Canada Post Announcement

[gr8deal_z]

Hi everyone, just received this email from CP as I am registered for Small Business Solutions.


As you may be aware, the United States has suspended its duty-free "de minimis" threshold of US$800 for all countries, including Canada. Starting August 29, 2025, all shipments entering the U.S. must have duties prepaid before crossing the border - regardless of their value.


This change, mandated under U.S. Executive Order 14324, applies to all business shipments from Canada, whether sent through the postal system, a Canadian courier, freight provider, or any commercial channel.


At Canada Post, we've been working to understand the order, assess options, and secure solutions that will ensure we can maintain continuity for your business. We are moving swiftly to make the necessary updates to ensure your shipments remain compliant and continue moving smoothly across the border.


What's changing

Goods valued at US$800 or less that are shipped to the United States through the postal network will be subject to an ad valorem duty. This duty will be equal to the effective tariff rate applicable to the product's country of origin under the International Emergency Economic Powers Act (IEEPA). For Canada, the current IEEPA rate is 35% for most goods.


What this means for your business

Starting August 29, 2025, every package shipped from Canada to the U.S. must show proof that duties have been prepaid before the shipment can be accepted for delivery.


What this means:


•
After this date, Canada Post will only accept U.S.-bound label requests that include a valid Declaration ID - a 13-character code that confirms duties are secured before the shipment is accepted.

•
The new U.S. customs regulations will impact your costs, delivery process and customer experience.


Keeping your shipments moving

To meet the new U.S. requirements, we're partnering with Zonos® to collect duties before they enter our network and remit them directly to U.S. Customs and Border Protection (CBP).


What this means:


•
You will be able to access this solution through Canada Post's software systems - Snap Ship and Shipping Manager; through our web services and APIs; and at post offices across the country.

•
A Zonos Verified Account will be required - information on how to create an account through Canada Post will be coming soon.


Next steps

•
Check your inbox and stay tuned for more details on our website in the coming days on how to prepare for August 29.

•
We're working hard to expand capability for business customers leveraging EST Desktop 2.0 as well as our partners - ecommerce platforms, shipping systems, marketplaces and 3PLs. We will continue to share updates as our solution evolves.


We're here to help

We recognize that this change presents challenges for Canadian businesses. We're committed to navigating this dynamic situation with you, providing you with up-to-date information and ensuring our southbound services remain accessible with a seamless Delivery Duties Paid (DDP) solution.

[ilikehockeyjerseys]

I'm shocked that they managed to come up with something of a solution in time.

Hopefully, eBay can integrate this at checkout. It's not going to help everybody, because it will raise the price of items to the US, but it will at least allow them to market items as DDP.

(I have to put this because I know where this discussion goes, me saying eBay should integrate DDP, or showing some positivity about Canada Post having a solution is not me the same as saying I am glad that we have to collect the duties. It's completely neutral.)

[phc64]

Thanks for sharing. I have yet to receive the e-mail. Perhaps they're sending it to us one at a time.

The e-mail answers a lot of questions, but one big issue remains: How do we obtain a Declaration ID if the 'country of origin' is the United States?

[byto253]

Wonder if you still need to go through the process and pay for the process to pay a $0 tariff? 

[electronicsextraordinaire]

Other than the percentage cost, is CP charging a $x brokerage or whatever fee as well, or eating that cost?

What determines that "ad valorem" price that the percentage is on? I'm guessing it includes shipping cost? and no deduction for transaction fees we pay a marketplace (ie: ebay)? Is it on top of sales taxes a buyer paid? 

The next meeting of the Universal Postal Union is going to be fire. I've read more than I could want to read of the World Customs organization - Universal Postal Union Postal Customs Guide and the Kyoto Convention Guidlines to Specific Annex J: Chapter 2: Postal Traffic (and their regulations are... wishy washy at best), but it *might* be against their rules for a country to refuse customs processing of duty-unpaid postal items?

Not that it matters for eBay, but any gift exemption? (UPU definitely has a "recommendation" for countries to have one)

[rdemaree]

No mention about CUSMA stuff. 

Luckily chitchats seems to be on the ball for CUSMA products which is 80% of what I sell

Ill stay away from Canada Post for US shipments until they get their stuff together and ebay integrates it into calculated shipping.

The big pain in the ass is that in order to offer flat rate shipping for USA I have to unfortunately also offer flat rate for international since anything outside of Canada is all lumped into the international category including the US effectively making me make unnecessary changes for international destinations.

