Canada Announces Tariff Remission Process for Chinese Imports

October 22, 2024. We would like to inform you about an important update from the Department of Finance Canada regarding the remission of surtaxes on certain goods imported from China. As of October 18, 2024, the Canadian government has launched a process to help businesses seeking relief from surtaxes on specific Chinese imports, including:

• 100% surtax on electric vehicles (EVs) made in China (effective October 1, 2024)
• 25% surtax on steel and aluminum products from China (effective October 22, 2024)
• Potential surtaxes on key manufacturing products, including batteries, semiconductors, solar panels, and critical minerals

Canadian businesses can now request relief from these surtaxes under specific and exceptional circumstances, such as:

1. When goods cannot be sourced domestically or from non-Chinese suppliers.
2. When pre-existing contracts (prior to August 26, 2024) require the use of Chinese inputs.
3. Other exceptional cases that could significantly impact the Canadian economy.

Remission will not be granted for goods intended for resale in the same condition to the United States. Important Remission Information: The federal government will consider the appropriate duration of remission, with the intent to provide it on a transitional basis in most cases, as supply chains adjust. Remission may also be applied retroactively to the date of implementation of the surtaxes. If the government imposes additional surtaxes on other goods, such as critical manufacturing sector products, the remission process will also be made available for those goods. Deadlines and Contact Information:

• Priority submissions for remission requests must be made before November 8, 2024.
• Requests submitted after this date will be processed subsequently.

Businesses can submit remission requests and inquiries to remissions-remises@fin.gc.ca. Further details are available in the Public Notice for Remission. The remission process is designed to provide temporary relief as Canadian industries adjust their supply chains. It offers Canadian businesses a path to seek refunds on surtaxes already paid, where eligible. Further Information: The Canadian government is committed to protecting Canadian workers and industries from unfair trade practices, particularly those from China, by leveling the playing field through these tariffs. For more details, please refer to the official Public Notice for Remission or contact Buckland for support at clientsupportca@buckland.com.