Mail or courier into Canada: which costs your customer less?

Short answer: for small orders, mail is often cheaper for your customer, even though courier parcels from the US get higher tax free limits. The courier's clearance fee is what tips it. Above about C$150, it depends on the product.

The limits

Three worked examples

All three are a US made T shirt sent to a customer in Ontario, where HST is 13%.

A C$35 order. By courier, it is under C$40, so nothing is owed and nobody pays a fee. By mail, it is over C$20, so HST of C$4.55 is due, plus the C$9.95 handling fee: C$14.50. Courier wins.

A C$80 order. HST is C$10.40 either way. By mail, add C$9.95: C$20.35. By UPS Standard, UPS's published list adds an entry fee of C$23.55 for this value and a disbursement fee of at least C$7.75: about C$41.70. By FedEx or a UPS express service, the minimum fee of about C$12 brings it to about C$22.40. Mail wins, narrowly.

A C$200 order. Over C$150, duty can apply by courier too, but a US made shirt that qualifies under CUSMA still owes none with the right claim. The tax is C$26.00 either way, so it comes down to the fee: mail's C$9.95 against a courier's clearance fee.

These figures come from each carrier's published fee list on the dates shown on our courier fee checker. Accounts with their own rates pay different fees.

A simple rule of thumb

• Under C$40: courier, if the postage difference is small.
• C$40 to C$150: compare. Mail often costs the customer less at the door; courier is faster and tracked.
• Over C$150: check the duty first. Goods made outside North America may owe it whichever way they go.

Or take the door out of it

Charge the duty, tax and fees at checkout and ship duty paid, and the question becomes which costs you less. Othermile prices mail, courier and duty paid for every order and shows each side by side.

Check your own numbers

• One parcel: the free border fee checker.
• Your store's last 90 days: the free border cost audit.
• Every order, before it ships: Othermile checks each one against your limits and holds the costly ones for your OK.

These are estimates from the official rules, not customs advice.

This guide explains public rules in plain language for general information. It is not customs, tax or legal advice; the exact tariff code, your paperwork and the carrier decide the final amount.