For Canadian businesses selling into the United States, shipping a small package across the border could become more complicated under a new proposal from Washington. The Trump administration is seeking tougher customs procedures for imported merchandise valued at US$2,500 or less, including earlier electronic filings, additional shipment information and expanded customs bond requirements.
Published on October 8, 2026, the proposal comes as Canadian exporters are already adjusting to the elimination of duty-free treatment for most low-value commercial shipments.
Although the changes would apply to imports from around the world rather than Canada specifically, their implications could be significant for businesses relying on cross-border e-commerce, postal deliveries and smaller commercial orders.
The central question is whether tighter border enforcement will improve efficiency or create another layer of costs and delays for companies trying to serve American customers.
Washington Wants More Oversight of Small Cross-Border Shipments
The U.S. Department of Homeland Security, through Customs and Border Protection (CBP), published a proposed rule on October 8 aimed at strengthening oversight of imported merchandise valued at US$2,500 or less. These shipments generally qualify for informal customs entry, a process designed to be simpler than the formal procedures typically used for higher-value commercial imports.
Under the proposal, qualifying shipments would face updated electronic filing requirements, earlier submission deadlines and broader customs bond obligations. Washington also wants a dedicated electronic entry procedure for merchandise arriving through the international postal system, bringing postal packages closer to the customs procedures used for other commercial shipments.
The proposed changes are part of an effort to improve duty collection, detect prohibited merchandise and obtain more reliable information about goods entering the country.
For Canadian exporters, the practical implications extend well beyond filling out another form. A business sending individual online orders to American customers could need to coordinate more closely with its carrier, importer or customs broker before merchandise reaches the border.
Importantly, the October 8 publication is a proposal, not a final regulation already in force.
The US$2,500 Threshold Is Different From the Old US$800 Duty-Free Exemption
One important distinction could easily get lost in the discussion. The US$2,500 figure is not a new duty-free threshold. It is the longstanding general value ceiling for informal customs entries, which typically involve less complicated procedures than formal commercial imports.
The separate de minimis exemption previously allowed qualifying shipments valued at US$800 or less to enter the United States without ordinary customs duties. That exemption was suspended for most merchandise from all countries, including Canada, beginning August 29, 2025. CBP subsequently incorporated the indefinite suspension into its regulations in June 2026, while federal legislation provides for its statutory termination in July 2027.
Consequently, a Canadian company shipping a US$120 product already faces a different customs environment than it did before August 2025.
The October proposal would add procedural requirements to that existing situation rather than establish a new tariff on every shipment below US$2,500.
Preferential treatment under the Canada-United States-Mexico Agreement (CUSMA) may still affect the duties owed on qualifying goods, depending on the merchandise, applicable tariff measures and shipping method. However, a product’s Canadian shipping address does not automatically establish Canadian origin or guarantee duty-free treatment.
Electronic Customs Filings Would Become Mandatory and Due Earlier
A central element of the proposal involves the timing and format of customs declarations. Under the existing general rules, informal entries can be filed within 15 calendar days after merchandise arrives. CBP wants qualifying Entry Type 11 filings submitted electronically on or before the date of importation.
The agency would also require information identifying the final delivery recipient and address when that party differs from the ultimate consignee listed on the customs entry. For example, goods imported through a distribution company but ultimately delivered to another business could require additional recipient details.
Electronic filing itself is already common. CBP reported that just 73,534 of approximately 52.45 million Entry Type 11 filings submitted between September 2025 and May 2026 were paper entries, representing only 0.14%.
The earlier deadline could be more consequential. In a CBP sample of 2025 filings, only 0.4% were submitted before arrival, while 26.6% were filed on the arrival date and another 25% the next day.
That suggests many importers and brokers would need to adjust their filing schedules if the proposal becomes final.
International Mail Would Face a New Electronic Entry System
Postal shipments represent another major focus. CBP proposes replacing the current informal postal entry procedure with a dedicated electronic process called Entry Type 13, covering eligible international mail merchandise valued at US$2,500 or less.
