Quick answer: Canada runs duty-free trade in both directions. Canadian-origin goods enter free trade partner markets duty-free under rules of origin, while goods made in Canada or an FTA partner enter Canada duty-free when the right tariff treatment is claimed. Duty-free is not tax-free, and proof of origin plus a CARM profile are the two things importers most often miss.
Reading time
Important but simple fact: if you are shipping to, or receiving goods from, a Canadian free trade partner, those goods may qualify for duty-free treatment in either direction.
How to Ship To and From Canada (Video Guides)
Duty-Free Both Ways: Exports Out and Imports In
Duty-free access rests on two different mechanisms depending on direction. Treating them separately is the fastest way to avoid a rejected preference claim.
Duty-free exports from Canada
Canadian-origin goods enter a partner market duty-free by meeting that agreement's rules of origin and travelling on a valid origin declaration.
- Preference is claimed on the import entry in the destination country.
- A CERS export declaration is required for most non-restricted exports valued over CA$2,000, except shipments to the United States.
- Destination VAT or GST still applies even at 0% duty.
Duty-free imports to Canada
Goods made in Canada or an eligible FTA partner clear duty-free when the correct tariff treatment code is claimed to the CBSA.
- Postal de minimis is CA$20; CUSMA courier shipments are duty-and-tax-free to CA$40 and duty-free to CA$150 (tax still applies).
- Origin certification is simplified for values of CA$3,300 or less (records still required).
- A CARM profile and importer number are mandatory for commercial imports.
| Factor | Exports from Canada | Imports to Canada |
|---|---|---|
| Basis of duty-free | Rules of origin of the destination FTA | Tariff treatment claimed on the CBSA entry |
| Where preference is claimed | On the foreign import entry | On the Canadian import entry |
| Proof | Exporter origin declaration or statement | Origin statement; certificate waived to CA$3,300 |
| Export or import filing | CERS over CA$2,000 (not to the USA) | CARM profile plus importer number |
| Tax | Destination VAT or GST applies | Canadian GST or HST applies |
Information gain — Jet Worldwide lane data Jet Worldwide handles roughly 30% of shipments moving under an FTA claim.
Canadian Free Trade With the World's Largest Economies
Canada has FTAs with the United States and Mexico (USMCA/CUSMA/T-MEC), 27 EU countries (CETA), the 12-member CPTPP (which now includes the United Kingdom), and South Korea (CKFTA) — plus EFTA and others. As a network it reaches roughly 1.5 billion consumers, and Canada is the only G7 country with FTA access to every other G7 economy plus the EU.
Correction noted: the CPTPP is no longer "10 Asia-Pacific economies." Since 1 September 2026 it has 12 members including the United Kingdom, which is not in the Asia-Pacific. The agreement now covers over 598 million people and about 14.4% of global GDP.
- Competitiveness: preferential duties, often 0%, and simpler market entry.
- Growth: access to new customers and government tenders.
- Predictability: clearer standards and trade facilitation measures.
- Services: improved access for Canadian service providers.
- 1994 NAFTA (later CUSMA)
- 1997 Canada-Chile FTA (CCFTA)
- 2015 Canada-Korea FTA (CKFTA)
- 2017 CETA provisionally in force with the EU
- 2018 CPTPP in force for the first six members including Canada
- 2020 CUSMA replaces NAFTA
- 2021 Canada-UK Trade Continuity Agreement (CUKTCA)
- 2025 Canada-Indonesia CEPA signed (not yet in force)
- 1 Sept 2026 CPTPP enters into force between Canada and the UK
FTA Momentum: Why It Matters Now
- CETA (EU): two-way merchandise trade up over 75% since provisional application in 2017 (services up about 97%).
- CPTPP: strong double-digit growth with newer Asia-Pacific partners since 2018, now extended to the UK.
- South Korea (CKFTA): bilateral goods trade roughly doubled since the 2015 entry into force.
- Latin America: trade with Canada's Latin American FTA partners has grown very substantially across the life of those agreements (Chile from 1997 onward), on the order of several hundred percent over that multi-decade span.
Corrections noted: the earlier "CETA 50%+ over the last decade" understated current figures and is restated against the 2017 baseline; the "Latin America nearly 300% over the last decade" period was re-scoped to the multi-decade FTA history, not a single decade.
Low-value duty-relief thresholds to the EU, UK, Australia, and Mexico particularly benefit direct-to-consumer (DTC) e-commerce. Many shippers are still unaware their products can qualify for preferential entry, often without a stand-alone certificate of origin.
