Low Value Shipment (LVS) (Customs Glossary)

🔖 This article is part of the Customs Glossary Guide

Low Value Shipment (LVS) Program

A CBSA initiative to streamline customs clearance for low-value commercial goods entering Canada.

Type: Customs Program Region: Canada (CBSA)

Overview

A usual shipment of boxes found in a Courier LVS shipment

The Low Value Shipment (LVS) program, administered by the Canada Border Services Agency (CBSA), is an initiative aimed at streamlining the customs clearance process for low-value shipments entering Canada. Under this program, eligible shipments with a declared value below a specified threshold can benefit from simplified customs procedures, leading to faster and more cost-effective cross-border trade.

This program is essential for the Courier Low Value Shipment (CLVS) stream, reducing administrative burdens and costs for importers and couriers.

Program Goal: To facilitate the rapid release of goods while maintaining border security and revenue collection, specifically targeting the high-volume e-commerce and courier sectors.

What is the LVS Program?

The Low Value Shipment (LVS) program is a facilitative program introduced by the CBSA to expedite the customs clearance process. It allows for the release of goods based on minimal documentation and allows for the accounting of duties and taxes after the goods have been released, often on a consolidated monthly basis for approved participants.

Common Usage Scenarios

The following scenarios illustrate how the LVS program facilitates cross-border trade:

Scenario	Application
E-commerce & Online Retail (B2C)	Scenario: A business in the United States sells low-value goods (e.g., clothing, electronics) to Canadian customers via an online platform. Usage: The carrier utilizes the LVS program to clear these packages quickly in bulk, ensuring faster delivery times to the end consumer.
SME Imports (B2B)	Scenario: A small Canadian manufacturer imports low-value parts and components from international suppliers. Usage: The manufacturer leverages the LVS program (often through a courier) to simplify customs procedures, reducing the administrative cost per package for frequent, small shipments.
International Couriers (Logistics)	Scenario: An international courier company handles thousands of small packages entering Canada daily. Usage: The courier participates in the CLVS program, allowing them to present consolidated data to CBSA for rapid release at the border or an inland sufferance warehouse.

Program Requirements

To take advantage of the Low Value Shipment program, specific criteria must be met regarding value, documentation, and tax compliance.

• Eligible Shipment Value: The total value of the goods must fall below the specified threshold set by CBSA (currently generally $3,300 CAD for commercial goods under the CLVS program). This threshold is subject to change based on trade agreements (like CUSMA/USMCA).
• Simplified Documentation: Businesses or couriers must submit a simplified customs declaration. For the CLVS program, this involves specific cargo and release data sets provided to CBSA prior to arrival.
• GST/HST Compliance: While customs procedures are simplified, the obligation to pay taxes remains. Importers must ensure compliance with Canadian tax regulations. Goods and Services Tax (GST) or Harmonized Sales Tax (HST) typically applies depending on the province of destination.

Usage in BorderConnect

For highway carriers using BorderConnect ACI eManifest software:

• Highway Carriers: While the LVS program is primarily for couriers, highway carriers often transport these goods. In ACI eManifest, these loads are typically reported as In Bond shipments moving to a courier's bonded warehouse (Sufferance Warehouse).
• Consolidated Cargo: If a highway carrier is transporting a trailer full of LVS packages for a courier, they may declare a single In Bond cargo for the "Courier Bags" or "Consolidated Courier Shipment," identifying the courier as the consignee.
• Clearance: The actual LVS clearance ("release") is handled by the courier company and CBSA at the destination warehouse, not by the highway driver at the frontier.

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