Canadian Import Taxes 2026: CAD $20 Duty-Free Threshold, GST 5%, CUSMA/USMCA Tariff Rates and CBSA Rules | Crossborder Tax Tool
Updated 2026-08-17
Canada imposes customs duties and GST (5%) on imported goods. The de minimis threshold for duty-free import is CAD $20 for customs duties and CAD $40 for taxes (low-value shipments). Above these thresholds, import duties apply based on the product's tariff classification and country of origin. Most imports valued over CAD $2,500 require formal customs entry through the CBSA (Canada Border Services Agency).
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De minimis thresholds: CAD $20 duty-free and CAD $40 tax-free
Canada has two de minimis thresholds: CAD $20 for customs duties (goods below this value are duty-free) and CAD $40 for taxes (goods below this value are GST-free). These thresholds apply to the value of goods excluding shipping and insurance. Canada's thresholds are among the lowest in the developed world — by comparison, the US de minimis is US $800.
Important limitations: the CAD $40 tax exemption applies only to goods imported by post (not by courier or cargo). For commercial shipments to Amazon FBA warehouses, all goods are subject to GST and duty regardless of value. The thresholds are assessed per shipment, not per item — if you ship multiple items in one package, the total package value is used.
Tariff classification and duty rate calculation
Import duties are calculated as a percentage of the customs value (transaction value + shipping + insurance). Rates depend on the product's HS (Harmonized System) tariff classification and country of origin. Canada's MFN (Most-Favoured-Nation) tariff rates range from 0% (most electronics, pharmaceuticals, raw materials) to 35% (dairy products, poultry, some clothing).
Preferential rates apply under trade agreements: CUSMA/USMCA (US, Mexico — often 0% for qualifying goods), CPTPP (Japan, Australia, Vietnam and 9 others), CETA (EU — 0% on most manufactured goods), CKFTA (South Korea), CAFTA-DR (Central America). To claim preferential rates, you need a valid certificate of origin from the exporter.
CUSMA/USMCA: reducing duties to 0% for qualifying goods
CUSMA (Canada-United States-Mexico Agreement) replaced NAFTA and provides preferential (often zero) tariff rates for qualifying goods originating in the US, Canada or Mexico. To benefit, goods must meet specific rules of origin — typically, a certain percentage of the product's value must be produced in a CUSMA country, or the product must undergo a tariff shift during manufacturing.
Documentation required: a CUSMA certification of origin (can be completed by the importer, exporter or producer). The certificate does not need to follow a specific format but must include: exporter/producer details, product description, applicable rule of origin, and certification statement. Keep certificates for at least 6 years. CBSA can request verification up to 4 years after import.
CBSA customs clearance: formal entry, brokers and FBA imports
Imports valued over CAD $2,500 require formal customs entry through the CBSA using form B3. A licensed customs broker typically files the entry electronically. Required documents: commercial invoice (or Canada Customs Invoice), bill of lading/airway bill, packing list, certificate of origin (for FTA claims), and any required permits (e.g., health, safety, environmental).
For Amazon FBA sellers: Amazon does NOT act as importer of record. You must arrange customs clearance before goods reach the fulfillment center. Shipments without proper clearance will be held at the border, incurring storage fees. Most FBA sellers use a customs broker who also arranges inland delivery to the FBA warehouse. Broker fees typically range from CAD $150–400 per entry.
Primary sources
This page is grounded in the primary materials below. Rules change, so open the source and confirm the current version before acting.
FAQ
What is Canada's de minimis threshold?+
Canada has two de minimis thresholds: CAD $20 for customs duties and CAD $40 for taxes (GST). Goods valued below CAD $20 are duty-free, and goods below CAD $40 are tax-free. These thresholds apply to the value of the goods excluding shipping and insurance. Canada's thresholds are among the lowest in developed countries.
How are Canadian import duties calculated?+
Import duties are calculated as a percentage of the customs value (typically the transaction value plus shipping and insurance). Rates depend on the product's HS (Harmonized System) tariff classification and country of origin. Canada's Most-Favoured-Nation (MFN) tariff rates vary from 0% to 35%. Preferential rates apply under trade agreements (e.g., CUSMA/USMCA, CPTPP, CETA).
What is CUSMA/USMCA and how does it affect imports?+
CUSMA (Canada-United States-Mexico Agreement) is the trade agreement between Canada, the US, and Mexico that replaced NAFTA. It provides preferential (often zero) tariff rates for qualifying goods. To benefit, goods must meet rules of origin requirements and be accompanied by a certificate of origin. This significantly reduces duties for US and Mexico-origin goods.
How does the CBSA process e-commerce imports?+
The CBSA processes imports through two channels: Release Prior to Payment (RPP) for regular importers with a security bond, and Payment Before Release for occasional importers. For e-commerce, courier companies often handle customs clearance. The CBSA uses the ACI (Advance Commercial Information) system to screen shipments before arrival.
What documentation is required for importing into Canada?+
Required documents include: Canada Customs Invoice (or commercial invoice), bill of lading/airway bill, packing list, certificate of origin (for preferential tariff treatment), and any required permits or certificates. For formal entries (over CAD $2,500), a customs broker typically files the B3 customs entry form electronically.
Does Amazon FBA Canada handle customs clearance?+
No, Amazon FBA Canada does not handle customs clearance for your imports. You are responsible for clearing goods through Canadian customs before they arrive at Amazon fulfillment centers. You must act as the Importer of Record (IOR) or hire a customs broker. Amazon handles domestic shipping from the fulfillment center to customers.
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