Canada Issues Official Quota Rules for Chinese EVs (Import Permits Open March 1, 2026)
Published Feb. 27, 2026 | Updated March 2, 2026
Key Points
- Global Affairs Canada issued a notice outlining how Chinese electric vehicle (EV) imports will be managed under a quota.
- Canada issued a separate notice confirming that all covered Chinese EVs now require a shipment-specific import permit from GAC as of March 1, 2026.
- Covered EVs include passenger electric vehicles originating in China under specific tariff classifications; some non‑passenger EVs are excluded.
- Importers must be Canadian residents or OEMs, or non‑resident OEMs must appoint a Canadian agent to import.
- All covered EVs require shipment‑specific permits from Global Affairs Canada (GAC); imports without a permit are prohibited.
- Vehicles under the quota pay the standard 6.1% most‑favored‑nation tariff, replacing the previous 100% surtax that effectively blocked imports.
On February 25, 2026, Canada issued a notice to officially set out the rules and procedures for importing electric vehicles originating in China. The notice defines which vehicles are covered, who can import them, and how permits and quotas will work under the Export and Import Permits Act (EIPA). Vehicles covered by the notice must have a shipment‑specific permit issued by Global Affairs Canada (GAC). EV imports under the quota will be assessed the 6.1% most‑favored‑nation tariff, replacing the previous 100% surtax that had restricted entry.
The initial quota year runs from March 1, 2026, to February 28, 2027, with 24,500 vehicles available on a first‑come, first‑served basis in the first six months and an equal base allocation plus any unused volume in the second half.
Canada issued Customs Notice 26-05 confirming that EVs originating from China are included in the Import Control List under IEPA as of March 1, 2026. This means that all covered Chinese EVs will require a shipment-specific import permit from GAC starting on that date. The notice also lists specific Chapter 87 tariff items subject to the permit requirement, including passenger EVs and certain electric trucks
Covered Vehicles and Origin Rules
Definition of EVs
Vehicles originating in China classified under specified tariff items are subject to the quota. Electric tricycles, golf carts, and similar non‑passenger EVs are excluded and do not require a permit.
Origin Requirement
A vehicle is considered to originate in China if it was substantially manufactured there, including complete knock‑down kits assembled elsewhere.
Importer Eligibility
Canadian Status
Importers must be residents of Canada as defined under the Export and Import Permits Act and be original equipment manufacturers (OEMs) of electric vehicles.
Non‑Resident OEMs
Non‑resident OEMs may appoint a Canadian representative (e.g., agent, sales rep, legal agent) to serve as importer of record.
Quota Administration
- Quota Year: March 1 to February 28 or 29
- First Half (Mar 1 – Aug 31, 2026): 24,500 vehicles on a first‑come, first‑served basis.
- Second Half (Sep 1, 2026 – Feb 28, 2027): Same base allocation plus any unused first‑half volume; GAC will publish updated rules after consultations.
- Permit Process: GAC issues shipment‑specific permits valid up to 60 days. Permit applications may be submitted up to 30 days before expected entry.
Tariff Treatment
Quota‑eligible EVs are assessed the 6.1% most‑favored‑nation tariff, replacing the former 100% surtax that was introduced in 2024 and had effectively blocked Chinese EV imports.
On Feb. 26, 2026, the Canada Border Services Agency updated Customs Notice 24-32, repealing Section 3 and Schedule 1 of the China Surtax Order (2024). Check out our update for the full details on the Canada-China EV surtax repeal and learn how importers can adjust Commercial Accounting Declarations and request refunds for previously paid surtax.
Importer Responsibilities
Importers must:
- Apply for permits in the importer’s name with the correct commodity codes and quantities. Check out CBSA’s guide on applying for import permits.
- Cancel or amend permits with errors.
- Comply with other legislation and regulations, including Customs Border Services Agency and Transport Canada rules.
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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