Canada Issues U.S. Surtax Remission Order (Motor Vehicles 2026)

Trade Update • April 12, 2026

Key Points

• Applies to eligible U.S.-origin motor vehicles imported from April 9, 2026 to April 8, 2027
• Provides relief from the 25% surtax under the 2025 motor vehicle surtax order
• Only importers listed in the official schedule qualify for remission
• Importers must meet reporting, documentation, and manufacturing requirements
• Claims must use CAD filing with special authorization code 26-0302

T​​​​​​​​​he United States Surtax Remission Order (Motor Vehicles 2026), published in the Canada Gazette, on April 8, 2026, renews Canada’s relief framework for certain automakers affected by the 25% surtax on U.S.-origin vehicles. The order extends the remission system for one additional year, from April 9, 2026 to April 8, 2027. It applies only to eligible importers named in the official schedule and covers imports within a set one-year period. The goal is to reduce the financial impact on qualifying businesses while maintaining compliance with trade and manufacturing conditions.

Application Conditions

• Remission applies to motor vehicles listed under Schedule 1 of the United States Surtax Order (Motor Vehicles 2025) when all conditions below are met:
  • Vehicles are imported within the period from April 9, 2026 to April 8, 2027 and remain subject to the applicable surtax
  • Importers must have a business number included in the Remission Order schedule
  • A remission claim must be submitted to the Minister of Public Safety and Emergency Preparedness within two years of importation
  • Importers must provide any requested information to the Minister of Public Safety and Emergency Preparedness and the Minister of Industry related to:
    • Importing and selling U.S.-manufactured motor vehicles in Canada
    • Manufacturing activities within Canada
    • Canadian-origin inputs used in vehicle production
  • If manufacturing was reduced or paused due to factory retooling, production must resume in Canada under conditions set by the Ministers
  • If the importer was not previously manufacturing vehicles in Canada when the order came into force, manufacturing must begin under requirements established by the Ministers
  • The same motor vehicle must not have received any other surtax relief under the Customs Tariff

• All claims must include supporting documentation confirming eligibility, including the Commercial Accounting Document (CAD), purchase orders, commercial invoices, Canada customs invoices, bills of lading, waybills, and any other relevant records showing compliance with the remission conditions.
• Remission is limited to the maximum number of motor vehicles assigned to each importer as set out in Column 2 of the Remission Order schedule.
• Claims must also include documents confirming that the goods were imported within the eligible period (April 9, 2026 to April 8, 2027) and are subject to the applicable surtax.

How Remission Is Claimed and Processed

• Claim must be submitted within two years of importation
• Claims submitted to the Minister of Public Safety and Emergency Preparedness
• For commercial imports, use the Commercial Accounting Declaration (CAD) system
• Enter special authorization code 26-0302 in the Special Authority OIC field
• Follow guidance in:
  • CBSA Memorandum D17-1-10
  • CBSA Memorandum D8-4-1

Corrections and Adjustments

• If remission was not claimed at import:
  • Submit correction via CARM Client Portal (CCP) or EDI/API
  • Enter the relevant special authority code in the CAD system
• Use CBSA adjustment processes:
  • Corrections before CAD payment due date follow CBSA correction procedures
  • Post-payment adjustments follow CBSA adjustment procedures

Compliance and Review

The Canada Border Services Agency may inspect shipments at the time of import and after release. Reviews cover origin, classification, and valuation. If rules are not followed, surtaxes, penalties, and interest may apply. Importers can also request advance rulings to confirm classification and origin before importing.

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.