Shipping from Canada to the US: Customs duty, Taxes, and Exemptions (2026)

What Are Canada-to-US Customs Fees in 2026?

The customs fee that you pay when shipping from Canada to the US depends on three elements: the product type, its declared value, and whether the goods qualify for USMCA duty-free status. 

While most eCommerce shipments of Canadian-origin goods that meet USMCA rules of origin enjoy a duty rate of 0%, goods that are non-USMCA come with hefty duties, and they all begin with the Most Favored Nation rate (MFN).

Any applicable tariff surcharges are added on the top of it. 

Under Section 122 surcharge for non-qualifying goods, the customs charges can put an additional 15% costs to the top of standard MFN duty rates.

The Canada-US customs went through the most changes during 2025-2026. The biggest one was the US suspension of the $800 de minimis threshold on August 29, 2025, which meant no shipment, regardless of the value, coming from Canada is now required to pay the full customs fees.

Thankfully, the Supreme Court questioned the legality of the IEEPA tariffs, striking them down in February 2026. The administration followed the ruling by replacing the tariffs with a 15% Section 122 global import surcharge. USMCA-qualifying Canadian goods remain exempt from this surcharge.

This guide explains what all of this means for Canadian eCommerce sellers: what fees apply when shipping to the US, how USMCA exemptions work, what documents you need, and how to keep your customs costs as low as legally possible.

TL;DR: Key Takeaways

• Most Canadian-origin eCommerce goods qualify for 0% duty under USMCA, with proper documentation
• The $800 de minimis duty-free threshold was suspended August 29, 2025, all commercial shipments now require full customs entry
• Non-USMCA goods face MFN duty rates plus a 15% Section 122 surcharge (it will expire on July 24, 2026)
• ShippingChimp handles customs documentation automatically for Canada-US shipments

2025-2026 US Tariff Changes: What Canadian Sellers Must Know

Canada-US trade rules changed more between 2025 and 2026 than in any period since NAFTA. If you are shipping from Canada to the US on pre-2025 assumptions, this section is your most urgent read.

De Minimis Suspension – The Biggest Change for eCommerce

The de minimis threshold previously allowed goods valued at US$800 or less to enter the US duty-free under Section 321(a)(2)(C) of the Tariff Act of 1930. This threshold had been raised from $200 to $800 in 2016 specifically to support eCommerce growth. 

That ended on August 29, 2025. 

With the arrival of Executive Order 14324, goods from all countries are no longer eligible for duty-free de minimis treatment under 19 U.S.C. § 1321(a)(2)(C). As a result, all goods, regardless of value, country of origin, mode of transportation, or method of entry are now required to fulfil proper customs entry and payment of applicable duties.

Postal vs courier channel

USMCA preference cannot be claimed on postal channel shipments under Executive Order 14324. Goods qualifying for USMCA preference must have that preference actively claimed through a formal or informal entry filed with CBP. 

Courier shipments via ShippingChimp, FedEx, UPS, and DHL use commercial customs channels where USMCA can be claimed.

What Replaced IEEPA Tariffs: Section 122 Surcharge (February 2026)

From March 2025, the US imposed IEEPA-based tariffs of 25% on non-USMCA Canadian goods, raised to 35% on August 1, 2025. 

In February 2026, the Supreme Court held that IEEPA does not give the President authority to impose tariffs. The administration subsequently ended those tariff actions.

The replacement came immediately. From February 24, 2026, a temporary 10% ad valorem import surcharge was imposed on articles imported into the United States for 150 days under Section 122 of the Trade Act of 1974. 

That rate was subsequently raised to 15% and it is set to expire July 24, 2026.

Goods qualifying under USMCA are exempt from the Section 122 surcharge. Section 232-covered products are also exempt from stacking with it.  On April 2, 2026, the USMCA extended this exemption indefinitely.

Section 232 remains in force regardless of USMCA status. Steel and aluminum face a 50% tariff effective June 4, 2025, with copper added at 50% from August 1, 2025.

What Are US Customs Fees When Importing from Canada?

Import duty gets most of the attention, but it is only one of several fees a Canadian seller may encounter when shipping to the US. Here is every fee you need to know, with the current official rates.

Import Duty (Tariff)

The import duty is calculated as a percentage of the declared value of your goods, using the product’s HTS code to determine the applicable rate. 

Rates range from 0% for USMCA-qualifying Canadian goods, to 15%+ for standard MFN consumer goods, to 50% for Section 232 metals.

