Canada → U.S. Cross-Border Sales Guide

For artists, by artists, with the artist’s success in mind.

I. Sales Tax (U.S. State Nexus & SST Program)

• The U.S. has no national sales tax—only state-level taxes that depend on buyer location.
• Drifa’s Leap is registered through the Streamlined Sales Tax (SST) system, covering 24 states.
• Avalara calculates, collects, and remits sales tax automatically for SST states.
• Non-SST states (e.g., California, Texas, Florida, New York) will begin collecting once Drifa’s Leap reaches economic nexus—typically $100,000 USD in sales or 200 transactions annually per state.

II. Tariffs & Duties

Products handmade in Canada using North American materials generally qualify for duty-free entry under USMCA. If imported components are used, tariffs may apply depending on origin.

Tariffs are separate from sales tax and are determined by country of origin. Declaring 'Made in Canada' accurately and specifying materials ensures eligibility for USMCA duty-free treatment.

III. HS Codes

HS (Harmonized System) codes classify products for customs and determine applicable tariffs. Every cross-border shipment must include an HS code identifying the product and its material.

Examples for handmade goods:
• Wool shawl – HS 6214.90 (shawls, scarves, wraps)
• Pottery mug – HS 6912.00 (ceramic tableware)
• Silver pendant – HS 7113.11 (jewelry of silver)
• Wooden bowl – HS 4419.00 (tableware or kitchenware, of wood)

Why it matters: Correct HS codes help prevent customs delays or unexpected tariffs. Sellers can look up HS codes on the Canada Tariff Finder or the U.S. International Trade Commission (HTS) websites. https://hts.usitc.gov/

IV. Shipping Best Practices

• Use Canada Post → USPS to minimize brokerage fees and streamline customs.
• Avoid couriers that charge additional brokerage fees.
• Include clear HS codes and origin declarations on all shipments.

V. Quick Reference Summary

• SST states: tax collected automatically via Avalara
• Non-SST states: tax begins once Drifa’s Leap reaches nexus thresholds
• Duty-free under USMCA for Canadian handmade goods
• Always use accurate HS codes and shipping declarations

VI. Seller Responsibility Disclaimer

This guide is provided for general informational purposes only and does not constitute legal, tax, or customs advice.

Each seller on Drifa’s Leap is solely responsible for:

• Determining and complying with all applicable sales tax, VAT, duties, tariffs, and customs requirements;

• Accurately classifying products using the correct HS codes;

• Properly declaring country of origin, materials, and value;

• Ensuring compliance with U.S., Canadian, state, provincial, and local laws applicable to their sales.

While Drifa’s Leap, Avalara, and participating payment or shipping partners may assist with tax calculation or remittance in certain jurisdictions, ultimate responsibility for compliance remains with the seller. Tax rules, nexus thresholds, and customs regulations may change and can vary based on individual circumstances.