Reduced Fuel Excise Tax Rates Will Apply Beginning February 1, 2027
The Canada Border Services Agency (CBSA) has updated Customs Notice 26-11 following the Government of Canada’s announcement extending the temporary suspension of the federal fuel excise tax.
The suspension, which was previously scheduled to end on September 7, 2026, will now remain in effect through January 31, 2027.
The measure applies to certain imported fuels, including:
- Unleaded gasoline
- Unleaded aviation gasoline
- Diesel fuel
- Aviation fuel
- Leaded aviation gasoline
Updated Timeline
The federal fuel excise tax will continue to be applied at a rate of 0 cents per litre through January 31, 2027.
Following the temporary suspension:
- February 1 through March 31, 2027: 50% of the regular federal fuel excise tax rates will apply
- April 1, 2027: Regular federal fuel excise tax rates will be fully reinstated
The original suspension took effect on April 20, 2026 for unleaded gasoline, unleaded aviation gasoline, diesel fuel, and aviation fuel. The measure was subsequently extended to leaded aviation gasoline, also effective retroactively to April 20, 2026.
Action Required in CARM
To receive the temporary federal fuel excise tax exemption on eligible imported fuels, Trade Chain Partners must enter:
Excise Exemption Code F00
when completing the Commercial Accounting Declaration (CAD) in the CBSA Assessment and Revenue Management (CARM) system.
Importers should ensure that the appropriate exemption code is included when accounting for eligible fuel imports to receive the applicable 0-cent-per-litre excise tax rate.
What Importers Should Know
Companies importing eligible fuel products into Canada should:
- Continue using Excise Exemption Code F00 on applicable CADs through January 31, 2027
- Ensure the imported fuel qualifies for the temporary exemption
- Prepare for the return of 50% of the regular excise tax rate beginning February 1, 2027
- Account for the full reinstatement of regular federal fuel excise tax rates beginning April 1, 2027
- Review their landed-cost and pricing calculations to account for the upcoming changes in excise tax rates
How Buckland Can Help
Buckland can assist importers in understanding the customs accounting requirements associated with the temporary fuel excise tax suspension and help support accurate declarations in CARM.
If you have questions about how this change may affect your imports or customs declarations, please contact your Buckland representative.
Source:
Customs Notice 26-11: Temporary suspension of the federal fuel excise tax