Exporting via E-Commerce: Logistics, Customs & Regulations (Virtual)

Canada's Customs Overhaul Hits E-Commerce Exports

Canada's e-commerce import landscape faces its most significant shake-up in years with the Canada Border Services Agency's (CBSA) move to a 'last sale' valuation mandate, set to take effect in 2026. Previously, many foreign e-commerce sellers—particularly those using complex supply chains—declared customs values based on 'first sale' prices from manufacturers or intermediaries, minimizing duties. The new rule mandates valuation at the final transaction price that triggers export to Canada, typically the retail sale to the consumer.

This reform targets non-resident importers and platforms that structured transactions to undervalue goods at the border. For exporters, especially from the US or elsewhere selling directly to Canadian buyers via platforms like Shopify or Amazon, duties and taxes will now apply to higher retail amounts, directly squeezing profit margins that once benefited from lower declared values.

The stakes are immediate and financial. Businesses face potential duty increases of tens of percent depending on product categories, alongside heightened administrative burdens from the full deployment of the CBSA Assessment and Revenue Management (CARM) system. CARM requires importers to maintain online accounts for self-assessing and paying duties electronically, shifting responsibility and visibility but adding compliance overhead that smaller exporters may struggle to handle.

Non-obvious tensions emerge in the interplay with broader North American trade dynamics. While the change levels the field for Canadian merchants competing against foreign e-commerce giants, it risks reducing overall cross-border e-commerce volume at a time when US changes—such as the suspension of its own de minimis exemption for low-value shipments—have already complicated reciprocal trade flows. Exporters must weigh whether to absorb higher costs, raise prices for Canadian customers, shift to local warehousing, or redirect focus to other markets.

Deadlines loom as the CBSA finalizes amendments following consultations, with enforcement expected early in the year. Inaction exposes sellers to audits, penalties, shipment holds, or outright rejections, particularly as CBSA ramps up scrutiny on classifications and origins.