Effective January 31, 2025, Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, issued the China Surtax Remission Order (2024) under section 115 of the Customs Tariff. This order outlines the framework and process for considering remission requests for surtaxes on specific imports from China, including:
• Electric Vehicles, effective October 1, 2024
• Steel and Aluminum, effective October 22, 2024
Framework for Remission Requests:
The Government of Canada will consider remission requests for surtaxes only under the following circumstances:
1. Input Sourcing: Where goods used as inputs, or substitutes for those goods, cannot be sourced either domestically or reasonably from non-Chinese sources.
2. Contractual Obligations: Where there are contractual requirements, existing prior to August 26, 2024, that mandate Canadian businesses to purchase Chinese inputs for their products or projects for a specified period.
3. Exceptional Circumstances: Other exceptional circumstances, considered on a case-by-case basis, that could have significant adverse impacts on the Canadian economy.
Exclusion:
Remission will not be granted for goods intended for resale in the same condition to the United States.
Farrow Trade Consulting’s Role: Farrow Trade Consulting offers guidance and assistance to importers seeking to apply for remission or recover duty paid where remission has been granted. Our expert team can help navigate the application process and ensure compliance with the outlined framework. You can reach our team via compliance.consulting@farrow.com
SOURCE: https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-05-eng.html
