Tax & Trade Blog

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PRELIMINARY DETERMINATION: WHEAT GLUTEN

CBSA IMPOSES PROVISIONAL DUTIES ON WHEAT GLUTEN FROM ITALY, POLAND & UK

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On September 17, 2026, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping and subsidizing in respect of wheat gluten originating in or exported from Italy, Poland, and the United Kingdom (the “Subject Goods”). Provisional duties are now imposed on imports of the Subject Goods released from the CBSA on or after September 17, 2026.

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EXPIRY REVIEW: SMALL POWER TRANSFORMERS

CITT TO REVIEW ANTI-DUMPING DUTIES ON CERTAIN SMALL POWER TRANSFORMERS

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On October 1, 2026, the Canadian International Trade Tribunal (“CITT”) announced that it is starting its expiry review (“Review”) on the dumping and subsidizing of certain small power transformers from Chinese Taipei, and South Korea. The CITT will use its Review to determine whether existing trade protections – in place since 2021 – will continue for another five years or be allowed to expire.

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复审台湾和韩国进口的小型电力变压器的关税

有意参与者得在10月16日提交通知书

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EXPIRY REVIEW: SMALL POWER TRANSFORMERS

CITT TO REVIEW ANTI-DUMPING DUTIES ON CERTAIN SMALL POWER TRANSFORMERS

For the English Version of this Report, please click here.

2026年10月1日，加拿大国际贸易法庭（“CITT”）宣布启动对来自中国台湾和韩国的某些小型电力变压器反倾销和反补贴措施的到期复审（“复审”）。CITT将通过此次复审，决定从2021年起实施的贸易保护措施是否需再延长五年，或让它到期失效。

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HOUSE FLIPPING & BRIEF OCCUPANCY

TCC FINDS TWO RENOVATED HOMES HELD AS INVENTORY – NOT RESIDENCES

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As we have noted before (here and here), the Canada Revenue Agency (“CRA”) continues to audit residential homeowners who build or substantially renovate homes for resale, regularly assessing them as “builders” liable to pay GST/HST.

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HOUSE FLIPPING & SALES HISTORY

TCC FINDS HOUSE HELD AS INVENTORY DESPITE OCCUPANCY

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As we blogged about here, the CRA continues to pursue homeowners and builders who buy, renovate or construct, and resell residential properties, often finding them liable to collect and remit GST/HST as “builders” under the Excise Tax Act (“ETA”).

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MYCRA LOCKOUTS HAVE REAL TAX COSTS

MINOR COURT WIN FOR TAXPAYERS WITH PORTAL ISSUES – BUT LITTLE REAL RELIEF

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A recent Federal Court (“FC”) case is a minor win for taxpayers who have struggled with the buggy, confusing mess that is the MyCRA web portal (“MyCRA”) run by Canada Revenue Agency (“CRA”). It also brings to light how serious MyCRA access issues can become.

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BONDED WAREHOUSES DO NOT STOP TRQ CLOCK

CBSA: STEEL IMPORTERS NEED UPFRONT QUOTA BEFORE IMPORT!

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We have previously written about Canada’s Steel Tariff Rate Quota (“TRQ”) regime here and here. For Canadian importers of steel into Canada, not originating from either the US or Mexico, the name of the game has recently been to ensure that all imports fall within Canada’s applicable TRQ regime.

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MISSED A GST/HST REBATE DEADLINE?

TCC SAYS SUBSECTION 296(2.1) MAY NOT SAVE LATE GST/HST REBATE CLAIMS

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Taxpayers who fail to file a GST/HST rebate application within the applicable two-year limitation period may, in some circumstances, look to the relieving provisions in subsection 296(2.1) of the Excise Tax Act (“ETA”) for assistance. That provision seemed to require an otherwise unclaimed (or statute-barred) GST/HST rebate to be applied against a taxpayer’s net tax if the period was later audited.

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FCA OVERTURNS CITT IN MEDLINE

FCA RESTORES NARROW “FOR USE IN” TEST FOR CHAPTER 99 RELIEF

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Importers seeking duty relief under Chapter 99 of the Customs Tariff often need to establish that imported goods are “for use in” other qualifying goods or activities. In Canada (Attorney General) v. Medline Canada Corporation, 2026 FCA 74 (“Medline Canada”), the Federal Court of Appeal (“FCA”) clarified that this phrase requires more than goods being used together in a practical or commercial sense with limited or no physical connection — overturning a prior Canadian International Trade Tribunal ("CITT”) decision.

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NOTICE OF ASSESSMENT NOT RECEIVED. CAN I APPEAL?

TAX COURT SETS FOUR-STEP PROCESS FOR GETTING NOTICES OF OBJECTION BACK ON TRACK

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When it comes to filing a Notice of Objection (an “Objection”) in respect of a Notice of Assessment (an “NOA”) for GST/HST or income tax matters – or many other matters involving federal taxes – most taxpayers will know that they generally have a 90-day window to file that Objection.

