Update on the Increase to the Low Value Shipment (LVS) Threshold for Goods Imported into Canada

May 28, 2020 – Canada Border Services Agency (CBSA) has revised Customs Notice CN20-15 on May 21, 2020 which provides information on regulatory changes for new low value shipment (LVS) thresholds that will be implemented at the time of entry into force of the Canada – United States – Mexico Agreement (CUSMA).

Effective on 1 July 2020, CBSA will increase its Low Value Shipment (LVS) thresholds for all commercial importations (in addition to those for express shipments) to an estimated value for duty not exceeding CAD $3,300.00. CBSA further advises on the amendment on the applicable threshold amount and proof of origin certification requirements on low value shipments.

In addition to the amendments to the LVS thresholds, paragraph 6(4)(b), 9.1(4)(b), 10(4)(b) and 12.1(4)(b) of the Proof of Origin of Imported Goods Regulations will be repealed for eligible goods claiming preferential treatment under all of Canada’s free trade agreements currently in force, in addition to CUSMA.

Importers and owners of commercial goods, for which the estimated value for duty does not exceed the CAD 3300.00 amount, and for which the benefit of preferential treatment under a free trade agreement is claimed, will no longer be required to provide a (written) statement certifying that the goods are originating to be exempt from the requirements of subsection 35.1(1) of the Customs Act.

This update means the threshold amount $3300.00 will apply to all of Canada’s free trade agreement that are currently in force. The current low value threshold in the Free Trade Agreement (FTA’s) will be amended to $3300.00 CAD as of July 1st, 2020 and a written statement will not be required certifying the goods are originating when claiming preferential treatment.

However, the importer is required to maintain records (e.g. commercial invoice, B3, etc.) even if the CBSA does not require a certification of origin or if a requirement for a certification of origin has been waived.

Learn more on the low value threshold changes effective 1 July 2020 available on CBSA’s webpage.