Ad Valorem tariff for USA
Summary: The discussion revolves around the recent changes in U.S. Customs and Border Protection (CBP) tariffs affecting shipments from Canada to the U.S. through postal services like USPS and Canada Post. rdemaree a participant, expresses concern over potential tariffs as high as $200 on items, even those with minimal value, and the seeming embargo on non-U.S. made goods. sapphyres-designer-jewellery clarifies the situation, explaining the increased tariffs and the impact on small imports from foreign countries. dache_us adds that Canadian small businesses may face more challenges due to slow adaptations by Canada Post and lack of government support. lotzofuniquegoodies and other participants continue to discuss the complexities and inefficiencies surrounding implementing a system to handle these tariffs, noting how changes like the removal of de minimis thresholds could lead to increased processing difficulties. The impact of these changes, the role of U.S. CBP, and the lack of clear solutions or responses from respective postal services and governments are emphasized throughout the conversation.
And everything around the world coming in through the postal service outside North America will cost 80-200$ to import?
If I’m understanding this correctly it’s effectively an embargo on anything not made in the USA
shallow_karl
·11 months agoSpecifically, it can't be ad velorum as it is a percentage of the value of the item and you can't get $200 as a percentage of $5.00.
skylarstuff
·11 months agoCanada is partly to blame. The USA has provided US customers with customs relief for years on goods valued under $800. Meanwhile, our Gov charges us customs on everything that's over just $20. The same applies at the border when making a day trip, just for one day, without staying overnight. How fair is Canada's tariff of 250% on US dairy?
rdemaree
OP11 months agoOur di minimis is low but that doesn’t mean the USA erasing di minimis or slapping embargo level tariffs on multiple countries makes any sense.
That and the dairy tariffs only kick in if a certain threshold of imports is reached and to my knowledge has never been reached and this those tariffs have never actually been levied.
This is 100% a DJT egomaniac move.
fergua3
·11 months agoskylarstuff: Canada is a small economy compared to the US and many other countries around the world. Without the border tariffs/duties most businesses in Canada would not be able to compete with the lower prices that larger economies can offer. That plus the lost tax revenue from GST and HST would be devastating to our economy. So if you're cool with 30% unemployment and an endless recession in Canada then the tariffs/duties can be eliminated. I don't like them either but they are an evil necessity. And it's $40 now not $20...it was changed under the last CUSMA agreement.
As far as the dairy tariffs, you sound like a Trump talking point. The dairy tariffs are there to protect Canada's large and important dairy industry from US and other countries dumping their cheaper product here. The 250% tariff level only kicks in when dairy imports from the US exceed a certain level, a level that has never even come close to being reached and so the 250% tariffs have never once been levied on US dairy. These are facts that Trump conveniently ignores when he spouts off about how 'nasty' Canada is to deal with.
cottagewoman
·11 months agoWhat I found to be the most telltale sign that nobody really has any idea of what they're doing in the US CBP side regarding international postal shipments and having a 'plan in place' to collect tariffs from said shipments is they way they have setup to collect the data from, oh, let's say every postal system in the world. In a spreadsheet. Once a month. Every single shipment sent. Line by line, in an Excel spreadsheet. Not even data optimized, compressed, etc. A friggin' spreadsheet. Welcome to 2002!
lotzofuniquegoodies
·11 months agoDT reminds me of the kid everyone knew in kindergarden that had to break every crayola around for no reason other than that fact they were there. Why he is such of fan of those big sized black markers for signing everything with.
easoss
·11 months agoPretty simple, DT on top of being a narcissist is a megalomaniac. The biggest pen with the biggest scribble to show everyone what an important man I am. Freud could've written an entire encyclopedia dealing with this mind and how it actually works.
easoss
·11 months agoWhat worries me is the US bound packages will be returned for insufficient information or will be stuck in limbo not moving. Weeks or months to be delivered. I'm sticking to Canadian orders only for the next while and see what happens.
lotzofuniquegoodies
·11 months agoGoing forward can you imagine the hoops to jump through just to send back a return. All I can say is make 100% what you have put in your cart is what you want!!! Size, colour, fits your application exactly!!! I can't really see any business eating these kinds of fees for a return.
shallow_karl
·11 months agoGood, unless like most people 90% or more of your market is the U.S.
nhl_automotive
·11 months agoI believe it's $200 or whatever the tariff rate of the country of origin is. One or the other but how they decide, I don't know. But I have a feeling they'll be going with the latter for items that were previously exempt under de minimus or there will be some royally outraged American buyers. Couriers like UPS are going to having a field day with their added brokerage fees on top of everything so I'm personally going to be avoiding using them for small parcels headed to the USA. Heavier items, I'm only using UPS for American made items after the 29th. Sucks, been that 90% of my sales is to the USA. But I'm finally going to try shipping overseas on certain items.
