Why U.S. Companies Should Do Business in Canada
40+ million consumers with strong purchasing power and trade advantages under USMCA. Discover why expanding north might be easier than you think.
Get Your Market AnalysisThe Canadian Market Opportunity
Canada represents a significant cross-border e-commerce market with consumers who frequently purchase from American brands. With favorable USMCA trade provisions and integrated logistics solutions, expanding to Canada can be more straightforward than many U.S. companies realize.
Whether you are testing the market or scaling operations, Frontier Supply Chain Solutions can help with the complexities of customs clearance, duty optimization, and last-mile delivery, allowing you to focus on growth.
By the Numbers
How USMCA Can Help Cross-Border Trade
Under USMCA, goods shipped from the U.S. to Canada by courier can qualify for favorable duty treatment:
- CAD $0 to $40: Exempt from both duties and taxes (GST/HST/PST)
- CAD $40.01 to $150: Exempt from duties, but subject to GST/HST/PST
- Above CAD $150: Duties and taxes both apply
Example Scenario: If you ship a $140 USD order to a Canadian customer (approximately $190 CAD), it falls above the $150 CAD threshold, so duties would apply. However, if the order is $110 USD (approximately $150 CAD), it may qualify for duty-free treatment while still being subject to provincial sales taxes.
Note: Exchange rates fluctuate, so it is helpful to work with a customs broker to confirm thresholds in real-time.
A common misunderstanding: To qualify for USMCA de minimis relief, goods do not need to be manufactured in the U.S. They just need to be shipped FROM the U.S. and have entered U.S. commerce.
What This Can Mean: A U.S. distributor selling products manufactured overseas may still ship to Canada and potentially qualify for preferential treatment, provided the goods entered U.S. commerce before crossing the border.
Example: If you are a U.S.-based e-commerce seller sourcing products from Asia, and those products are held in your U.S. warehouse or fulfilled through Amazon FBA in the U.S., they may qualify as "shipped from the U.S." when sent to Canadian customers.
Note: Frontier's customs team can help you understand how these rules apply to your specific products.
Speed matters in e-commerce. Canadian customers often expect delivery times similar to domestic U.S. shipments, and Frontier's integrated approach is designed to help meet those expectations.
How It Works:
- Your shipment is picked up from your U.S. warehouse
- We can consolidate multiple orders into one truckload
- Our licensed customs brokers work to clear shipments at the border (typically 2 to 4 hours)
- We deliver to over 800,000 Canadian postal codes
Example Timeline: Orders shipped Monday from your U.S. warehouse can often be delivered to Toronto by Wednesday, depending on routing and clearance.
Common Challenges and How We Can Help
Market Entry Framework
Consider starting small. Shipping 50 to 100 orders can help you gauge demand, measure delivery times, and understand customer behavior before scaling.
Get Test Shipment QuoteWork with Frontier to establish customs brokerage, obtain a Business Number (BN), and set up Non-Resident Importer (NRI) status if needed.
Learn About NRI StatusLeverage Frontier's consolidation model. We can bundle your orders, work to clear customs efficiently, and distribute across Canada.
See Cross-Border SolutionsExpand product offerings, consider Canadian fulfillment centers, and grow revenue while Frontier handles logistics behind the scenes.
Talk to Growth SpecialistHow U.S. Companies Have Expanded North
Resources to Get Started
Market Entry Checklist
Step-by-step guide for U.S. e-commerce brands considering expansion to Canada.
Download PDFUSMCA Compliance Guide
Information about the U.S.-Mexico-Canada Agreement and how it may affect your business.
Read GuideCustoms Clearance Explained
Video overview of how we work to clear your shipments at the border.
Watch VideoFrequently Asked Questions
No. U.S. companies can ship to Canadian consumers without establishing a Canadian entity. However, you will typically need a customs broker (like Frontier) to clear goods at the border and a Business Number (BN) from the Canada Revenue Agency for tax remittance. Learn about Non-Resident Importer status here.
DDU (Delivered Duty Unpaid) means your customer pays duties and taxes when the package is delivered, which can lead to cart abandonment and customer frustration.
DDP (Delivered Duty Paid) means you include all costs (shipping, duties, taxes) upfront at checkout. Your customer sees the total price in CAD and pays nothing on delivery. This can help improve conversion rates.
With Frontier's integrated brokerage, most shipments clear customs in 2 to 4 hours. We work to pre-clear documentation before your shipment arrives at the border to help minimize delays. See how our customs brokerage works.
Yes. You do not need a Canadian warehouse. Frontier can pick up from your existing U.S. fulfillment center, handle customs clearance, and deliver across Canada using our network covering over 800,000 postal codes. Learn about our cross-border shipping solutions.
Certain regulated goods may require permits or approvals, including:
- Food, supplements, and health products (Health Canada NHP licensing)
- Cosmetics and personal care items (regulated by Health Canada)
- Electronics containing batteries or wireless components (ISED certification)
- Textiles and apparel (labeling requirements)
Frontier's trade compliance team can help you understand these requirements. Learn about our compliance services.
Returns can ship back to your U.S. warehouse using reverse logistics. Key considerations:
- Goods being returned to the U.S. may qualify for duty drawback (refund of previously paid duties)
- Canadian customers will typically need a prepaid return label
- Frontier can help coordinate return logistics and customs paperwork
Ready to Explore the Canadian Market?
Let us help you build a custom expansion plan for your business. Get a detailed quote or schedule a strategy call with our cross-border team.