Cross-border e-commerce Northbound / Southbound ; where do you begin? Learning the jargon and rules of cross-border e-commerce selling is probably a good place to begin understanding terms like “De minimis.”
In the simplest terms de minimis is the value of merchandise you can ship to another country free of Duty and Tax.
De minimis definition is a Latin term that simply means something that is so small or trivial. In the ecommerce world this relates to the destination country-specific threshold that tells you when duties and taxes are applied. This levy must be paid by either the shipper or the customer importing the goods. Not all goods have levied duties and taxes depending on free trade agreements, merchandise maybe tax-free.
De minimis-Northbound Goods with a value for duty of CAD $20.00 or less will have any applicable customs duties and taxes waived when imported from any country. Under the Canada United States Mexico Agreement (CUSMA) goods with a value for duty of CAD $40.00 or less will have any applicable customs duties and taxes waived when imported from the United States or Mexico only; goods with a value for duty of CAD $40.01 or greater, up to and including CAD $150.00, will be free of customs duties (however, taxes will remain applicable) when imported from the United States or Mexico only.
De minimis-Southbound De minimis provides admission of articles free of duty and of any tax imposed on or by reason of importation, but the total retail value in the country of shipment of articles imported by one person on one day and exempted from the payment of duty shall not exceed US $800.
Brokerage Fees The brokerage fees generally apply to regular ground shipments and cover the costs of processing the paperwork and paying the taxes and duties to the Canada Border Services Agency (CBSA) or U.S. Customs and Border Protection (CBP). The fees are calculated on the value of the product being shipped.
Carrier Fees Generally, this will be charged based on the weight, size, distance, speed and the number of items. Remember to factor in the exchange rates on shipping fees.
Landed Cost is the calculation of duties and taxes along with additional fees from customs, brokers, and shipping carriers.
Non-Resident Importer (NRI) For U.S. businesses that sell directly to Canadian consumers, the U.S. business takes responsibility for customs clearance and other import-related requirements. This eliminates unexpected additional fees once the goods pass into Canada. The NRI Program is an initiative of CBSA that allows United States exporters to sell products to Canadian customers directly on a delivered-price basis, without the need for a physical presence in Canada.