Temu, Shein, and AliExpress built their appeal on prices that seem almost too low to be real. And for orders that stay under CAD $20, they actually are that cheap. But most people's carts tip over $20, and once they do, the real cost of ordering direct from China kicks in: duty on the goods, provincial sales tax collected at the border, and a carrier handling fee that often costs more than the duty itself.

This is not a complaint about the platforms. It is just math. Canada's import rules have looked this way for decades. The problem is that Temu and Shein show you the item price with no indication of what Canada Border Services Agency will add on arrival. So you find out when the Canada Post notice card shows up.

Use the Import Duty Calculator to run your specific order before you buy. Or read on to understand exactly how the numbers work.

The CAD $20 Threshold: Canada's De Minimis Rule

Canada has a "de minimis" threshold: the value below which CBSA does not assess duty or tax. For goods shipped by mail or courier directly from China, that threshold is CAD $20.

Order something worth $19.99 shipped direct from China? Nothing extra owed. Order something worth $20.01? Full duty plus full provincial tax applies to the entire value, not just the amount over $20.

This is the part that trips people up, because there is a higher threshold that applies to some imports. Under CUSMA (the Canada-US-Mexico trade agreement), goods shipped by courier from the US or Mexico get a $40 tax-free threshold and a $150 duty-free threshold. But that higher threshold only applies when the goods are in US or Mexican commerce. Temu and Shein ship directly from Chinese warehouses. Their goods never touch US or Mexican commerce. So the $150 CUSMA cushion does not apply. You are on the standard $20 rule.

The $20 rule applies to all China-direct shipments. Temu, Shein, AliExpress, Wish, and any other platform shipping from Chinese warehouses falls under the CAD $20 de minimis, not the CUSMA $150 threshold. Over $20 means duty plus tax on the full order value.

Duty Rates: What Canada Charges by Product Type

Not everything from China is dutiable at the same rate. The rate depends on what's in the box. Here are the rates that matter most for typical Temu and Shein orders, sourced from the Canada Customs Tariff 2025 (CBSA):

Product CategoryDuty RateNotes
Clothing (shirts, dresses, pants, jackets)18%Chapters 61/62 of the tariff schedule
Footwear / shoes / sneakers18%Chapter 64
Bedding / linens / curtains / towels18%Chapter 63
Bags / backpacks / wallets11%HS 4202
Jewelry (real or costume)8.5%HS 7113/7117
Makeup / cosmetics / skincare6.5%HS 3304/3307
Sunglasses5%HS 9004
Watches5%HS 9101/9102
Phones / tablets / laptops0% (free)WTO Information Technology Agreement
Headphones / earbuds / speakers0% (free)HS 8518
Toys / games / video game accessories0% (free)HS 9503/9504
Books / printed materials0% (free)Chapter 49

The 0% categories are the ones that often surprise people. A $60 phone case from Temu owes zero duty. But it still owes provincial sales tax (see below) because the order is over $20. "Duty-free" and "tax-free" are not the same thing.

Sales Tax: Your Full Provincial Rate, Collected at the Border

CBSA collects provincial sales tax on dutiable parcels from China, the same combined rate you'd pay buying in a store. Tax applies to the value of the goods plus the duty. This is not just 5% GST. It's your province's full combined rate:

ProvinceImport Tax RateType
Ontario13%HST
British Columbia12%GST + PST
Manitoba12%GST + PST
Saskatchewan11%GST + PST
Quebec14.975%GST + QST
Nova Scotia14%HST (dropped from 15% April 2025)
New Brunswick15%HST
Prince Edward Island15%HST
Newfoundland & Labrador15%HST
Alberta / Yukon / NWT / Nunavut5%GST only

Alberta residents have a meaningful advantage here. At 5% GST with no provincial sales tax, an Albertan pays roughly half the tax that a New Brunswick resident pays on the same parcel.

The Carrier Handling Fee: Usually the Biggest Shock

This is the part most people never see coming. When CBSA assesses duty and tax on a parcel, the carrier has to collect it on delivery or at pickup. They charge a fee for doing that. On small orders, this fee often costs more than the actual duty.

  • Canada Post: $9.95 flat per dutiable parcel, regardless of order value. Most Temu and Shein shipments arrive via Canada Post.
  • UPS Standard: Tiered by order value. $19.45 for orders $40 to $100, $29 for orders $100 to $200, $42.95 for orders $200 to $350.
  • DHL Express: 2.5% of combined duty and tax, with a $17.50 minimum.

On a $30 Temu order with $5.40 in duty and $4.60 in tax, the Canada Post handling fee of $9.95 is nearly equal to the combined duty and tax. It doubles what you'd otherwise owe.

The fee is how the carrier gets paid for acting as CBSA's collection agent. It's not optional and it's not hidden on your order confirmation, because the carrier charges it on delivery, not at checkout. You only see it when it's too late to reconsider the purchase.