Merchandise Processing Fee (MPF)

A CBP user fee charged on all commercial entries: formal and informal. The MPF for formal entries is an ad valorem fee of 0.3464% of the value of imported goods. 

For fiscal year 2026, the fee shall not be less than $33.58 and shall not exceed $651.50, with a $4.03 surcharge if the entry is filed manually. 

For informal entries, the MPF is a flat fee ranging from $2.69, $8.06, or $12.09 per shipment.

One important point for Canadian sellers: many preference programs, including USMCA, provide an MPF exemption. If your goods qualify for USMCA preference and you claim it correctly, you won’t need to pay import duty nor the MPF.

Customs Brokerage Fee

This is the fee charged by a licensed customs broker to prepare and file your customs entry with CBP. 

For air and express shipments, brokerage is typically bundled into the shipping rate. For ground shipments such as UPS Standard or FedEx International Ground, brokerage is often charged separately and can cost $15-$50 or more per entry depending on shipment value.

ShippingChimp generates customs documentation automatically from your order data, reducing manual broker costs and the risk of entry errors.

Customs Bond

Customs bonds are needed for formal entries, which include:

1. goods valued over $2,500, 
2. goods regulated by a Partner Government Agency (PGA), or 
3. goods subject to anti-dumping or countervailing duties. 

A customs bond is a financial guarantee to CBP that the importer will comply with all regulations and pay all duties owed. 

Harbor Maintenance Fee (HMF)

HMF is only applied to commercial cargo arriving by sea at US ports. Commercial cargo loaded or unloaded from a commercial vessel is subject to a port use fee of 0.125% of its value if the loading or unloading occurs at a designated Army Corps of Engineers port. 

How Much Is Customs from Canada to the US?

Customs fees vary based on product type, declared value, country of origin, and USMCA status. Here are three worked examples that cover the most common scenarios Canadian eCommerce sellers face.

Example 1: USMCA-Qualifying Goods: The Most Common eCommerce Scenario

Suppose there is a Canadian-made apparel, shipped to a US customer

Declared value: $150 CAD (~$108) 

Country of origin: Canada 

USMCA status: Qualifies

Fee	Calculation	Amount
Import Duty	0%: USMCA rate	$0
MPF	USMCA exemption applies	$0
Brokerage	Included in courier rate	$0
Total customs cost		$0

Canadian-made goods with a valid USMCA Certificate of Origin enter the US duty-free and MPF-free. Many preference programs, including USMCA, provide an MPF exemption. 

This is the scenario most Canadian eCommerce sellers shipping genuine Canadian-made products will experience.

Example 2: Non-USMCA Goods:  Manufactured in China, Shipped from Canada

Now take some electronics accessories manufactured in China, shipped from a Canadian warehouse.

Declared value: $500

Country of origin: China 

USMCA status: Does NOT qualify since goods are of Chinese origin

Fee	Calculation	Amount
Import Duty	MFN rate ~3.9% (HTS 85)	~$19.50
Section 122 surcharge	15% of declared value	~$75
MPF	Informal entry flat fee	~$8.06
Brokerage	Courier-included	~$0-$25
Total customs cost		~$103 – $128

The country of origin of the goods determines duty treatment, not the country of shipment. Chinese-origin goods shipped from a Canadian warehouse do not receive USMCA treatment. They face full MFN duty plus the current Section 122 surcharge.

Example 3: High-Value Formal Entry: Canadian-Origin Goods

Take Canadian-manufactured furniture, shipped to a US business.

Declared value: $20,000 

Country of origin: Canada 

USMCA status: Qualifies

Fee	Calculation	Amount
Import Duty	0%: USMCA rate	$0
MPF	0.3464% × $20,000	$69.28
Section 122 surcharge	USMCA exempt	$0
Customs bond	Single-entry bond	~$150 – $200
Brokerage	Formal entry, licensed broker	~$150 – $300
Total customs cost		~$369 – $569

Formal entries contain processing costs even when duty is zero. Goods that are valued over $2,500 require a formal entry, which can require a lot of paperwork and the filing of a CBP bond. Brands should, thus, budget for MPF, bond, and brokerage on every high-value shipment regardless of USMCA status. 

What Are HTS Codes and Why Do They Matter?

What Is an HTS Code?

The Harmonized Tariff Schedule of the United States (HTS) sets out the tariff rates and statistical categories for all merchandise imported into the United States. It is based on the international Harmonized System, the global system of nomenclature applied to most world trade in goods.

