Shipping to Canada from US: Complete Guide to Cross-Border E-commerce

US to Canada Shipping Overview

Canada is the largest market for US e-commerce exports, with millions of packages crossing the border annually. Despite proximity, customs, duties, and carrier selection significantly impact costs and delivery times.

Carrier Rate Comparison

Standard Shipping (1-5 lbs)

Weight	USPS First-Class Intl	USPS Priority Intl	UPS Standard	FedEx Intl Ground
1 lb	$15.50	$32.80	$28.50	$26.80
2 lbs	$18.80	$38.50	$32.40	$30.20
3 lbs	$22.40	$44.20	$36.80	$34.50
5 lbs	$28.50	$52.80	$45.20	$42.80

Atoship Commercial Rates (Same Weights)

Weight	USPS via Atoship	UPS via Atoship	FedEx via Atoship
1 lb	$12.20	$18.50	$17.80
2 lbs	$14.85	$21.20	$20.40
3 lbs	$17.50	$24.80	$23.60
5 lbs	$22.40	$30.50	$29.20

Savings: 20-35% with commercial rates

Transit Time Comparison

Service	Transit Time	Tracking
USPS First-Class Intl	7-21 days	Limited
USPS Priority Mail Intl	6-10 days	Full
USPS Priority Express Intl	3-5 days	Full
UPS Standard to Canada	5-8 days	Full
UPS Expedited	2-5 days	Full
UPS Express	1-3 days	Full
FedEx Intl Ground	5-7 days	Full
FedEx Intl Priority	2-4 days	Full

De Minimis Threshold

Canada's duty-free threshold (de minimis):

Threshold Type	Amount (CAD)	Amount (USD approx)
Duty-free	$20 CAD	~$15 USD
Tax-free	$20 CAD	~$15 USD

Impact: Packages valued over $20 CAD may incur duties and GST/HST/PST

Canadian Tax Structure

Province	GST	HST	PST	Total Tax
Alberta	5%	-	0%	5%
British Columbia	5%	-	7%	12%
Ontario	-	13%	-	13%
Quebec	5%	-	9.975%	~15%
Manitoba	5%	-	7%	12%
Saskatchewan	5%	-	6%	11%

Duty Rates by Product Category

Product Category	Typical Duty Rate
Clothing/apparel	16-18%
Electronics	0% (most items)
Footwear	18-20%
Furniture	0-9.5%
Books	0%
Toys	0-8%
Cosmetics	6.5%
Food products	0-19.5%

Carrier Recommendations by Scenario

Best for Low-Value Items (< $20 CAD)

Recommendation: USPS First-Class International

Lowest cost
No duty collection needed
Atoship rate: $12.20-$22.40

Best for Medium-Value Items ($20-$200 CAD)

Recommendation: UPS Standard to Canada

Includes brokerage
Clear customs easily
Predictable delivery
Atoship rate: $18.50-$45.20

Best for High-Value Items (> $200 CAD)

Recommendation: FedEx or UPS with DDP

Pre-pay duties/taxes
Better customer experience
Full tracking
Avoid recipient refusal

Best for Time-Sensitive

Recommendation: UPS Express or FedEx Priority

1-3 day delivery
Priority customs clearance
Guaranteed delivery dates

Customs Documentation

Required Documents

Document	Purpose	When Needed
Commercial invoice	Declares value/contents	Always
CN22/CN23 form	USPS customs	USPS shipments
Pro forma invoice	Gift shipments	Optional
Certificate of origin	Duty exemption	USMCA items

USMCA Benefits

Products made in USA may qualify for duty-free treatment under USMCA:

Requirement	Description
Origin	Made in USA/Canada/Mexico
Documentation	Certificate of origin
Tariff classification	Must meet rules of origin
Benefit	0% duty on qualifying goods

DDP vs DDU for Canada

DDU (Delivered Duties Unpaid)

Pros	Cons
Lower upfront shipping cost	Customer pays duties at delivery
Simpler for seller	Customer may refuse package
Standard carrier option	Bad customer experience

DDP (Delivered Duties Paid)

Pros	Cons
Better customer experience	Higher upfront cost
No delivery surprises	Seller assumes duty risk
Reduces refusals	Requires duty estimation

Canadian Customs Processing

CBSA (Canada Border Services Agency)

Reviews all commercial shipments
Assesses duties and taxes
May hold packages for inspection

Average Customs Clearance Time

Carrier	Avg Clearance
USPS	1-3 days
UPS	< 1 day
FedEx	< 1 day
DHL	< 1 day

Avoiding Common Mistakes

Mistake 1: Undervaluing Items

Issue	Consequence
Declaring $50 for $200 item	Seizure, fines, blacklisting
Marking as "gift"	Still subject to duties

Mistake 2: Incomplete Documentation

Issue	Consequence
Missing HS codes	Delayed clearance
Vague descriptions	Customs holds

Mistake 3: Ignoring Provincial Taxes

Issue	Consequence
Not collecting GST/PST	Recipient pays at delivery
Unexpected charges	Customer complaints

Returns from Canada

Method	Cost	Time
Canada Post return	$15-$25	7-14 days
UPS return pickup	$25-$40	5-10 days
Customer self-ship	Varies	Varies

Pro tip: For items under $25, consider refund-without-return policy

High-Volume Canada Shipping

For sellers shipping 100+ packages/month to Canada:

Strategy	Savings
Negotiate carrier rates	10-25% additional
Use Canadian fulfillment	30-50% on shipping
Section 321 entry	Faster clearance

Atoship Canada Shipping Features

Multi-carrier rate shopping: USPS, UPS, FedEx compared
Commercial rates: 20-35% off retail
HS code lookup: Proper classification
Documentation generation: Compliant customs forms
DDP estimation: Calculate all-in costs

Start Shipping to Canada

Create your Atoship account for commercial Canada shipping rates.