The End of De Minimis

What Was De Minimis and Why Did It Matter?

For years, Canadian businesses enjoyed a huge advantage shipping into the U.S. thanks to the de minimis exemption — a rule that allowed shipments under $800 USD to enter the U.S. duty- and tax-free. This benefited not only Canadian sellers, but also American consumers who avoided paying import taxes.

That made cross-border e-commerce simple:

• A $50 t-shirt order shipped to a U.S. customer? No duties, no paperwork, quick delivery.

• A $400 equipment part? Same deal.

De minimis reduced costs, sped up deliveries, and made small parcels competitive.

Now that’s gone — U.S. issued an executive order in July 2025 suspending the de minimis exemption, ending duty- and tax-free entry for shipments under $800.

(If you’re new to U.S. labels and paperwork, start here: Shipping from Canada to the U.S. guide.)

What Does the Removal Mean?

Starting August 29, 2025, every shipment, no matter if it’s $5 or $5,000, needs:

• A customs entry filed
• Duties and taxes paid before release

For Canada specifically:

• Goods face a 35% baseline tariff under the International Emergency Economic Powers Act (IEEPA) unless covered by CUSMA
• Missing documents or incomplete origin details could trigger holds, penalties, or even 200% duties for goods containing aluminum/steel where the “country of smelt” isn’t declared (Invoices & HS codes: Commercial Invoice guide; Documents checklist.)

In other words: the U.S. now treats your small orders just like your high-value freight.

How This Impacts Canadian Businesses

1. Costs Will Rise

Expect duties on almost every item, plus carrier brokerage and government fees like the Merchandise Processing Fee (MPF). These can add 10–40% or more to landed costs if you’re not careful.

2. Customer Experience at Risk

If you ship “DDU” (duties unpaid), your U.S. customers will get surprise bills from UPS, FedEx, or USPS. That’s a recipe for angry customers, refused deliveries, and abandoned carts.

3. More Complexity in Shipping

Low-value vs. high-value entries no longer matters. Everyone must have their export documentation completely correctly: HS codes, origin declarations, CUSMA certificates, and tax IDs.

4. Operational Burden

Your shipping teams will spend more time preparing invoices, chasing documents, and managing compliance. This isn’t a one-off policy tweak — it’s a new normal.

Executive Order 14324: The Rule Behind the Change

The U.S. government issued Executive Order 14324, which:

• Suspends the $800 de minimis rule for all imports
• Requires prepaid duties for postal shipments (CPC must remit via Zonos or another qualified partner
• Signals a broader shift: U.S. Customs is moving from “facilitator of trade” to “enforcer of national and economic security”.

This isn’t temporary. Expect ongoing policy changes in trade enforcement, tariffs, and origin requirements.

Carrier Changes: What’s Different?

Canada Post (CPC)

• All U.S. labels now require a Declaration ID proving duties are prepaid
• CPC is integrating Zonos to handle duty collection upfront
• Without prepaid duties, CPC won’t accept your parcel
• Secureship won’t be offering any Canada Post shipments to the U.S. for the time being

UPS, FedEx, DHL, and other major couriers

• Will continue to deliver to the U.S., but:
  • If duties aren’t prepaid, the recipient pays on delivery
  • Expect new brokerage fees even on small parcels
  • UPS has said it will automatically act as broker for ﹤ $800 shipments; if CUSMA is claimed, duty = $0, but if not, duty + fees apply

What This Means for You

If you sell online, you’ll need to decide:

• DDP (duties paid by you): better customer experience, but you take on upfront costs. DDU (duties paid by customer): easier for you, but risky for customer loyalty.

(DDP/DDU explained in Secureship’s INCOTERMS overview)

Typical Fees You’ll See

• Ad valorem duty: 35% on most Canadian exports without CUSMA. Carrier brokerage: flat or tiered fees depending on value. MPF (Merchandise Processing Fee): applies to formal entries (can be avoided with CUSMA).