How Goods Qualify for Duty-Free Treatment
Basically, goods made in Canada or in a free trade partner can move duty-free. The complicating part is when a company assembles imported parts into a finished product, because origin then depends on how much transformation occurred.
When declaring these goods to the Canada Border Services Agency (CBSA), you must identify the goods for which you wish to claim preferential (reduced or zero) duty rates.
Proof of origin
The importer must hold a valid, signed proof of origin. For commercial goods with a value for duty not exceeding CA$3,300, a formal certificate of origin is waived. A commercial invoice carrying a signed statement from the exporter certifying that the goods originate in Canada or the applicable FTA partner country is still required.
Correction noted: the original text certified goods as originating "in Panama." That was a copy-paste error and has been made generic.
Ship direct
Qualifying goods ship directly to or from Canada. They may transit a third country but must remain under customs control and not enter that country's commerce or undergo further processing.
Most-Favoured-Nation (MFN) tariff rates apply to many imports where FTAs do not. When goods do meet the rules of origin under an FTA, they can often clear at 0% duty — a major pricing advantage for exporters and online sellers.
Preferential Duty, Even for Small Shipments
- For imports to Canada of CA$3,300 or less, origin declaration requirements are simplified (record-keeping still applies).
- Many FTAs do not require a stand-alone certificate: a proper origin statement on a commercial document, often the invoice, can suffice.
- Ask Jet's team about duty-free DTC programs to the EU, UK, Japan, Australia and New Zealand, and other CPTPP markets.
Preferential Tariffs for Developing Countries
Canada maintains non-reciprocal preference programs supporting developing economies:
- GPT — General Preferential Tariff
- GPTP — General Preferential Tariff Plus (new program)
- LDCT — Least Developed Country Tariff
- CCCT — Commonwealth Caribbean Country Tariff
Update noted: the GPT and LDCT programs were renewed to 31 December 2034, the new GPTP program was created, and program updates took effect 1 January 2025. The CCCT program does not expire in legislation.
Reading Canadian Tariff Preference Codes
- MFN — Most-Favoured-Nation (standard rates)
- UST — United States (USMCA/CUSMA)
- MXT — Mexico (USMCA/CUSMA and CPTPP)
- UKT — United Kingdom (CUKTCA)
- CPUKT — United Kingdom under CPTPP (treatment code 35, effective 1 Sept 2026)
- CEUT — European Union (CETA)
- CPTPT — CPTPP members
- KRT — Korea (CKFTA)
- PAT — Panama (CPAFTA)
Correction noted: "KCFTA" is corrected to CKFTA (Canada-Korea Free Trade Agreement), and the new CPUKT code was added for UK goods entering Canada under CPTPP.
CETA Rules of Origin (EU and Canada)
To access CETA's 0% duty, goods must be originating in the EU or Canada, not merely shipped from there. Qualification routes:
- Change in Tariff Classification (CTC): sufficient transformation results in a new HS heading or subheading.
- Regional Value Content (RVC): a minimum percentage of value added in the EU or Canada.
Sector-specific rules for textiles, automotive, and chemicals may apply. Learn how duty is calculated.
When Is Proof of Origin Needed?
For Canadian imports of CA$3,300 or less, proof may not be required at the time of import, but importers must keep records. Above that value, and in many other situations, provide an origin declaration on a commercial document or, where still required, a certificate of origin.
Read more: Understanding a certificate of origin.
Rules of Origin: Core Concepts (All FTAs)
- Wholly obtained or produced entirely in the territory
- Substantial transformation, including specific processing rules
- CTC — change in tariff classification
- RVC — regional value content thresholds
- Cumulation — counting value from other FTA members
- De minimis — a limited share of non-originating inputs permitted
- Traceability and verification — documentation and audit readiness
Simply shipping from an FTA country does not confer origin. Origin relates to where the product was made or sufficiently transformed.
Reference: CBSA — Origin of Goods.
Customs Data for Online Orders
- HS code: master it internally even if not printed on the label. See HS Codes for Cross-Border Online Shipments and tariff classification basics.
- Valuation: typically the transaction value; understand CIF and adjustments. See declared value and CIF.
- Restrictions: identify any controlled goods before listing or fulfilment.
- Origin: maintain evidence and add origin statements where eligible.
- VAT or GST: even duty-free goods are usually taxable in destination markets such as the EU, UK, and Australia or New Zealand.
Shipping Cold Chain and Dry Ice Shipments Internationally From Canada
Dry ice is a critical solution for transporting temperature-sensitive goods internationally from Canada, commonly required for biomedical samples, life-science research, and frozen food samples.
