FAQ: Suspension of De Minimis

What is the difference between country of origin and manufacturer?

• Generally, there is no difference in origin and manufacturer. Country of origin denotes the country in which the item was made. Manufacturer is based on the address location in which the item was made. For example if the country of origin is China the manufacturer information must also be an address in China. 

What if I don’t have the manufacturer info? 

• If manufacturer information cannot be provided, you can alternatively consider our DDU (duties unpaid) options. At this time, we currently do not have an estimate on when the service will be available until, however this service would be most suitable in the event manufacturer information cannot be provided. Only Country of origin and a valid HTS will be required.

Do we pay tariffs on US origin products (country of origin US)?

• At this time no duties are applied on goods with a US country of origin however we are still confirming if any potential brokerage fees will be applied – we will confirm once we have verified with our customs broker. 

I send bowls that are from Mexico but I purchased them from a wholesaler in the USA and they told me to use their USA contact info as manufacturer. Will this be accepted on the DDP form?

• We ask that you contact your US wholesaler to confirm the country of origin and manufacturer information. From the information provided, bowls made from Mexico would imply that it was produced by a manufacturer in Mexico and as such would require manufacturer information based in Mexico. 

What happens if I send multiple goods from multiple countries? Is that option available to declare different origins on the form?

• Multiple goods can be shipped that are of different countries of origin. You will have the ability to declare them by item line. Each item must also be physically marked with the country of origin. Read more

What is the “unit value”? Can I use the cost of the product?

• The retail value of the item must be used – not the raw cost of the product. It should match what is listed on your website or selling channel. For our DDP (duties paid) and DDU (duties unpaid) services, you are expected to declare the amount paid by your buyer.

Postal services do have to collect duties as of Aug 29th, they just have 6 months during which they can charge a flat rate (which is outrageously high). Can you please reference where you saw that they will NOT be collecting any duties for up to a 6-month period? 

• The recent executive order published by The White House details that postal services will have the option to either collect duties or charge a duty ranging from $80 to $200 per item depending on the IEEPA tariff rate.

If we are using the Chit Chats US address on Etsy or other platforms, is it true that we can no longer be shipping DDU (duties unpaid) because buyers will question why they are being tariffed?

• By selecting our DDU options, the recipient will be required to pay duties and taxes at the time of delivery. It is the seller’s choice on whether this is the best option for your business. If shipping with a DDU option we highly recommend being transparent with your customers that duties will be requested to be paid upon delivery to avoid any confusion. 

Is there a good resource for looking up HTC Codes? 

• https://tools.chitchats.com/
• Find more resources here

What happens if you need to send items DDU and Canada Post is on strike?

• In the event of a Canada Post strike, DDU (duties unpaid) shipments in transit may experience delays in transit time. 
• Chit Chats International Tracked DDU service is still available for US-Bound shipments*

*DDU availability may change

Is it possible Aug 29 changes won’t go into effect and it’s just another threat?

• Given the executive order, it appears that these changes will continue to take place on Aug. 29th. While this remains to be a fluid situation, our team will provide updates in the event there are any delays or changes.

If my product is handmade but materials from other countries (i.e. China) but purchased in Canada. 

• Substantial transformation needs to be considered to see if substantial change was experienced when referring to the nature of the materials and the final product. You are expected to declare the Country of origin based on the country in which substantial transformation was experienced.
• For more information on Substantial Transformation, read our support article ‘What is Substantial Transformation and why does it matter?’

If the respective item was substantially transformed within Canada, this would mean that the country of origin would be Canada.

• Yes, be sure to have the Made In Canada marking clearly on the product itself. Read more

If I handmake my own products do I enter my own personal info as a manufacturer?

• Yes, if you are hand-making your items, you are the manufacturer.

Is DDU (duties unpaid) no longer available with Chit Chats?

• Chit Chats will continue to offer DDU options such as Chit Chats International Tracked, and Chit Chats Canada Post Tracked Packet USA / Expedited Parcel USA, however availability of the postal services will remain until notification by the Secretary to the President.
  • Duties applicable
  • Canada Post options will be at your own discretion as we have seen some shipments with the country of origin of China being returned with no reason. There is confusion between CBP, USPS and Canada Post on who will collect duties. 

