Key Takeaways
- US de minimis revocation is now legally final, eliminating the $800 duty-free threshold for Chinese parcels routed through US carriers.
- Canada's de minimis thresholds remain CAD $20 for duty and CAD $40 for GST/HST, far below the old US floor.
- Cross-border parcel routing from the US into Canada still benefits from CUSMA origin claims when goods qualify, avoiding MFN duties.
- CBSA clearance procedures for sub-threshold shipments are faster than full CAD filings, but origin and valuation still matter for compliance.
US De Minimis Burial Changes Cross-Border Parcel Math
On August 13, 2024, the US Court of International Trade ruled unanimously that the President has legal authority under IEEPA to revoke duty-free treatment for sub-$800 imports. That decision buries the last legal challenge to a policy shift that already reshaped cross-border parcel economics a year ago. For Canadian importers managing Canada US border customs clearance, the ruling doesn't change day-to-day operations, but it does finalize a competitive shift in how parcels route between the two countries and where duty exposure sits.
The takeaway: shippers who hoped the courts might resurrect the $800 exemption can stop hoping. The policy is now legally entrenched. If you're a Canadian importer sourcing from China or routing e-commerce parcels through US carriers, the math on where you clear and how much you pay shifted a year ago and isn't shifting back.
What the Ruling Means (and Doesn't)
The US de minimis exemption used to allow shipments valued under $800 to enter the United States duty-free, no formal entry filing required. That threshold was far higher than most trading partners, including Canada, where the duty de minimis sits at CAD $20 and the GST/HST threshold at CAD $40. When the US revoked the exemption for Chinese-origin parcels in 2024, cross-border e-commerce carriers faced a new cost structure overnight.
The Court of International Trade ruling doesn't create a new policy. It removes the last legal uncertainty hanging over an existing one. The exemption is gone. Parcels that used to clear US customs in seconds now face full entry procedures, Section 301 tariffs, and anti-dumping duties if applicable. That cost and delay pushed parcel volumes to alternate routes, including direct clearance into Canada via CBSA's Low Value Shipment program and courier-filed CADs (Commercial Accounting Declarations) through the CARM Client Portal.
Canadian Thresholds Are Lower, and Always Have Been
Canada's de minimis structure is simpler and far more restrictive than the old US floor. Goods valued under CAD $20 enter duty-free. Goods valued between CAD $20 and CAD $40 pay duty but are exempt from GST/HST. Anything above CAD $40 pays both duty and tax. CBSA publishes the thresholds in D-memorandum D17-1-10, and they haven't changed in years.
For a Canadian importer bringing a parcel shipment from the US, the relevant question isn't whether the shipment qualifies for a de minimis exemption in Canada (it probably doesn't unless it's a CAD $15 sample). The relevant question is whether the goods qualify for CUSMA origin and zero MFN duty, or whether they're third-country goods transshipped through the US and subject to Canada's full duty schedule.
CUSMA origin claims are straightforward for US-manufactured or substantially-transformed goods. You file a CAD via CARM, declare origin code 11, and retain proof of origin (a signed statement from the supplier or your own records if you're the producer). CBSA may verify origin within four years of import. If the goods don't qualify for CUSMA, you pay Canada's MFN duty rate for that HS 6-digit classification, plus GST/HST on the duty-paid value.
Cross-Border Parcel Routing Adjustments
The US de minimis revocation pushed some Chinese e-commerce parcels to bypass US entry entirely and route directly to Canada, clearing CBSA at Vancouver or Toronto parcel hubs. We saw this volume shift start in Q2 2024 and stabilize by year-end. Canadian customs brokers filing simplified CADs for courier clients handle more sub-CAD $100 shipments now than two years ago.
For Canadian importers managing their own cross-border procurement, the routing question is practical:
- US-origin goods: CUSMA origin usually zeroes out duty. A CAD $500 shipment from a US supplier pays GST/HST only. Clearance is fast if the supplier provides origin documentation upfront.
- Third-country goods transshipped via US: No CUSMA benefit. You pay Canada's MFN duty rate unless the goods qualify for another FTA (CETA for EU goods, CPTPP for Japan/Vietnam). If the goods are subject to SIMA (anti-dumping or countervailing duties), those margins apply on top of MFN.
- Direct shipment from origin country to Canada: Same duty exposure as transshipment, but simpler documentation. No need to prove the goods didn't enter US commerce.
