Tax & Trade Blog

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CANADA OPENS 2025 DAIRY QUOTA APPLICATIONS

APPLICATION PERIOD RUNS UNTIL JUNE 15, 2025

Global Affairs Canada (“GAC”) recently announced the opening of the tariff-rate quota (“TRQ”) application period for the 2025-2026 dairy year, which is open from May 1 to June 15, 2025.  There are no changes to the existing ministerial allocation policies from the previous year, though this will be the second year Canada applies its new CPTPP dairy TRQ policies we have previously written about here.

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SIMA EXPIRY REVIEW ORDER:

SILICON METAL ORIGINATING IN OR EXPORTED FROM CHINA

On April 30, 2025, the Canadian International Trade Tribunal (the “CITT”) announced an Order in Expiry Review RR-2024-002 (the “Order”), continuing its finding of material injury in respect of the dumping of Silicon Metal originating in or exported from the People’s Republic of China (the “Subject Goods”). 

The Subject Goods

The Subject Goods are defined as:

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INVESTIGATION OF RENEWABLE DIESEL ENDS

CITT CONCLUDES NO REASONABLE INDICATION OR THREAT OF INJURY

While we have written about a number of anti-dumping and subsidy investigations by the Canada Border Services Agency (“CBSA”) where Anti-Dumping Duties and/or Countervailing Duties (ADD/CVD) have been imposed, infrequently such investigations can also terminate without the imposition of any ADD/CVD. 

The recent decision by the Canada International Trade Tribunal (“CITT”) into the alleged dumping and subsidizing of Renewable Diesel originating or exported from the United States serves as a timely example of such a termination.

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RETALIATORY TARIFF RELIEF IMPLEMENTED

REMISSION AVAILABLE FOR SURTAXES IMPOSED ON US GOODS

We had previously written that the Government of Canada (“Canada”) was planning to provide a remission process for its retaliatory tariffs here. 

On April 16, 2025, Canada implemented the United States Surtax Remission Order (2025) (the “Order”), providing an avenue for much needed relief from its three rounds of retaliatory tariffs.  Importers seeking to mitigate the effects of Canada’s retaliatory tariffs should seek legal advice from international trade counsel to determine their eligibility and assist with remission applications.

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RENEWED DUMPING DUTIES ON WINDOW WALLS

CITT CONCLUDES EXPIRY REVIEW ON CHINESE "UNITIZED WALL MODULES"

On March 19, 2025, the Canadian International Trade Tribunal (the “CITT”) announced an Order in Expiry Review RR-2024-001 (the “Order”), continuing its finding of material injury in respect of the dumping of Unitized Wall Modules originating in or exported from the People’s Republic of China (the “Subject Goods”). These goods are used in “curtainwall” or “window wall” systems for the exterior of multi-story buildings.

The Subject Goods

The Subject Goods are defined as:

Unitized wall modules, with or without infill, including fully assembled frames, with or without fasteners, trims, cover caps, window operators, gaskets, load transfer bars, sunshades and anchor assemblies; excluding non-unitized building envelope systems such as stick systems and point-fixing systems originating in/or exported from the People's Republic of China.

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NOVA SCOTIA SET TO REDUCE HST RATE

TRANSITIONAL AND PLACE OF SUPPLY RULES MAY AFFECT TAXPAYERS

On April 1, 2025, the Province of Nova Scotia is set to decrease their harmonized sales tax (“HST”) rate by 1 percentage point, resulting in a combined GST/HST rate of 14 percent in the province.  The reduction will put more money in the pockets of Nova Scotians, but individuals and businesses need to be aware of the complex Transitional Rules and Excise Tax Act (“ETA”) place of supply rules to determine to the applicable rate of HST on their transactions.

The Nova Scotia HST Reduction – Background

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.