Three Worked Examples

Example 1: $50 Clothing Order to Ontario by Canada Post

You order two tops and a pair of pants totalling $50 from Temu, shipped to Ontario via Canada Post.

  • Duty: $50 x 18% = $9.00
  • HST (13% on $50 + $9 duty): $59 x 13% = $7.67
  • Canada Post handling fee: $9.95
  • Total extra charges: $26.62
  • Real cost of the order: $76.62

That's 53% more than the checkout price. Not because anything went wrong. That's just how it works.

Example 2: $15 Earrings Order to Quebec

You order a pair of earrings for $15 from Shein, shipped to Quebec.

  • Order value under CAD $20: no duty, no tax, no handling fee
  • Real cost: $15

The $20 threshold is real. Orders that stay under it arrive with no extra charges. Splitting a larger order into multiple smaller orders won't work reliably because CBSA looks at the value of each individual shipment, not your account history, but if each shipment genuinely contains items worth under $20, no charges apply.

Example 3: $100 Phone to British Columbia by Canada Post

You order a budget smartphone for $100 from AliExpress, shipped to BC via Canada Post.

  • Duty: $100 x 0% (phones are duty-free) = $0
  • PST+GST (12% on $100 + $0 duty): $100 x 12% = $12.00
  • Canada Post handling fee: $9.95
  • Total extra charges: $21.95
  • Real cost of the order: $121.95

Even a duty-free category gets hit. The phone owes no duty, but still owes BC sales tax once the order clears $20, plus the carrier fee. A $100 phone from AliExpress actually costs $121.95 at the door in BC.

Want to run your own numbers? The Import Duty Calculator handles all provinces and product categories, so you can check the real price before checkout.

What the Platforms Don't Show You

Temu and Shein display item prices in Canadian dollars. They also include shipping. What they don't include is CBSA's assessment, which happens independently of the seller after the package enters Canada. The platforms have no legal obligation to collect Canadian duty and tax at checkout the way Canadian retailers do.

Some orders arrive without a CBSA assessment slip, particularly smaller or lighter shipments. That can create the impression that import charges are random or optional. They're not. CBSA doesn't inspect every package, but when it does assess one, the charges are based on the declared value and product category. The platforms declare the values on customs forms. There is no legitimate workaround.

How to Reduce the Surprise

A few practical things that actually help:

  • Keep individual orders under CAD $20. Below the threshold means no duty, no tax, no fee. For small accessories or single items this is realistic.
  • Factor the fee in before ordering. On a $50 clothing order to Ontario, budget $76 and decide if it's still worth it at that price.
  • Watch which shipping method is used. Canada Post's $9.95 flat fee is actually cheaper than courier handling fees on mid-size orders. A UPS clearance on a $75 order costs $19.45, twice what Canada Post charges.
  • Check the duty rate by product type. Electronics and toys are often duty-free. Clothing and bedding aren't. The product mix in your cart matters.
  • Use the calculator first. The Import Duty Calculator shows you duty plus provincial tax plus carrier fee for your specific province and product type, before you order.

If you're shopping from the US, the rules are different right now. Tariffs on US imports have changed significantly in 2026. Check out the companion post: The $800 Duty-Free Limit Is Gone: What Temu, Shein and AliExpress Shoppers Now Pay in the US.

You can also compare tariff cost scenarios using the Tariff Cost Calculator.

Frequently Asked Questions

What is Canada's import threshold for Temu and Shein orders?

For goods shipped directly from China, the threshold is CAD $20. Orders over $20 are subject to full duty plus provincial sales tax on the entire order value. The higher CUSMA thresholds ($40 tax-free, $150 duty-free) only apply to courier shipments from the US or Mexico, not to China-direct shipments.

How much duty does Canada charge on clothing from Temu or Shein?

Clothing (shirts, dresses, pants, jackets), footwear, and bedding are assessed at 18% duty. Bags and backpacks are 11%. Jewelry is 8.5%. Cosmetics and skincare are 6.5%. Phones, tablets, laptops, toys, and books are duty-free, but still subject to provincial sales tax on orders over $20.

What is the Canada Post handling fee for international parcels?

Canada Post charges a $9.95 flat handling fee per dutiable parcel, regardless of order size. This often exceeds the duty itself on small orders. UPS charges $19.45 to $42.95 depending on order value, and DHL charges 2.5% of the duty and tax with a $17.50 minimum.

Does the import tax rate change by province in Canada?

Yes. CBSA collects the full combined provincial rate at the border. Ontario pays 13% HST, BC pays 12%, Quebec pays 14.975%, Alberta pays 5% (GST only, no provincial tax), and the Atlantic provinces pay 14-15% HST. Nova Scotia dropped from 15% to 14% in April 2025.