Shipping parcels from China to Canada: how does the CAD 20 threshold work?
Answer
Courier and postal parcels sent from China are free of duty and tax only up to CAD 20. Above that, duty and sales tax (5% GST or provincial HST) apply to the full value, not just the excess. Courier shipments from the US or Mexico have higher thresholds (CAD 150 duty, CAD 40 tax). The country the parcel ships from decides, and splitting shipments is not allowed.
- Applies to
- Parcels shipped from China to Canada by courier or post.
Thresholds
| Ships from | Channel | Duty-free up to | Tax-free up to | Source |
|---|---|---|---|---|
| China and other countries | Courier | CAD 20 | CAD 20 | CBSA D8-2-16 |
| China and other countries | Post | CAD 20 | CAD 20 | CBSA D8-2-2 |
| US / Mexico | Courier | CAD 150 | CAD 40 | CBSA D8-2-16 |
Key points
- Over the threshold, the whole value is taxed.
- It depends on where the parcel ships from, not where the goods were made. Chinese goods only transiting the US or Mexico still get CAD 20; the higher threshold needs the goods to enter US/Mexican commerce first (D8-2-16, paras 11–12).
- Splitting a shipment to stay under the threshold is not allowed.
- Sales tax is 5% GST, or a combined HST in some provinces.
Worked example
A parcel valued at CAD 50, assuming 0% duty and 13% Ontario HST: 50 x 13% = CAD 6.50. If sent by post, Canada Post's CAD 9.95 handling fee is added.
What you can do
- Check the latest thresholds on the CBSA courier and postal imports page.
- Tell buyers they may have to pay tax and fees on delivery, or choose a channel where tax and fees are prepaid.
Still uncertain
- Canada Post charges a CAD 9.95 handling fee per dutiable or taxable item (Canada Post, CBSA D5-1-1 para 27). Courier brokerage fees vary.
- No 2026 notice changing these thresholds has been found; monitoring continues.