Are There Customs Fees From Canada to the US? USMCA and Tariffs

Yes, there are customs fees on almost everything shipped from Canada to the US. In early 2026 the federal government suspended the $800 de minimis exemption for shipped goods, so duties, processing fees, and any applicable tariff surcharges now apply to packages regardless of value.1The White House. Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries Some Canadian goods still enter duty-free under the United States-Mexico-Canada Agreement, and travelers carrying items across the border in person keep a separate $800 personal exemption. Beyond those two cases, expect charges on every shipment.

The $800 Shipment Exemption Is Gone

For years, 19 U.S.C. § 1321 let shipments valued at $800 or less enter without duty or tax.2Office of the Law Revision Counsel. 19 USC 1321 – Administrative Exemptions That provision, often called Section 321, was the reason most online orders from Canadian retailers arrived without customs charges. A 2026 executive order suspended the exemption for all shipped goods regardless of value, country of origin, or method of entry.1The White House. Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries Every package from Canada now requires a customs entry filing and is subject to the applicable duty rate.

The practical effect: a $50 item from a Canadian site that used to arrive with no customs charge now triggers duty based on its tariff classification, plus a processing fee. Carriers and brokers handle the paperwork, then pass the cost through. Budget for duty on every shipment.

What Travelers Still Get at the Border

The de minimis suspension covers shipments, not items you carry across yourself. US residents returning from Canada still qualify for an $800 personal exemption covering gifts and personal articles.3U.S. Customs and Border Protection. Canada and Mexico Travel Anything within that allowance enters duty-free. Goods exceeding it are dutiable on the amount over $800.

Alcohol and tobacco carry their own limits inside the exemption. You can bring one liter of alcohol duty-free if you’re at least 21 and it’s for personal use, not resale. State law also governs how much alcohol you can bring in, so check the rules for the state where you cross. For tobacco, the ceiling is 200 cigarettes and 100 cigars.4U.S. Customs and Border Protection. Customs Duty Information Quantities above those trigger duty even when the total stays under $800.

Duty-Free Treatment Under USMCA

The United States-Mexico-Canada Agreement can eliminate or reduce duty on goods that genuinely originate in North America, and it works at any value. This sits alongside — and now outlives — the suspended de minimis rule. The catch is what counts as originating.5eCFR. 19 CFR Part 182 – United States-Mexico-Canada Agreement Shipping from a Canadian address doesn’t qualify a good on its own. The product itself has to have been substantially produced or transformed in Canada, Mexico, or the United States.

Each product category has its own origin rule. Some set a minimum percentage of North American value. Others use tariff-shift rules, where the inputs have to change tariff classification during manufacturing. A piece of furniture built in Canada from Canadian lumber would likely qualify. The same piece assembled in a Canadian warehouse from components made entirely in Asia probably wouldn’t.

To claim USMCA treatment, the importer, exporter, or producer completes a certification of origin naming the specific origin rule the product satisfies.5eCFR. 19 CFR Part 182 – United States-Mexico-Canada Agreement CBP can request it at any time. Qualifying goods also skip the merchandise processing fee, which is a real dollar saving on commercial shipments.

Section 232 Tariffs Stack on Top

Some Canadian products carry additional tariffs imposed under other trade authorities, even when the base rate is zero. Section 232 of the Trade Expansion Act of 1962 authorizes tariffs on imports that threaten national security. Canada’s previous exemption was removed in March 2025, and rates went up shortly after. As of mid-2025, steel and aluminum from Canada carry a 50% Section 232 tariff. Additional Section 232 tariffs apply at varying rates to Canadian automobiles, copper, lumber, furniture, heavy vehicles, and semiconductors.

These add on top of the regular duty. A Canadian aluminum product might sit at a 0% USMCA rate on its base classification and still owe 50% under Section 232. If you’re buying any covered category, check the Section 232 status of the specific product before you commit.

How the Duty Rate Is Set

The duty rate on any imported product depends on its classification under the Harmonized Tariff Schedule. The HTS uses a layered coding system: the first six digits follow an international standard, and the United States adds digits to create 8-digit rate lines and 10-digit statistical categories.6United States International Trade Commission. About Harmonized Tariff Schedule Each code maps to a rate, expressed as a percentage of value, a flat charge per unit, or a combination.

Getting the right code matters. A cotton t-shirt and a polyester t-shirt sit under different codes with different rates. The US International Trade Commission runs a searchable database for lookups. The transaction value on the commercial invoice sets the base for percentage duties. Undervaluation is one of the violations CBP pursues most, so accurate declared value protects you from both overpayment and penalties.

Fees Beyond the Duty Itself

Duty is only part of the bill. Federal fees apply even when the duty rate is zero.

The Merchandise Processing Fee applies to most formal entries at 0.3464% of the goods’ value, with a minimum of $33.58 and a maximum of $651.50 for fiscal year 2026. That floor means even a small formal entry owes at least $33.58 in processing. Informal entries pay a smaller flat fee: $2.69 for automated processing, up to $12.09 if CBP personnel prepare the entry.7Federal Register. Customs User Fees To Be Adjusted for Inflation in Fiscal Year 2026 Goods that qualify for USMCA preferential treatment are exempt from the MPF.

A separate Harbor Maintenance Fee of 0.125% of cargo value applies to goods arriving by commercial vessel.8eCFR. 19 CFR 24.24 – Harbor Maintenance Fee Truck and air shipments from Canada don’t trigger it. Large ocean shipments do.

Carriers add their own charges. UPS, FedEx, and other shippers bill brokerage or advancement fees for handling clearance on your behalf. These are separate from any government fee. When the carrier fronts your duty and bills you later, expect a service charge on top of the duty amount itself.

Informal vs. Formal Entry

Paperwork depth scales with value. Shipments of $2,500 or less generally qualify for informal entry, a streamlined process with less documentation.9eCFR. 19 CFR Part 143 Subpart C – Informal Entry The owner, purchaser, or a licensed customs broker can file. Fees are flat rather than the percentage MPF.

Shipments above $2,500 require formal entry, with fuller documentation and a customs bond guaranteeing payment and compliance. You can buy a single-transaction bond for one shipment or a continuous bond covering a year of imports.10U.S. Customs and Border Protection. Bonds – Types of Bonds A single-transaction bond is typically set at the value of the merchandise plus estimated duties, taxes, and fees. A continuous bond is usually 10% of the duties, taxes, and fees paid over the previous 12 months. Most individuals buying one-off items never arrange a bond themselves; the carrier or broker handles it and passes the cost along.

Penalties for Wrong Paperwork

Getting a declaration wrong triggers graduated civil penalties under 19 U.S.C. § 1592:

Individual importers rarely face fraud claims, but negligence penalties are easy to trigger. Misclassifying a product under the wrong HTS code, understating the purchase price, or leaving shipping costs out of declared value can each qualify. Accurate paperwork costs nothing; sloppy paperwork can cost several times the duty you would have owed.