Shipping to Canada from the U.S.

Last updated: July 23, 2026

Canada is one of the most common first steps for U.S. merchants expanding internationally. With close proximity, a large English-speaking market, and predictable logistics, it offers strong growth potential. However, shipping across the border requires planning around duties, taxes, compliance, and carrier processes.

 

1. Duties, Taxes, and De Minimis Thresholds

Canada applies duties and Goods and Services Tax (GST) or Harmonized Sales Tax (HST) on most imported products. Rates depend on the HS Code and the Country of Origin of the goods.

  • De Minimis Threshold: Shipments valued under CAD $40 may enter duty-free. Shipments under CAD $150 may enter duty-free but still incur GST/HST.
  • Above CAD $150: Both duties and GST/HST apply, calculated based on product category and declared value.

Merchant Action: Ensure your catalog includes HS Codes, COO, and Customs Values for all SKUs. This information is required for accurate duty and tax calculation.

 

2. DDU vs. DDP

By default, orders ship DDU (Delivered Duty Unpaid), meaning the customer pays duties and taxes when the shipment arrives. This can lead to unexpected fees and potential refusals at delivery.

We recommend offering DDP (Delivered Duty Paid) for D2C Canadian orders. By using a duty and tax calculator at checkout, you can display the total landed cost to the customer upfront, allowing them to prepay duties and taxes. This results in faster customs clearance and a smoother delivery experience.

Learn more about DDP vs. DDU.

 

3. Customs Documentation

Every shipment to Canada must include a Commercial Invoice that specifies:

  • HS Code for each product
  • Country of Origin (COO)
  • Declared Customs Value
  • Shipper and consignee contact information (phone and email)

FedEx, UPS, and DHL support electronic transmission (ETD) of commercial invoices for Canada. However, we recommend printing 3 signed paper copies as a backup and attaching them to the package in a document pouch.

 

4. Carrier Considerations

All major carriers (UPS, FedEx, DHL, USPS → Canada Post) serve Canada, but each has different strengths:

  • UPS/FedEx/DHL: Reliable express services with full customs clearance support. However, low-value ground shipments can incur high brokerage fees if shipped DDU.
  • USPS → Canada Post: Cost-effective for low-value shipments but slower and with less predictable tracking.

Recommendation: Use express carriers for high-value or time-sensitive orders. Consider USPS/Canada Post for low-value shipments under the CAD $150 de minimis threshold.

 

5. Address Verification & Contact Info

Customs officials and carriers in Canada may need to contact the recipient if issues arise. Ensure that every order includes:

  • A verified Canadian address, formatted correctly with postal code.
  • A valid phone number and email address for the recipient.

Without accurate contact details, shipments may be delayed, returned, or destroyed.

 

6. Additional Considerations

Beyond the basics, there are several Canada-specific rules and best practices to keep in mind:

  • Restricted Products: Canada enforces strict regulations on supplements, cosmetics, children’s products, and electronics. Some items may require Health Canada approval, bilingual French/English labeling, or additional certifications.
  • Labeling Requirements: While DTC shipments often clear, goods resold in Canada must comply with bilingual labeling laws. Customs may still flag shipments that appear non-compliant.
  • Country of Origin: Duties are assessed based on where the product was made, not where it shipped from. U.S.-made goods may qualify for reduced or eliminated duties under USMCA, while imported goods (e.g., made in China) will incur full duties even when shipped from the U.S.
  • Bundling Strategy: Splitting orders into multiple shipments can result in multiple duty assessments. Consolidating orders often reduces costs.
  • Brokerage Fees: UPS and FedEx ground shipments to Canada can come with high brokerage fees for customers if shipped DDU. DDP or postal services are better options for low-value orders.
  • Currency Display: Offering CAD pricing at checkout improves conversions and avoids confusion over declared values.