9 mins read

Shipping Compliance 101(2025): How Sellers Can Avoid Costly Mistakes in Canada and the US

RAHEEL LADAK

RAHEEL LADAK

July 24, 2025
Shipping Compliance

If you're running an eCommerce business, shipping is one of the biggest touchpoints between you and your customer. But shipping isn't just about moving boxes. It also means navigating complex rules and regulations, especially if you're shipping large volumes, cross-border orders, or shipments that can be categorized as hazmat, restricted or regulated. 

Sellers across Canada and the US often overlook compliance until something goes wrong. Maybe a shipment gets flagged at customs. Maybe your package is returned because it wasn’t labeled correctly. Or worse, you’re fined for not meeting hazardous material regulations you didn’t even know existed.

Let’s help you avoid that. This guide will walk you through what shipping compliance means, where sellers typically get tripped up, and how eShipper can help you stay compliant without slowing down your business.

What is Shipping Compliance?

Shipping compliance means adhering to all laws, regulations, and standards governing the transportation of goods across borders and within countries. This includes correctly classifying products, providing accurate paperwork, using approved packaging and labels, and following safety and environmental protocols. Compliance helps prevent costly delays, fines, and damage to your reputation.

Understanding shipping compliance is essential for every seller, whether you ship small parcels or large freight loads, hazardous materials, or standard consumer goods. The complexity can vary, but getting it right safeguards your supply chain and keeps customers happy.

Why Should You Be Aware of Shipping Compliance as a Seller

Whether you sell wellness supplements, cleaning products, or lithium-powered electronics, compliance is already a part of your business. You may not think about it until a carrier refuses your shipment or a customer complains about delays, but behind every successful delivery is a stack of documentation, standards, and approvals that made it possible.

Shipping compliance means following all local, national, and international regulations when transporting goods.

That includes:

  • Providing the correct documentation
  • Using approved packaging and labeling
  • Following country-specific rules for hazardous materials
  • Respecting environmental and safety protocols
  • Classifying your products correctly (especially for duties and taxes)

And the risks? They’re real. Non-compliance can lead to:

  • Shipment delays or customs holds
  • Legal fines or carrier bans
  • Loss of customer trust
  • Additional costs in re-shipping or re-labeling

Customs penalties can range from a few hundred to over $10,000 per shipment, depending on the violation severity. 

If you’re shipping from Toronto to New York, or Vancouver to Texas, these rules apply on both sides of the border. The bigger your operation, the more it matters.

Non-compliance impacts more than just timing. When shipments are delayed or returned, it can lead to extra costs for re-shipping and fines that quickly add up. Beyond the financial side, these issues can affect your customers’ experience and trust in your brand. Staying compliant helps you avoid unexpected expenses and keeps your delivery process running smoothly, which is essential for maintaining strong customer relationships and healthy profit margins.

Common Compliance Pitfalls That Catch Sellers Off Guard

Common Compliance Pitfalls

You might think compliance is just for enterprises or freight carriers. But even small online sellers run into problems when they skip the details. 

Here are some of the most common issues we’ve seen:

  • Mistake - Missing or Inaccurate Paperwork

If your product description doesn’t match your invoice, or your HS code is off by even one digit, your shipment can be held at customs. For example, a Montreal-based seller shipping plant-based skincare products to California recently had three pallets delayed for over a week because their commercial invoice lacked a country-of-origin declaration.

  • Mistake - Wrong Product Classification

HS codes (Harmonized System codes) decide how your product is taxed and treated by customs. A furniture seller in Alberta misclassified a modular sofa as home decor instead of a finished good. That mistake triggered an unexpected 11% duty charge at the US border.

  • Mistake - Hazardous Goods Sent Without Proper Labels

Shipping batteries, aerosols, or industrial supplies? These items may be considered hazardous. A cleaning product distributor in Chicago had an entire skid returned because the UN labels for corrosive liquids were missing. That shipment cost them $800 to retrieve and re-send.

Studies from the U.S. DOT PHMSA shows that nearly 40% of hazardous materials shipments are rejected or returned due to labeling or packaging errors, underscoring the importance of accurate UN labels and proper handling. 

  • Mistake - Shipping Through Restricted Routes Without Compliance

If your shipments travel through marine environments or protected zones, like the Great Lakes or coastal ports, there may be environmental restrictions. A seller using a third-party carrier to ship bulk orders from Halifax to Boston found out the hard way when their freight was delayed due to unmet EPA compliance checks.

Compliance Areas Every Seller Should Understand

Let’s break down the main compliance types that matter to sellers shipping within or between Canada and the US:

Chemical Shipping Compliance

If you ship detergents, skincare, or any chemical-based products, you need to follow Transport Canada’s TDG regulations or the US DOT’s HAZMAT rules. This means proper classification, Material Safety Data Sheets (MSDS), and specialized packaging.

If you are a seller, then you must remember that If your product contains alcohol, ammonia, or acids, even in small amounts, it likely qualifies as a regulated chemical. Don’t guess. Always verify the classification.