musicyouneed
·11 months agoThis is interesting. https://www.nalc.org/news/the-postal-record/2025/june-2025/document/Tariffs-and-250.pdf
and https://canadiancoinnews.com/canadian-dealers-face-new-u-s-tariffs/
dhslk
·11 months agoNot a single one of my COO China parcels shipped via the Post Office have been charged anything since this whole fiasco started. I am just going to continue to ship as normal, using the POSTAL SYSTEM, until I have a customer actually be affected. I suspect it will be months, if ever, before this happens. Is everyone also forgetting that all of these tariffs are ILLEGAL and are being challenged in court. And it is NOT the sending country's postal service' s responsibility to collect tariffs . This is just another pile of doodoo out of Trump's mouth.
dinomitesales
·11 months agoCanada Post (or any country's national postal service) will never implement a program to pre-collect American tariffs. This would require massive back-end infrastructure and software changes that would take years to implement, not to mention the additional training necessary for their staff to understand and explain to customers what is being charged and why. There is absolutely zero incentive for Canada Post to do this when the whims of the idiot down South can change on a dime.
It is, and always has been, the responsibility of the receiving country to assess and collect any taxes/duties/fees from their citizens pertaining to the import of packages. If US CBP doesn't want to do this then they can simply tell all other countries on the planet that they are no longer accepting their goods via postal mail, and then the US government can explain to their citizens why they are no longer able to order anything internationally (spoiler alert: this won't happen).
byto253
·11 months agoMeanwhile Canada Post is taking hard hitting action like no longer raising the mailbox flag on rural mailboxes. I thought it would because it was helping porch pirates pilfer from mailboxes, but no, it a clarification that they should have never been doing this......
https://www.ctvnews.ca/ottawa/article/canada-post-no-longer-raising-flag-to-indicate-mail-in-rural-areas/
lotzofuniquegoodies
·11 months ago@byto253
For security purposes that kinda makes sense. For rural properties it could be a headache. We see reports in AB all the time about how bad rural crime has become. Farmer on field...nothing is safe at home.
Sounds live a variation where they still have home delivery of putting a tag in your mailbox advising you that you have a parcel to pick up vs ringing the bell and giving it to you. Apt/condo buildings be darned.
byto253
·11 months agoAgree on security but that was not part of what Canada Post said, instead they chose to say it is because that is our policy and after not applying it for 100 years we decided now to do that..... DOH!
lotzofuniquegoodies
·11 months agoSadly all part of the new world of porch pirates and citizens not always having someone at home 24/7. Pretty sure farmers and the like never thought they would need area security whenever they were out. Then again, back in time we weren't getting amazon etc deliveries on a daily basis.
reallynicestamps
·11 months agoWe see reports in AB all the time about how bad rural crime has become.
FWIW- rural crime rates haves always been much much higher than urban crime rates.
It only seems lower because there are fewer people.
At least we are actually hearing about the crime -- pre-internet it didn't make the town paper so it "didn't happen".
Also-- Alberta? It is good for conservative /punitive politicians to push the "crime is out of control" narrative. And there is a by-election going on.
dache_us
·11 months agoNo. 5$ packages can still only pay the ad valorem for entry and not the flat fee. But they are shifting the burden from USPS / CBP collecting duties, to foreign postal service / transport companies by forcing them to set up a system in which they can remit. Otherwise, they get stuck paying the flat fee which is impratical. So the slower Canada Post is at implementing a system, the worse it'll be for Canadian sellers. IMO this forces DDP and by forcing Canada Post to have a carrier bond, it'll make Canada Post go after customers for any issues or incorrect declarations.
What the Canadian government should be doing right now, is setting up a brokerage system to help small businesses. They should make it free for any transport company. Just feels like the government isn't doing anything to help businesses deal with these major issues + Canada Post reacts slower than most small transport companies. So many locations nearby me still don't require any HST or COO filings. The staff seems completely unaware of these changes, meanwhile it'll be the businesses that suffer the most!
lotzofuniquegoodies
·11 months ago@dache_us
USPS DID have customs clearance in place for inbound shipments. The rate WAS $6.95 for years.
The Postal Service then sends packages to U.S. Customs and Border Protection (CBP) for examination and to assess duties and taxes, if any is owed. CBP processing is required for civilian parcels as well as those sent from overseas military postal facilities (APO/FPO).
USPS link on the subject.
https://pe.usps.com/text/imm/immc8.htm
Senior Trumpadoodle has been advised that the receiver pays the customs fees, not the sender forever. It's never really sunk in. This may be his unique work around to pass it back to the sender/country. Be it a gift, a low to medium value shipment. Whatever. And then punish countries due his rational trade if it isn't better for the USA in his mind it's some kind of deficit. As noted there was a system in place for 800 USD shipments with USPS. The 6.95 processing fee plus any taxes owed. Billed to receiver at time of delivery or on account. (Tax ID numbers - Businesses/IRS number Joe & Judy Q Public.)
