Etsy does not pay Canadian customs charges for anyone. When a package crosses the border into Canada, the duty and import taxes are billed to the person receiving it, along with a handling fee from whoever carried it. Orders arriving by courier from the US are usually charge-free under CAD $40. Above that line, CBSA assesses GST or HST, duty can apply past $150, and the carrier adds its own fee for doing the border paperwork. Here is how that plays out for Canadian Etsy sellers and their buyers in 2026.
The thresholds that decide what a package pays
Canada has two sets of rules, and the shipping method picks which one applies.
Anything arriving by mail is duty-free and tax-free up to CAD $20, whatever country it ships from. Past $20, CBSA assesses GST or HST based on the destination province, plus duty where the goods attract it. Canada Post then adds a $9.95 handling fee for collecting the money.
Packages sent by courier from the United States or Mexico get more room under CUSMA. Up to CAD $40, there is no tax and no duty. From $40 to $150, tax applies but duty does not. Past $150, both can apply. Courier shipments from any other country fall back to the $20 threshold. Couriers charge brokerage fees for clearing the package, and on a small order those fees can cost more than the tax itself.
Why the Etsy checkout shows no Canadian import charges
Etsy collects sales tax at checkout in plenty of situations, which is exactly why import fees confuse people. On an order shipped to Canada from another country, Etsy collects nothing for the CRA. CBSA assesses the tax and any duty when the package lands, and the carrier collects on delivery. A buyer can pay in full at checkout and still get a fee notice at the door. That is not a double charge. It is the same tax, collected at the border instead of in the cart.
Domestic orders work differently. When a Canadian seller ships to a Canadian buyer, Etsy adds GST or HST at checkout and remits it, unless the seller has registered and added their own GST number, in which case collecting the tax becomes the seller’s job. Our guide on when Etsy sellers need their own GST number covers that switch.
Importing your supplies is a different game
Supply runs are where customs actually costs Canadian sellers money. Beads from a US wholesaler or blanks from an overseas factory arrive as commercial imports. CBSA assesses 5% GST at the border on those goods, plus duty that depends on what they are and where they were made.
Recovering that border GST comes down to registration status. A GST/HST registered seller can generally claim it back. An unregistered seller cannot, so the tax quietly becomes part of the cost of goods. Sellers who import regularly also deal with CARM, the CBSA system commercial importers use to account for their shipments. Our CARM Client Portal guide explains what it is. Getting the import side wrong tends to surface later, as tax you could have recovered but did not, or as an unexpected CBSA assessment, and unwinding either costs more than setting things up properly.
Selling to US buyers: the free ride ended
For years, US-bound orders under US $800 crossed without duty. That exemption was suspended in August 2025 and made permanent by regulation in June 2026. Every commercial package entering the United States now goes through a customs entry and can be charged duty, no matter how small the order.
How much duty depends on whether the goods qualify as originating under CUSMA. Many handmade-in-Canada products can still enter duty-free, but only with the right origin paperwork, and the rules have shifted several times since 2025. Build buyer-side fees into your US pricing, and expect the occasional refused package while buyers adjust.
Frequently asked questions
Does Etsy charge customs or import fees to Canada?
No. Etsy does not collect Canadian duties or import taxes at checkout on orders shipped from another country. CBSA assesses the charges when the package arrives, and the carrier bills the buyer, usually on delivery.
How much can you import into Canada without paying duty or tax?
By mail, CAD $20 from any country. By courier from the US or Mexico, orders up to CAD $40 arrive free of tax and duty, and orders up to $150 stay duty-free while taxes apply. Courier shipments from other countries use the $20 limit.
Why did Canada Post charge $9.95 on my Etsy order?
That is Canada Post’s handling fee for collecting duty and tax on behalf of CBSA. It applies to any mail item that owes money at the border. Couriers charge their own brokerage fees instead, which are often higher.
Can I get back the GST I pay when importing supplies?
Generally yes if your shop is GST/HST registered, and no if it is not. For a seller bringing in supplies every month the difference adds up fast, and it is one of the main reasons registering early can pay off. Talk to an accountant before your next large supply order.
Related guides
- Etsy GST/HST for Canadian sellers
- Does Etsy report to CRA?
- Etsy GST number: when sellers need their own
- CARM Client Portal setup guide
- See how our e-commerce bookkeeping service works
Not sure what your imports are costing you?
We work with Etsy and marketplace sellers across Canada on GST/HST registration and the import side of the business. If border fees keep surprising you, or you suspect you are leaving recoverable tax on the table, get in touch and we will sort out where you stand.
Related guides
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