Rules differ by country and transport mode. The general US$800 exemption is suspended. For eligible Canadian courier imports from the US or Mexico, remission covers duties and taxes up to and including CA$40, then duties up to and including CA$150. Exclusions apply; this is not the postal-mail rule.
What does de minimis actually mean?
De minimis is the value threshold below which a country waives customs duties, and sometimes taxes, on an imported parcel. Below the threshold, the parcel clears duty-free and usually with lighter paperwork. Above it, you need a proper entry, a tariff classification, and payment of duties and taxes.
For a Canadian small business this is not an administrative detail. It decides whether your American customer receives the parcel with nothing to pay, or receives a brokerage bill instead. Until recently it was also what made shipping low-value goods across the border viable at all.
United States: the $800 exemption is suspended
For years the US ran one of the most generous thresholds in the world: US$800 per recipient per day, duty-free. That is no longer the operating rule. Executive Order 14324 first suspended duty-free de minimis treatment for all countries in late August 2025. On June 24, 2026, US Customs and Border Protection issued two Interim Final Rules indefinitely suspending the exemption: one covering shipments arriving through the international postal network, and one covering every other mode.
Low value alone no longer qualifies for the former general exemption. Entry procedures and applicable duties depend on transport mode, goods and origin.
- A customs entry, informal or formal depending on value and mode, is required for commercial shipments, instead of the simplified clearance of the past.
- Full HS tariff classification is expected: the HS code is no longer an optional formality on small parcels.
- Applicable duties are payable, which can include duties tied to the country of origin of the goods, not only the country you ship from.
- Carrier brokerage and processing fees may be added on top, and they differ from carrier to carrier.
- Genuine low-value person-to-person gifts and certain personal articles accompanying a traveller fall under separate rules: treat those case by case, not as a general exemption.
Careful: this file has moved twice in eighteen months, and US legislation, the One Big Beautiful Bill Act, is set to make the repeal permanent for all countries on July 1, 2027. Do not price your cross-border shipping off a remembered threshold. Check the estimated duties at the customs step when you create the label, and confirm your situation with a customs broker if you ship in volume.
Canada: the CUSMA thresholds still hold
Going the other way, nothing changed in the same way. Since CUSMA (USMCA) came into force, Canada applies higher thresholds, but only to shipments sent by courier from the United States or Mexico. Shipments from anywhere else, or moving through the post, fall under the much lower general threshold.
| Declared value | Customs duties | Taxes (GST/HST/QST) |
|---|---|---|
| Up to and including CA$40 | Remitted if eligible | Remitted if eligible |
| Above CA$40 through CA$150 | Remitted if eligible | Applicable taxes |
| Above CA$150 | Applicable duties | Applicable taxes |
| Other origins | General CA$20 rule, with conditions | General CA$20 rule, with conditions |
Two details often matter more than the table itself. First, these thresholds cover courier shipments: postal mail follows its own rules. Second, the goods do not need to be of North American origin to qualify, but they must have been shipped from the US or Mexico after entering the commerce of one of those countries.
Both directions, side by side
| Direction | Duty-free threshold | What it means in 2026 |
|---|---|---|
| Canada to US | General exemption suspended | Applicable duties depend on goods and entry |
| US to Canada, eligible courier | CA$150 for duties | Taxes above CA$40; duties above CA$150 |
| Other origins to Canada, courier | CA$20 subject to terms | Check exclusions and value |
What this changes for your store
The expensive mistake would be to keep selling into the US assuming small parcels travel free. Three adjustments cover most of the risk.
- Verify classification, value, origin and admissibility of your goods.
- Agree on the payer and import responsibilities before sale; DDP requires the seller to be able to fulfil them.
- Include applicable charges in margin calculations. An estimate does not replace the final invoice.
Compare postage, processing fees and duty-billing arrangements. A displayed estimate does not guarantee the final amount; confirm the importer, payer and available service before purchase.
Frequently asked questions
Does the US$800 exemption still exist?
Not for commercial shipments. It was suspended for all countries, then suspended indefinitely by CBP Interim Final Rules on June 24, 2026, covering the postal network and every other mode. US legislation is set to make the repeal permanent on July 1, 2027.
Will my US customer pay duty on a $50 order?
Possibly, and that is the real change. The amount depends on the HS classification, the origin of the goods and the carrier. If you ship DDP, you settle the duties and your customer sees nothing. On DAP, the bill goes to them.
Does CUSMA cancel duties when entering the US?
Not automatically. CUSMA can bring duties to 0% on goods that meet the rules of origin, but you have to provide a valid certification of origin. Goods manufactured outside North America and simply reshipped from Canada do not qualify.
Can I declare a lower value to stay under a threshold?
No. Under-declaring value is a false customs declaration: seizure, fines and a blocked shipper account are real risks. Always declare the accurate commercial value of the goods.