On 7 March 2025, the Future Borders Coalition (FBC) published a significant report: “Saving E-Commerce – Reforming Rules for Low-Value Shipments in the United States and Canada”. Behind this title lies a growing issue: low-value parcels, which enable seamless cross-border online shopping, have also become a vulnerability for security, fair trade, and public revenue.

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A Massive Flow, Mounting Risks

The low-value shipment (LVS) regulations currently allow millions of parcels to enter the United States and Canada each day without incurring duties or undergoing detailed customs checks. In 2024, an estimated 4 million parcels per day, accounting for 92 per cent of shipments to the US, were processed under these exemptions. While this has helped fuel the growth of e-commerce, it has also opened the door to illicit goods, counterfeit products, and strategies designed to evade tariffs and taxes.

The FBC report highlights growing political and security pressures on this regime, particularly since US President Trump took office in January 2025. With escalating tariff threats and security concerns, low-value shipment rules are now under intense scrutiny.

The US Leads, Canada Under Pressure

While American authorities are actively exploring reforms to tighten or even suspend LVS rules, Canada has so far been slower to act. However, with increasing concerns over northern border security, it is likely that Canada will be compelled to respond in order to avoid being seen as a weak link in North American border management.

FBC Recommendations: Balancing Security with Competitiveness

The report makes it clear: reform does not need to mean restricting e-commerce. The FBC offers a set of practical, policy-driven recommendations developed through consultations with industry and government stakeholders. These aim to modernise LVS procedures while maintaining the commercial advantages they offer:

• Closer regulatory alignment between the United States and Canada
• Harmonisation of rules across courier and postal channels
• Greater use of artificial intelligence and other emerging technologies to identify high-risk parcels

Striking the Right Balance Between Oversight and Efficiency

Today’s reality presents a paradox: the very mechanisms that have supported rapid growth in e-commerce—the de minimis threshold—now threaten its long-term sustainability. For consumers and businesses, LVS rules are a vital competitive tool. For governments, they are increasingly a security and fiscal challenge.

At MyDutyCollect, we support businesses in navigating these complex regulations by offering automated customs clearance, precise duty and tax calculation, and compliance solutions. As trade regulations evolve, having the right tools in place can make all the difference.

Get in touch with us to find out how we can assist your cross-border operations. Subscribe to our blog and visit our website and LinkedIn page for more updates. You can also contact us by sending a message to info@mydutycollect.com. We’d be delighted to hear from you.