Canada Border Services Agency has placed a moratorium on applications to the Courier Low Value Shipments (CLVS) program as it works to redesign the initiative.
The new program will allow the release of goods valued at $3,300 with only a manifest. The previous CLVS amount was $2,500. As well, the program will no longer be limited to couriers.
“This provides us with a level playing field,” said Michael Butterfield, president and CEO of Frontier Supply Chain Solutions. “Currently, for example, UPS, DHL, Purolator, Federal Express, and Canada Post are carriers that can clear customs on a simple method through the CLVSC program. Basically, data is sent to the customs broker and Canada Border Services Agency so that when a truck rolls up to the border, it gets an expedited release.
“So, it’s super simple for the courier to clear customs without having to tell all the brokers what they are carrying. The data is sent after the shipment clears customs. For us to clear customs we need to ensure all parties are notified as a normal customs release. With this new method we can do an expedited release as a carrier the same as UPS does.”
Existing CLVS participants will be able to continue using the program as they know it until the new program comes into effect.
It’s unknown when the new program will come into effect, but what is known is that it will be modernized to include e-commerce.
USMCA and de minimis
Article 7.8 of the United States-Mexico-Canada Agreement puts the threshold for tax-free goods shipped to Canada between $40 and $150. After $150, duty and taxes will apply. Goods with a value less than $1,000 will not require a declaration of origin.
For goods more than $1,000, the certification process will be less formal than that under the previous NAFTA deal wherein a declaration can be noted on an invoice with no need for a formal certificate.