Canada is one of the most common international destinations for US sellers, and one of the easiest to overpay for. Three things decide the total cost: the carrier, the box size, and whether the recipient is charged duty and tax on arrival.
Courier or post: the thresholds are different
Canada waives duty and tax on low-value parcels, but the limits depend on how the parcel arrives and where it comes from:
| How the parcel arrives | Duty waived up to | Tax waived up to |
|---|---|---|
| Courier from the US or Mexico | CAD 150 | CAD 40 |
| Mail from any country, or courier from elsewhere | CAD 20 | CAD 20 |
So a CAD 100 order sent by courier from the US pays no duty, only GST or HST. The same order sent by mail can owe both. Courier brokerage fees can outweigh that saving, so compare the full delivered cost, not just the label.
Keep the box small
Carriers bill the larger of the actual weight and the dimensional weight. A light item in a large box is priced as if it were heavy. Measure the packed box and check it with the dimensional weight calculator before you buy the label.
Get the paperwork right
- Describe each item specifically and declare its true value.
- State the country of origin (where it was made).
- For sales, say who pays duty and tax. If the recipient pays, tell them in advance; unexpected charges are the most common reason Canadian customers refuse delivery.
Details are in our guide to customs forms.
Check before you send
Canada restricts or bans some items in the mail, including alcohol, lighters that contain fuel and firearms. See the full list on the prohibited items page for Canada.
Sources
- Canada Border Services Agency, Increase to low-value shipment thresholds and other changes
- Canada Border Services Agency, Memorandum D8-2-16: Courier Imports Remission
- US Postal Service, International Mail Manual: Canada
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