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When a customer in the United States places an order on your Canadian ecommerce store, a legal process begins that most sellers never fully think through. Here is what actually happens, step by step.

First, you fulfill the order from Canada — or from a US warehouse if you have one. The package moves through a carrier: Canada Post, UPS, FedEx, DHL, or a freight forwarder. At some point, that package crosses the border. The moment it does, it enters the jurisdiction of US Customs and Border Protection, known as CBP.

CBP has two core functions: revenue collection (collecting duties and taxes owed on imports) and enforcement (keeping prohibited and controlled goods out of the country). Every shipment entering the US is subject to CBP review, even if that review is electronic and takes milliseconds.

For low-value shipments — those under $800 US — CBP typically processes the package under what's called a Section 321 entry, or de minimis entry. This means the package clears without formal customs documentation and without duty. The carrier handles the clearance electronically. For most ecommerce shipments, this is what happens.

For higher-value shipments — above $800 US — a formal entry is required. This means either you, your customs broker, or your carrier files paperwork with CBP: an entry type, an HTS classification, a declared value, and sometimes proof of origin if you're claiming preferential duty treatment under USMCA.

Once cleared, the package moves to the US destination and is delivered. That's the core flow. But there are dozens of variables that affect each step, and those variables are what this course is about.

Cross-border commerce involves a cast of organizations and roles. Knowing who does what prevents confusion and costly mistakes.

CBP — US Customs and Border Protection
CBP is the US federal agency responsible for regulating and facilitating international trade. They collect duties, enforce trade laws, and prevent prohibited goods from entering the US. When your package crosses into the US, CBP has authority over it. They can inspect it, hold it, seize it, or let it through. Most packages sail through in seconds via electronic processing — but when something goes wrong, CBP acts.

CBSA — Canada Border Services Agency
CBSA is the Canadian equivalent of CBP. They regulate goods entering Canada. If you're importing goods from the US or another country to sell, or if your US customers are returning products to Canada, CBSA is involved. CBSA also administers GST/HST collection on imports into Canada.

Customs Brokers
A customs broker is a licensed professional who acts on behalf of importers and exporters to clear goods through customs. In the US, customs brokers must be licensed by CBP. They file entry documents, classify goods, calculate duties, and communicate with CBP on your behalf. For most ecommerce sellers shipping via courier, the courier acts as your de facto customs broker for low-value shipments.

Freight Forwarders
A freight forwarder coordinates the logistics of moving goods internationally. They're distinct from customs brokers, though many firms offer both services. If you're moving inventory in bulk from Canada to a US warehouse, you'll likely work with a freight forwarder.

Your Carrier (UPS, FedEx, DHL, Canada Post)
For most DTC ecommerce shipments, your courier is your primary interface with the customs system. They file entry documents electronically, collect any duties from the recipient, and handle customs holds if they arise. Understanding how your carrier handles cross-border clearance — and what they charge for brokerage — is essential.

De minimis is a Latin phrase meaning "of minimal importance." In trade law, it refers to a threshold below which customs authorities don't bother collecting duties and taxes. This threshold is one of the most important concepts in cross-border ecommerce.

The US De Minimis Threshold: $800
The United States has the highest de minimis threshold in the world: $800 USD per shipment, per day, per person. Any shipment valued at $800 or less enters the US duty-free and tax-free, with minimal paperwork. This threshold was raised from $200 to $800 in 2016, and it transformed cross-border ecommerce into the US.

As a Canadian seller shipping to US customers, this rule is enormously favorable. The vast majority of DTC ecommerce orders fall under $800, meaning you can ship to US customers without duty friction.

There are product exclusions. Some categories do not qualify for de minimis treatment regardless of value — goods subject to antidumping or countervailing duties, certain textile and apparel products, and some controlled categories. For most ecommerce products this is not an issue, but check your specific category.

The Canadian De Minimis Threshold: $40 CAD
Canada's de minimis threshold is dramatically lower. Goods imported into Canada are subject to duties and GST/HST on values over $40 CAD. A separate $150 CAD threshold applies for customs duties specifically on non-US/Mexican shipments. This matters most when dealing with returns from US customers shipping goods back to Canada.