Implementation of the Canada-United States-Mexico Agreement (CUSMA) De Minimis Threshold with Respect to Customs Duties and Taxes for Courier Imports

The following Notice is available in its entirety on the Canada Border Services Agency (CBSA) website and provides information with regards to release, reporting, and accounting of goods with regards to the de minimis threshold.

Customs Notice 20-18 – Implementation of the Canada-United States-Mexico Agreement (CUSMA) De Minimis Threshold with Respect to Customs Duties and Taxes for Courier Imports

Upon entry into force of the CUSMA, the following provisions will apply to imported goods that are transported by courier into Canada:

Goods with a value for duty of CAD$20 or less will have any applicable customs duties and taxes waived when imported from any country;

Goods with a value for duty CAD$20.01 or greater that are imported from any country other than the United States or Mexico will continue to be subject to any applicable duties and taxes;

Goods with a value for duty of CAD$40 or less will have any applicable customs duties and taxes waived when imported from the United States or Mexico only;

Goods with a value for duty of CAD$40.01 or greater, up to and including CAD$150.00, will be free of customs duties (however, taxes will remain applicable) when imported from the United States or Mexico only; and

Goods with a value for duty CAD$150.01 or greater will be subject to any applicable duties and taxes when imported from any country, including the United States or Mexico.

In order to qualify for the CAD$40 or CAD$150 de minimis thresholds set out in the CUSMA, the goods do not need to originate according to the CUSMA Chapter 4, Rules of Origin, but rather be imported from the United States or Mexico. If the goods were not produced in the United States or Mexico, they must have entered into the commerce of either the United States or Mexico prior to being imported into Canada in order to benefit from the CUSMA de minimis relief. For greater certainty, goods that are shipped from a non-CUSMA country and transit or are trans-shipped through the United States or Mexico, without having entered the commerce of the CUSMA partners, would not be entitled to the CAD$40.00 or CAD$150.00 de minimis thresholds.

On April 03, 2020 CBSA posted the Customs Notice 20-14 Implementation of the Canada-United States-Mexico Agreement (CUSMA), which  summarizes the requirements in order to benefit from the CUSMA’s preferential rates of duty, once the CUSMA enters info force.

Text of the Canada-United States-Mexico Agreement (CUSMA)

Questions or concerns should be directed to the Canadian Regulatory Team at transitionca@willsonintl.044d949.netsolhost.com.