On October 18, 2024, the Federal Government announced a process for importers to request remission of the recently imposed surtax on electric vehicles and steel and aluminum products manufactured in China under certain exceptional circumstances.
The government is offering this relief in recognition of the potential challenges that Canadian industry faces as the result of adjusting supply chains in a timely manner. They will consider the appropriate duration of remission, with intent to provide it on a transitional basis only in most cases, as supply chains adjust and may also be applied retroactively to the date of implementation of the surtaxes.
The federal government will consider requests for remission of surtaxes to address the following circumstances:
- Situations where goods used as inputs, or substitutes for those goods, cannot be sourced either domestically or reasonably from non-Chinese sources;
- Where there are contractual requirements, existing prior to August 26, 2024, requiring Canadian businesses to purchase Chinese inputs into their products or projects for a specified period of time; and,
- Other exceptional circumstances, on a case-by-case basis, that could have significant adverse impacts on the Canadian economy.
Please refer to Canada announces tariff remission process for Canadian businesses importing certain Chinese goods for complete details.