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Tariffs and the end of ‘de minimis’ mean mailing gifts to U.S. is trickier

Canada Post signage and parked vehicles are seen at a Canada Post mail sorting facility during countrywide strike action in Ottawa, on Monday, Nov. 18, 2024. THE CANADIAN PRESS/Spencer Colby

Canadians will be scrambling to get their holiday presents in the mail this week in time for Christmas, but those with friends, family and loved ones in the U.S. have an extra hurdle to jump through: the tariffs imposed by U.S. President Donald Trump.

In July, Trump ended a key exemption to his tariffs — the de minimis exemptions — on low-value packages.

Click to play video: 'How small businesses have handled de minimis exemption ending'
How small businesses have handled de minimis exemption ending

Under an executive order, packages valued at or under US$800 sent to the U.S. from outside its postal network will now face “all applicable duties.”

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“Long story short, it’s not an easy process anymore. For example, if anything you’re sending is made in China, a formal entry is required,” said Lisa McEwan, CEO of Toronto-based logistics company Hemisphere Freight.

“You’re also not allowed to send food items. People don’t necessarily understand this, but even the smallest gifts now require customs entries.”

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The tariff rate on these low-value packages will depend on what Trump has imposed on the product under the International Emergency Economic Powers Act.

While the move is largely expected to hit small businesses in Canada, Canada Post says it applies to individuals sending certain personal packages.

The changes apply to all shipments from Canada, whether they are sent via Canada Post or another shipping company.

Click to play video: 'Montreal business owner faces bankruptcy over de minimis tariffs'
Montreal business owner faces bankruptcy over de minimis tariffs

What steps do you need to take?

Canadians must pay tariffs on any package over US$100 in value, but even gifts costing under US$100 will “need to be assessed for duties,” Canada Post said.

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Canada Post will not accept your U.S.-bound package if you do not have proof that the duty has been paid.

You can show proof of payment by obtaining a 13-character declaration ID.

Canada Post said it has partnered with free payment app Zonos Prepay, where users can pay in Canadian dollars.

If you’re sending packages to the U.S., you must upload a photo of your package and make your payment on Zonos before you even head to the post office.

While making the payment, you will be asked to select “is a gift” to declare your package as a present.

Once the payment is made, the user receives a declaration ID and a QR code to present at the post office.

Aside from Canada Post, Canadians have few alternatives when it comes to sending packages south of the border, McEwan said.

“Most couriers have stopped sending small packages into the U.S.; the only options are FedEx or DHL. A broker will need to be in place to clear the shipment even in these cases,” she said.

“With the de minimis exemption gone, sending even small or simple gifts for family and friends duty-free is not possible.”

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