Canada’s Remission Process on Surtaxes
Trade Update • Oct 22, 2024
he Canadian federal government has initiated a new remission process to support Canadian businesses facing recently imposed surtaxes on imports from China, including electric vehicles (EVs), steel, and aluminum. This process is designed to provide relief from the payment of these surtaxes or offer refunds on already paid surtaxes, helping Canadian industries adapt their supply chains in response to these new measures.
Recent Tariffs on Chinese Imports
To counter assessed unfair competition and protect Canadian workers and businesses, the federal government has implemented new tariffs (surtaxes) on certain Chinese imports:
- A 100 per cent surtax on all Chinese-made EVs, effective October 1, 2024;
- A 25 per cent surtax on imports of steel and aluminum products from China, effective October 22, 2024; and,
- Potential surtaxes on critical manufacturing sector products, particularly batteries and battery parts, semiconductors, solar panels, and critical minerals, which the government consulted on from September 10, 2024, to October 10, 2024
Circumstances for Remission Eligibility
To support Canadian businesses in adapting to these tariffs, the government has launched a remission process for:
- Electric Vehicles (EVs)
- Steel and Aluminum Products
- Potential Future Surtaxed Products
The government will consider remission requests under the following circumstances:
- Limited Sourcing Options: Goods used as inputs or their substitutes cannot be sourced domestically or from non-Chinese sources.
- Pre-existing Contracts: Contracts made before August 26, 2024, may require Canadian businesses to use Chinese inputs for a specified time.
- Other Exceptional Situations: Case-by-case evaluation will address significant adverse impacts on the Canadian economy.
Note: Remission will not be granted for goods intended for resale in the same condition to the United States. If the government imposes surtaxes on other goods, such as critical manufacturing products, the remission process will be extended to include these goods as well. The remission will be transitional, primarily to help businesses adjust their supply chains. In certain cases, it may apply retroactively from the date of surtax implementation.
Remission Process for Surtaxes
Remission will allow businesses to receive relief from surtaxes or refunds of already paid surtaxes under specific circumstances. This measure aims to give Canadian industry time to adjust its supply chains while maintaining fair competition.
Submissions
Businesses can submit remission requests and inquiries to remissions-remises@fin.gc.ca. Requests submitted before November 8, 2024, will receive priority processing, with others to be processed subsequently. For more details, refer to the Public Notice for Remission.
Quote
“Today, we are taking further action to level the playing field for Canadian workers in the face of China’s unfair, non-market practices. By providing relief from surtaxes, we are helping Canadian businesses foster home-grown clean technology and electric vehicle supply chains—from critical minerals to batteries and electric vehicles. As countries around the world increasingly look for a reliable supplier of green products, Canadian workers and businesses will be front and centre in seizing the economic opportunity this demand presents.”
– The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources
How We Can Help
Our Global Trade Services team can guide you through the surtax recovery process, ensuring you maximize your refund potential. Whether you need assistance navigating the Duty Drawback Program or other surtax recovery options, we’re here to help streamline the process and secure the refunds you’re entitled to.
Contact us by email at gts@ghy.com, or by phone at 1 (800) 667-0771.
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