Bought Something From Korea?
Canada's Real Duty-Free Limit Is CAD $20, Not $150

Canada applies a completely different duty-free threshold depending on where your package comes from — and for a shipment from Korea, that limit is just CAD $20, not the CAD $150 you may have heard about. The $150 (and a separate $40 tax-free) allowance is a CUSMA preference that only applies to goods from the United States or Mexico.

🕒 Last updated: August 31, 2026

Why the CUSMA number doesn't apply to your order

When CUSMA (the Canada–US–Mexico trade agreement) took effect on July 1, 2020, it introduced preferential thresholds for courier shipments specifically from the US or Mexico: duty-free up to CAD $150, and tax-free up to CAD $40[1]. But this preference only applies when the goods genuinely entered US or Mexican commerce — simply transiting through those countries doesn't count[1][2]. Shipments from every other country, Korea included, are governed by a much lower threshold — CAD $20 — under the Canada Border Services Agency's (CBSA) Memorandum D8-2-16[2].

Timeline

DateWhat applies
CUSMA effective (Jul 1, 2020)US/Mexico-origin courier shipments get $150 duty-free / $40 tax-free preference
Now (as of Aug 2026)All other countries, including Korea, remain at the CAD $20 duty- and tax-free threshold

What you'll actually be charged

OriginDuty-free up toTax-free up toNote
CUSMA (US/Mexico)CAD $150CAD $40Only if goods genuinely entered US/Mexico commerce
Other countries (incl. Korea)CAD $20CAD $20Most orders from Korea will be taxed

GST/HST rates vary by province. Alberta, BC, Manitoba, Quebec, and Saskatchewan charge 5% GST; Ontario charges 13% HST; New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island charge 15% HST[3]. On top of that, a product-specific duty rate may apply, and couriers commonly add their own brokerage fee when formal customs entry is required.

Don't assume the $150 headline applies to you

⚠️ If you've read that "Canada is duty-free up to $150," that's specifically about US or Mexican shipments — anything shipped from Korea is taxed the moment it crosses CAD $20. You'll also need to be the registered importer (as an individual or business) for any exemption to even be considered, and alcohol, tobacco, cannabis, and vaping products are always taxed regardless of value.

What to expect at checkout or delivery

✅ Because CAD $20 is such a low bar, it's safest to assume most orders from Korea will be taxed, and to expect an accurate commercial invoice (real price paid, item description, HS code) to move through customs cleanly. If your order requires formal entry, ask about the courier's brokerage fee in advance so the total cost isn't a surprise at your door.

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⚠️ Note: CAD $20/$150/$40 thresholds are confirmed via official CBSA memoranda; specific courier brokerage-fee amounts vary by carrier and weren't independently confirmed here. Check with your courier's current fee schedule before relying on this for a specific shipment.

Frequently Asked Questions

No — that $150 (and $40 tax-free) allowance only applies to goods coming from the US or Mexico under CUSMA. Orders from Korea fall under the general rule: CAD $20.
CAD $20. Above that, both duty and GST/HST apply.
If your order requires formal customs entry (generally once it's over the low threshold), the courier commonly adds its own brokerage fee on top of duty and tax.

References & Sources

  • [1] GHY International, "Canada's New Courier De Minimis Thresholds under CUSMA" — www.ghy.com
  • [2] CBSA, Memorandum D8-2-16, "Courier Imports Remission" — www.cbsa-asfc.gc.ca
  • [3] Shippsy, "Understanding Canada Import Tax For Canadian Shoppers (2026)" — shippsy.com
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