PEETZcanada
Well-Known Member
This will disrupt Canadian small business direct to USA consumer selling & shipments through the boarder into the USA.
Starting August 29, 2025, a major change occurs for all shipments from Canada to the U.S.: the de minimis exemption is eliminated. This means all shipments, regardless of their value, will require prepayment of duties, taxes, and fees before crossing the border. This change affects how shipments are processed and requires the use of a Disbursement option (like DDP) to cover these costs, as traditional methods like Canada Post's Tracked Packet US and Expedited Parcel will be disabled for shipments to the U.S.
What This Means for You
Starting August 29, 2025, a major change occurs for all shipments from Canada to the U.S.: the de minimis exemption is eliminated. This means all shipments, regardless of their value, will require prepayment of duties, taxes, and fees before crossing the border. This change affects how shipments are processed and requires the use of a Disbursement option (like DDP) to cover these costs, as traditional methods like Canada Post's Tracked Packet US and Expedited Parcel will be disabled for shipments to the U.S.
What This Means for You
- No more $800 threshold:
The previous rule that allowed shipments under $800 USD to enter the U.S. without duties and taxes is no longer valid.
- Prepayment is Required:
You will need to pre-pay all applicable tariffs, duties, taxes, and other import fees at the time of purchase.
- Disabled Shipping Methods:
Shipping services that do not include pre-paid duties and taxes will no longer be an option for U.S. bound shipments.
- Increased Compliance:
All shipments will need to go through U.S. Customs Border Protection (CBP), and compliance with regulations is crucial to avoid potential issues.
- CUSMA/USMCA Documentation:
For goods that are eligible for preferential treatment under the CUSMA/USMCA free trade agreement, appropriate documentation must still be provided with the shipment, regardless of its value.
- 1. Use a DDP Option:
Choose a shipping option that offers a Delivered Duty Paid (DDP) service, which allows you to pay all the import fees upfront.
- 2. Prepare for Pre-payment:
Be ready to pay for duties, taxes, and brokerage fees when you create your shipping label.
- 3. Ensure Proper Documentation:
If your goods qualify for reduced duties under CUSMA/USMCA, ensure the correct paperwork accompanies the shipment.
- 4. Check with Your Carrier:
Confirm that your chosen carrier's services and systems have been updated to handle these new requirements for U.S.-bound shipments.
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