Example: A $200 hoodie shipped DDU by courier could face:

• $70 in U.S. duty (35%)
• $10–20 in brokerage
• Plus MPF (if formal entry applies)

That $200 hoodie can suddenly cost your U.S. customer $280+.

How to Reduce or Eliminate Duties (CUSMA)

The good news: CUSMA/USMCA remains in effect. If your products qualify as North American origin, they can still enter duty-free.

Here’s how:

1. Classify and verify origin

   • Use proper HS codes
   • Confirm goods meet CUSMA rules (regional content %, tariff shift, etc.)

2. Fill out a CUSMA Certificate of Origin
   

   A CUSMA lists the products you’re shipping and proves they qualify for duty-free treatment. You can cover a single shipment or multiple shipments for up to 12 months.
   

   Just make sure it includes all the required details (like who made the goods, what they are, and where they came from).

3. Send documents with the shipment

   • Attach to the commercial invoice or submit electronically
   • Without them, carriers cannot claim the exemption

4. Provide recipient contact information

   • Email + phone are required so carriers can collect or verify duty/tax payments.

5. Include a Tax ID

   • EIN (business) or SSN (individual) for formal entries.

Why This Matters

With CUSMA, that $200 hoodie example above could enter at $0 duty — saving your customer $70 and you a headache.

Checklist for Your Next Shipment

Before you print your next U.S. label:

• ✅ Is the commercial invoice complete (description, HS code, country of origin)? (Guide)

• ✅ Do you have a CUSMA certificate attached?

• ✅ Is the recipient’s email + phone included?

• ✅ Have you decided DDP vs. DDU? (INCOTERMS basics)

• ✅ For CPC, do you have a Declaration ID tied to your label? (Or use a private courier and have the duties and taxes for the shipment billed to the recipient

How Can You Navigate This—and How Can Secureship Help?

The end of de minimis is forcing Canadian businesses to rethink cross-border while doubling down on domestic and new international markets. Secureship, a proudly Canadian company, helps you lower cost and complexity with pre-negotiated carrier rates, duty-aware estimates, and an all-in-one workflow for labels, customs docs, and tracking.

Get access to incredible pre-negotiated rates from major carriers

Save even more on Domestic Shipments with Canada Post (within Canada)

(CPC is paused for U.S. destinations; see note below.)

From	To	Weight	Retail	Via Secureship
Toronto	Montreal	10 lbs	$22.97	$15.83
Calgary	Edmonton	1 lb	$41.58	$20.11
Vancouver	Halifax	25 lbs	$56.41	$46.54
Ottawa	Montreal	1 lb	$17.07	$11.34
Saskatchewan	Winnipeg	40 lbs	$59.28	$43.43
Quebec City	Toronto	14 lbs	$29.28	$20.08

Save up to 70% on National & International shipments with FedEx, UPS & GLS

Secureship’s pooled buying power and streamlined workflow help you expand to 220+ destinations with confidence.

From	To	Weight	Retail	Via Secureship
Canada	Australia	10 lbs	$649.81	$207.14
Canada	India	Envelope	$242.67	$92.75
Canada	United Kingdom	25 lbs	$825.78	$292.84
Canada	France	5 lbs	$350.03	$121.31
Canada	Mexico	Envelope	$345.02	$79.24
Canada	China	40 lbs	$1,440.02	$471.94

Shipping to the United States (U.S.)

U.S. services are fully available on Secureship via private carriers. Choose DDP to protect conversion and avoid doorstep surprises.

From	To	Weight	Retail	Via Secureship
Toronto	New York City	15 lbs	$64.41	$32.73
Montreal	Miami	25 lbs	$106.43	$53.73
Vancouver	Los Angeles	50 lbs	$155.62	$78.34

Important note about Canada Post (CPC): Secureship has paused CPC to the U.S. while Canada Post’s duty-prepaid Declaration ID workflow is implemented. U.S. shipping remains fully supported via FedEx, UPS, GLS, Purolator, and Loomis inside Secureship.

