Ottawa, Ontario, January 8, 2013 — The Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP) announced today that Canada and the United States have increased and harmonized the value thresholds for expedited customs clearance to CDN$2,500 and USD$2,500 respectively. This is an increase from the current levels of CDN$1,600 for Canada and USD$2,000 for the United States. In addition, Canada has increased the low-value shipment threshold to CDN$2,500 for exemption from North American Free Trade Agreement (NAFTA) Certificate of Origin requirements, aligning it with the current threshold of the U.S.
"Our Government is focused on what matters most to Canadians – jobs, growth and long-term prosperity. The harmonization of the value thresholds for customs clearance for both Canada and the United States will facilitate and expedite trade between our countries, allowing customs to focus on maintaining a secure and efficient border, " said the Honourable Vic Toews, Minister of Public Safety. "Reducing the administrative burden will improve Canada's competitiveness, especially for our small businesses, which are the backbone of the Canadian economy."
These actions deliver on a commitment under the Beyond the Border Action Plan to promote supply chain connectivity by harmonizing low-value shipment processes to expedite customs administration.
"Today's announcement will make it easier and faster for Canadian and American businesses to move goods across our shared border," said the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway. "Increasing and harmonizing these thresholds will allow an additional 1.5 million shipments to be cleared on the day of arrival, instead of these goods being held up in customs clearance. This is another example of how our governments' Beyond the Border Action Plan will benefit importers and exporters and is laying the foundation for more jobs, growth and prosperity in both countries."
"We are proud to deliver on another Beyond the Border Action Plan commitment," said CBP Deputy Commissioner David V. Aguilar. "By working together, we are improving processes that will have a direct and immediate impact on both our nations' economies."
"Canadian and U.S. businesses are the true beneficiaries of the Beyond the Border Action Plan and the change implemented today," said Mike Tierney, president, UPS Canada. "Each day, more than $1.6 billion worth of goods cross our common border bringing the annual value of traded goods to more than $580 billion. Yet, every year $16 billion in trade activity has been lost due to border delays. This change will allow for swifter movement of goods for importers and exporters of all sizes."
Prime Minister Harper and President Obama released the Beyond the Border Declaration in February 2011, and a detailed Beyond the Border Action Plan in December 2011. The Declaration and Border Action Plan articulate a shared vision and approach by which our two countries work together to address threats at the earliest point possible, while facilitating the legitimate movement of people, goods and services across our shared border. Efforts under the action plan will help both countries achieve enhanced security and greater economic competitiveness. The first annual Beyond the Border Action Plan Progress report was released on December 14th, 2012.
For more information on the Action Plan on Perimeter Security and Economic Competitiveness, please visit the Web site www.borderactionplan.gc.ca.
For further information
Canada Border Services Agency
Office of the Honourable Ed Fast
Minister of International Trade and Minister for the Asia-Pacific Gateway