For years, Canadian businesses could ship low-value orders to U.S. customers without duties. That changed in 2025. If you sell to customers in the United States, here is what changed, what it means for your costs and how to keep your cross-border shipping running smoothly.
What was de minimis?
“De minimis” was the U.S. rule that let most shipments valued at US$800 or less enter the country without duties or formal customs entry. It made cross-border shipping from Canada simple for small online stores and B2B senders alike.
What changed in 2025
Since 29 August 2025, the United States has suspended duty-free de minimis treatment for low-value imports from all countries, including Canada. Most parcels now face duties and fees no matter how small the order. Shipments sent by post need those duties handled through an approved party before delivery, which led some postal services to change or pause U.S. parcel services while they adjusted.
The rules have continued to evolve, so always check the current guidance from U.S. Customs and Border Protection, the Canada Border Services Agency and your carrier before you ship.
What it means for Canadian businesses
- Higher landed costs. Duties and processing fees now apply to orders that used to cross duty-free.
- More paperwork. Accurate commercial invoices, product descriptions, values and country of origin matter more than ever.
- Who pays. You need to decide whether your business prepays duties (so the customer pays nothing at the door) or the customer pays on delivery. Surprise charges at the door lead to refused parcels and unhappy buyers.
- Service choice. Some services handle duty collection better than others. The cheapest label is not always the cheapest outcome.
How to keep cross-border shipping on track
- Classify your products. Use the correct tariff (HS) codes and clear, specific descriptions. “Clothing” is not enough; “women’s cotton knit sweater” is.
- Get the value right. Declare the true transaction value. Under-valuing creates delays and penalties.
- Show country of origin. Goods made in Canada, the U.S. or Mexico may qualify for preferential treatment under CUSMA, but only with the right documentation.
- Choose a service that handles duties. Courier services with built-in duty and tax handling usually move faster and avoid parcels being held.
- Price it in. Build duties and fees into your U.S. prices or shipping charges so your margins survive.
- Compare carriers. Rates and duty-handling fees differ. Comparing carriers per shipment is one of the easiest ways to save.
How RMS helps
Resource Mail Services ships parcels from Canada to the U.S. at discounted business rates and helps clients prepare the paperwork correctly the first time. We compare carriers for each shipment, choose services that handle U.S. duties properly and confirm current requirements before anything leaves. See our transborder parcels and couriers service, or ask for a quote.