There is no single Canadian duty-free threshold. The limit depends on where the parcel comes from and how it travels. A courier shipment from the United States or Mexico can enter free of duties and taxes up to C$40, and free of duties up to C$150. Parcels from almost everywhere else, including Singapore, fall under a C$20 limit. Gifts have their own rule.
This guide explains each limit, how Canada measures the value of your parcel, and what to do if you are shipping to Canada from Singapore.
TL;DR
- Courier shipments from the US or Mexico: C$40 or less is free of duties and taxes. From C$40.01 to C$150, duties are waived but GST/HST still applies.
- Parcels from other countries, such as Singapore: the courier limit is C$20 per shipment.
- Gifts worth C$60 or less can enter free if sent from one individual to another with a gift card or note. Alcohol, tobacco and advertising material are excluded.
- Splitting one order into several parcels to stay under a limit does not work, and the CBSA can reject the exemption.
- Courier shipments up to C$3,300 benefit from simplified processing, but they are not duty-free.
Table of Contents
- The three Canadian thresholds at a glance
- Why the US and Mexico get higher limits
- How Canada measures the value of your parcel
- Shipping from Singapore to Canada: the C$20 rule
- The gift exemption
- Do not split orders to stay under the limit
- What the C$3,300 figure means
- A checklist before you ship to Canada
- Our perspective
- Ship to Canada with Simply Parcel
- FAQ
- Sources
The three Canadian thresholds at a glance
Canada Border Services Agency (CBSA) applies different rules to different routes. Here is the short version.
| Situation | Free of duties and taxes | Duties waived, taxes due | Fully taxable |
|---|---|---|---|
| Courier from the US or Mexico | C$40 or less | C$40.01 to C$150 | Over C$150 |
| Courier from any other country | C$20 or less | None | Over C$20 |
| Mail from the US or Mexico | C$20 or less | None | Over C$20 |
| Gift from an individual to an individual | C$60 or less | None | Over C$60 |
The first row comes from the CBSA page on low-value shipment thresholds. The courier limit for other countries comes from Memorandum D. The mail limit comes from the Postal Imports Remission Order. The gift row is covered below.
The figures are in Canadian dollars. The value is compared with the threshold per shipment, so one parcel is judged on its own value.
Why the US and Mexico get higher limits
The higher limits come from the Canada-United States-Mexico Agreement (CUSMA), which entered into force on July 1, 2020. Under it, Canada committed to a courier de minimis of at least C$150 for duties and C$40 for taxes. That commitment applies only to imports from the US or Mexico, and only by courier. The higher thresholds also cover goods of other origin that have entered the commerce of the US or Mexico.
Two conditions trip people up:
- The method must be courier. The same parcel sent by mail from the US or Mexico stays on the C$20 limit.
- The origin must be the US or Mexico. A parcel shipped from Singapore does not get the higher figures.
The CBSA's definition of courier is wide. Under the Courier Imports Remission Order, it covers a commercial carrier running scheduled international transport, which can include a freight forwarder. You do not need a household-name express brand to qualify. What matters is that the shipment is booked and classified as a courier shipment, not as mail.
How Canada measures the value of your parcel
The number compared with the threshold is the value for duty. For most commercial purchases, that is the price paid for the goods. Shipping and insurance charges are generally not part of it, so a C$18 item with C$30 shipping can still count as a C$18 item. Confirm how your case is classified before you rely on this, because the rules for value for duty have exceptions.
Three practical points follow:
- Declare the real price. Underdeclaring to slip under a threshold can lead to penalties and refused exemptions. A commercial invoice that matches what the buyer paid is your best protection.
- Keep customs value and insured value apart. The amount you insure a parcel for is not always the amount you declare to customs. We cover that in customs value vs insured value.
- Check the currency. Thresholds are in Canadian dollars. If your invoice is in US or Singapore dollars, convert it before comparing.
If you move freight commercially, for example by truck across the border, cargo cover is a separate question from duty. Cross-border insurance options for commercial freight are worth a look at that scale. For a typical parcel, optional protection coverage at booking is the simpler route.
Shipping from Singapore to Canada: the C$20 rule
If you send a parcel from Singapore, plan for C$20 as your duty-free ceiling. Memorandum D states that for goods not coming from the US or Mexico and carried by courier, a value for duty of C$20 or less per shipment is non-taxable.
What this means in practice:
- A C$15 phone case is likely to clear without charges.
- A C$120 pair of shoes will be assessed for duties and GST/HST, plus any provincial tax that applies, when it arrives.
- A parcel often is not delayed because of low value. It is delayed when the paperwork is incomplete or the description is vague.
The recipient usually pays the charges, often through the courier before delivery. Tell your recipient in advance, so there is no surprise at the door. If you are an online seller, decide before listing whether your prices will include import charges or whether the buyer pays them.
Worked example
A seller in Singapore ships a C$85 handmade bag to a buyer in Toronto.
- The value for duty is C$85, above the C$20 courier limit for Singapore.
- Duties and taxes are assessed on arrival. The exact amount depends on the tariff classification of the item and the destination province.
- The buyer is billed unless you shipped on a terms basis where the sender pays.
