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New U.S. Duty Rules

Duty

What Shoppers Need to Know

Starting August 29, 2025, shopping from Canadian businesses and shipping to the U.S. will come with some changes due to new U.S. customs regulations. The U.S. has suspended its duty-free “de minimis” threshold of US$800, meaning all packages, no matter their value, will now require duties to be paid before they can cross the border. Here’s a simple guide to what this means for you and how Canada Post is making it easier to shop from Canada. (Click this linked text to view Canada Post information page)

What’s Changing?

In the past, items valued at US$800 or less could enter the U.S. without duties. Now, every package shipped from Canada to the U.S. will have a duty applied, based on the product’s value and country of origin. For example, if you buy a $57 Canadian-made cardigan, you’ll pay an additional $19.95 in duties (based on the current 35% rate for Canadian goods). These duties must be paid before the package leaves Canada to avoid delays at the border.

This applies to all shipments, whether they’re sent through Canada Post, another courier, or a freight company.

How Canada Post Is Helping

Canada Post has teamed up with Zonos®, a platform that simplifies international shipping, to make paying duties straightforward. Every U.S.-bound package will now include a Declaration ID—a 13-character code proving the duties have been paid. Without this, packages can’t be shipped.

Here’s how you can expect the process to work when shopping from Canadian businesses:

1. Paying Duties Made Simple

Canadian businesses can use Zonos in two ways to handle duties:

  • Automatic Billing: Many businesses will use Zonos’s automatic billing for seamless duty payments. This means the duties are calculated and paid upfront, so you won’t face surprises or delays when your package arrives.
  • Prepay App: Smaller businesses may use the Zonos Prepay app (available on iOS and Android) to pay duties for each shipment. You’ll see the total cost (including duties and fees) before the package is shipped, ensuring transparency.

2. Transparent Costs

With Zonos, businesses can show you the full “landed cost” (product price + duties + fees) at checkout, so you know exactly what you’re paying. This helps avoid unexpected charges when your package arrives.

3. Smoother Shipping

By paying duties upfront, your package is less likely to face delays at the U.S. border. Canada Post and Zonos are working together to ensure duties are sent directly to U.S. Customs and Border Protection (CBP), keeping the process efficient.

What This Means for You

When shopping from Canadian businesses, you may notice:

  • Higher Costs: Duties will add to the total price of your purchase. For example, a $50 item might have an extra $17.50 in duties (based on the 35% rate for Canadian goods).
  • Possible Delays: While Canada Post is working to streamline the process, the new customs rules may cause occasional delays as businesses adjust.
  • Clearer Pricing: Businesses using Zonos can show you the full cost upfront, so you won’t be surprised by extra fees when your package arrives.
  • Check the Total Cost: Look for businesses that use Zonos to provide transparent pricing, including duties, at checkout.
  • Shop with Trusted Retailers: Canadian businesses using Canada Post and Zonos are set up to comply with the new rules, ensuring your package arrives smoothly.
  • Be Patient: As businesses adapt to these changes, there may be slight delays, but Canada Post is working to keep things moving.

Canada Post is dedicated to making cross-border shopping as easy as possible. They’re partnering with Zonos and other platforms to support businesses, especially small ones, in meeting these new requirements. Whether you’re buying clothes, gifts, or other goods from Canada, Canada Post is working to keep shipping reliable and transparent.