Implement Duty Pre-Paid for Canada Post Deliveries

Executive summary:

• Canada Post shipments to the US now require duties pre-paid.
• This change ensures smooth cross-border deliveries and cost management.
• All merchants using Canada Post must update their shipping and duty settings.

What changed

Starting August 28, 2025, all Canada Post shipments from Canada to the United States must be sent with duties pre-paid, a process known as Delivered Duties Paid (DDP). This change means that charges for US import duties will be collected upfront from the merchant, rather than being paid upon delivery by the recipient. Shopify has partnered with Canada Post and Zonos to facilitate this transition.

Why it matters

This update is critical for Shopify Plus merchants who ship to the US, as it removes the uncertainty and potential customer dissatisfaction involved with duties collection at delivery. Pre-paying duties helps smooth out the shipping process, enhancing customer experience and reducing unexpected costs.

Role-specific impact

• Marketers: Highlight the seamless delivery process in marketing materials to improve customer trust.
• Developers: Ensure API integrations reflect the new DDP requirements for shipping labels.
• Store admins: Update Shopify settings to enable duties pre-payment and adjust pricing strategies accordingly.

Use-case example

Real-world scenario & metric

A Canadian merchant who regularly ships products to the US saw a 15% decrease in customer complaints about surprise delivery charges after implementing duty pre-paid options, resulting in improved customer satisfaction scores.

Implementation checklist

1. Navigate to "Settings > Taxes > Duties" in Shopify and enable duty collection for the US market.
2. Add HS codes and Countries of Origin to all products via the bulk editor.
3. In "Markets," select the United States and adjust duty display settings at checkout.
4. Revise US shipping zones to reflect duty pre-paid options with Canada Post.
5. Ensure external fulfillment partners can handle DDP labels, or consider purchasing labels on Shopify.

FAQ

Q: What if I don’t enable duties pre-paid by the deadline?
A: Shipments will be blocked at label creation, disrupting your deliveries to the US.

Q: Can I still ship DDU to the US?
A: You will need to use alternative carriers, like DHL Express, if you wish to maintain DDU shipping methods.

Resources

For further details, visit the Shopify Help Center.

Need guidance? Talk to Makro.