Why Secureship now

• Duty-inclusive comparisons across carriers, so you can choose DDP and prevent surprise bills

• Built-in customs & CUSMA tools to attach the right docs on every label

• Smart validations (HS codes, Tax IDs, recipient contact) to reduce holds and returns

• One dashboard for labels, pickups, tracking, and reports—plus human support when you need it

FAQ

Does this affect personal gifts under $800?
Yes. There’s no more duty-free de exemption. Gifts are dutiable unless CUSMA applies.

Can Secureship still send via Canada Post?
Not at this time. Until the Zonos prepayment process stabilizes, Secureship will pause CPC services to the U.S.

If my goods are Canadian-made, do I still pay duty?
Not if you claim CUSMA correctly. Without the certificate, they’re treated as non-originating and subject to duty.

What if I forget to claim CUSMA?
You can file a refund claim after import: up to 1 year in the U.S. and 4 years in Canada.

Who pays duties and taxes now?
The recipient by default is the one that would be responsible for paying duties and taxes unless, as the shipper, you request the duties and taxes to be billed back to you or your packages are shipped through Canada Post’s.

Does CUSMA still apply after de minimis was removed?
Yes. If your product was made in Canada, the U.S., or Mexico — and meets CUSMA rules — it can still enter the U.S. duty-free. But you now need to include a CUSMA certificate with the shipment, even if it’s under $800.

How do I submit a CUSMA certificate?

• Prepare a certificate with the required data elements (exporter/importer info, HS code, origin criterion, signature/date)

• Attach it to your commercial invoice or send it electronically through your carrier’s system

• UPS/FedEx/DHL: upload in their portals or email (e.g. UPS: usmca@ups.com with your account number)

• Keep records for 5 years in case of audit

What happened to the U.S. de minimis ($800 duty-free threshold)?
It was suspended for all countries under Executive Order 14324 effective Aug 29, 2025. Every shipment now requires an entry and duty assessment, regardless of value

Can I still use Canada Post to send to the U.S.?
Yes, but only if duties and taxes are prepaid. Canada Post is integrated with Zonos, which provides a Declaration ID. Without it, Canada Post will not accept your U.S. shipping label.

What is a Zonos Declaration ID?
It’s a reference number that confirms duties/taxes were secured before mailing. This ID must be indicated on the shipping label for Canada Post to accept the parcel within their network.

Can I use Secureship to send a parcel with Canada Post to the U.S?
Secureship is not currently offering any Canada Post services to the US for the time being

What happens with UPS/FedEx/DHL shipments under $800 now?
Shipments under $800 USD will now undergo formal customs entry, similar to higher-value shipments. The carriers handling the shipment will automatically manage the customs brokerage. If the goods don’t qualify under CUSMA, U.S. duties, taxes, brokerage, and other import fees may apply.

How can I avoid brokerage and duties with UPS?
To avoid U.S. duties, ensure the shipment qualifies under CUSMA and include valid CUSMA certification.

Brokerage fees can’t always be avoided — UPS may still charge them even on duty-free shipments. The best way to reduce costs is by shipping with all required customs data up front

What documents are required now?

• Commercial invoice with full product details & HS codes
• CUSMA certification if claiming preferential duty
• Recipient contact info (email/phone) for customs queries
• Steel/aluminum content origin/value if applicable
• Tax ID (EIN for U.S. businesses; SSN/CBP ID for individuals in some cases).

Bringing Stability in Uncertain Times

The ongoing trade war has Canadians concerned about what lies ahead. The removal of de minimis is the biggest shift in cross-border shipping in decades.

Secureship — a proudly Canadian business — can help by reducing barriers, complexity, and cost.

Let us help you find stability in uncertain times. Happy Shipping!