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Origin and trade agreements

Importing into Canada

Canada's CA$20, CA$40 and CA$150 parcel thresholds by carrier and origin, GST, HST and PST on imports, CARM and the BN, and what US surtaxes change.

Updated · 13 official sources

A parcel to Canada is free of duty and tax up to a value for duty of CA$20, or up to CA$40 when a courier brings it from the United States or Mexico. Courier parcels from those two countries also stay duty-free up to CA$150, though they pay GST or HST above CA$40. Mail from anywhere uses the CA$20 limit.

Rules as of 30 October 2026.

What does a parcel to Canada pay?#

A parcel to Canada pays according to how it travels and where it ships from. The Canada Border Services Agency (CBSA) remits duty and tax on low-value courier and mail imports, with higher limits for courier parcels from the United States or Mexico. Above each limit, duty and tax apply to the whole value, not just the part over it.

How it arrives Duty-free up to Tax-free up to
Courier, shipped from the US or Mexico CA$150 CA$40
Courier, shipped from any other country CA$20 CA$20
Mail (Canada Post), from any country CA$20 CA$20

The US and Mexico limits follow the shipping point, not where the goods were made. The CBSA's courier remission memorandum says goods don't need to originate in a CUSMA country, but they must have entered US or Mexican commerce before shipping to Canada. A parcel only transshipped through the US gets the CA$20 limit, and so does a US-made product shipped from a third country.

The remissions never cover alcohol, cannabis, vaping or tobacco products. They also don't apply when a buyer orders from a Canadian retailer that ships from abroad, orders through a Canadian address or phone number, or when someone other than the buyer imports the goods. Splitting one order into several parcels to stay under a limit is not allowed.

Parcel thresholds in North America

Country Duty-free up to Tax-free up to Currency Value counted Official source
Canada 20 20 CAD customs value cbsa-asfc.gc.ca
United States USD goods federalregister.gov
Mexico 50 50 USD customs value anam.gob.mx

border.bot live data from each country's official publications, updated 2026-10-14

Which sales taxes apply on import?#

Canada charges the federal goods and services tax (GST) at 5% on imports, or the harmonized sales tax (HST) in the provinces that merged their sales tax with it. For non-commercial imports, such as a consumer's online order, the CBSA also collects provincial sales tax for British Columbia, Manitoba and Saskatchewan, and Quebec sales tax for Quebec.

Province or territory Collected by the CBSA on import Rate
Alberta, Northwest Territories, Nunavut, Yukon GST 5%
Ontario HST 13%
Nova Scotia HST 14%
New Brunswick, Newfoundland and Labrador, Prince Edward Island HST 15%
British Columbia GST, plus PST on non-commercial imports 5% + 7%
Manitoba GST, plus PST on non-commercial imports 5% + 7%
Saskatchewan GST, plus PST on non-commercial imports 5% + 6%
Quebec GST, plus QST on non-commercial imports 5% + 9.975%

Nova Scotia's HST fell from 15% to 14% on 1 April 2025. The tax base is the value for duty plus duty and any surtax, so duty raises the tax too.

How is Canadian duty calculated?#

Canadian duty is a Customs Tariff rate applied to the value for duty: normally the price paid, without the freight and insurance that arise after the goods start their direct journey to Canada. The rate depends on the 10-digit classification and the tariff treatment the goods qualify for, such as the CUSMA rate for originating goods.

CUSMA preference and the CA$150 courier limit are different things. The limit only needs the parcel to ship from the US or Mexico. The CUSMA rate needs the goods to originate there. For commercial shipments with a value for duty of CA$3,300 or less, the CBSA waives the proof of origin, but the importer still keeps records such as the commercial invoice. Read USMCA rules of origin for how origin is decided.

Duty on leather footwear (6403.99)

Country General duty National lines Preferential rates
Canada 0
United States Free, 8%, 5% and others 31 Yes
Mexico 0

border.bot live data from each country's official publications, updated 2026-10-18

Here's a worked example. A Toronto customer orders Portuguese leather boots for CA$120. Shipped by courier from a US warehouse, where the boots had already been imported, the parcel is under CA$150, so duty is remitted, but it's over CA$40, so HST at 13% applies: CA$15.60. The same boots shipped straight from Portugal are over CA$20, so they pay duty at the rate for their tariff line plus 13% HST on the value and the duty together.

Who collects duty and tax?#

Duty and tax on a Canadian parcel are accounted for by whoever presents it to the CBSA. Approved couriers account for shipments with a value for duty up to CA$3,300 under the Courier Low Value Shipment program. For mail, the CBSA shows the amount owing on Form E14 attached to the parcel, and Canada Post adds a handling fee.

A courier can account for casual goods, meaning a consumer's personal purchases, under its own business number. Commercial goods go under the importer's own business number on a monthly Commercial Accounting Declaration. If you sell delivered duty paid and act as the importer of record, the duties are yours to pay and the account setup in the next section applies. The DDP guide covers the trade-offs, and the landed cost calculator prices a Canadian order before you quote it.