The international HS code is 6 digits. The US extends this to 10 digits for greater product specificity. Every item imported into the US must be assigned an HTS code. That code determines three things: 

1. The applicable duty rate, 
2. Any quota restrictions, 
3. Whether additional surcharges

For Canadian sellers, the HTS code is also what determines whether USMCA duty-free treatment applies and whether the MPF exemption is available.

How to Find Your HTS Code

• Use the official CBP lookup tool at hts.usitc.gov.
• Use ShippingChimp’s built-in HS code guidance, available during shipment creation
• For complex goods, regulated items, or high-value shipments, consult a licensed customs broker

An incorrect HTS code means an incorrect duty rate. It also exposes you to CBP reclassification, penalty fines, and potential delays at the border. 

Common Duty Rates by Product Category: Canada to US

The table below shows indicative MFN and USMCA duty rates by product category.

Product Category	HTS Chapters	MFN Duty Rate	USMCA Rate
Clothing / Apparel	61-62	12-32%	0%
Electronics / Consumer	84-85	0-3.9%	0%
Furniture	94	0-3.7%	0%
Footwear	64	8.5-67.5%	0%
Jewelry	71	6.5-13.5%	0%
Toys / Games	95	0%	0%
Food / Agricultural	Varies	Varies widely	Partial – some quotas apply
Steel / Aluminum / Copper	72-76	MFN + 50% Section 232	50% Section 232 applies regardless of USMCA

Customs Entry Types: Section 321, Informal, and Formal

Every shipment from Canada to the US must be cleared through one of three customs entry types. The one applied to your shipment determines the documentation you need, the fees you pay, and how quickly your package can clear the border.

Section 321 (De Minimis): Suspended August 29, 2025

Section 321 previously allowed goods valued under $800 to enter the US duty-free with minimal paperwork.

Following the signing of Executive Order 14324, goods of all countries entering the United States are no longer eligible for the administrative duty exemption.

The order also stated that goods not identified in 50 U.S.C. 1702(b) may not receive de minimis clearance to enter duty and tax free regardless of their value, country of origin, mode of transportation, or method of entry. 

Informal Entry: Shipments Under $2,500

Informal entries are used for both personal and commercial importations and are usually valued at less than $2,500. Some products may not enter informally regardless of their value. High-risk products, for instance, fall in this category. 

Such entries typically require a commercial invoice only, carry lower brokerage fees than formal entries, and clear faster. The MPF for informal entries is a flat fee: $2.69, $8.06, or $12.09 per shipment depending on value.

Formal Entry: Shipments Over $2,500

Goods that are valued at more than $2,500, or are commercial textile shipments, require a formal entry, which requires you to file a CBP bond.

CBP’s Automated Commercial Environment (ACE) facilitates this process. It is a system through which the trade community reports imports and exports and the government determines admissibility.

Documents required:

Document	Requirement
Commercial Invoice	Required for all commercial entries
Importer ID Number	EIN (business) or SSN (individual)
Bill of Lading	Required for freight and truck shipments
Packing List	Inventory of shipment contents
USMCA Certificate of Origin	Required to claim 0% duty preference
Import / Export License	Required for regulated goods (food, electronics, cosmetics)
Customs Bond	Required for all formal entries

Canada Customs Duty Exemptions: USMCA and How to Qualify

The USMCA: Canada’s Key Duty Exemption Agreement

The United States-Mexico-Canada Agreement (USMCA, known as CUSMA in Canada) replaced NAFTA in July 2020. Under USMCA, goods from Canada and Mexico that qualify for preferential treatment are not subject to additional US tariffs. 

The rules that govern whether a product qualifies for USMCA preference are found in 19 CFR 182.

In short, the country of origin determines USMCA eligibility. Goods manufactured in China and shipped from a Canadian warehouse do not qualify. Goods genuinely made in Canada do.

What Products Qualify for USMCA Duty Exemption?

USMCA exemption applies to goods that meet one of three origin criteria:

1. Wholly produced in Canada: Minerals, agricultural products grown in Canada, or goods manufactured entirely from Canadian-origin materials
2. Substantially transformed in Canada: Non-originating materials underwent sufficient processing to change their HTS tariff classification
3. Regional Value Content (RVC) met: A sufficient percentage of the product’s value is attributable to production within USMCA member countries

Products commonly eligible include Canadian-manufactured apparel, furniture, electronics, food products (subject to some quota restrictions), raw materials, and auto parts meeting the 75% regional content requirement.

What Does NOT Qualify for USMCA?

