A de minimis threshold is the value below which an imported parcel enters without duties or taxes. The big change: the United States has suspended its US$800 de minimis exemption. Under the Interim Final Rules issued by CBP on June 24, 2026, commercial shipments into the US require a customs entry, informal or formal, and payment of applicable duties regardless of value and regardless of mode, including the international postal network. In the other direction, Canada still applies its CUSMA courier thresholds for shipments from the US or Mexico: nothing under CA$40, taxes only between CA$40 and CA$150, duties and taxes above that. Always confirm the estimated duties at the customs step when you create your label.
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.
In practice, for a Canadian seller shipping south: declared value no longer buys a pass through customs. A US$30 parcel and a US$700 parcel now follow the same entry-and-duty logic that used to apply only to higher-value shipments.
- 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) |
|---|---|---|
| Under CA$40 | Not collected | Not collected |
| CA$40 to CA$150 | Not collected | Collected |
| Over CA$150 | Applicable | Collected |
| Outside the US and Mexico | From CA$20 | From CA$20 |
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 the US | Suspended | Customs entry and duties expected at any value |
| US to Canada (courier) | CA$150 for duties | Taxes from CA$40, duties above CA$150 |
| Other countries to Canada (courier) | CA$20 | Duties and taxes can apply very early |
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.
- Classify your products properly: a correct HS code avoids holds and is the basis for the duty calculation. It is now the central piece, even on a $25 parcel.
- Choose DDP over DDU for online retail: you pay the duties up front and your customer gets no surprise bill at the door, which cuts refused deliveries.
- Build duties into your selling price or your displayed shipping cost instead of discovering them after the sale. A margin calculated under the old duty-free regime is no longer the right one.
Finally, compare. Carriers do not charge the same brokerage and low-value processing fees, and the gap shows up most on small parcels, precisely the ones that used to ride the $800 threshold. With MesColis you compare Canada Post, Purolator, UPS, FedEx and others for the same shipment, with estimated duties and taxes shown before you buy the label. We do not claim to be cheapest on every lane: we put the options side by side so the total, duties included, makes the decision for you.
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 DDU, 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.