The US policy change didn't create new Canadian duty liabilities. It clarified where parcels route and who handles clearance. If you were relying on a US fulfillment center to pre-clear Chinese goods under the $800 exemption and then ship duty-paid into Canada, that workaround is gone. Now you clear at CBSA on the Canadian side, file a CAD with proper HS classification and origin, and pay what the goods actually owe.
CBSA Clearance Procedures for Low-Value Shipments
CBSA's Low Value Shipment program handles parcels under CAD $2,500 with simplified procedures. Couriers file a minimal-data CAD on behalf of the consignee, CBSA releases prior to payment under the courier's blanket bond, and the courier collects duty and tax at delivery.
For shipments above CAD $2,500 or for importers who want control over their own filings, you file a full CAD via the CARM Client Portal. That requires an importer business number, posted financial security (an RPP bond if you're on release prior to payment terms), and HS classification to six digits. If CBSA flags the shipment for examination or origin verification, release delays until the issue clears.
The procedural difference between a CAD $50 parcel and a CAD $5,000 shipment isn't complexity—it's who files and who posts security. Both require accurate HS codes, declared value, and origin. Both are subject to CBSA verification. The simplified courier process just shifts the filing burden to the carrier and the financial security to their bond.
If you're routing parcels through FENGYE LOGISTICS for CBSA clearance and cross-dock to final delivery, we file the CAD under our bond and hand off cleared parcels same-day. Typical clearance time for a non-exam parcel is under four hours from arrival scan to release notification. Exam flags add one to three days depending on CBSA's inspection queue.
The Practical Takeaway for Cross-Border Importers
The US de minimis revocation is legally final. The $800 exemption isn't coming back. For Canadian importers, that means:
- Cross-border parcel routing now favors direct CBSA clearance over US transshipment for third-country goods.
- CUSMA origin claims remain the primary duty-avoidance tool for US-sourced goods entering Canada.
- Canadian de minimis thresholds (CAD $20 duty / CAD $40 tax) didn't change and won't. Don't expect a policy shift to match the old US floor.
- If your procurement strategy relied on US fulfillment centers pre-clearing Chinese goods duty-free and shipping into Canada, that arbitrage is closed. You're filing CADs and paying Canadian duties now.
We file cross-border CADs daily for clients routing US-origin goods under CUSMA and third-country parcels under MFN. The clearance process is identical. The duty line is different. If you're unsure whether your goods qualify for preferential origin or what HS code applies, that's a question worth answering before the shipment moves. Wrong classification or unsupported origin claims show up in CBSA verifications, and the correction window after release is narrow.
If your cross-border parcel clearance needs a second look after this policy shift, talk to a broker who files these every day.
Frequently Asked Questions
What is Canada's de minimis threshold for customs duty?
Canada's duty de minimis is CAD $20. Shipments valued below that threshold are exempt from customs duties, though GST/HST still applies above CAD $40. CBSA publishes the thresholds in D17-1-10.
Does the US de minimis change affect Canadian importers?
Indirectly, yes. US revocation of the $800 exemption (confirmed by the Court of International Trade in August 2024) pushed more Chinese parcels to route directly to Canada or through alternate carriers. Canadian clearance volumes rose as a result, especially for e-commerce parcels entering via CBSA's Low Value Shipment program.
Can I claim CUSMA origin to avoid duty on US-sourced goods entering Canada?
Yes, if the goods meet CUSMA rules of origin under Chapter 4 of the agreement. Most US-origin goods qualify for zero MFN duty into Canada. You file a CAD through the CARM Client Portal with origin code 11 (CUSMA) and retain proof of origin for four years in case of CBSA verification.
How does CBSA clear parcels under the CAD $20 threshold?
Shipments under CAD $20 declared value are released without a formal CAD filing under CBSA's simplified low-value process. The carrier submits cargo control data via PARS or eManifest, CBSA releases on minimum documentation, and no duties are collected. GST/HST applies only above CAD $40.
What happens if my parcel value sits between CAD $20 and CAD $2,500?
Shipments between CAD $20 and CAD $2,500 require a simplified CAD filing, either by the courier or your licensed broker. Duties apply based on HS 6-digit classification and origin. If you claim CUSMA and the goods qualify, duty is zero—only GST/HST is collected.
Do I need an importer bond for cross-border parcels into Canada?
Not for individual parcels cleared by courier under their blanket bond. If you're a frequent importer filing your own CADs via CARM, you'll need to post financial security (an RPP bond) with CBSA. Minimum security depends on your annual import volume and payment history.
Originally published at https://www.canflow-global.com/en/insights/canada-us-border-customs-after-de-minimis-what-changed-for-parcel-clearance/.