For Chit Chats Edge and Chit Chats Select – is this a postal or non-postal service?

• Due to our method of entry into the US, both Chit Chats U.S. Edge and U.S. Select are non-postal services. Other postages partnered with Canada Post and PostNL follow under postal services.

If we pay for DDP does that mean we won’t be hit with the $200 ad valorem?

• Correct, our DDP services are considered to be non-postal. You will not be required to pay the $200 ad valorem fee, however you will be expected to pay a tariff fee based on the item(s) declared.

If I sell unique vintage items can they enter the US duty free under CUSMA if they are made in Canada or the US? 

• Vintage items of Canada origin may be duty exempt, however we advise proper research is done to ensure that your respective items follow under CUSMA. Vintage items of U.S. origin will be eligible to enter the U.S. duty free.

I sell antiques and vintage. Many of these things are unmarked as to the country of origin. Some I know where they came from but others I have only a general idea (i.e. Asia, Europe) In terms of Manufacturer information I usually have no information and many of the manufacturers are long out of business. How can I ship these items?

• We do not advise shipping vintage related products if there is no clear country of origin marking and/or if there is a lack of manufacturer information. If manufacturer information cannot be provided, you can alternatively consider our DDU (duties unpaid) options. At this time, we currently do not have an estimate on when the service will be available until, however this service would be most suitable in the event manufacturer information cannot be provided. Only country of origin and a valid HTS will be required.

What is CUSMA? 

• CUSMA, also known as the Canada-United States-Mexico Agreement, is a free trade agreement that replaced NAFTA in July 2020.

How do I know if my products fall under CUSMA?

• You can tell if your item falls under CUSMA by checking the HTS Code at https://hts.usitc.gov/, and looking for the ‘S’ under the Special Rate column.

Will I need to pay duties if my product falls under CUSMA? 

• You generally do not have to pay import duties when trading between Canada, the U.S., and Mexico. However there are some conditions:
  • The product must “originate” under CUSMA rules which means your product meets the Rules of Origin — it was made or transformed enough in one of the CUSMA countries.
  • A valid certificate of origin must be provided – we are confirming with our customs broker on how this can be provided and submitted 
  • Other charges may still apply. Even if duties are waived, you may still need to pay: taxes, customs fees or processing fees, brokerage fees. These are separate from import duties and depend on the country.

CUSMA Origin Declaration form

• We are working with our customs broker to determine how this form will be used and submitted. Stay tuned for more updates.

If I ship with USPS Media Mail will this still be available? 

• USPS Media Mail will remain available for Chit Chats clients after Aug. 29th, however only through our DDP (duties paid) option. The country of origin, valid HTS code, and manufacturer information must be declared in order to obtain rates. 

I ship books with USPS Media Mail that are manufactured in the US – will I still be able to ship with Media Mail? Do I need to provide manufacturer information as I have no way of getting this? 

• US-manufactured books are fine to ship via Media Mail after Aug. 29th. You will be required to enter a Country of origin, valid HTS, and manufacturer information in order to obtain rates.
• In order to have access to our DDP (duties paid) options, you will be required to provide manufacturer information. If it cannot be provided, our DDU (duties unpaid) options can be considered as an alternative as they currently only require COO and a valid HTS code.

For tariff purposes. How to take advantage of IEEPA exemptions (apparently under HTSUS Chapter 49) so that we can still send books etc to the US without tariffs? 

• Regarding books, the respective HTS code is dependent on the nature of the item (textbook, paperback novel, children’s picture book, etc.).
• Depending on the HTS code associated with the book-related item, it may be exempt from the base duty rate. In addition, we have confirmed that they are exempt from blanket (aka reciprocal) tariffs as well. There may be additional duties depending on the country of origin, refer to the HTS website to confirm.

Will I need to provide a manufacturer address for books when I don’t have it?

• To access DDP (duties paid) postage options you are required to provide manufacturer information. If it cannot be provided our DDU options can be an alternative as you only require the country of origin and a valid HTS code.