US De Minimis and Duties for Canadian Stores Shipping to US Customers

The U.S. de minimis exemption for shipments valued at $800 or less has been suspended since August 29, 2025. In June 2026, CBP made the de minimis suspension indefinite for mail and every other mode. A law already passed ends the exemption outright on July 1, 2027. For a Canadian store, every parcel to a U.S. customer now needs a customs entry and may owe duty, whatever its value.

In practice, Canada Post parcels need duties prepaid (DDP) with a Declaration ID. Courier parcels need a commercial invoice, a 10-digit U.S. tariff code and the country of origin. Use a courier, not the post, when you want to claim CUSMA duty-free treatment.

This guide answers the US de minimis Canada question for a single store that ships to American customers. It covers the timeline, the two shipping routes, CUSMA, Section 338, Shopify settings and an example. Duty, fees and paperwork now sit on every order.

This guide does not constitute legal or tax advice. Confirm product classification and origin with a licensed customs broker.

What the de minimis rule was

Section 321 of the Tariff Act

The de minimis rule comes from Section 321 of the Tariff Act of 1930. It let low value goods enter the U.S. free of customs duties, with minimal paperwork. The de minimis threshold rose from $200 to $800 in 2016, under a 2015 trade act.

For a decade, low value goods valued under the de minimis threshold crossed with almost no customs work. Many Canadian businesses and e commerce businesses built their U.S. sales on the de minimis exemption.

Why the U.S. ended it

CBP’s June 2026 rule gives its reasons. De minimis shipments passed 1.36 billion in fiscal 2024, nearly ten times the 2015 level. CBP says the old process gave too little data and put revenue at risk. Tariffs aim to protect domestic industries, and duty-free low value imports undercut them.

Where U.S. de minimis stands today

U.S. Customs and Border Protection (CBP) gives the timeline in its rulemaking:

Date	What happened
August 29, 2025	Executive Order 14324 suspends duty-free de minimis for most imports, from all countries including Canada.
February 20, 2026	The U.S. Supreme Court rules that the International Emergency Economic Powers Act does not authorize tariffs. Executive Order 14388 keeps de minimis suspended.
June 24, 2026	CBP rule indefinitely suspends de minimis for all non-postal shipments (courier, truck, air freight).
July 24, 2026	CBP’s postal rule takes effect for the international postal network, with a new postal informal entry process.
October 22, 2026	Compliance date for parts of the postal rule (four days from this update).
July 1, 2027	Statutory end of the de minimis exemption.

IEEPA tariffs and the court ruling

The IEEPA tariffs imposed in 2025 lost their legal basis in the February 2026 ruling. CBP says its de minimis suspension rests on its own authority under the Tariff Act. The end of IEEPA tariffs did not bring the de minimis exemption back.

The October 2026 proposed rule

On October 8, 2026 CBP proposed a rule on low-value shipments. It would make informal entries electronic and create a new mail entry (type 13). Comments close December 7, 2026.

What exemptions remain

Two narrow exemptions remain: gifts valued at $100 or less, and traveller goods valued at $200 or less. Neither covers a sale, and there is no temporary relief for small businesses.

What a Canadian store must do now

Classify every product. Put the HS code (Harmonized System) and country of origin on each product in Shopify. U.S. entries use a 10-digit HTSUS code.
Choose a channel per order: Canada Post with duties prepaid, or a courier with an entry.
Decide who pays duty: you (priced in, or charged at checkout), or the customer on delivery.
Tell U.S. customers before they buy. Duties and possible delays belong on the product page, shipping policy and checkout.
Check CUSMA and Section 338 for the products you sell.

Shipping to the U.S. by Canada Post: duties prepaid

Canada Post’s guidance is direct. Since August 29, 2025, international postal shipments to the U.S. must have duties prepaid before they cross the border.

Declaration ID and Zonos

Each U.S. shipment needs a 13-character Declaration ID. Without one, Canada Post will not create a U.S. label.

