---

CHINESE SURTAX RELIEF IMPLEMENTED

 REMISSION AVAILABLE FOR SURTAXES ON CERTAIN CHINESE GOODS

As we blogged on previously here and here, the surtaxes imposed on certain Chinese goods imported into Canada have the potential to place undue burdens on Canadian businesses relying on those products. 

The recently implemented China Surtax Remission Order (2024) (the “Order”) provides much needed remission for Canadian businesses.  Continue reading this Report for more details.

Relief Granted

Remission has been granted, but only in limited circumstances, namely:

1. The goods listed in Schedule 1 of the Order were imported into Canada between October 22, 2024 and December 31, 2025;
2. No other claim for relief from the surtaxes has been granted;
3. The goods are not subsequently exported to the United States in the same condition in which they were imported; and
4. A claim to the Minister of Public Safety and Emergency Preparedness is made within two years of the date of importation.

Schedule 2 of the order also allows for relief in incredibly specific circumstances, limited to specific importers, goods, and time periods, up to July 31, 2026.

Obtaining Relief

Remission is available for goods imported both before and after the implementation of the Order.

Importers who wish to make claims at the time of import and after the date the Order was implemented must do so as part of fulfilling their normal customs documentation requirements.  Along with maintaining their importation records, a special authorization code must be entered in the Special Authority OIC field on the Commercial Accounting Declaration (see Customs Notice 25-05 for details).

Importers who wish to receive a refund of surtaxes paid on goods imported prior to the implementation of the Order must submit the required documentation establishing that the goods are eligible for remission to the Canada Border Services Agency.

Remission Is Still Available

The Order only covers successful remission applications submitted prior to November 8^th.  The Canadian government will continue to consider applications for remission requests received November 8^th and after, and applicants should be advised of their success or rejection in due course.

The decision to grant remission is purely discretionary.  While requests are still being considered importers considering a request should keep in mind that, the more time passes from the date of the implementation of the surtaxes, the less likely requests for remission are to be granted as the surtaxes would no longer be considered a “surprise”. 

Takeaways

Remission for importers burdened by Canada’s sudden surtaxes on certain Chinese goods has been granted in limited circumstances, providing important relief from surtaxes meant to help Canadian businesses remain competitive.  Importers not already granted relief and considering requesting remission should obtain legal advice to ensure their requests are persuasive and submitted as soon as possible. 

For help with surtax and remission issues, please click here.

Download a PDF copy of this Blog here.