Report Release: Saving E-Commerce - Reforming Rules for Low-Value Shipments in the United States and Canada
- hennarennie
- Mar 10
- 2 min read
Big border security problems are arriving in small packages. FBC provides recommendations for low-value shipments to maintain business benefits while curbing the flow of illicit trade.
March 7, 2025 – The United States and Canada offer customs and duty exemptions on certain low-cost imports, facilitating the flow of goods and fueling a multibillion-dollar e-commerce marketplace. In recent years, the volume of packages shipped under low-value shipment (LVS) regulations has skyrocketed, with U.S. government estimates as high as 4 million parcels a day, representing 92 percent of shipments into the United States in 2024. As the volume of LVS imports grows, so do concerns over LVS as a back door for China to avoid tariffs, lost tax revenue, and the potential for illegal narcotics, agricultural and counterfeit goods to evade border controls.
Since U.S. President Trump took office in January 2025, escalating tariff threats and security concerns have placed LVS regulations under a spotlight, prompting a series of proposed changes that could substantially alter or suspend the rules under which low-value shipments operate. While Canadian officials have been aware of the LVS challenges, they are not as advanced as their U.S. counterparts in addressing these issues. However, the escalation of U.S. northern border security concerns may accelerate Canada’s actions. While reform is needed in both countries, care is needed to avoid jeopardizing the benefits to consumers and businesses of a vibrant e-commerce marketplace.
This new report from Future Borders Coalition outlines the growth of LVS and e-commerce, lays out key challenges and policy responses, and identifies promising areas for action. At the time of writing, trade and border policy is fluid and unpredictable. We see this as a critical opportunity to implement LVS reforms that advance both security and trade. Informed by consultations with industry and government officials, our recommendations focus on closer regulatory alignment between countries, harmonization of rules between courier and postal channels, and enhanced use of artificial intelligence and other emerging technologies
Read the report:
Great insights here on how reforming rules for low-value shipments can reshape trade and logistics. Your analysis resonates especially with those in the publishing world; after all, even small parcels from Book Publishers Services Ireland rely on clear, efficient cross-border frameworks. Thanks for highlighting this important shift in e-commerce policy.
This is such an insightful report, and it really highlights how global trade rules impact businesses of all sizes. Even a corporate gifts supplier Dubai needs to pay close attention to these regulations when shipping products abroad. The findings are very useful for anyone involved in e-commerce or cross-border gifting.
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