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LetterAgent's labels cover domestic Canadian shipments only, so duties never enter the picture there. The de minimis threshold is the import value below which a parcel enters a country without formal duty and tax assessment: it's why a small cross-border order can land with no extra charges while a bigger one arrives with a duty bill attached.
Because customs agencies can't formally assess every parcel: the paperwork would cost more than the duty is worth. The threshold is the line where they stop bothering for low-value shipments. Below it, the parcel clears with minimal processing; above it, the full assessment kicks in, with duties, taxes, and usually a brokerage or handling fee from the carrier. The name comes from the legal maxim about the law not concerning itself with trifles: small stuff isn't worth the government's time.
No, and it moves. Some countries set it high enough that most ordinary consumer orders slide under; others set it low, so even a modest parcel gets assessed. Canada's threshold sits on the low side compared with the United States', which is why Canadians ordering from US stores run into duty bills more often than the reverse. Thresholds also change when governments rewrite trade rules, so treat any number you remember as stale and check the current rules before placing a big order. What was true two years ago may not be true now.
| Situation | How the threshold treats it |
|---|---|
| A small personal order under the threshold | Usually clears with no duty or tax assessment |
| A larger order over the threshold | Full assessment: duties, taxes, plus the carrier's brokerage fee |
| A gift under the gift exemption | Assessed under gift rules, which are separate from de minimis |
| Splitting one order into several small ones to stay under | Can be treated as evasion if customs connects the shipments |
| Prohibited or restricted goods | Stopped regardless of value: the threshold doesn't legalize anything |
Two things. First, the duty bill isn't the only charge: couriers add brokerage or handling fees that can exceed the duty itself, and those apply to cross-border parcels whether or not the threshold saved you from duties. A "duty-free" parcel can still arrive with a brokerage fee attached, which surprises a lot of first-time cross-border shoppers. Second, the threshold is about the declared value on the customs form. Sellers sometimes mark parcels as gifts or under-declare the value to help you dodge charges; if customs disagrees with the declaration, the parcel is held and you pay anyway, sometimes with penalties on top.
This is general information, not tax advice.
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