The same bag shipped from a US warehouse by courier would be assessed under the US rules. Duties would be waived at C$85, but tax would still apply, since the value is above C$40.
The gift exemption
Canada has a separate gift rule under Tariff Item 9816.00.00. A gift worth C$60 or less enters free of duties and taxes when:
- it is sent by an individual abroad to an individual in Canada,
- it comes with a gift card or note, and
- it is not tobacco, alcohol or advertising material.
You cannot combine the gift exemption with the general C$20 exemption on the same shipment. For visitors carrying gifts, the CBSA's declaration card lists gifts valued at no more than C$60 each. Gifts that go over the line are assessed on their full value, not just on the excess, so check the figure before you send.
If you are also sending gifts within Singapore's own rules, see when gifts face customs duty, which covers the Singapore side.
Do not split orders to stay under the limit
The most common mistake is cutting one large order into several small parcels, each under C$20. The CBSA states that a single transaction divided into smaller shipments does not qualify as low value, and duties and taxes are assessed. Repeated attempts draw scrutiny.
Separate parcels are fine when they are genuinely separate: different orders, different buyers, different dispatch dates. Keep records that show this.
What the C$3,300 figure means
You will see C$3,300 in Canadian customs material. It is the low value shipment (LVS) threshold, and it is not a duty-free limit. The CBSA's trade overview notes that a certification of origin is not required to claim preferential tariff treatment where the value for duty does not exceed C$3,300, subject to conditions. Canada's own presentation to the WTO lists it as the low value threshold, separate from the courier de minimis.
For e-commerce sellers and small businesses, the value is simpler paperwork. Goods below the LVS threshold can be processed with fewer steps, and the shipper's courier handles much of it. Still, duties and taxes apply unless the parcel is within a de minimis limit.
If you are an importer of record, meaning the party legally responsible for the goods at the border, check how your courier handles low-value processing for your account.
A checklist before you ship to Canada
- Find the origin. US or Mexico, or somewhere else? This picks the threshold.
- Confirm the method. Courier or mail? Higher CUSMA limits apply to courier only.
- Work out the value for duty. Use the price paid for the goods, in Canadian dollars, and leave out shipping and insurance.
- Check for gift status. If it is a real gift between individuals, add a note and keep it at C$60 or less.
- Check restricted items. Alcohol, tobacco and some foods, plants and medicines have their own rules and are not covered by these thresholds.
- Prepare a commercial invoice. Include a clear description, quantity, unit value and country of origin. See what you need for a customs declaration.
- Tell the recipient what to expect if the value is over the limit.
For a wider view of what customs does at each stage, read the role of customs in shipping.
Our perspective
Most questions we hear about Canada come from a wrong assumption: that one figure applies to every parcel. In reality, the origin and the method change the answer. A shipper in Singapore who reads an article about the C$150 limit and prices a Canadian order around it will be wrong.
We suggest three habits. First, check the threshold that matches your route, not the highest one you can find. Second, declare honestly. A correct invoice protects both you and the recipient. Third, compare options before you book. The price and the transit time of a parcel to Canada can differ a lot between speeds, and the cheapest route is not always the one with the fewest surprises.
We built Simply Parcel so you can compare couriers, book a free pickup and get labels and customs documents generated for you, without a monthly volume commitment. We cannot tell you the exact duty on a given item, because that depends on its classification and the province. We can help you get the paperwork right so the parcel is not held for a missing detail.
— SP
Ship to Canada with Simply Parcel
If you are sending a parcel from Singapore, you can compare Priority, Connect Plus and Economy shipping on our shipping options page and get a rate through the shipment quote tool. We collect the parcel from your door at no charge, produce your shipping label and customs documents, and let you track the shipment online. To understand what drives the price, see how to calculate shipping costs.
FAQ
What is the duty-free limit for goods shipped to Canada?
It depends on the route. For courier shipments from the US or Mexico, goods up to C$40 are free of duties and taxes. For courier shipments from other countries, the limit is C$20 per shipment. Gifts of C$60 or less may also qualify if they meet the conditions.
Does the C$150 limit apply to all parcels from the US?
No. It applies to courier shipments only, and from C$40.01 to C$150 you still pay GST/HST. Parcels from the US sent by mail remain on the C$20 limit. Over C$150, both duties and taxes apply.
Does shipping cost count toward the threshold?
Generally, no. The comparison uses the value for duty, which usually excludes shipping and insurance. Rules on value for duty have exceptions, so check your case with the carrier or the CBSA.
Can I send a gift to Canada duty-free?
Yes, if it is C$60 or less, sent from an individual to an individual, and includes a gift card or note. It cannot be alcohol, tobacco or advertising material. You cannot combine it with the general C$20 exemption.
Can I send several small parcels to avoid duty?
Not if they are one order. The CBSA treats a split single transaction as not low value and assesses duties and taxes on it.
Sources
- CBSA: Increase to low-value shipment thresholds and other changes
- CBSA: CUSMA overview of key changes affecting imports
- CBSA Memorandum D
- Postal Imports Remission Order
- CBSA D5-1-1: International Mail Processing System
- CBSA declaration card
- Canada's low-value shipments policy, WTO presentation