Canadian Import Taxes: Duties, Taxes, and Customs for E-Commerce
Updated 2026-08-03
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).
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.