Canada Repeals Surtax on Chinese Electric Vehicle Imports
Trade Update • February 27, 2026
Key Points
- Canada Border Services Agency (CBSA) updates Customs Notice 24-32 on Feb. 26, 2026.
- Section 3 and Schedule 1 of the China Surtax Order (2024) are repealed.
- The 100% surtax on Chinese-origin electric vehicles (EVs) will end.
- Change takes effect March 1, 2026; qualifying EV imports are no longer subject to surtax.
- Importers may adjust Commercial Accounting Declarations (CADs) and request refunds for prior surtax payments.
On February 26, 2026, the Canada Border Services Agency announced changes to the China Surtax Order (2024) impacting electric vehicles imported from China. Effective March 1, 2026, Section 3 and Schedule 1, which imposed a 100% surtax on Chinese-origin EVs, are repealed. This update removes the surtax for passenger cars, trucks, buses, and delivery vans from China, while importers are advised to update declarations and claim refunds for any previously paid surtax.
Background
The China Surtax Order (2024) was introduced in October 2024 to protect Canadian EV supply chains and workers from unfair trade practices, imposing a 100% surtax on Chinese-made electric and hybrid vehicles. The surtax applied in addition to the standard Most-Favoured-Nation (MFN) tariff of 6.1% and, as mentioned earlier, covered a wide range of EVs, including passenger cars, buses, trucks, and delivery vans.
February 26, 2026 Update
The CBSA’s Customs Notice 24-32 (paragraph 7) states the following:
“Effective March 1, 2026, the Order Amending the China Surtax Order (2024) repeals Section 3 and Schedule 1 of China Surtax Order (2024) which subjected imports of electric vehicles that originate in China to a surtax. These imports are no longer subject to a surtax.”
Surtax Repeal
- Section 3 and Schedule 1 of the China Surtax Order (2024) are removed.
- Chinese-made EVs, including electric and hybrid passenger cars, trucks, buses, and delivery vans, are exempt from the 100% surtax starting March 1, 2026.
Importer Guidance
- Adjust Commercial Accounting Declarations (CADs) via CARM Client Portal, EDI, or API as needed.
- Maintain proof of origin documentation, such as invoices, to support compliance.
- Refunds or self-adjustments for previously paid surtax can be submitted according to CBSA procedures.
Exceptions and Considerations
- Goods in transit to Canada at the time of surtax repeal are not affected.
- Certain temporary importations or returning Canadian-registered vehicles remain outside the surtax rules.
- Standard Customs Tariff rules, including duties under Chapters 98 and 99, continue to apply as relevant.
For support, contact the Canada Border Services Agency (CBSA) Border Information Service (BIS):
- Canada/USA (toll-free): 1-800-461-9999
- International: 1-204-983-3500 or 1-506-636-5064
- TTY (within Canada): 1-866-335-3237
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