RETALIATORY TARIFF RELIEF IMPLEMENTED

 

RETALIATORY TARIFF RELIEF IMPLEMENTED

REMISSION AVAILABLE FOR SURTAXES IMPOSED ON US GOODS

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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.

Categories of Relief

There are four categories of relief that may be available to importers seeking relief from Canada’s retaliatory tariffs:

1. Surtaxes paid in respect of goods imported on behalf of certain organizations for public health, public safety and national security purposes;
2. Surtaxes paid in respect of goods imported for use in the provision of medically necessary health care services or on behalf of certain public health authorities or organizations;
3. Surtaxes paid in respect of goods imported for use, in Canada, in the manufacture or processing of any good or the packaging of a food or beverage (subject to the provisions of the Customs Tariff); and
4. Surtaxes paid in respect of certain specified goods set out in the schedule of the Order.

Relief Granted

In addition to the category requirements above, relief will only be granted if the following conditions are met:

1. The good was imported into Canada before October 16, 2025;
2. No other claim for relief of the surtax has been granted under the Customs Tariff in respect of the good; and
3. The importer makes a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation.

Obtaining Relief

Importers who wish to make claims for relief of surtax under the Order must support their claim with all relevant documentation establishing they meet the conditions for relief. 

In addition to maintaining the necessary documentation to support their claim, importers must also enter a special authorization code in the Special Authority OIC field on the Commercial Accounting Declaration.  There is a unique special authorization code for each category of relief (see Customs Notice 25-19 for details).

Takeaways

With three rounds of Canadian retaliatory surtaxes currently causing financial stress for importers, the remission process under the Order may provide much needed relief and help businesses remain competitive amid an uncertain trade war.  

Importers that have not already been granted relief of the surtax should consider requesting remission.  Legal advice from experienced international trade counsel can help importers determine their eligibility and assist with remission applications to maximize the chances of success! 

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For help with surtax and remission issues, click here.

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