What are Canada’s de minimis thresholds for courier shipments?

May 06 11:05 2020 Print This Article

When it was announced that Canada, the United States and Mexico had reached an agreement to amend the North American Free Trade Agreement (“NAFTA”), one of the important changes was an increase to the de minimis threshold, which is the monetary value of courier shipments that can enter Canada without payment of duties and taxes. On May 2, 2020, the Canada Border Services Agency (“CBSA”) posted Customs Notice 20-18 “Implementation of the Canada-United States-Mexico Agreement (CUSMA) De Minimis Thresholds with Respect to Customs Duties and Taxes for Courier Imports” in which the CBSA clarified the thresholds that will be in effect starting on July 1, 2020 (the date that CUSMA (aka USMCA, NAFTA 2.0) enters into effect).

The de minimis rules will be applied based on the place of direct shipment, and not based on where the goods originate.  Courier companies do not need to apply the CUSMA/USMCA rules of origin to determine whether the lower de minimis thresholds would apply – this would undermine the intention to expedite low value shipments.  Goods shipped from the United States or Mexico that do not meet the CUSMA rules of origin will be subject to the higher de minimis threshold rules below.

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Canada-US Blog

This blog is about Canada-United States cross border legal issues. Some of the authors are practicing lawyers and some are law students. This is a forum for discussion that presents an opportunity for law students to contribute and become known to potential employers in this dynamic area of the law.

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