Tax & Trade Blog

On January 1, 2025, Canada is set to make changes to its to unilateral tariff programs for imports under the Customs Tariff.  The changes include several beneficiary countries being graduated from the General Preferential Tariff (“GPT”) and Least Developed Country Tariff (“LDCT”) programs, and the introduction of a General Preferential Tariff Plus Program (“GPTP”) that will come into force at a later date.

Background

Canada’s customs system operates on the basis of preferential tariffs, in which countries are assigned a particular tariff treatment.  The tariff treatment assigned to a country is used (in conjunction with the HS Code) to determine the rate of duty imposed on a particular good imported into Canada from that country.

On November 25, 2024, the Canadian International Trade Tribunal (the “CITT”) issued a notice that it was beginning an expiry review in respect of certain Aluminum Extrusions originating in or exported from the People’s Republic of China (the “Subject Goods”).  On November 26, 2024, the Canada Border Services Agency (the “CBSA”) similarly gave notice of the initiation of their parallel expiry review investigation.

More details on the technical definition of the Subject Goods can be found here.

On November 25, 2024, the Canada Border Services Agency (the “CBSA”) announced that it has initiated an investigation into whether container chassis imported from Vietnam are circumventing Canada’s trade remedy measures on container chassis from China.

This marks Canada’s first anti-circumvention investigation!

What is an Anti-Circumvention Investigation

Based on recent inquiries, it appears that the Canada Border Services Agency (the “CBSA”) is currently focusing on verifying whether importers are using the correct tariff classifications when reporting importations of various spices and seasoning products.

Importers of spices and seasoning products – and their foreign producers – should take any inquiries from CBSA seriously!

On October 18, 2024, the Department of Finance launched its remission process to allow Canadian businesses to apply for relief or refund from surtaxes levied at Chinese products in an effort to level the playing field for Canadian businesses and workers.  Eligible Canadian businesses can apply to the Minister of Finance and present their plea on how the surtax policies have unduly burdened their business operations.

Businesses that request remission prior to November 8, 2024, will receive priority in application processing, while subsequent submissions will be processed thereafter in the usual course.