USA

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)

Disbursement Fee by Canadian Carriers

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.

Processing Fee for Imports to Canada

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

Fees Charged Directly by a Canadian Customs Broker

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.

Can you self-clear goods to avoid customs brokerage fees?

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.

CBSA Assessment and Revenue Management (CARM)

Registration in Canadian Customs’ CARM portal is necessary for all commercial importers.

Beyond Duty: Sales Tax Is a Major Component of Import Fees

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.

• GST: 5% federal tax applies to virtually all goods imported to Canada.
• PST: Applies in BC, MB, QC, SK (alongside GST 5%).
• HST: Combined tax in NB, PE, NS, NL, ON (rates ~13–15%).

Claiming Back Canadian Sales Tax Paid on Imports

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.

Is the import part of your commercial activity?

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 Entry for Shipments to Canada (Express)

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:

• Product value
• Applicable trade agreements
• Country of manufacture
• Description and end use
• HS code classification

Fees for Gifts Importing to Canada

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.

Postal Imports to Canada: Often Lower Collection Rates

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.

Consider Shipping Terms When Sending to Canada

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.

Non-Tariff Trade Barriers to Canada

Beyond duty and taxes, consider these compliance items:

• Provincial licenses for direct-to-consumer sales
• Safe Foods for Canadians Act (for food shipments)
• Health Canada approvals (where applicable)
• Country of origin declarations
• Proper valuation rules (Value for Duty)
• Bilingual labeling for goods sold across Canada

Non-Resident Importer (NRI) & Consolidations

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.

Get Canadian and North American Logistics Support

Jet Worldwide is a leading resource for international shipping for over 40 years. Get best-in-class logistics support from our team and benefit from our network of global carriers, clearance experts, and regional specialists.

Managing Product Returns for Canadian Online Orders

Jet Worldwide assists international companies with Canadian returns — including providing a Canadian address, consolidation, inspection, and reshipment options.

Importing to Canada from Other Countries

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.

Choosing the Best Shipping Options to Canada

Once you understand import fees, select the best mode for your shipment:

• Air freight: Fastest door-to-door transit for urgent cargo
• Ocean freight (LCL/FCL): Economical for pallets/large orders
• Road freight: TL/LTL for palletized freight to Canada
• Couriers: FedEx, DHL, UPS (and partners) for parcels
• Postal services: Best for small personal shipments

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

Shipping to Canada from the USA

Shipping from the UK to Canada

Shipping from France to Canada

Shipping from Germany to Canada

Shipping from Australia to Canada

Shipping from China to Canada

Shipping from Mexico to Canada

Shipping from Taiwan to Canada

Importing Personal Effects to Canada Duty-Free

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):

• Provide passport copies and a detailed list of contents with estimated values.
• Restricted items may not qualify for duty-free import.
• Personal goods are generally over 1 year old and for personal use only.
• Goods must be self-cleared by the importer.

CBSA reference: https://www.cbsa-asfc.gc.ca/travel-voyage/mrc-drc-eng.html

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