Low Value Shipment (LVS) (Customs Glossary)

This article is part of the Customs Glossary Guide

A usual shipment of boxes found in a Courier LVS shipment

A Low Value Shipment (LVS) is a shipment imported into Canada with a value for duty not exceeding the Canada Border Services Agency (CBSA) low-value threshold. In the courier stream, the Courier Low Value Shipment (CLVS) Program lets authorized couriers use simplified reporting, release, and accounting procedures for eligible goods.

The term is commonly used around courier and e-commerce freight, but it should not be treated as a general shortcut for every small shipment. CLVS applies to qualifying goods imported by authorized couriers and handled under CBSA's CLVS procedures.

CBSA has placed a moratorium on applications for participation in the Courier Low Value Shipment Program effective June 3, 2019, until further notice. No further applications to the CLVS Program are being considered, and the program remains in effect for existing participants only.

Video

What is the Courier Low Value Shipment (CLVS) program?

LVS threshold

CBSA defines a low-value shipment as goods with an estimated value for duty not exceeding CAD $3,300. CBSA's CUSMA low-value shipment guidance confirms that qualified shipments not exceeding CAD $3,300 are eligible for importation by approved participants within the CLVS Program.

The current CAD $3,300 threshold came into effect with CUSMA-related regulatory changes on July 1, 2020. Shipments over the threshold cannot be divided into smaller shipments to qualify for importation through the CLVS Program.

For CLVS Program release, the shipment must generally:

• have an estimated value for duty not exceeding CAD $3,300;
• be imported by an authorized courier participant;
• not contain goods that are prohibited, controlled, or regulated by an Act of Parliament or related regulation; and
• be released at a CBSA office designated for CLVS purposes.

Duties and taxes

LVS does not automatically mean duty-free or tax-free. CBSA's CUSMA guidance explains that courier shipments imported from countries other than the U.S. or Mexico are duty- and tax-free only when valued up to CAD $20, while shipments from the U.S. or Mexico are duty- and tax-free up to CAD $40 and duty-free but taxable from above CAD $40 to CAD $150.

For courier shipments above those de minimis or duty-relief levels, duties and taxes may still apply even if the shipment qualifies for the CLVS Program. The CLVS Program simplifies the reporting, release, and accounting process; it does not remove normal duty and tax obligations unless a separate remission, de minimis, or free trade rule applies.

How CLVS works

For eligible courier shipments, the exporter provides the courier with shipment details such as the value, country of origin, and detailed goods description. Only eligible shipments are processed through the CLVS Program, and border services officers review the information for each shipment before release.

CBSA may release compliant CLVS shipments to the courier for delivery, or may examine the goods to confirm the declaration and eligibility to enter Canada. Couriers participating in the CLVS Program provide a summarized cargo/release list containing transactional shipment information for all qualifying shipments on the conveyance.

Commercial goods released under CLVS are accounted for through the applicable CBSA accounting process. CBSA guidance for commercial courier imports explains that accounting is presented on a monthly consolidated Commercial Accounting Declaration (CAD), Type F, and that the courier must provide the importer or broker with a receipt containing transaction details, duties and taxes paid, and the unique shipment identification number from the cargo/release list.

ACI eManifest considerations

Eligible CLVS shipments can be reported on a cargo/release list and do not require a standard ACI/eManifest cargo transmission. CBSA's importation and transportation policy distinguishes eligible CLVS shipments from non-CLVS cargo and mixed loads.

This does not mean every low-value load is exempt from ACI eManifest. CBSA guidance distinguishes between:

• eligible CLVS shipments, which may be reported on the courier's cargo/release list;
• mixed shipments of high-value goods and CLVS, which are not exempt from ACI/eManifest cargo transmission requirements; and
• low-value shipments that are ineligible for CLVS, which must be reported through ACI/eManifest under the normal reporting rules.

Highway carriers moving courier freight should follow the instructions supplied by the authorized courier, broker, or CBSA. If the load is moving under the CLVS Program, the carrier should not create normal ACI cargo simply because the goods are low value. If the load includes non-CLVS cargo, high-value cargo, or cargo removed from the CLVS process before arrival, normal ACI/eManifest reporting may be required.

Video Tutorial

How to create an ACI eManifest with a Courier LVS exemption.

Sufferance warehouse movement

CLVS shipments are destined to a sufferance warehouse approved by CBSA for the participant. CBSA Memorandum D17-4-0 explains that CLVS shipments move in bond to the destination sufferance warehouse shown on the cargo/release list for release and examination purposes.

Non-CLVS shipments on the same conveyance require individual Cargo Control Numbers and must be transported to the same sufferance warehouse for deconsolidation. A Cargo Control Number uniquely identifies cargo detailed on a cargo submission, so non-CLVS freight must still be controlled separately from the CLVS cargo/release list process.

LVS vs courier remission

The CAD $3,300 LVS threshold is not the same as Canada's courier remission or de minimis thresholds. The LVS threshold controls eligibility for simplified CLVS processing, while the remission thresholds determine whether duties and taxes may be waived for qualifying courier shipments.

For example, a courier shipment valued at CAD $2,000 may qualify as LVS processing if all CLVS conditions are met, but it is still above the ordinary de minimis and duty-relief amounts and may be subject to duties and taxes. Carriers should not describe a shipment as "duty-free" simply because it is an LVS shipment.

BorderConnect considerations

In BorderConnect, LVS is usually relevant because it determines whether the load is being handled under the authorized courier's CLVS process or under normal ACI reporting. A carrier should use the shipment type, cargo exception, or manifest process provided by the courier, broker, or CBSA.

If the load is entirely eligible CLVS freight moving under an authorized courier's cargo/release list, the carrier should follow the courier's CLVS instructions and avoid creating normal ACI cargo records unless instructed. If the truck includes regular commercial freight, high-value freight, or ineligible goods, those shipments may need their own ACI cargo reporting and Cargo Control Numbers.

Common mistakes

• Treating every shipment under CAD $3,300 as CLVS.
• Assuming LVS means duty-free or tax-free.
• Splitting a shipment over CAD $3,300 into smaller shipments to qualify.
• Reporting CLVS cargo as regular ACI cargo when the authorized courier is using the cargo/release list process.
• Leaving non-CLVS freight off the ACI eManifest because it is on the same truck as CLVS freight.
• Forgetting that prohibited, controlled, or regulated goods may be ineligible for CLVS.
• Sending non-CLVS cargo without individual Cargo Control Numbers.

Related terms

• Courier LVS
• Cargo Control Number
• Sufferance Warehouse
• ACI eManifest
• PARS Shipment Type
• In Bond Shipment Type
• Customs Glossary Guide