Hopefully will sort this situation out so I can keep calculated shipping for everything but for now I will have to use chitchats for USA and ebay labels for Canada and International but cant use calculated on international while going flat on usa. Really annoying tbh

[neotrendsstampco]

One can look up the HTS code and tariff rates at this  CBP website: https://hts.usitc.gov

I think even if the Country of Origin is the U.S, and the item previously had 0% tariff rate, and if it does not fall under CUSMA the new International Emergency Economic Powers Act (IEEPA) rate will apply. For Canada its currently 35%. One can look up if a product is classified under CUSMA by looking at the column with the heading, "Special". Click on the "i" icon and and pop up will appear listing what trade deals the item falls under. For CUSMA, it's "S".

[rdemaree]

so would this mean if I sell an item made in UK from Canada to the USA the tariff will be 35% but my made in Canada/ US stuff will be 0% due to CUSMA?

[neotrendsstampco]

I was on the Chichats webinar call this afternoon, and someone asked a question if an item that was made in the U.S. and if is not in the "S" category, in the "Special" column for that specific HST code on the https://hts.usitc.gov website, then it will not fall in the CUSMA category. For e.g. Postage stamps of the U.S. and other countries currently have a 0% tariff rate. Stamps of Canada, U.S. and Mexico are not CUSMA classified, but currently enter the U.S. duty free.

After Aug 29th the IEEPA rate will apply. I hope I am wrong about this......

Some items were left out of CUSMA when it was negotiated. Maybe because these were all zero-rated to begin with so it was not necessary to include them, leaving them open for an emergency overide, as has happened with the IEEPA.

[byto253]

Are you saying that an item that is made in the US will have a tariff applied to it if shipped from outside the US? 

[neotrendsstampco]

You have to find out if it falls under CUSMA, otherwise probably the IEEPA rate will apply, as was stated on Chitchat's webinar today. I hope someone else who was on the webinar can confirm this.

[byto253]

From what I understand so far, IEEPA rates do not apply to goods that are made in the US.   And if it is partially US, it applies on the non US part. 

“For articles in which at least 20% of the value of the article is U.S.-originating, the value of the article is of U.S. origin will not be subject to the reciprocal tariff. The reciprocal tariff will be assessed on the non-U.S. content.”

[rdemaree]

my items are covered by CUSMA

what im wondering is will my non-north american items (vintage art supplies from UK) be hit with a 35% rate? or some different UK rate?

im confused about that part

[femmefan1946]

devon@ebay

What will be done to allow eBay buyers to pay these duties before we ship?

[3islanders]

I would also like to know if there is a gift exemption, but it sounds like not. I am very confused. I saw mention somewhere that “every package” shipped to the USA was subject to this. My Florida friend told me that everything they buy that comes USPS will be subject to an $80 fee on top of tariffs. Is this right? Who knows! I only sell an occasional item now and then on here, not worth the trouble so I guess I will be eliminating USA shipping. And the friend and I, I guess, will be stopping our gift exchange. 😞

[3islanders]

What do you do if you don’t know the country of origin? Make something up? Vintage items that aren’t labeled…?

[tryubik-useonlyasdirected]

This^ Most of my items are still duty free however i don't understand this ad valorum flat rate charge. CPC talks about it being applied to all parcels separately of duty/tarrif status. 

Sellers require a place to be able to find this information and a place to charge it appropriately. And this prior to seller the item, that all costs to the buyer may be legally posted upfront.

[easoss]

Zonos requires signing up a verified account. Uhh no thanks. I'm not giving personal information to a US based collection agency. Sorry USA, I've appreciated all the customers but it's time to find the exit door. Maybe when all this nuttiness is over I'll return. 

[marnotom!]

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@femmefan1946 wrote:

What will be done to allow eBay buyers to pay these duties before we ship?

---

I think the whole point of eliminating DDU shipments is to “make ‘em [the exporters] pay,” as Trump put it several months ago. Unlike our head of government, he still doesn’t seem to get that it’s the consumer that’s paying overall.

With this in mind, I doubt that eBay will be able to come up with a mechanism that allows the importer to pay tariffs at point of sale.

[cottagewoman]

Totally agree with you. Zonos was 1 of 2 brokerages approved by CBP to collect/remit. 2??????
That's ridiculous. Canadian brokers should have been able to become authorized, as brokers in every other country in the world. Not saying automatically, but through some kind of process. Basically all Postal systems got word of this 2 weeks ago. 2 weeks, not 2 years. The original guidance said to send in a spreadsheet every month in Excel format and send the money collected to an government portal accessed by sending a message to an email address.
Now they are demanding payment coming through 2 brokers. No wonder other Postal systems have said 'NO WAY'. It's ridiculous to work this way, forcing everyone to adopt CBP designated brokers - not to mention forcing DDP on all shipments most likely contravenes the IPU agreements where each country handles tariff collection on their own soil.