Important Update for U.S. Shippers: Customs Duty Rules Are Changing

If you’re shipping goods from Canada to the U.S., there’s a major change you need to be aware of. Starting August 29, 2025, the U.S. will be suspending its duty-free “de minimis” threshold of US$800 for all international shipments, including those coming from Canada. This means that all shipments entering the U.S., regardless of their value, will require customs duty to be prepaid before they can cross the border.

What’s Changing?

Previously, goods valued at US$800 or less could enter the U.S. without incurring duties. However, under the new regulations:

  • Goods shipped to the U.S. with a value of US$800 or less will now be subject to an ad valorem duty, based on the applicable tariff rate for the product’s country of origin.
  • For shipments from Canada, this means a 35% duty on most goods, according to the International Emergency Economic Powers Act (IEEPA).
Executive Order 14324 document outlining changes in customs duty regulations by U.S. Customs and Border Protection
Executive Order 14324 document outlining changes in customs duty regulations by U.S. Customs and Border Protection

What This Means for Your Business

Starting August 29, 2025, all shipments from Canada to the U.S. will need to show proof that duties have been prepaid before the package can be accepted for delivery. (As stated on the U.S. government website)

Here’s how the process will change:

  • Prepaid Duties: To ensure your shipments are processed smoothly, you’ll need to provide documentation confirming that all duties are paid before shipment.
  • Declaration ID: Carriers will require a valid Declaration ID – a 13-character code that confirms that duties have been secured before the shipment is sent.
  • Impact on Costs & Delivery: These changes could affect your shipping costs, delivery timelines, and potentially the customer experience.

What You Can Do Now

  • Stay Informed: As we approach the new deadline, continue to monitor updates from your shipping carrier or logistics provider to understand how they will be implementing these changes.
  • Prepare for the Transition: Start planning how to adjust your shipping workflows to accommodate the new duty requirements.

At Complete Shipping Solutions, we’re dedicated to helping businesses like yours navigate these new regulations and keep shipments moving smoothly across borders. If you have any questions or need guidance on how to prepare, feel free to reach out here. We’re committed to helping you stay ahead of the curve

Thank you for choosing Complete Shipping Solutions, your trusted partner for seamless shipping solutions.

Complete Shipping Solutions Team

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