Tax & Trade Blog

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CBSA COMPLIANCE VERIFICATION PRIORITIES

CONTINUED FOCUS ON U.S. & CHINESE SURTAXES

The Canada Border Services Agency (“CBSA”) has released its January 2026 update to its compliance and verification priorities.  This update is part of the CBSA’s semi-annual process of resetting its verification priorities, which occurs in January and July of each year.

In this January 2026 update, new priorities include certain global surtaxes, amongst other items. Enforcement of Surtaxes Orders on Chinese and U.S. goods also remain a prominent holdover from previous rounds.  We provide a detailed breakdown of these priorities below.

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BILL C-251 AND MODERN SLAVERY

CANADA'S PROPOSED PRESUMPTION AGAINST FORCED-LABOUR IMPORTS

Bill C-251 (An Act to amend the Customs Act and the Customs Tariff) was introduced in October 2025. If enacted, it would establish a statutory presumption that goods originating from designated countries are made in whole or in part by forced or child labour and are therefore prohibited from importation into Canada.

The Bill would also impose due diligence obligations on importers, who would be required to demonstrate to the Canada Border Services Agency (“CBSA”) that they have performed effective due diligence on their supply chain. Given the potential impact of this Bill, all importers should closely monitor developments as the bill moves through Parliament.

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US NO LONGER RAISING TARIFFS ON WOOD PRODUCTS

DUTIES ON LUMBER & WOOD CABINETS/VANITIES WERE TO DOUBLE - BUT NOT ANYMORE!

A recent last-minute announcement by the United States (US) government that it will NOT proceed with increasing certain tariffs is just the latest demonstration of how fluid and uncertain the US tariff situation is.  Happily, it provides some relief to Canadian exporters of kitchen cabinets, bathroom vanities, and other wood products.  It may imply more good news is to follow, but it certainly shows how hectic the tariff situation is for Canadian exporters to the US.

Further detail below.

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GOVERNMENT PROCUREMENT COMPLAINTS

PUTTING YOUR BEST FOOT FORWARD AT THE CITT - BEFORE JUDICIAL REVIEW

Adjudicating government procurement complaints is one of the most important functions the Canadian International Trade Tribunal (“CITT”) plays for Canadian businesses.  In these cases, the CITT serves as the referee when government contracts are handed out improperly.

As a recent decision of the Federal Court of Appeal (“FCA”) indicates, it is best to put one’s best foot forward before the CITT because the courts afford significant deference to the decisions the CITT makes, and it will be extremely difficult to have the decisions overturned on judicial review.

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SIMA RELIEF FOR SMALL SOLAR MODULES?

CITT CONSIDERING REQUEST FOR EXCLUSION FROM SIMA DUTIES

On December 11, 2025, the Canadian International Trade Tribunal (CITT) announced the commencement of an interim review regarding its existing order imposing Anti-Dumping Duties (“ADDs”) and Countervailing Duties (“CVDs”) on certain Photovoltaic Modules and Laminates from China.  The review will consider introducing an exclusion to the definition of Subject Goods which would effectively remove Anti-Dumping Duties from a narrow subset of Chinese solar panels.

Below, we explain what interim reviews are and why they are a useful tool to ensure that Canada gains from global innovation while protecting its domestic industry from unfair foreign competition.