Canada Extends Temporary Suspension of Federal Fuel Excise Tax to January 2027
Published Sept. 3, 2026
Key Points
- Canada extended the temporary suspension of the federal fuel excise tax through January 31, 2027.
- The federal fuel excise tax rate remains at 0 cents per litre during the suspension.
- The suspension applies to unleaded gasoline, unleaded aviation gasoline, diesel fuel, aviation fuel, and leaded aviation gasoline.
- Trade Chain Partners must use Excise Exemption Code F00 when completing a Commercial Accounting Declaration (CAD) for eligible imported fuels.
- From February 1 through March 31, 2027, the government will apply 50% of the regular federal fuel excise tax rates.
- The federal fuel excise tax will return to its full rates on April 1, 2027.
- The CBSA updated the CARM system to support the temporary suspension.
The
Canada Border Services Agency (CBSA) has updated the CBSA Assessment and Revenue Management (CARM) system to allow the temporary suspension of the federal fuel excise tax on unleaded gasoline, unleaded aviation gasoline, diesel fuel, aviation fuel, and leaded aviation gasoline. The Government of Canada announced on September 2, 2026, that the suspension would continue through January 31, 2027. Trade Chain Partners must enter the new Excise Exemption Code F00 when completing a Commercial Accounting Declaration for these imported fuels.
Federal Fuel Excise Tax Timeline
The federal fuel excise tax rate for the covered fuels will apply as follows:
- April 20, 2026, through January 31, 2027: 0 cents per litre
- February 1 through March 31, 2027: 50% of the regular federal fuel excise tax rates
- April 1, 2027: Full federal fuel excise tax rates return
The suspension originally covered unleaded gasoline, unleaded aviation gasoline, diesel fuel, and aviation fuel. On June 18, 2026, the government extended it to leaded aviation gasoline.
CARM Requires Excise Exemption Code F00
Trade Chain Partners that want to benefit from the temporary suspension must enter Excise Exemption Code F00 when completing a Commercial Accounting Declaration for the eligible imported fuels.
The CBSA has made changes to the CARM system to allow the temporary suspension to apply to these imports.
For additional information on excise codes in CARM, refer to CBSA Memorandum D18-5-1: Coding Excise and GST Exemption Codes in CARM.
Businesses may also contact the CBSA Border Information Service at 1-800-461-9999 in Canada and the U.S., or use the CBSA Client Support Contact Form.
How GHY Can Help?
GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.
By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.
Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.
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