Low-Value Shipment (LVS) Threshold Increase
On January 8, 2013, the Canada Border Services Agency (CBSA) announced an increase to the low-value shipment (LVS) threshold from the current CAD$1600 to CAD$2500. The Courier Low-Value Shipment (LVS) Program provides simplified, expedited processing for qualifying low-value shipments not exceeding CAD$2500.
The U.S. Customs and Border Protection (CBP) also announced an increase in the value threshold for informal entries from the current USD$2000 to USD$2500, effective January 7, 2013.
The harmonization of the value thresholds is a result of the Canada–U.S. Beyond the Border Action Plan, which commits to simplifying and harmonizing the customs processes between Canada and the U.S.
Free Trade Agreement Impact
This also means an increase in the value threshold for the exception to the formal North American Free Trade Agreement (NAFTA) certificate of origin requirement. In lieu of the certificate, the exporter may provide a statement certifying that the goods qualify as originating goods. With the LVS increase, the origin statement will continue to be an acceptable alternative to the formal declaration and will now include shipments up to the new value threshold of CAD$2500. For the statement of origin wording for goods covered under the North American Free Trade Agreement (NAFTA), please see appendix E in Customs Memorandum D11-4-14.