What registrations does a seller need?#

A seller who only ships to consumers and lets the courier clear the parcels needs no Canadian registration for customs. A seller importing as a business, including a non-resident importer shipping delivered duty paid, needs a nine-digit business number from the Canada Revenue Agency, an import-export (RM) program account, and a CARM Client Portal registration.

The CBSA's assessment system, CARM, has handled commercial accounting since 21 October 2024. Since 20 May 2025, importers that want goods released before they pay must post their own financial security; CARM for importers walks through the steps.

GST registration is a separate question. Goods shipped from abroad are taxed at the border. Non-resident vendors that hold goods in a Canadian fulfilment warehouse and sell more than CA$30,000 of them to unregistered buyers over 12 months must register for GST/HST under the normal rules. When the sale goes through a registered distribution platform, the platform collects the GST/HST instead.

What can't you ship to Canada?#

Canada prohibits some goods outright and restricts others behind permits from other departments, which the CBSA enforces at the border. Prohibited goods include obscenity and hate propaganda, and less obvious items such as used mattresses and some used vehicles. Alcohol and tobacco are controlled by the provinces, and military or security goods by Global Affairs Canada.

Food, plants and animals need Canadian Food Inspection Agency clearance, and some goods must be marked with their country of origin. Before a first shipment of a regulated product, check the restricted goods docs or ask the department named for its tariff line.

What changed and when#

Canada's import rules moved several times between 2024 and 2026: CARM went live for commercial accounting, Nova Scotia cut its HST, and Canada imposed, repealed and then reimposed surtaxes on US goods. The courier thresholds for US and Mexican parcels date from CUSMA's entry into force on 1 July 2020.

  1. Surtaxes on US goods return

    The United States Surtax Order (2026) charges 15%, 25% or 50% on about CA$27.6 billion of US-origin goods, including in low-value parcels. SOR/2026-186, P.C. 2026-785 (opens in a new tab)

  2. Steel and aluminum surtax rises to 50%

    Most US steel and aluminum goods move from a 25% to a 50% surtax. SOR/2026-187, P.C. 2026-786 (opens in a new tab)

  3. Global surtax on steel derivative goods

    Steel derivative goods such as wire, cable, chains and fasteners pay a surtax whatever their origin. SOR/2026-186, regulatory impact analysis (opens in a new tab)

  4. Most 2025 surtaxes repealed

    The 25% surtax on CA$30 billion of US goods, and on CA$14.2 billion of non-steel goods, ends; steel, aluminum and vehicles stay. SOR/2025-181, P.C. 2025-637 (opens in a new tab)

  5. CARM transition for security ends

    Importers without their own financial security lose release prior to payment. CBSA Customs Notice 25-22 (opens in a new tab)

  6. Surtax on US motor vehicles

    25% on US vehicles not entitled to CUSMA treatment, and on the non-CUSMA content of those that are. SOR/2025-118 (opens in a new tab)

  7. Nova Scotia HST cut to 14%

    The HST rate in Nova Scotia falls from 15% to 14%. CRA, GST/HST rates (opens in a new tab)

  8. Surtax on US steel and aluminum

    25% on steel and aluminum and a list of other US goods. SOR/2025-95 (opens in a new tab)

  9. 25% surtax on US goods

    25% on about CA$30 billion of US goods, from food to appliances. SOR/2025-66 (opens in a new tab)

  10. CARM goes live

    The CBSA starts assessing and collecting duty and tax on commercial goods in CARM. CBSA news release, 14 May 2025 (opens in a new tab)

  • CARM for importers: What the CBSA's CARM system asks of importers since October 2024: the business number, RM account, portal roles, release before payment and security.
  • Canada's counter-tariffs on US goods: Canada's surtaxes on US-origin goods from March 2025 to now: what was imposed, what was repealed, the 15%, 25% and 50% lists in force since 8 September 2026.

Common questions#

What is the de minimis for Canada from the US?#

For courier parcels shipped from the United States or Mexico, Canada charges no duty up to CA$150 and no tax up to CA$40. Mail from the US uses the general CA$20 limit for both.

Do I pay duty on US-made goods under CUSMA?#

Goods that originate in the US under CUSMA's rules of origin usually enter duty-free at the CUSMA rate, but US-origin goods on Canada's surtax lists pay the surtax regardless. Shipping from the US alone doesn't make goods originating.

Does Canada charge PST on imports?#

For non-commercial imports, such as a consumer's order, the CBSA collects PST for British Columbia, Manitoba and Saskatchewan and QST for Quebec, on top of GST.

Do I need a business number to ship to Canada?#

Not if you only sell to consumers and the courier clears the parcels as casual goods. You need one, with an RM account and CARM registration, if you import commercially or act as importer of record.

Sources#