• Goods manufactured in China or any other non-USMCA country.
• Steel, aluminum, and copper products 
• Vehicles not meeting the 75% regional content requirement
• Goods subject to tariff-rate quotas (TRQs) where the quota volume has been exceeded

How to Claim USMCA Duty Exemption

There is no prescribed certificate of origin form under USMCA. Any format is acceptable, provided it contains nine minimum data elements:

1. Certifier 
2. Exporter 
3. Producer 
4. Importer 
5. Description 
6. HS classification of the goods, 
7. Origin criteria 
8. Blanket period (if applicable) 
9. Authorized signature and date.

The process is straightforward:

1. Prepare a certification of origin containing all nine required data elements
2. Verify the product meets the relevant rules of origin for its specific HTS code
3. Attach the certification to the commercial invoice for each shipment
4. The importer or their broker actively claims preferential treatment at the point of entry

If you are importing commercially and the value of originating goods remains under $2500, then you don’t need a certificate of origin.

Other Duty Exemptions

CBP provides separate personal exemption rules for travellers returning to the US. These are not applicable to commercial eCommerce shipments. Consult CBP directly for personal import rules.

Who Pays Customs Fees: DDP vs DDU

When shipping from Canada to a US customer, someone has to pay the customs duties and fees. The question is who, and that is when you need to know the clear difference between DDP and DDU.

DDP: Delivered Duty Paid

Under DDP, the Canadian seller pre-pays all customs duties, taxes, and fees before the goods reach the US customer’s door. The customer receives the package with a single, final price. There are no unexpected charges, no holds at customs, no payment demands at delivery.

• Advantages: No surprise charges at delivery. Lower dispute and return rates. Stronger post-purchase experience. Faster customs clearance since duties are pre-paid.
• Disadvantages: The seller must accurately calculate and pre-pay all applicable duties. Requires reliable tools or a licensed customs broker to get the numbers right.

DDU: Delivered Duty Unpaid

Under DDU, the seller ships the goods but the US customer is responsible for paying all customs duties, taxes, and brokerage fees when the package arrives. The customer only discovers these charges after purchase.

• Advantages: Lower upfront cost and administrative burden for the seller.
• Disadvantages: Customers receive unexpected bills they never agreed to. Packages can be held at customs until payment is made. Dispute rates, return rates, and negative reviews follow. 

How ShippingChimp Handles Duties

ShippingChimp supports DDP shipping from Canada to the US. Customs documentation such as commercial invoice, product descriptions, declared values, and country of origin, is generated automatically from your order data. 

There is no manual entry or a broker required for standard shipments. Duties are calculated and pre-paid at the point of label creation, so your US customers receive their orders clean.

Tips for Minimizing Customs Costs When Shipping from Canada to the US

1. Verify USMCA eligibility before every shipment, and attach the certification: Canadian-origin goods with a valid USMCA certification of origin enter the US at 0% duty and qualify for MPF exemption. Without it, full tariffs apply.
2. Use the correct HTS code: Miscoding is one of the most common causes of CBP reclassification, penalty fines, and shipment delays. Use the official lookup tool at hts.usitc.gov.
3. Pre-pay duties with DDP: Unexpected customs charges at delivery are the single biggest driver of cross-border disputes and returns. DDP eliminates this entirely. 
4. Use a courier for commercial shipments. Courier channels such as ShippingChimp, FedEx, UPS, DHL provide integrated commercial brokerage and allow USMCA preference to be claimed. 
5. Work with a customs broker for complex goods. For your first 5-10 cross-border shipments, high-value orders, regulated items (food, electronics, cosmetics), or goods with uncertain USMCA status, hire a licensed customs broker.
6. Retain all records for five years. To get USMCA preferential tariff treatment, maintain all records and documents demonstrating that goods qualify,  including the certification of origin, for a minimum of five years from the date of importation.
7. Buy shipping insurance for high-value shipments: Get shipping insurance for goods that can potentially become subject to inspection, hold, or seizure can incur significant additional costs beyond duties. 

Simplify Canada-to-US Customs with ShippingChimp

Customs compliance doesn’t have to be a manual process. ShippingChimp handles it automatically.

Every shipment generates a complete commercial invoice as ShippingChimp pulls product descriptions, declared values, and country of origin pulled directly from your order data. 

You won’t need a manual entry or a broker for standard shipment. You will also get DDP support, which means duties are pre-paid at label creation, so your US customers receive their orders with zero surprise charges at the door.

