Ahead of the implementation as of today, October 22, of the new 25 percent additional tax on Chinese steel and aluminum products, the government of Canada has launched as of October 18 the process for Canadian businesses to request remission of surtaxes on steel, aluminum and electric vehicles imported from China. To ensure that Canadian industry has sufficient time to adjust supply chains, remission will provide relief from the payment of surtaxes, or the refund of surtaxes already paid, under specific and exceptional circumstances.
Accordingly, the government will consider requests for remission of surtaxes to address the following circumstances: situations where goods used as inputs, or substitutes for those goods, cannot be sourced either domestically or reasonably from non-Chinese sources; where there are contractual requirements, existing prior to August 26, 2024, requiring Canadian businesses to purchase Chinese inputs into their products or projects for a specified period of time; and, other exceptional circumstances, on a case-by-case basis, that could have significant adverse impacts on the Canadian economy. The government noted that the remission will not be granted for goods intended for resale in the same condition to the US.