U.S. → Canada Cross-Border Sales Guide

I. Sales Tax (GST/HST/PST)

• Drifa’s Leap collects and remits GST/HST/PST through Avalara as a registered marketplace facilitator.
• Taxes are calculated at checkout based on the buyer’s province.
• Buyers will not face surprise taxes at delivery when orders include proper tax collection and documentation.
• Quebec is currently excluded from remittance; Drifa’s Leap will register and begin remitting once it reaches economic nexus in that province.

II. Tariffs & Duties

Most handmade goods made in the U.S. qualify for duty-free entry under the United States–Mexico–Canada Agreement (USMCA). Products that include imported materials (such as findings or textiles sourced from outside North America) may not qualify and could face tariffs.

Tariffs are separate from sales tax and are based on the country of origin. Declaring 'Made in USA' accurately and including materials information helps customs determine eligibility for duty-free entry.

III. HS Codes

HS (Harmonized System) codes classify products for customs. Each product crossing a border must include an HS code to describe what it is and what it’s made from. These codes determine the applicable tariff rate and whether it qualifies for duty-free treatment under USMCA.

Examples for handmade items:
• 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: Using the correct HS code ensures customs apply the right tariff rate and avoid delays. Sellers can look up HS codes on the U.S. International Trade Commission or Canada Tariff Finder websites. https://uscensus.prod.3ceonline.com/

IV. Shipping Best Practices

• Use USPS → Canada Post for lowest brokerage fees and reliable delivery.
• Avoid UPS Standard and other couriers that charge high brokerage or processing fees.
• Always include the correct HS code and statement of origin on customs forms.

V. Quick Reference Summary

• GST/HST/PST collected by Drifa’s Leap (except Quebec, pending nexus)
• Duty-free under USMCA for U.S.-made handmade goods
• Always use accurate HS codes and origin statements
• Ship via USPS → Canada Post

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.