Relief applies retroactively to surtaxes paid on EVs imported since October 1, 2024, and on steel and aluminum since October 22, 2024
The Department of Finance on October 24, 2024, released details on new relief measures for Canadian importers of steel, aluminum products, and electric vehicles (EVs) from China. This relief outlines how businesses can request remission of surtaxes on these goods under specific conditions and for a limited transition period.
Background
The federal government on August 26, 2024, announced surtaxes on certain Chinese goods, including a 100% surtax on all Chinese-made EVs effective October 1, 2024, and a 25% surtax on imports of steel and aluminum products from China, effective October 15, 2024 (extended to October 22, 2024)—read TaxNewsFlash. Finance finalized the list of over 180 steel and aluminum products subject to the new surtax and introduced a remission program on October 1, 2024.
Summary
Finance has specified that the new surtax relief will apply in very limited circumstances, such as when goods cannot be sourced from Canada or other non-Chinese suppliers, when goods are under a pre-existing contractual purchase agreement, or when the surtaxes could severely impact Canada's economy.
The relief applies retroactively to surtaxes paid on EVs imported since October 1, 2024, and on steel and aluminum since October 22, 2024. Businesses must submit remission requests with detailed information, including evidence of sourcing efforts and contractual agreements.
Read an October 2024 report prepared by the KPMG member firm in Canada