Does FedEx charge duty to Canada?

FedEx and Canadian Customs: A Smooth(er) Import Process

Importing goods into Canada can be a complex process, often fraught with paperwork and potential delays. However, FedEx Express offers a service designed to alleviate much of this headache: they handle the payment of Canadian customs duties and taxes on your behalf.

This means that instead of dealing directly with the Canada Border Services Agency (CBSA), the recipient receives their shipment with the customs process already completed. FedEx advances the payment for all applicable duties and taxes, streamlining the import process and ensuring a smoother delivery experience.

This convenience, however, comes with a fee. FedEx charges a disbursement fee, calculated as a percentage of the total duties and taxes paid. This fee is then billed to the recipient alongside the original invoice for the goods. While this adds an extra cost, many importers find the overall convenience and time saved to be well worth it. The precise calculation of the disbursement fee is dependent on various factors and can be found on the FedEx website or by contacting their customer service directly.

Essentially, FedEx acts as an intermediary between the shipper and the CBSA. They manage the complex paperwork, calculations, and payment, eliminating the potential delays and complications associated with handling customs clearance independently. This simplifies the process for both the sender and the receiver, offering a more predictable and efficient import experience.

For businesses regularly importing goods into Canada, this service offers significant advantages. It reduces administrative burden, minimizes the risk of delays due to customs issues, and provides a clear and predictable cost structure (excluding the variable cost of duties and taxes themselves). While the disbursement fee is an added expense, the overall efficiency gains and reduced risk often outweigh this cost.

In conclusion, while FedEx doesn’t directly charge duty, they act as a facilitator, advancing the payment on your behalf and then billing you for the duties, taxes, and their disbursement fee. This convenient service makes importing goods into Canada significantly simpler and more efficient for many businesses and individuals. Understanding this process is key to effectively managing import costs and expectations when using FedEx for shipments to Canada.