A voluntary test of Entry Type 13 began in September 2026, allowing participants to become familiar with filing through the Automated Commercial Environment, the electronic platform used for U.S. customs processing. The proposed regulation would make the new approach mandatory for qualifying postal entries once implemented.
The required information would include details such as the merchandise description, country of origin, customs classification, shipment value and parties involved. Postal entries would also require the sender’s identity and address, along with a tracking number.
Carriers would have to report matching postal tracking numbers on their inward manifests, allowing CBP to connect the shipment’s physical arrival with its electronic declaration.
For a Canadian online retailer mailing clothing, books or replacement parts to American customers, the operational challenge could involve ensuring shipment information is available to the responsible filer before the package reaches the United States.
The proposal allows eligible owners or purchasers to file electronically themselves or use an appropriately appointed licensed customs broker.
Customs Bonds Could Become Another Expense for Importers
The proposal also seeks to require basic importation and entry bonds for Entry Type 11 and Entry Type 13 filings. These bonds provide financial security to U.S. customs authorities if an importer fails to meet certain obligations, including payment of duties or compliance with applicable requirements.
Businesses could generally use a single-transaction bond for individual entries or a continuous bond covering multiple shipments. The bond’s face value is not necessarily the amount a business pays. Instead, businesses commonly pay premiums to obtain coverage from a surety company.
According to CBP’s regulatory analysis, the average quoted premium for a US$50,000 continuous bond was approximately US$442, based on information from 12 broker websites. The agency also estimated a minimum single-transaction bond premium of roughly US$54 using a separate sample.
Many shipments already have bond coverage. CBP estimated that approximately 2.3 million Entry Type 11 entries were made without bonds during the 12 months ending July 2026, representing a relatively small portion of projected annual filings.
Nevertheless, previously unbonded importers could face new expenses. The proposal also establishes a US$1,000 minimum for certain liquidated-damages claims arising from bond breaches. This is not an automatic US$1,000 charge on ordinary packages; it concerns specified failures to meet bond conditions.
Missing Customs Information Could Put Postal Deliveries at Risk
Among the most consequential provisions is a proposed rule governing international mail shipments that are not properly entered into the United States.
CBP wants qualifying postal merchandise to have its entry filed by the date of importation. Packages lacking proper entries would not be released from customs custody. If an entry remained incomplete after 15 days, the merchandise would be considered voluntarily abandoned under the proposed regulations.
The U.S. Postal Service would then handle the package according to its procedures, potentially including returning it to the sender or destroying it. The 15-day period therefore should not be confused with permission to receive a package before completing the required entry.
For an American customer expecting a US$90 replacement component from a Canadian supplier, an administrative problem could become more serious than an ordinary delivery delay. If the entry is not properly completed, the merchandise could remain unreleased and eventually be returned or otherwise disposed of.
CBP acknowledges these potential complications. Its analysis notes that USPS expects longer holding periods and greater storage needs under the proposed system. The postal service also estimated that returning undeliverable merchandise could cost more than US$6 per kilogram on average.
Those are projected operational concerns, not evidence that such outcomes are already occurring because of this proposed rule.
Some Tariff-Affected Shipments Could Actually Receive Simpler Treatment
Despite its stricter overall approach, the proposal includes a provision that could simplify customs processing for certain shipments subject to U.S. trade measures.
Currently, particular merchandise classified under Chapter 99 of the Harmonized Tariff Schedule faces a US$250 limit for informal entry eligibility. CBP proposes removing that special restriction for merchandise covered by specified Chapter 99 subchapters, allowing otherwise eligible shipments valued between US$251 and US$2,500 to use informal entry procedures.
The agency specifically identifies merchandise subject to measures such as Section 232 tariffs as an example. Under the proposed amendment, eligible products could avoid formal entry solely because their value exceeds the existing US$250 limit.