Pro Tip: Always consult the latest TDG and DOT hazardous materials lists before shipping. If uncertain about classification, seek advice from certified HAZMAT professionals to avoid costly mistakes.

Hazardous Material Shipping Compliance

Items like power banks, paint, or certain electronics fall under HAZMAT rules. You'll need UN-certified packaging, correct hazard labels, and carrier approval. Training is often mandatory.

For instance, a B2B electronics brand in Ontario now uses eShipper to manage their lithium-ion battery shipments, after multiple rejected loads during peak season. 

With eShipper’s HAZMAT support, they’ve reduced their returns to a negligible number.

Pro Tip: Train your staff regularly on hazardous shipping protocols and keep packaging materials stocked with UN-certified labels to prevent last-minute delays.

Document of Compliance

For sea freight or large shipments, a Document of Compliance may be required to certify the shipment meets international safety and handling regulations. This is standard when exporting heavy machinery or industrial goods.

Pro Tip: For sea freight, obtain your Document of Compliance early in the shipping process to avoid customs bottlenecks at the destination port.

Freight Shipping Compliance

Shipping large orders via LTL or FTL? You must meet carrier guidelines around weight, securing goods, and packaging standards. You’ll also need to ensure your cargo is insured and meets size limits for cross-border transit.

As a real-world example, a retailer shipping gym equipment from Calgary to Michigan saw delays after exceeding axle weight limits for their US-bound trailer. 

With eShipper, they now pre-screen every load using our freight audit tools.

Pro Tip: Use freight audit tools to pre-screen your shipments for weight and size limits. This prevents surprise surcharges and ensures timely border crossings.

Ship Route Environmental Compliance

If your freight passes through regions governed by environmental policies, such as Ontario’s Great Lakes zones or US EPA coastal routes, you may need to use approved carriers with clean emissions certifications.

Pro Tip: Choose carriers with clean emissions certifications for shipments crossing sensitive environmental zones to comply with EPA or Canadian environmental policies.

Shipping Compliance Checklist for Sellers in Canada & the U.S.

  • Verify accurate product classification and HS codes
  • Ensure all shipment documentation matches product details (invoice, country of origin, etc.)
  • Confirm packaging meets TDG (Canada) and DOT (U.S.) hazardous materials standards
  • Label hazardous goods with UN labels and hazard warnings correctly
  • Obtain carrier approval for HAZMAT shipments
  • Check for required Documents of Compliance on large freight and sea shipments
  • Ensure cargo weight, size, and securing meet carrier guidelines for LTL/FTL
  • Confirm shipments do not violate environmental or restricted route policies
  • Maintain updated Material Safety Data Sheets (MSDS) for chemicals and hazardous materials
  • Stay informed of regulatory updates on customs, HAZMAT, and environmental standards
  • Utilize a pre-vetted carrier network compliant with Canadian and U.S. laws
  • Keep copies of all compliance paperwork for audits and insurance claims


How eShipper Helps Sellers Stay Compliant and Stress-Free

We know compliance isn’t the most exciting part of your business. But it can make or break your delivery reliability and profit margins. That’s why eShipper gives you built-in tools, checklists, and expert support to keep your shipments compliant without extra admin work.

Here’s how we help:

Automated Compliance Checks

Our platform flags missing documents, checks for HAZMAT classification, and recommends carrier-approved packaging options.

Pre-Vetted Carrier Network

All our carriers meet Canadian and US regulatory standards. That means you don’t have to second-guess if your shipment meets weight, safety, or customs requirements.

Expert Support for Hazardous and Regulated Goods

From batteries to chemical samples, we provide packaging advice, labeling guidelines, and documentation templates so your shipment never gets rejected for technicalities.

Must-Have Compliance Checklists for Sellers

These are the essential compliance checklists every seller should have

Conclusion: Turn Compliance into an Advantage

Shipping compliance isn’t just about avoiding problems. It’s about protecting your brand, improving delivery rates, and building customer trust. Whether you're a small eCommerce shop shipping candles from Quebec or a large supplier exporting machinery from Texas, staying compliant helps you stay competitive.

With eShipper, you get more than just shipping tools. You get a logistics partner who understands the rules, catches the risks, and helps your business keep moving forward.

FAQ

 What is the first step to ensure shipping compliance?

Start with accurate product classification. Your HS code, item description, and country of origin must align across all paperwork.

How do I know if my item is considered hazardous?

Look at the product’s ingredients or battery types. If unsure, check Transport Canada or the US DOT website—or ask eShipper’s support team.

Do I need compliance documentation for freight shipping?

Yes. For any LTL or FTL shipments, proper packaging, labeling, and weight documentation is required. A freight audit through eShipper can help.

How often do compliance rules change?

Some rules, like customs procedures, change annually. Others, such as HAZMAT and environmental protocols, update more frequently. eShipper keeps your process aligned with the latest updates.





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