Canada Duties on Online Orders: CUSMA, De Minimis and Fees

Few things sting like a “cheap” online order that arrives with a bill at the door. For Canadians, what you pay depends on three things: where the parcel ships from, whether it comes by courier or by mail, and its value in CAD. Here is how it works, based on CBSA and Canada Post rules.

The thresholds that decide what you pay

CBSA calls these remission thresholds: below them, duty and tax are waived. Values are in Canadian dollars and based on the value for duty (roughly what you paid for the goods).

Shipped from	Delivered by	No duty up to	No tax up to
US or Mexico	Courier (UPS, FedEx, DHL, Purolator, etc.)	CAD 150	CAD 40
US or Mexico	Mail (USPS to Canada Post)	CAD 20	CAD 20
China or any other country	Courier or mail	CAD 20	CAD 20
Anywhere, a true gift from a friend or relative	Mail	CAD 60 (gift exemption)	CAD 60

Two consequences most shoppers miss:

1. A US order between CAD 40 and CAD 150 sent by courier pays tax but no duty.
2. An order over CAD 20 shipped from China or Europe is assessed for duty and tax, whether it comes by mail or courier.

The gift exemption only covers real gifts between people. A purchase you made is never a gift, even if the seller writes “gift” on the label.

GST/HST and provincial tax at the door

When tax is owed, you pay the same sales tax you would pay in a Canadian store:

• GST at 5% applies in every province and territory.
• In HST provinces, CBSA collects the combined HST instead of GST.
• PST may also apply depending on your province.

Tax is calculated on the value of the goods plus any duty. So on a dutiable parcel, you pay tax on the duty too.

Duty: why “Made in” matters

Duty rates depend on the type of goods and where they were made. Products that qualify as made in North America under CUSMA can enter duty-free, but much clothing sold by US stores is made in Asia, so it may still be dutiable above the CAD 150 courier threshold. If an item is dutiable, the rate depends on its tariff classification. CBSA’s customs tariff lists rates, and the courier or Canada Post shows the amount on your bill.

Courier brokerage and Canada Post handling fees

These fees are separate from duty and tax, and they are where small orders get expensive.

• Canada Post: a flat CAD 9.95 handling fee per dutiable or taxable mail item.
• Couriers: UPS, FedEx, DHL, Purolator and others charge their own brokerage fees for clearing your parcel. CBSA does not set these, and they vary by courier and by value. They can be larger than the tax itself on a small order.

How to keep fees down:

1. Check whether the store collects duties and taxes at checkout (often shown as “duties included” or “DDP”). Then the courier should not bill you again.
2. Read the shipping options. On some US stores, a mail option avoids courier brokerage, but loses the CAD 150/40 courier thresholds.
3. Keep US courier orders under CAD 40 when you can, or under CAD 150 to avoid duty.
4. Ship to a US address and cross the border yourself only if you understand traveller exemptions, which are a separate set of rules.

What about SHEIN, Temu and AliExpress?

Orders shipped from China fall under the CAD 20 threshold, so almost any real order is assessed. Some of these platforms show duties or taxes at checkout for Canadian customers, which avoids a surprise bill. Compare total landed cost, not item price, in our SHEIN vs Temu vs AliExpress breakdown, and check SHEIN coupons that work before paying.

If you were charged wrongly

• If Canada Post charged duty, tax and the handling fee on a parcel that should have been exempt, you can ask for a review. Canada Post notes the handling fee may be refunded when goods should have been duty- and tax-free.
• For courier parcels, contact the courier first, then CBSA if the assessment itself was wrong. Keep your order receipt; it proves the value.

Quick checklist before you buy

1. Where does it ship from: US, or somewhere else?
2. Courier or mail?
3. Total in CAD, including shipping?
4. Does checkout include duties and taxes?
5. What will the courier charge for brokerage?

Shopping secondhand within Canada skips all of this: see the best resale apps for clothes.