Low-Value Shipment Value Threshold Increase
Low-Value Shipment Value Threshold Increase
On July 1, 2020, the low-value shipment (LVS) threshold increased for all imports into Canada from CAD$2500 to CAD$3300, as stated in the Canada Border Services Agency (CBSA)’s Customs Notice 20-15.
Free Trade Agreement (FTA) Impact
The CBSA has harmonized the value for which formal proof of origin is waived at CAD$3300, for all of Canada’s current Free Trade Agreements (FTAs).
This means that, proof of origin documentation (i.e., Certification of Origin, Certificate of Origin, origin declaration), is not required in order to apply preferential tariff treatment for shipments valued at CAD$3,300 or less.
Proof of Origin for Shipments Valued at CAD$3,300 and Less
For commercial importations valued at CAD$3300 or less, FedEx will accept a certifying statement on the Commercial Invoice stating that the goods originate in an FTA country or qualify for preferential treatment under an FTA.
The statement must include either the country of origin for the imported goods or reference the FTA for which the preferential tariff treatment will be claimed. Acronyms will be accepted for both the country and/or FTA stated, as per the example below.
“I hereby certify that the goods covered by this shipment qualifies as an originating good for the purposes of preferential treatment under CUSMA.1”
Proof of Origin for Casual Goods
Casual goods (imported for personal use and not intended for resale or commercial use in Canada) are exempt from the requirement of proof of origin, regardless of the value. In order to qualify for preferential tariff treatment, casual goods must originate from (i.e., country of origin) and be exported/shipped directly from an FTA country.
Important Note: Claims for preferential tariff treatment over the CAD$3300 low-value threshold must be supported by the applicable proof of origin required by the applicable trade agreement(s). Please refer to the CBSA’s ‘Origin of Goods' webpage to confirm the requirements for your shipment.
¹Canada-United States-Mexico Agreement