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ALUMINUM SURTAX REPORT

MULTIPLE CANADIAN SURTAXES TARGET CHINESE ALUMINUM

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Like Canada’s steel surtax regime, which we have reported on here and here, Canada also implements a series of surtaxes aimed at imported aluminum goods. In particular, aluminum goods of Chinese origin are a primary target of certain surtaxes – and that might be expected given that China is among the world’s top aluminum manufacturers – and often referred to as the World’s center of gravity in aluminum (currently accounting for over 60% of overall production).

In this Customs & Trade Report, we review Canada’s surtax regime with respect to aluminum products, and some special Anti-Dumping & Countervailing duties (“ADCVD”) rules also impacting aluminum imports under Canada’s Special Import Measures Act (“SIMA”).

Duties on Aluminum Products

Imports of certain aluminum products into Canada may face multiple layers of duties, including customs duties, surtaxes, and SIMA duties.

For example, for certain listed aluminum goods of Chinese origin (i.e., substantially manufactured in China), one can generally expect at least a 25% surtax under Canada’s China Surtax Order (2024), which was first implemented effective October 22, 2024. These surtaxes can apply even though the subject aluminum product is shipped through a third country. Certain classes of aluminum products will also attract SIMA duties of over 180%, based on export price, under certain ADCVD measures in force, so understanding these rules is important for Canadian importers – to say the least.

Even where aluminum products may not be subject to the China Surtax Order, a 25% surtax may still be applicable under Canada’s Steel Goods and Aluminum Goods Surtax Order (the “SGAG Surtax”). If a listed aluminum product contains aluminum smelted and cast in China, then it will be subject to a 25% surtax. There is also a provision that deems the aluminum product to contain aluminum smelted and cast in China if an importer fails to provide (when requested) a certificate demonstrating the aluminum was smelted and cast in a country other than China.

In terms of surtax priority, if a listed aluminum product is Chinese origin, it will be subject to the China Surtax Order but exempt from the SGAG Surtax (per s. 5(b)). Accordingly, the SGAG Surtax will only apply where a listed aluminum product of non-Chinese origin contains aluminum smelted and cast in China (or the importer cannot prove the contrary).

Remission Opportunities

There are reasonable potential remission opportunities available for surtaxes applicable under the China Surtax Order. There are two separate remission processes, one which may yield automatic relief from surtaxes provided certain criteria are met, and a second more general process that requires the submission of a written Remission Application. As both remission processes can be difficult to navigate for importers and require specialized knowledge and substantial effort to maximize eligibility for relief, the assistance of Experienced Trade Counsel is generally advisable to maximize the chances of success.

Takeaways

Canada has a myriad of customs duties, surtaxes and SIMA duties targeting Chinese aluminum products. While these can be substantial, there are potential opportunities for remission relief! Importers seeking remission should contact Experienced Trade Counsel to maximize their chances of success!

For help with surtaxes on Chinese aluminum, please click here.