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Canada issues updated China surtax remission order

Date of publication: February 13th, 2025
As of October 1, 2024 Canada began to impose a 100% surtax on all electric vehicles originating from China. As of October 22, 2024, Canada imposed a 25% surtax on imports of steel and aluminum goods originating in China. These measures were implemented, “to protect Canada’s workers and investments in these sectors from China’s unfair trade policies and to prevent trade diversion resulting from recent actions taken by Canadian trading partners.” The Canadian measures were designed to align with similar US measures.
Surtax relief was made available for some Canadian businesses. Remission of surtaxes allows eligible businesses to avoid the adverse impact of surtaxes and to make supply chain adjustments in specific and exceptional circumstances.
The Canada Border Services Agency (CBSA) has issued a notice regarding the China Surtax Remission Order (2025), which allows for the relief of surtaxes paid or payable on certain goods imported from China. The order is effective as of January 31, 2025. This updated Customs Notice 25-05, issued February 4, 2025, clarifies accounting details related to adjustments for non-commercial goods.

Eligible goods

Remission is granted for the following goods listed in the China Surtax Remission Order (2025), SOR-2025-12, under the following conditions:
  1. in the case of a good listed in Schedule 1, it is imported into Canada during the period beginning on October 22, 2024 and ending on December 31, 2025;
  2. in the case of a good referred to in column 3 of Schedule 2 that item classified under the tariff item listed in column 2, it is imported into Canada by an importer listed in column 1 during the period specified in column 4, and subject to any other applicable condition listed in column 5;
  3. no other claim for relief of the surtax has been granted under the Customs Tariff in respect of the good;
  4. the good is not subsequently exported to the United States in the same condition in which it was imported; and
  5. the importer makes a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation.

How to apply

To obtain relief, importers must:
  • Enter a special authorization code on the Commercial Accounting Declaration (CAD) form.
  • Provide relevant documents, such as a copy of the CAD, bill of lading, and sales invoice.

Special authorization codes

Different codes are required for different types of goods and import periods. The codes are:
  • 25-054A for goods listed in Schedule 1.
  • 25-054B, 25-054C, 25-054D, 25-054E, 25-054F, and 25-054G for goods listed in Schedule 2, depending on the import period.

Corrections and adjustments

Importers can submit corrections or adjustments to claim remission if it was not claimed on the original CAD. Corrections can be made up to the payment due date, while adjustments can be made after the payment due date.

Non-commercial goods

For non-commercial goods, adjustments cannot be submitted through the CARM Client Portal and must be made through Form B2G.

Examinations and verifications

Imported goods may be subject to examination and post-release verification to ensure compliance with tariff classification, valuation, origin, and other provisions. Non-compliance may result in penalties, interest, and surtaxes.

Additional information

Importers can request advance rulings for commercial importations to ensure predictability and certainty on how goods are to be accounted for. Further information is available through the CBSA's memoranda and website.
Recognizing the importance of these changes for our clients, we have already made them available on ONESOURCE Global Trade Content. This update was loaded into OSGT Content as CACNRELIEF - Canada - China Relief of surtaxes in respect of eligible goods
  • Chapters Included: 72,73,76, 87
  • HS Numbers Affected: 192 Total
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