There are no hidden fees on top of your label price. Free picks are available. You can get your delivery to the US in 3 to 5 business days, and get 100% tracking complete with customs status updates.

Shopify also integrates directly with Shopify, WooCommerce, Magento, BigCommerce, Etsy, and eBay.

Start shipping to the US with ShippingChimp: customs handled automatically.

For full details on our Canada to US shipping service and US shipping service, visit our service pages.

Frequently Asked Questions

How much is the customs from Canada to the US?

Customs fees from Canada to the US include import duty (0% for USMCA-qualifying goods, up to 50% for Section 232 metals), plus a merchandise processing fee for formal entries (0.3464% of value, minimum $33.58 for FY2026). Most Canadian-made goods qualifying under USMCA enter the US duty-free at 0% and are also exempt from the MPF.

What is the customs fee for shipping from Canada to the US?

The customs fee varies by product type, declared value, and origin. USMCA-qualifying Canadian goods pay 0% import duty. Non-USMCA goods face standard MFN duty rates (typically 0-15% for most consumer goods) plus the current 15% Section 122 surcharge effective February 24, 2026. Additional fees include customs brokerage (~$15-75+) and merchandise processing fees.

What are the import duties from Canada to the US?

Import duties from Canada to the US range from 0% for USMCA-qualifying goods to standard MFN rates (0-15% for most consumer goods) for non-USMCA goods, plus the 15% Section 122 surcharge currently in effect. Steel, aluminum, and copper face 50% under Section 232 regardless of USMCA status. Most consumer goods such as electronics, apparel, and furniture manufactured in Canada qualify for 0% under USMCA.

What are the import fees from Canada to the US?

Import fees include import duty (0% for USMCA goods, MFN rate plus 15% Section 122 surcharge for non-USMCA goods), merchandise processing fee (0.3464% of value, minimum $33.58 for FY2026), customs brokerage fee (~$15-300 depending on entry type), and a customs bond for formal entries over $2,500. USMCA-qualifying goods avoid import duty and MPF, but formal entries still carry bond and brokerage costs.

Are there duty exemptions from Canada to the US?

Yes. The USMCA (United States-Mexico-Canada Agreement) provides duty-free entry for most goods that genuinely originate in Canada. To claim this exemption, attach a USMCA certification of origin to your commercial invoice. Goods manufactured in China or any other non-USMCA country but shipped from Canada do not qualify. Country of origin, not country of shipment, determines eligibility.

What is the USMCA duty exemption from Canada to the US?

Under USMCA, Canadian-origin goods enter the US duty-free and MPF-exempt. To qualify, goods must meet the relevant rules of origin: either wholly produced in Canada, or substantially transformed from Canadian or USMCA-country materials meeting the regional value content requirement. Prepare a certification of origin containing the nine required data elements and attach it to your commercial invoice to claim the 0% duty rate.

Do I have to pay customs when shipping from Canada to the US?

Yes. All commercial shipments from Canada to the US now require a full customs entry and payment of applicable duties, following the suspension of the $800 de minimis threshold on August 29, 2025. USMCA-qualifying goods can still enter duty-free with proper documentation, but a customs entry is still required for every shipment regardless of value.

What is the de minimis suspension and how does it affect Canada-to-US shipping?

The de minimis suspension (Executive Order 14324, effective August 29, 2025) eliminated the $800 duty-free threshold for US imports. Previously, packages from Canada valued under $800 entered the US duty-free with no customs entry required. Now all commercial shipments regardless of value require a full customs entry and are subject to applicable duties and fees. This affects every Canadian eCommerce seller shipping small orders to US customers.

What documents do I need to ship from Canada to the US?

A commercial invoice is required for all commercial entries. A USMCA certification of origin is required to claim duty-free preference. A Bill of Lading is required for freight and truck shipments. Formal entries over $2,500 require an Importer ID number (EIN for businesses, SSN for individuals) and a customs bond. Regulated goods such as food, electronics, and cosmetics may require additional agency permits.

Should I use DDP or DDU when shipping from Canada to the US?

DDP (Delivered Duty Paid) is strongly recommended for eCommerce. The seller pre-pays all duties and fees and the customer receives the package with no surprise charges at delivery. DDU (Delivered Duty Unpaid) passes all duty costs to the customer at the door, which drives disputes, returns, and negative reviews. Research from the Baymard Institute shows 48% of shoppers abandon carts due to unexpected extra costs including taxes and duties. ShippingChimp supports DDP for all Canada-to-US shipments.