By ShipTime
Canadian businesses shipping to the U.S. face a new reality in 2025. With the U.S. government’s removal of the USD $800 de minimis exemption, all shipments entering the U.S. now require full customs clearance, regardless of their value. That means brokerage charges, accurate paperwork, and compliance with customs rules have never been more important.
Whether you’re sending a single package or hundreds of orders a week, here’s what you need to know to avoid delays, unexpected fees, and unhappy customers.
A brokerage charge (or customs brokerage fee) is the service fee charged by a customs broker or carrier to clear your shipment through customs.
These charges cover tasks such as:
– Preparing and submitting customs paperwork
– Communicating with customs authorities
– Handling inspections or permits
– Managing the release of goods
Important: Brokerage fees are not duties or taxes. Even if your shipment qualifies for zero duty under a trade agreement, you may still be charged brokerage fees to cover the clearance process.
Ground shipments – Brokerage is often billed as a separate line item.
Air or express shipments – Brokerage may be bundled into the total shipping cost.
Some carriers also charge disbursement fees if they advance duties and taxes on your behalf.
For years, Canadian shippers benefited from the U.S. de minimis exemption, a rule that allowed shipments valued under USD $800 to enter the U.S. without full customs clearance.
As of August 29, 2025, this rule is gone.
What This Means for Your Shipments:
– Every shipment requires customs entry – no exceptions.
– Brokerage charges may apply to all shipments, even low-value ones.
– Duties and taxes may still be calculated to zero, but clearance is now mandatory.
– Customers may see additional charges unless businesses explain the changes in advance.
Key Takeaway: Businesses must now budget for brokerage fees and prepare customers for potential new costs, even on smaller shipments.
One of the most important details on your customs paperwork is the country of origin, and it is not simply where the product ships from.
General Definition
The country of origin is where a product is:
– Manufactured or produced, or
– Last underwent a substantial transformation that changed its name, character, or use.
Governed by the Marking of Imported Goods Regulations (SOR/94-10) and trade agreements like CUSMA/USMCA.
Assembly in Canada from imported parts may only qualify as Canadian origin if it meets rules of origin requirements (e.g., tariff shift or regional value content).
Simple assembly or repackaging does not qualify.
Goods must be clearly and permanently marked with their true origin.
The U.S. applies the substantial transformation test, a new product must result from the process with a new name, character, or use.
All markings must be legible, permanent, and in English.
Key Takeaway: Customs determines “Made in” status based on where goods are manufactured or last substantially transformed, not where they ship from. Misdeclaring origin can cause penalties, delays, or even shipment refusal.
Even with the correct HS code, vague or incomplete product descriptions are one of the leading causes of customs delays.
Duty & Tax Assessment – Customs uses descriptions to confirm correct classification and charges.
Risk Assessment – Vague descriptions trigger inspections. Terms like “parts,” “kit,” or “accessories” can lead to manual reviews and delays.
Problematic Words to Avoid
A clear customs description should include:
Example:
❌ “Plastic container”
✅ “Plastic container, 2L, for household food storage”
With these new rules in place, businesses shipping to the U.S. must:
Budget for brokerage charges on all shipments.
Declare the correct country of origin according to Canadian and U.S. regulations.
Use clear, specific product descriptions to avoid inspections and delays.
Communicate with customers about possible new fees to prevent unpleasant surprises.
Cross-border shipping in 2025 is more complex than ever. With the removal of the U.S. de minimis exemption, every shipment – big or small – requires customs clearance and may incur brokerage charges. For Canadian businesses, success now depends on accurate paperwork, compliance with country of origin rules, and strong product descriptions.
By getting these details right, you can reduce delays, control costs, and maintain customer trust in an evolving shipping landscape.
Ship Smarter – with ShipTime, we are a true partner beyond just discounted rates. We provide a best in class platform packed with features and backed by our legendary Heroic Support™ team. You can sleep easy with ShipTime’s best-in-class customer care. Our bilingual team is available by phone, live chat, or email Monday – Friday from 8:30AM to 8PM EST.
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