August 26, 2024. The Government of Canada has recently announced significant measures aimed at protecting Canadian workers and key economic sectors from unfair Chinese trade practices. These measures include the implementation of a 100 percent surtax on all Chinese-made electric vehicles (EVs) and a 25 percent surtax on imports of steel and aluminum products from China. These surtaxes are set to take effect on October 1, 2024, for EVs and October 15, 2024, for steel and aluminum products.
The electric vehicles targeted by this surtax include a wide range of products, such as hybrid buses, passenger autos, trucks, and transport vehicles, all imported from China. The specific tariff items include both plug-in and non-plug-in hybrid vehicles, electric vehicles, and those powered by fuel cells. The detailed descriptions of these products are outlined in the tariff items, with precise definitions provided in the Schedule to Canada’s Customs Tariff.
For steel and aluminum products, the surtax will apply to a broad array of goods, ranging from ingots and hot-rolled coils to more specialized items such as plated or coated steel and aluminum alloys. The tariff items detail the scope of these products, and for exact descriptions, importers are advised to refer to the Schedule to Canada’s Customs Tariff.
In response to these developments, the Canada Border Services Agency (CBSA) will soon publish a customs notice to guide importers in fulfilling their customs obligations regarding the newly announced surtaxes. The CBSA’s instructions will outline the specific procedures that importers must follow, which is particularly important in light of the upcoming external release of the CBSA Assessment and Revenue Management (CARM) system within the same month.
We encourage all stakeholders to stay informed by reviewing the full details of the government’s announcement, available through the Department of Finance Canada. Further updates will be provided as necessary.
For further details or assistance, please reach out to us at clientsupportca@buckland.com.