The de minimis threshold was increased from $200 to $800 in 2016, under the Trade Facilitation and Trade Enforcement Act (TFTEA). This exemption allows most imported goods valued at or under $800 (per person, per day) to enter the U.S. duty-free. The threshold was previously $200 before the 2016
The Canadian de minimis threshold for duty-free imports has a history tied to balancing administrative ease with revenue collection. Currently, the threshold is $20 CAD for both postal and courier imports. This means that goods valued at or below $20 CAD are generally imported without incurring duties or taxes. The concept originates from the legal maxim de minimis non curat lex, signifying that the law doesn't concern itself with trivial matters. This principle aims to streamline the clearance process for low-value shipments, as the cost of collecting small amounts of duty and tax may outweigh the revenue gained.
Important to remember the Canadian de minimis was based on this basic principle:
What does de minimis mean in trade?
De minimis refers to the Latin phrase De minimis non curat Lex, which means that “the law cares not for small things.” In the international trade context, this translates to the fact that countries have fixed a value below which they will not attempt to affix a dollar amount to a good or product for the purpose of charging tax or duty. It is simply not worth the government’s time and effort.
Sadly the new US modified version/concept is throwing that concept out the window.
dache_us
·11 months agoThat's not really a system, as it shifts most of the work load to the USPS and isn't quite pratical with 4 million packages entering daily. Plus, $6.95 is even higher than Stallion's brokerage fees and other DDP options. Regardless, Canada Post should have a system in place to deal with these changes, like the smaller carriers do and feds should help make it as cheap as possible. Feels like they don't care.
The argument that it isn't possible nowadays because it's not worth the time and effort, made sense 50+ years ago. But I don't see it making much sense with todays tech. By forcing DDP from transport companies, ACE manifests with carrier bonds and AI to scan millions of entries...the arguement can be made that it is worth their time.
But I don't see how anybody can use Canada Post until this is solved.
lotzofuniquegoodies
·11 months ago@dache_us
You may be looking at this as just a collection of tariffs process. It is also a physical inspection process. The 2 parts go hand in hand. Why pre collecting can be a challenge. works for taxes. Does not work for duties unless it was a 100 % trust basis. Same reason some cars get inspected at the border and others do not.
The big wrench that got thrown into all this was the dropping of the de minimus. In the past USPS had their 6.95 fee for anything that rquired a formal entry. The couriers have been charging more forever. Ours (CP cleared) has been 9.95 when applicable. For the longest time shipments of lower value got waived on the fee. Volume thing. Basically luck of the draw.
With eIS from the states they have their variations but their unknown fees and we pay on payment or on delivery depending on the options provided. With courier inbound you are at the sellers mercy depending who they use.
Going through the archives stumbled across an incoming UPS bill for charges for customs clearance circa 2004. Shipment was in the 20 dollar range. GST was 2.76. Brokerage fee 16.80. Brokerage GST 1.18. Total - 20.74. Majority of bill was processing vs tax collection. It was cleared in Wpg. I'm in Calgary.
It has the following notations on it:
Unfortunately a similar thing should be happening with eIS shipments but as far I know, isn't?
The biggest problem in this from a US perspective and shipments going southbound was the removal of the deminis causing the new volume they are dealing with. It was like going from a medium rainstorm to a torrential downpour in the blink of eye.
(Disclaimer: Throwing in all the mind changing and anything that sticks to the wall. scenarios.)
The parcel you just sent might be in here somewhere.
truebluesunshine
·11 months agoThe point with respect to the Ad Valorem tax being the first of the two alternative tariff methods is correct.
The point with respect to International Postal services collecting US tariffs is not.
There is an international postal treaty and the USA collects USA tariffs and taxes - same as Canada collects Canadian tariffs and taxes, and to push a point Botswana collects Botswanian tarriffs and taxes.
So what Canada should do is just wait for the US borders to be swamped with packages as they were in Feburary - but this time on steroids : ) This too will pass.
cottagewoman
·11 months agoIn the Executive Order issued on July 30th and as well in the CBP regulations released on August 15, the repeal of de minimis also forces any and all low value shipments to enter the US DPP (delivery duties paid), even by international postal shipments. Yes, this is in direct contradiction to the agreements in place, however the administration and CBP do not care. They imposed the same requirements on China and Hong Kong post when de minimis was repealed for Chinese goods. Those 2 postal services stopped shipping all parcels to the US. Both are part of the Universal Postal Union.
Royal Mail has taken this seriously and has systems in place to start collecting ad valorem tariffs as of August 29.
As per my recent post we have no announcement from Canada Post what they will be implementing. 10 days from today.
easoss
·11 months agoTBH, who the heck knows. I sound like a broken record but it's the uncertainty that's doing all the Harm. Trump is like Lucy with the football while the rest of the world is Charlie Brown.
sapphyres-designer-jewellery
·11 months agoThis is what's unknown. People who shipped via UPS have posted here what the tariff is (much more than they expected) which suggests they are slapping packages with $80-200 tariffs. It started at $25, and just became ridiculous in a hurry.
I don't think anyone knows what's going to happen until it happens.
The only thing I can observe, is with this $80-200 tariff on small items no one will be buying anything made in other countries for small personal imports (and I think that's what they were going for).
C.