For Jet Worldwide clients, cold chain integrity means more than ice; it means navigating the specific customs compliance for perishables and biologicals. Contact our team for details on dry ice logistics.
When Canada Has More Than One FTA With a Country
Canada has overlapping FTAs with some partners, notably Mexico (CUSMA and CPTPP), Chile, and Peru. Importers choose one agreement at the time of import; they cannot claim both. Some products qualify more easily under CPTPP than CUSMA, so compare rules before filing.
- Chile: CCFTA and CPTPP
- Peru: CPFTA and CPTPP
- Mexico: CUSMA/T-MEC and CPTPP
While importers can choose which FTA to apply, they are bound by the entire agreement. You cannot cherry-pick different aspects of each agreement.
Shipping Terms and Valuation (EXW, DAP, DDP, CIF)
The default for many international B2C shipments is DAP/DDU (the receiver pays import charges). Shippers can also use DDP to prepay duties and taxes, but note that VAT or GST may be recoverable by the importer, so prepaying could reduce their recoverability.
Understand the CIF (Cost, Insurance, and Freight) basis for customs valuation. Learn more: declared value and CIF and Incoterms explained.
CUSMA/USMCA: Shipping Between the USA, Canada, and Mexico
- Courier consignments from the US or Mexico to Canada: CA$40 duty-and-tax-free threshold.
- Most courier consignments: duty-free up to CA$150 (tax still applies).
- Simplified certification for values under CA$3,300.
Sample statement: "I hereby certify that the goods in this shipment qualify as originating for the purposes of preferential tariff treatment under USMCA/T-MEC/CUSMA."
Postal and courier thresholds differ (postal de minimis is CA$20). See Canadian import fees.
EFTA and New Agreements (Including CEPA With Indonesia)
EFTA includes Iceland, Liechtenstein, Norway, and Switzerland. The EFTA-Canada FTA enables preferential duty treatment for qualifying goods.
The Canada-Indonesia CEPA, Canada's first bilateral trade agreement with an ASEAN country, was signed on 24 September 2025 and Canada's implementing legislation received royal assent on 6 May 2026. It is not yet in force, pending completion of both countries' procedures, with entry expected by late 2026 or early 2027. Once in force, over 95% of current Canadian exports to Indonesia, such as wheat, potash, wood, and soybeans, will face reduced or zero tariffs.
Correction noted: CEPA was previously implied to be active. It is signed and ratified by Canada but not yet in force.
Shipping Modes: When Is It Best to Use Them?
- Air freight: fastest; good for high-value or urgent cargo.
- Sea freight: best for large commercial orders and containers (LCL or FCL).
- Couriers: FedEx, UPS, and DHL for parcels and time-definite delivery.
- Trucking and rail: cross-border North American networks.
- Postal: best for personal items and small parcels.
Compare quotes and transit times, and always align with origin eligibility and documentation.
CBSA CARM: Mandatory for Canadian Importers
All commercial importers should register in CARM (CBSA Assessment and Revenue Management), assign a customs broker, and set up a surety bond or cash deposit. Even when importing from an FTA partner, you need a valid importer number and CARM profile.
Learn more: CARM guide for importers.
Frequently Asked Questions
Can goods ship duty-free both into and out of Canada?
Yes. Exports out of Canada qualify for duty-free entry into a free trade partner market when the goods meet that agreement's rules of origin. This includes all major economies with the exception of China and India.
Do I need a certificate of origin for a small shipment?
For commercial imports to Canada valued at CA$3,300 or less, a formal certificate of origin is generally waived. A signed origin statement on a commercial document such as the invoice usually suffices, and records must be retained.
Does duty-free mean tax-free?
No. Even duty-free goods are usually subject to import VAT, GST, or sales tax in the destination market, including the EU, the UK, Australia, New Zealand, and Canada.
Which duty-free threshold applies to parcels entering Canada?
Postal de minimis is CA$20. Under CUSMA, courier shipments from the United States or Mexico are duty-and-tax-free up to CA$40 and duty-free, with tax still applying, up to CA$150.
Can I claim two free trade agreements on the same import?
No. Where Canada has more than one FTA with a country, such as Mexico under CUSMA and CPTPP, you choose one agreement per import and are bound by that agreement in full. You cannot combine provisions from different agreements.
Do I need to register in CARM to import commercially into Canada?
Yes. All commercial importers must have a CARM profile, a valid importer number, and financial security in the form of a bond or deposit, even when importing from a free trade partner.
Disclaimer: Jet Worldwide content is for general information only. Verify with official regulations and your customs broker or importer of record.