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TARIFF CLASSIFICATION & BILINGUAL INTERPRETATION

CITT CONFIRMS THE NARROWER SHARED MEANING MAY DETERMINE THE RESULT

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Tariff classification is the process of identifying and categorizing goods imported into Canada under the applicable tariff provisions. It determines the applicable rate of customs duty and, in turn, how much duty an importer must pay when the goods enter Canada.

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EXCISE ACT 2001 RECORDKEEPING REQUIREMENTS

MORE THAN MEETS THE EYE — CRA’S STRINGENT REQUIREMENTS

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The Excise Act, 2001 (“EA 2001”) governs the taxation and regulatory framework applicable to specified goods, including tobacco, wine, spirits, and, more recently, vaping products. Recordkeeping requirements under the EA 2001 are among the most stringent in Canadian tax legislation. In our experience, CRA is increasingly relying on imperfect or incomplete records as a basis for assessing additional duty, interest, and, in some cases, significant penalties.

In this Indirect Tax Report, we review the statutory requirements for books and records under the EA 2001 and highlight key compliance risks and practical traps for industry participants.

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CERTIFYING ORIGIN - NOT JUST A "FORMALITY"

RULES OF ORIGIN NEED TO BE CONSIDERED WHEN PREPARING CERTIFICATIONS

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Canada has a significant network of free-trade agreements which direct sellers can make good use of covering numerous countries including the United States and Mexico ("CUSMA"/"USMCA"), the countries of the European Union ("CETA"), and twelve trans-pacific countries (plus the UK) (the "CPTPP").

However, before claiming treaty benefits, importers are required to have either a Certificate of Origin or an equivalent certification confirming the goods qualify as originating under the relevant free trade agreement.

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WHEN IS CANNABIS, CANNABIS?

CRA TAXING TRIM LIKE CANNABIS

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Cannabis cultivators and producers will generally be aware of the two-tier flat tax that applies to the production of cannabis products, such as pre-rolls. That is, a higher tax rate of $0.25 per gram applies to flowering material, while a lower tax rate of $0.075 per gram applies to non-flowering material – putatively on the basis that it is far less potent in terms of cannabinoid content (THC and CBD).

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NEW US FOREIGN IMPORTER OF RECORD RULES

NEW RULES WILL AFFECT CANADIAN BUSINESSES IMPORTING INTO THE US

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Both Canada and the US have a concept that allows a foreign entity to act as the "importer of record" of goods into the other country – traditionally referred to in Canada as a “non-resident importer” or NRI. The US term for this is a “foreign importers of record” or FIOR.

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CANADA-CHINA TRADE RESET

SIX MONTHS LATER: WHAT HAS REALLY CHANGED?

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Following escalating trade tensions since 2024, Prime Minister Carney’s January 2026 visit to China produced a notable attempted “reset” in Canada-China trade relations. The tariff measures agreed to as part of that reset took effect on March 1, 2026.

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SIMPLIFIED CANADIAN TRANSFER PRICING RULES

NEW RULES ADDRESS OLD PROBLEM: SMALLER BUSINESS DOCUMENTATION STANDARDS

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Canada’s transfer pricing rules were first introduced in 1997 and essentially require Canadian businesses transacting with related foreign parties – for example, buying, selling or licensing goods, services and intangibles within a multinational corporate group – to maintain written documentation explaining how their prices comply with internationally accepted arm’s length principles. The Canada Revenue Agency (“CRA”) has historically adopted the OECD Transfer Pricing Guidelines for that purpose.

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NEW SURTAXES ALSO AFFECT STEEL & ALUMINUM

CARNEY GOVERNMENT’S NEW SURTAXES AMEND PRIOR STEEL & ALUMINUM ORDER!

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As part of the Canadian Federal Government’s new round of retaliatory surtaxes that came into effect on September 8, 2026, consequential amendments were made to the United States Surtax Order (Steel and Aluminum 2025) (the “Steel/Aluminum Surtax”).

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HST CANNOT BE SET OFF AGAINST DEBTS OWNING

BCAA CONFIRMS HST CANNOT BE SET OFF AGAINST SUPPLIER’S DEBTS

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Many commercial agreements include broad rights of set-off, which sophisticated businesses use to net out liabilities between parties. While that seems straightforward in commercial terms, businesses run into problems when applying this practice to GST/HST. Under the Excise Tax Act, HST collected – or collectible – by a supplier is NOT the supplier’s money to begin with. Rather, it is money held in trust for the Crown.

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GST/HST REGISTRATION FOR CONDO CORPS

WHEN TO REGISTER, TAXABLE STATUS OF SUPPLIES, CAN BE TRICKY QUESTIONS

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Property managers and board directors of condominium corporations (“Condo Corps”) often assume that registration for GST/HST under the Excise Tax Act (“ETA”) is not required because supplies made to residential condominium units are exempt of GST/HST.