Selling to US Customers from Canada: A Shipping Guide

Education

11-11-2026

Canadian ecommerce brands can sell to U.S. customers in two main ways: ship each order across the border, or import inventory in bulk into a U.S. warehouse and fulfill orders domestically. Either way, the $800 de minimis exemption no longer covers your parcels. The U.S. has suspended duty-free de minimis treatment for imports from all countries since August 29, 2025, so every shipment now needs a customs entry and any duties owed must be paid.

Does the $800 De Minimis Exemption Still Apply to Canadian Shipments?

No. For years, a Canadian brand could ship a package worth $800 or less to a U.S. customer without paying U.S. duty. That changed in 2025 and 2026:

August 29, 2025: Executive Order 14324 suspended duty-free de minimis treatment for imports from all countries, according to U.S. Customs and Border Protection (CBP).
February 20, 2026: The Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize tariffs. The same day, Executive Order 14388 continued the de minimis suspension.
June 24, 2026: CBP published two interim final rules that suspend the exemption indefinitely for all modes of transport, including mail.
July 24, 2026: A new postal informal entry process took effect for mail valued at $2,500 or less, according to KPMG's summary of the rules.
July 1, 2027: The One Big Beautiful Bill Act ends the de minimis exemption in the law itself.

In practice, shipments that used to cross duty-free now go through informal entry (generally for shipments valued at $2,500 or less) or formal entry (above $2,500), and applicable duties, taxes and fees are collected. Bona fide gifts of $100 or less remain exempt, but sales to customers are not gifts.

What Customs Basics Do Canadian Sellers Need to Know?

Importer of record

CBP describes the importer of record as the party responsible for paying all duties and taxes on an import. The importer of record must use reasonable care to classify and value the goods correctly, and a customs bond is generally needed before goods can be released. When you ship direct to consumers, you need to decide who takes that role: your company, your customer, or a party appointed through your carrier or broker.

HS codes

Every product needs a tariff classification. The first six digits of a Harmonized System (HS) code are shared internationally, and the U.S. uses a 10-digit code from the Harmonized Tariff Schedule of the United States (HTSUS). The code determines the duty rate, so a wrong code can mean overpaying, underpaying or delays.

Duties and country of origin

U.S. duty depends on where a product was made, not where it ships from. A hoodie sewn in Asia and shipped from Toronto is generally treated as an Asian-origin product for U.S. duty purposes. Goods that qualify under the USMCA (CUSMA in Canada) rules of origin can get preferential treatment. In July 2026, Borderbuddy reported that USMCA-qualifying goods were exempt from the newest broad additional U.S. tariff, while non-qualifying Canadian goods were not. Tariff rules have changed several times since 2025, so confirm the current treatment of your products before you price them.

Option 1: Ship Each Order From Canada

Shipping orders one at a time from your Canadian warehouse is the simplest way to test the U.S. market. You can use a courier or the postal network.

Pros: No U.S. inventory, one stock pool for both countries, easy to start.
Cons: Every parcel needs a customs entry, cross-border rates usually cost more than U.S. domestic rates, and returns must travel back across the border.
Watch the duty experience: If duties are collected from your customer at delivery, some will refuse the package. Many sellers prefer delivered duty paid (DDP) shipping, where the seller pays duties up front.
Watch new fees: FedEx says that starting January 18, 2027, a residential delivery charge will apply to qualifying international package shipments to the U.S. and Canada.

Mail is no longer a shortcut. Under CBP's postal rule, the owner, purchaser or a licensed customs broker files a monthly duty worksheet with 10-digit HTSUS codes, pays duties through Pay.gov by the 7th of the following month and must hold a customs bond. Duties are no longer collected on delivery. Mail that is subject to additional duties under HTSUS Chapter 99, claims free trade agreement treatment (including USMCA) or is regulated by other agencies must use formal entry instead; a temporary grace period for those goods ended October 22, 2026.

Option 2: Import in Bulk to a U.S. Warehouse

The other approach is to import inventory in larger shipments, clear customs once per shipment, and store the goods in a U.S. fulfillment center. Orders then ship as domestic U.S. parcels.

One entry instead of hundreds: Duties are calculated on your commercial shipment rather than on each customer order.
Domestic rates and speed: Orders ship on U.S. domestic services with no customs step on the last leg.
Simple returns: Customers send returns to a U.S. address.
Things to plan for: You need a customs broker and importer of record for each import, a customs bond, and enough inventory to stock two locations. Holding inventory in a U.S. state can also create sales tax obligations there, so talk to a tax advisor.

Where Does a Los Angeles Warehouse Fit for Canadian Brands?

A warehouse near the Port of Los Angeles is a good fit for Canadian brands in a few situations:

You manufacture in Asia. Instead of shipping goods to Canada and then south again, you can send U.S.-bound inventory straight from the factory to Southern California. The goods still need a U.S. customs entry, but they skip a leg.
You have strong West Coast demand. From LA, ground shipping generally reaches West Coast customers in 1 to 2 business days and most of the continental U.S. in 3 to 5.
You are based in Western Canada. Trucking inventory south along the West Coast can be simpler than routing it east.

If most of your U.S. customers are on the East Coast and your goods are made in Canada, compare an LA warehouse against an East Coast option on cost and delivery time before deciding.

A Simple Checklist Before You Start

Get 10-digit HTSUS codes for every SKU and confirm country of origin.
Check whether your products qualify under USMCA rules of origin.
Decide who will act as importer of record and talk to a licensed U.S. customs broker.
Choose DDP or duties-on-delivery for direct shipments, and show U.S. customers clear pricing.
Compare direct shipping against bulk import with your real order volumes.
Ask a tax advisor about U.S. sales tax before you store inventory in a U.S. state.

Frequently Asked Questions

Do Canadian brands pay U.S. duty on orders under $800?

Yes, if duty applies to the product. The de minimis exemption has been suspended for all countries since August 29, 2025, and the law ends it permanently on July 1, 2027. Goods that qualify under USMCA may have a lower or zero rate.

Can a Canadian company be the importer of record in the U.S.?

Non-U.S. companies do import into the U.S., but the requirements, including the customs bond, have details that vary by situation. A licensed U.S. customs broker can tell you what your business needs.

Does a U.S. 3PL handle customs clearance?

A fulfillment warehouse receives, stores and ships your inventory once it has cleared customs. Customs entries are handled by the importer of record and a licensed customs broker. 3PL City does not act as importer of record.

Is it cheaper to ship from Canada or from a U.S. warehouse?

It depends on your volume, product size and duty rate. Low-volume sellers often start by shipping direct. As U.S. orders grow, bulk import plus domestic fulfillment usually lowers cost per order and speeds delivery.

Ship to U.S. Customers From Los Angeles

3PL City operates a fulfillment warehouse at 1616 W Rosecrans Ave in Gardena, CA, about 8 miles from the Port of Los Angeles. Once your inventory clears customs, we receive it, store it and ship orders on UPS, USPS, FedEx and DHL. Orders received by 2 PM Pacific ship the same business day with 99.8% order accuracy from barcode scanning. We run on ShipHero WMS and connect to Shopify, Amazon, Walmart, TikTok Shop, BigCommerce, WooCommerce and more. No long-term contracts, no minimums and itemized quotes. Request a fulfillment quote.

This guide is general information, not legal or customs advice. For your specific products, consult a licensed U.S. customs broker.