Higher de minimis thresholds for courier imports

Summary#

This is the Order Amending the Courier Imports Remission Order that changes the value limits for small courier shipments that are relieved of duties and some taxes. For goods sent by courier from the United States or Mexico, customs duties are now waived up to $150 and excise taxes up to $40; the existing $20 threshold stays for other countries. The order was registered on April 29, 2020 and comes into force when the related provision of the Canada–United States–Mexico Agreement Implementation Act takes effect (or on registration if that has already happened).

What it does#

• Raises the remission (waiver) for customs duties on qualifying courier imports from the United States and Mexico from $20 to $150.
• Raises the remission for excise taxes on qualifying courier imports from the United States and Mexico from $20 to $40.
• Keeps the remission threshold at $20 for courier imports from all other countries.
• Keeps the existing rules about what counts as a “qualifying” courier shipment (for example: goods sent directly from a seller, no split shipments to avoid the limit, and some items like alcohol, tobacco and cannabis are excluded).
• If the duty/tax relief is not applied at the time of import, a claim must be made to the Minister of National Revenue within two years of the importation.

Who's affected#

• People who buy goods from the United States or Mexico and receive them by courier.
• Small businesses and online sellers in Canada that import small-value goods from those countries.
• Courier companies and postal services that handle cross-border small shipments.
• Government agencies that process imports, including the Canada Border Services Agency (CBSA).
• The change applies to anyone importing qualifying goods; the source specifically notes Indigenous peoples are included as potential beneficiaries.

Why it matters#

• More low-cost packages from the United States and Mexico will arrive without customs duties (up to $150) or excise taxes (up to $40). That can save money for online shoppers and small businesses that import small items.
• The government estimates lost tariff revenue of about $71 million per year because of the higher customs duty threshold.
• The change implements Canada’s commitments under the Canada–United States–Mexico Agreement (CUSMA) and aligns Canada’s de minimis rules with that trade deal.
• Practically, travellers and shoppers may see fewer low-value charges on cross-border purchases. The CBSA will update its systems and continue normal monitoring and enforcement.