Canada Post uses Zonos for duty collection. Through a Zonos Verified Account, it lists a $1.99 remittance fee plus 10% of calculated duties. The Zonos Prepay app lists $3.99 plus a 10% fee. These processing fees are an additional cost on every parcel.

Returns by post

Each shipment carries an HS code and the country where the item was made. CBP does not treat U.S. postal returns as duty-free, so a return label needs a new Declaration ID.

Canada Post in Shopify

Shopify states that all Canada to U.S. shipments using Canada Post must be sent DDP. Unpaid-duty labels are blocked. You cannot buy DDP labels through your own Canada Post account connected to Shopify, even with your own Zonos account.

Shopify Shipping uses its built-in Canada Post and Zonos integration. If a product lacks both an HS code and a country of origin, no duty is calculated.

Shipping to the U.S. by courier

UPS, FedEx, Purolator and DHL shipments go through regular U.S. entry. CBP’s June 2026 rule says formerly de minimis shipments must use formal or informal entry. Informal entry (type 11) covers shipments of $2,500 or less. The old type 86 entry and release from manifest are gone.

Shipping documents carriers ask for

A commercial invoice with a product description, country of origin, quantity, value and the 10-digit HTSUS code (UPS).
The recipient’s email and phone so the carrier can collect duties.
Billing terms. UPS says who pays depends on the Incoterms of the shipment.
For CUSMA goods, a certification of origin with the shipment.

Consolidate multiple shipments

Without the de minimis exemption, Purolator bills duties and brokerage based on billing terms, and offers consolidated brokerage across multiple shipments. Transportation carriers price brokerage differently, so ask your carrier’s support line.

For commercial shipments in volume, one consolidated entry can cost far less than many small commercial shipments. It also simplifies your supply chain.

CUSMA: courier yes, post no

Goods that meet CUSMA rules of origin can still enter the U.S. duty-free. How you ship decides whether you get it.

Courier. CFIB and Purolator both say couriers can still apply CUSMA treatment. Include a certification of origin on the invoice or as a separate certificate. CFIB notes a blanket certification can cover up to 12 months of shipments.
Canada Post. Canada Post states that CUSMA preference cannot be claimed for postal shipments under US$800, quoting CBP. Duties are charged.

If most of what you sell is made in Canada and qualifies, a courier account usually pays for itself. Confirm origin with a customs broker first.

Section 338 duties on certain Canadian goods

Since August 22, 2026, certain Canada-origin goods face additional duties under Section 338 of the Tariff Act, a 1930 trade act. CBP’s guidance (CSMS #69606660) sets a 50% rate on listed alcoholic beverages, dairy goods and a vehicle-related list. Shopify notes that CUSMA origin does not exempt a good from Section 338.

Coverage depends on the HTS subheading, not the product category. For most retail catalogues this list will not apply. If you sell cheese, wine, spirits or auto parts, check each subheading before pricing.

U.S. tariffs and landed costs

What landed costs include

Landed costs are the full price of getting an order to the door: product, shipping costs, duty and fees. With the de minimis exemption gone, each U.S. order carries applicable duties, processing fees and any U.S. tariffs.

Cost calculations for one order

Build landed costs into your cost calculations per product, not per store. Tariff rates vary by HTS code and origin. New tariffs can arrive with little notice, so recheck your tariff rates each quarter.

Effect on margins

Small businesses and Canadian businesses with low order values feel the change most. A $15 brokerage fee on a $40 order wipes out the margin, while $1.99 on $200 barely shows. Some Canadian companies have stopped shipping low value imports south for this reason.

Collect U.S. duties at checkout in Shopify

Absorbing duty quietly erodes margin. Charging it at checkout means the customer is not surprised by charged duties at the door.

Go to Settings > Taxes and duties, then click Set up in Duties and import taxes. You confirm DDP carrier support and choose countries. You fix products missing HS codes or origin, update policies, and click Agree and activate. Shopify charges a transaction fee on orders with duties calculated at checkout.

There is also an optional postal duty rates setting. When on, postal rates apply to all checkouts with the U.S. as destination. Each product needs a country of origin.