However, the procedural change would not eliminate the underlying tariffs. A product subject to applicable import duties would still face those charges even when entered informally.
For Canadian companies, the distinction matters because customs treatment and tariff treatment are separate questions.
The proposal would also broaden CBP’s discretion to require formal entry for certain low-value merchandise when necessary for enforcement, revenue protection or other customs purposes. Therefore, the simpler filing option would not guarantee informal clearance in every situation.
Washington Says the Changes Are Necessary to Combat Customs Violations
The U.S. government’s justification centres on enforcement challenges created by the enormous volume of low-value merchandise entering the country.
CBP reported approximately 24.4 million postal entries and 52.5 million Entry Type 11 entries between September 2025 and May 2026. According to the agency, the previous duty-free system encouraged shipment volumes that complicated efforts to identify counterfeit merchandise, unsafe products, prohibited substances and violations of U.S. trade laws.
The agency also found that only 67% of postal shipments during that period went through a formal or informal entry process, suggesting that many other shipments may have entered without proper duty payments.
Historical enforcement figures illustrate its concerns. In fiscal 2024, CBP recorded 277.8 narcotics seizures per million postal de minimis shipments, compared with 2.6 per million formally entered shipments. These comparisons concern different shipment categories and do not establish that every low-value package presents a higher risk.
The financial trade-offs are substantial. CBP’s own analysis estimates an annualized quantified net cost of approximately US$1.09 billion under the proposal, while acknowledging that some operational expenses remain unquantified.
Washington’s argument is that improved screening, revenue protection and enforcement could justify additional compliance costs. Whether the eventual benefits outweigh the burdens remains an important question in the rulemaking process.
Canadian Small Businesses Could Feel the Impact Differently
Canadian exporters are already operating under a more complicated trade environment. Canada Post introduced a duty-prepayment process following the August 2025 suspension of the US$800 de minimis exemption, requiring U.S.-bound postal shipments to carry proof that applicable duties had been assessed and prepaid.
For some small businesses, that has meant adding customs calculations and declarations to a shipping process that previously required less preparation. The newly proposed American procedures could require further coordination involving importer information, product classification and advance filings.
The broader importance of the U.S. market remains clear. Statistics Canada reported that 71.7% of Canadian merchandise exports went to the United States in 2025. More recently, Canadian goods exports to the U.S. increased 8.1% in August 2026, partly amid trade activity ahead of newly announced tariffs.
Those national figures cover much more than small parcels, but they demonstrate the scale of Canada’s exposure to changes in American trade policy.
A larger exporter with established brokers and integrated shipping software may find the transition manageable. A small Canadian retailer shipping individual orders could have fewer resources to absorb brokerage charges, paperwork changes or delayed deliveries.
The impact will depend on shipping methods, importer arrangements and the final wording of the regulation.
Exporters Have Until December to Comment on the Proposed Rules
The October 8 proposal remains open for public feedback. CBP has established December 7, 2026, as the deadline for submitting comments through the federal rulemaking process under docket number USCBP-2026-0298.
The agency is specifically seeking information about economic and operational consequences, including whether alternative filing deadlines or other adjustments could reduce compliance burdens. The proposal also acknowledges that certain costs associated with earlier filings, storage requirements and changing business practices are difficult to quantify.
Canadian exporters, shipping providers and other affected organizations therefore have an opportunity to provide evidence about how the proposed requirements could influence delivery costs, processing times and international commerce.
Businesses may also benefit from reviewing their current shipping arrangements before any final rule is issued. Confirming who serves as importer of record, which customs entry procedures carriers use, whether bonds are already in place and how product information reaches customs brokers could help identify possible gaps.
There is not yet a final implementation date for the October 8 proposal.
For Canadian exporters, the immediate takeaway is not that small shipments have suddenly become illegal or that every package faces a new tariff. Rather, Washington is proposing a more demanding system in which accurate information, financial guarantees and earlier customs filings would play a greater role in determining how quickly merchandise moves across the border.
