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TARIFF RELIEF 101

CANADA'S REMISSION PROCESS MAY LESSEN BURDEN FOR BUSINESSES

Despite the fact that President Trump agreed to a further moratorium on his Trump Tariffs on Canadian goods until April 2, 2025, Canada’s initial round of Retaliatory Tariffs STILL remains in effect! (?)

Businesses affected by Canada’s Retaliatory Tariffs are likely seeking relief from their financial effects and the Canadian government has outlined a remission process that may provide such relief. 

Understanding what a remission order is and how one can request remission from Canadian imposed tariffs may provide businesses with a financial lifeline in the current climate of a turbulent trade war.

What is a Remission Order?

Remission orders are rare but important remedies granting partial or full relief from federally imposed taxes, such as customs duties imposed under the Customs Tariff.  The Minister of Finance can recommend remission to the Governor in Counsel under either s. 115 of the Customs Tariff or s. 23 of the Financial Administration Act.

The granting of remission is fully discretionary.

Remission Process for Canadian Retaliatory Tariffs

The Government of Canada has announced that it will consider remission requests for Canada’s Retaliatory Tariffs either in advance or after-the-fact (think refund) in two main instances:

1. To address situations where goods used as inputs cannot be sourced domestically, either on a national or regional basis, or reasonably from non-US sources.
2. To address, on a case-by-case basis, other exceptional circumstances that could have severe adverse impacts on the Canadian economy.

Assistance with the Remission Application

What goes somewhat unsaid here, is that under these criteria, remission will ONLY be considered where there are exceptional and compelling circumstances outweighing the primary rationale behind the application of Canada’s Retaliatory Tariffs.

What also goes unsaid is that experienced International Trade counsel can be useful when crafting the required application for remission and in maximizing chances of success.

Takeaways

Business affected by Canada’s Retaliatory Tariffs should evaluate their operations and consider whether Canada's special tariff remissions process might help alleviate these additional and unplanned costs.

Experienced International Trade counsel can be useful when crafting the required application for remission and in maximizing chances of success.

For help with a Canadian Remission Application, please click here.

Download a PDF copy of this Blog here.