Shopify adds that product prices do not include tariffs automatically. If you do not collect duty at checkout, build it into U.S. prices.

Managed Markets

Shopify’s Managed Markets makes Global-e the merchant of record for international orders and ships DDP to most destinations. For Canadian stores the fee is 3.25% on Plus and 3.5% on Basic, Grow and Advanced, plus processing and currency conversion. It suits a store with steady U.S. volume that wants import duties and paperwork handled.

In our accounts, DDP checkouts see fewer refused parcels than orders where the customer pays duties on delivery.

Postal informal entry: who files

CBP’s postal rule limits filing to the owner or purchaser, or a licensed customs broker. Filers need a customs bond and pay through Pay.gov monthly.

Zonos says a licensed broker has filed an entry for each postal parcel since July 24, 2026. From October 22, 2026, those entries go into CBP’s Automated Commercial Environment (ACE). Some products (children’s goods, cosmetics, supplements) need extra agency data from that date.

A small store does not file the entry or remit duties itself. Your job is accurate product data that meets U.S. customs regulations.

Worked example: one Ontario store

An Ontario candle shop sells a $60 USD order to a customer in Michigan. The candles are made in Canada.

By Canada Post. Shopify Shipping buys a DDP label with a Declaration ID. CUSMA cannot be claimed by post, so duty applies. Say Zonos calculates $3.00 of duty (illustrative). The fees add $1.99 plus $0.30. The landed cost to the customer rises by about $5.29.

By courier. The shop ships with a certification of origin and claims CUSMA. No duty is due. The courier’s brokerage fee is the only extra charge, and consolidated brokerage lowers it.

The shop prices U.S. orders to cover the post route, and uses the courier for larger ones. That keeps cross border sales profitable.

Canadian thresholds and the GST: the other direction

Does Canada have a de minimis rule?

Yes. The CBSA sets low-value thresholds for courier goods from the U.S. or Mexico. Up to $40 CAD is duty and tax free. Above $40 to $150 CAD is duty free, but taxes apply. Above $150 CAD, duties and taxes apply.

By mail, only $20 CAD and under is free of duty and tax. The taxes at the border are the goods and services tax (GST or HST) and any provincial sales tax.

How much can Canadians bring back from the U.S.?

The CBSA sets personal exemptions for residents. After 24 hours away, you can bring back up to $200 CAD in goods. After 48 hours, up to $800 CAD, including set amounts of alcohol and tobacco. Same-day cross border shoppers get no exemption.

Can I buy groceries in the U.S. and bring them back?

Yes, for personal use. The Canadian Food Inspection Agency says you must declare all food at the border. U.S. dairy is limited to 20 kg or 20 L per person. Eggs and meat must be retail packaged and labelled as U.S. products.

Cross border shipping beyond the U.S.

U.S. rules apply to imported goods from all other countries, not only Canada. If you also ship to international markets such as the European Union, each has its own customs duties and trade restrictions. Treat the U.S. as one of several global markets, and other countries each get their own setup.

U.S. de minimis FAQ

Is the $800 de minimis still in effect?

No. U.S. de minimis has been suspended since August 29, 2025, for all modes, by Customs and Border Protection. The statutory end date is July 1, 2027.

Who pays duties on a parcel to the U.S.?

Whoever the billing terms name. By Canada Post, duties are prepaid by the shipper. By courier, you or the customer pay, depending on Incoterms.

Do I need a U.S. customs broker?

Not for postal parcels, where Zonos and its broker file with Border Protection (CBP). For courier parcels, the carrier acts as broker.

U.S. de minimis checklist

HS code and country of origin on every product sold to the U.S.
Canada Post U.S. labels bought through Shopify Shipping, with a Declaration ID.
Courier account set up for CUSMA-qualifying goods, with a certification of origin.
Section 338 list checked against your catalogue.
Duties collected at checkout, or built into U.S. prices.
Landed costs recalculated for your top U.S. sellers.
Shipping policy and product pages tell U.S. buyers about duties and delays.
Return labels issued with a new Declaration ID.
Canada Post merchant alerts subscribed, since rates and rules keep moving.