Shipping to Canada: Taxes, Duties & Tariffs
Selling internationally doesn’t come without its challenges. Like any other country, Canada has duties, taxes and tariffs you will need to be aware of. If you haven’t gone through the process to become a Non-Resident Importer your Canadian buyer is responsible for duties, taxes, and tariffs that are imposed on imported goods. It is important you communicate these additional fees to your customers at checkout so as to avoid unpleasant surprises at the time of package delivery.
Duties and Taxes
There are 3 kinds of duties and taxes for items being imported into Canada:
- Goods and Services Tax (GST): This is a 5% federal tax that applies to items being sold to Canadian customers for domestic consumption.
- Harmonized Tax (HST): A handful of Canadian provinces have opted to harmonize their provincial sales tax with the general sales tax and the total rate is known as Harmonized Tax.
- Provincial Sales Tax (PST): Provinces that do not participate in the HST collection process impose their own taxes at the local level. The tax rate varies by province and can range from 5% to 9.75%.
Tariffs
Along with duties and taxes, your Canadian customer may also need to pay tariffs. Tariffs depend on the country of manufacture, not the country from where the product is purchased. NAFTA eliminates tariffs on all goods that are manufactured in the U.S. and shipped to Canada. However, if your product includes components that were manufactured outside the U.S., then your Canadian customer will need to pay tariffs on those components.
Shipping to Canada
Over one-third of Canadian e-commerce sales are currently coming from U.S.-based websites. That’s nearly $50 billion dollars flowing in from north of the border. With annual growth predicted at over 12% for the next three years, now is the time to open your business to eager Canadian buyers. If you are looking to sell in Canada be sure to check out the Stamps.com Guide: How to Ship to Canada.
Frequently Asked Questions
How fast is Priority Mail Express International?
Delivery is made by the country's postal service in 3 - 5 business days, depending on the destination.
How fast is Priority Mail International?
Generally, it takes Priority Mail International six to ten business days. USPS hands off shipments at the border of the destination country before the local postal service completes the delivery.
How much does USPS First Class Package International® cost?
While price varies depending on weight and destination, rates for this service begin at $17 dollars.
UPS Worldwide Saver vs. UPS Worldwide Expedited: What is the speed comparison?
UPS Worldwide Saver is faster than UPS Worldwide Expedited, offering delivery by the end of the next business day to major business centers, compared to 2-5 business days for Worldwide Expedited. Worldwide Saver provides a more economical alternative to premium express services while maintaining quick delivery.
What are the UPS Worldwide Saver delivery times?
UPS Worldwide Saver guarantees delivery by the end of the business day, one day faster than UPS Worldwide Expedited. This service connects major business centers in over 220 countries and territories with time-definite delivery and customs clearance included.
What is DHL Express
DHL Express is a premium international shipping service that offers fast, time-definite delivery to over 220 countries and territories. It's designed for urgent packages, with door-to-door tracking, customs support, and express delivery options for businesses and individuals.
When using Priority Mail International, should I ship Flat Rate or by weight?
Flat Rate Envelopes are ideal for documents or small, dense items weighing 4 lbs or less, as they offer a single price based on the destination country. For items between 4 lbs and 70 lbs, or those that don't fit into the Flat Rate Envelopes, you'll need to ship by weight using your own packaging. It’s more affordable to use Flat Rate boxes if your item is under 20 lbs.
Why is it easier to ship internationally with Stamps.com?
Stamps.com makes international shipping easy by offering international services from USPS, UPS, and other carriers including GlobalPost. We make customs forms hassle free, so you can complete them online with ou guidance, and simply print to include with your international shipment.
Will my package be checked?
Yes. Your packages may be inspected to ensure compliance, as USPS is very strict about what items qualify for Media Mail.
