China Surtax Remission Order In Effect

Trade Update • Feb 25, 2025

he Canada Border Services Agency (CBSA) posted Customs Notice 25-05 to provide updated information on the China Surtax Remission Order (2025), which came into effect on January 31, 2025.

This remission order is intended to minimize the negative effects on Canadian companies and the economy of the 25% surtax payable on certain steel and aluminum goods imposed by the China Surtax Order (2024), which came into effect on October 22, 2024.

Background

To counter assessed unfair competition and protect Canadian workers and businesses, the federal government implemented 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

Framework for Remission Requests

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:

1. Limited Sourcing Options: Goods used as inputs or their substitutes cannot be sourced domestically or from non-Chinese sources.
2. Pre-existing Contracts: Contracts made before August 26, 2024, may require Canadian businesses to use Chinese inputs for a specified time.
3. Other Exceptional Situations: Case-by-case evaluation will address significant adverse impacts on the Canadian economy.

Exclusion: 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.

Update: Adjustments for non-commercial goods cannot be submitted through CARM and must be made through Form B2G, CBSA Informal Adjustment Request. For more information on non-commercial refunds please refer to Memorandum D6-2-6: Refund of Duties and Taxes on Non-Commercial Importations.

Remission Application for Surtaxes

The remission order provides relief of the surtaxes paid or payable on certain aluminum and steel goods (Sch. 1). In addition, the order grants specific businesses relief of the surtax for certain products under certain conditions and periods (Sch. 2) as follows:

• In the case of a good listed in Schedule 1, it is imported into Canada during the period beginning on October 22, 2024, and ending on December 31, 2025.

• In the case of a good referred to in column 3 of Schedule 2 that item classified under the tariff item listed in column 2, it is imported into Canada by an importer listed in column 1 during the period specified in column 4, and subject to any other applicable condition listed in column 5.

• No other claim for relief of the surtax has been granted under the Customs Tariff in respect of the good;

• The good is not subsequently exported to the United States in the same condition in which it was imported; and

• Importer makes a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation.

• Claims for relief under the China Surtax Remission Order (2025) must include all relevant documents (e.g. copy of Customs Accounting Declaration (CAD), bill of lading, sales invoice, waybill, sales contract, etc.) that demonstrate that the goods imported match the description of one of the goods described in Schedule 1 or Schedule 2 to the remission order.

Submissions

Full details on the process for requesting remission of surtaxes that apply on certain goods from China can be found here.

Businesses can submit remission requests and inquiries to remissions-remises@fin.gc.ca.

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 Today! gts@ghy.com, or call +1 (800) 667-0771.