Part IIFinal RegulationVolume 158, Number 22Published: October 23, 2024

Low‑Value Import Threshold Increased to $3,300

Regulations Amending Certain Regulations Made Under the Customs Act (Low Value Shipment Threshold): SOR/2024-199

Regulations formally raise Canada’s low-value shipment threshold from $2,500 to $3,300 and amend related customs regulations. The changes simplify proof-of-origin requirements for commercial goods valued at $3,300 or less and are deemed to have come into force on 2020-07-01.

Published
October 23, 2024
Department
Unavailable
Section
Regulations Amending Certain Regulations Made Under the Customs Act (Low Value Shipment Threshold)
Comment deadline
Unavailable
Effective date
July 1, 2020
Publication part
Part II

Summary

Summary#

These are final regulations called Regulations Amending Certain Regulations Made Under the Customs Act (Low Value Shipment Threshold) (SOR/2024-199) that formally raise the low‑value import threshold from $2,500 to $3,300. They codify changes the Canada Border Services Agency (CBSA) has been using since July 1, 2020 and were published in the Canada Gazette on October 23, 2024.

What it does#

  • Changes references to the low‑value shipment amount from $2,500 to $3,300 in the Accounting for Imported Goods and Payment of Duties Regulations.
  • Updates the Fees in Respect of Mail Regulations so that commercial mail fees apply only when the estimated value for duty exceeds $3,300.
  • Amends the Proof of Origin of Imported Goods Regulations so that importers of commercial goods valued at $3,300 or less do not need a separate written origin statement to claim preferential tariff treatment under Canada’s free trade agreements; a commercial invoice showing origin is acceptable unless the shipments are part of a scheme to avoid the rules.
  • States these changes are treated as having come into force on July 1, 2020 (they formalize practices already in effect under Customs Notice 20-15).

Who's affected#

  • Canada Border Services Agency (CBSA), which administers customs processing and updated its systems and guidance.
  • Businesses that import goods, including online sellers and small and medium enterprises.
  • Customs brokers, freight forwarders and courier companies who process low‑value shipments.
  • Consumers who buy items from overseas via e‑commerce — more low‑value parcels may clear faster and with less paperwork.
  • It’s unclear if any other groups are significantly affected beyond the trade and delivery sectors named above.

Note: CBSA’s regulatory analysis said these changes align rules across import streams and do not increase costs for small businesses.

Why it matters#

  • More packages with a value for duty at or below $3,300 can move through customs with fewer documents and simpler checks. That usually means faster delivery and less paperwork for importers and couriers.
  • Claiming duty‑free treatment under free trade agreements for small commercial shipments is simpler because a commercial invoice that shows origin is now enough.
  • The change brings Canada into line with the low‑value threshold used by the United States and Mexico under CUSMA, which can simplify cross‑border e‑commerce and courier operations.
  • Because the rules are retroactive to July 1, 2020, they formalize practices already applied to shipments since that date.

Key topics

Customs ActAccounting for Imported Goods and Payment of Duties RegulationsFees in Respect of Mail RegulationsProof of Origin of Imported Goods RegulationsCanada Border Services AgencyCustoms Notice 20-15Canada-United-States-Mexico AgreementCUSMAlow-value shipment thresholdcommercial invoicepreferential tariff treatmente-commercecustoms brokerscouriersimporters

Source: Canada Gazette

Official source