Getting hit with unexpected import fees on an online order? Here's what every Canadian shopper needs to know

When the package arrived, a letter from FedEx was waiting — not to celebrate the delivery, but to collect. The carrier had paid the import duties on Polak's behalf and was seeking reimbursement, plus a US$4.50 (about C$6.18) disbursement fee for handling the customs paperwork. In total, Polak owed US$46.38 (roughly C$63.70) on a US$67 purchase — an effective tax rate of approximately 69% (1).

A retired economics professor who reviewed the invoice concluded the tariffs appeared to have been improperly stacked, each one assessed against the full value of the item rather than applied correctly. The likely correct duty, according to the professor's analysis, was closer to US$16.75 — meaning Polak may have been overcharged by roughly US$25. (1)

While Polak's story unfolded south of the border under U.S. customs rules, it's a cautionary tale that every Canadian online shopper should take to heart. The mechanics are different here — but the risk of being hit with unexpected fees, or of paying too much and not knowing it, is just as real.

The Canadian version of the story

Canada's customs system works differently from the one Polak encountered, but it's no less confusing for the average online shopper — and errors do happen.

When a Canadian purchases goods from a seller in the United Kingdom, the transaction falls under the Canada–United Kingdom Trade Continuity Agreement (CUKTCA), which preserves the preferential tariff rates previously established under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) (2). Under these agreements, most goods — including many automotive parts — enter Canada at significantly reduced or zero duty rates.

However, "reduced duty" doesn't mean "no cost." Even on a duty-free purchase from the U.K., a Canadian buyer can still expect to pay:

• GST/HST on the value of the goods (5% to 15%, depending on the province)
• A carrier brokerage fee, covering the cost of having the courier file the customs paperwork on your behalf
• A disbursement fee — roughly 2.5% of whatever duties or taxes the carrier paid on your behalf, typically with a minimum charge of about C$15 to C$20 (3)

For goods shipped from countries outside the U.S., Canada's duty-free de minimis threshold is just C$20 — meaning any package from the U.K. worth more than $20 is potentially subject to duties and taxes (4). By contrast, packages shipped by courier from the U.S. or Mexico enjoy a higher threshold: duty-free up to C$150, and tax-free up to C$40, under the Canada–United States–Mexico Agreement (CUSMA) (4).

In other words, Canadians ordering from the U.K. — or anywhere outside North America — are operating with far less cushion than many realize.

Brokerage fees: the sneakiest charge of all

For many Canadians, the most surprising line item isn't the government duty at all. It's the brokerage fee.

When FedEx, UPS or DHL delivers your package, it typically acts as the customs broker — filing the declaration on your behalf. That service costs money, and the fee varies significantly by carrier and shipment type. Ground shipments are usually the most expensive for brokerage; express shipments sometimes include it in the shipping price.

Canada Post charges a flat C$9.95 handling fee per dutiable package — typically lower than what commercial couriers charge. Some Canadians choose to "self-clear" packages at a local Canada Border Services Agency (CBSA) office to avoid paying a carrier's brokerage fee entirely, though it requires picking up the manifest number and visiting the CBSA in person.

When something looks wrong, you can push back — for free

Here's where the Canadian situation is notably better than what Polak encountered in the U.S.

When Polak formally disputed the claim, FedEx warned him he'd be on the hook for a US$90 to US$150 US fee if the tariff was found to be correct. However, disputing a duty or tax assessment with the CBSA in Canada carries no upfront cost for non-commercial imports.

In fact, Canadians who believe they've been overcharged on duties or taxes have two main options:

The first is to dispute directly with the courier before the package is cleared or payment is made. This is easiest to do before accepting delivery and handing over your credit card.

The second is to file a Form B2G — the CBSA Informal Adjustment Request — which allows you to apply for a refund of duties and taxes paid on goods imported for personal use (5). The form is submitted by mail to the CBSA Casual Refund Centre corresponding to your postal code, along with supporting documents such as the original invoice and any duty receipts.

Important caveats: the CBSA will not refund brokerage fees or shipping and handling costs — only duties and taxes that were incorrectly assessed. If your classification-based claim is denied, you have 90 days from the date of the denial letter to file a formal appeal with the CBSA's Regional Recourse Division.

The takeaway? Save everything — original listing, order confirmation, shipping receipt and duty invoice. If an assessment looks off, it almost certainly is worth questioning. The process isn't quick, but it won't cost you anything to try.

A nationwide pattern Canadians should watch

The U.S. story isn't just a cautionary tale — it's a window into what happens when customs systems struggle to keep up with the volume of cross-border e-commerce. The U.S. eliminated its duty-free de minimis exemption for all countries in August 2025, forcing formal customs processing on packages that previously sailed through unchecked. The results have been chaotic: misfiled tariff codes, improperly stacked duties and surprise invoices for amounts that bear little relation to the goods purchased.

Canada has not eliminated its own de minimis framework, but the global surge in cross-border shopping has already increased scrutiny at the CBSA, particularly for courier shipments from non-CUSMA countries (6). And with U.S.-Canada trade tensions driving Canadians to diversify their shopping toward U.K. and European sellers, many are encountering Canada's $20 duty-free threshold for the first time — and finding it unforgiving.

The lesson from the U.S. experience is worth heeding: as international e-commerce volumes grow, so does the risk of misclassification, over-assessment and poorly disclosed fees.

What to do before you click 'buy'

Check where the seller ships from: Many international marketplaces don't make it obvious that a product is originating outside North America. Look for seller details and country of shipment before you purchase — because where a product ships from determines which de minimis threshold applies, not where it was manufactured (7).

Know your threshold: For packages arriving from the U.S. or Mexico by courier, you're duty-free up to C$150 and tax-free up to C$40. For everything else — including the U.K. and Europe — the duty-free threshold is just C$20 (8).