Process for requesting remission of surtaxes that apply on certain goods from China

The Government of Canada has established a framework and process to assess requests for remission of surtaxes on imports from China for steel and aluminum products, effective October 22, 2024.

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 circumstances.

Remission may be granted only in compelling circumstances and where doing so is consistent with the policy objectives of the surtaxes, which is to level the playing field for Canadian workers and businesses. The federal government is ensuring Canadian workers and businesses are not unduly burdened by surtaxes on imports from China.

Accordingly, the federal government will consider requests for remission of surtaxes only in the following instances:

1. Situations where goods used as inputs, or substitutes for those goods, cannot be sourced either domestically or reasonably from non-Chinese sources.
2. Where there are contractual requirements, existing prior to August 26, 2024, requiring Canadian businesses to purchase Chinese inputs in their products or projects for a specified period of time.
3. Other exceptional circumstances, on a case-by-case basis, that could have significant adverse impacts on the Canadian economy.

Remission will not be granted for goods intended for resale in the same condition to the United States.

The federal government will also consider the appropriate duration of remission, with the intent to provide it on a transitional basis only in most cases, as supply chains adjust. Remission may also be applied retroactively to the date of implementation of the surtaxes.

Any request for remission will be assessed by the Department of Finance in consultation with other relevant federal departments. Requests may also be subject to consultation with other interested parties, including domestic producers, to verify information regarding domestic availability or supply. Recommendations will be made to the Minister of Finance. Under section 115 of the Customs Tariff, the Minister of Finance has the authority to recommend remission to the Governor in Council. To take effect, an Order in Council also needs to be approved by the Governor in Council.

In order to ensure that remission requests are properly substantiated and can be assessed in a timely manner, all requests that are within the confines of the instances outlined above must provide the information requested in the template below.

Any information in your remission request that is confidential must be marked as such, and will be protected by the Government of Canada. Sufficient non-confidential information must be provided to allow for engagement with domestic producers, where appropriate to validate claims regarding domestic supply. Only companies registered in Canada are eligible to make requests for remission of the surtaxes.

Before submitting a request, importers should verify whether their goods are already covered by an existing remission under the China Surtax Remission Order (2024).

These surtaxes are imposed under the Customs Tariff. For clarity, they are separate from anti-dumping and countervailing duties, which are imposed under the Special Import Measures Act (SIMA). While these duties are also administered by the Canada Border Services Agency, they are not remitted through this process.

Accordingly, importers should also confirm whether any anti-dumping or countervailing duties apply. Please note that goods subject to both the China Surtax Order and SIMA duties are eligible for surtax remission only under limited exceptional circumstances.

Template for Remission Requests

Requesting multiple types of exceptional relief

Submit a single request even if your product may be eligible under multiple Canadian remission programs. Indicate that you are seeking relief through multiple programs, and provide all the required information for each remission framework.

The Department of Finance will use this single request to consider any relevant remission program that may apply to your product.

Please provide the following information using the numbered headings:

1. A brief outline of your company's operations: details of corporate structure, location (HQ and any other locations), what it does, number of employees.
2. A detailed description of the goods on which remission is sought and the 8-digit tariff item or items under which they are classified. The 10-digit statistical level can be provided if applicable. Additionally, indicate whether the goods are subject to any order or finding under the Special Import Measures Act (i.e., anti-dumping or countervailing duties). If so, identify the measure.
3. The volume and value, exclusive of surtaxes, of importations of the goods, on an annual basis or for the specific period for which remission is requested. If goods have not been imported, indicate when imports will commence and the name of the foreign producer/exporter. If the goods have already been imported, provide the customs documentation (e.g., B3 forms) and relevant invoices of surtaxes paid. Where the goods are also subject to anti-dumping or countervailing duties, report those duties separately from the surtaxes.
4. Evidence demonstrating inability to source the product, or substitutes, from Canadian suppliers or reasonably from other non-Chinese suppliers, including any request for proposal notice or the names of companies canvassed and, if possible, copies of replies from these companies. Any additional relevant information on the company's sourcing model should also be provided.
5. Where contractual obligations or other factors prevent sourcing the product, or substitutes, from Canadian suppliers or reasonably from other non-Chinese suppliers, provide substantiating evidence (e.g., copies of contracts).
6. Information on whether the inability to source the product, or substitutes, from Canadian suppliers or reasonably from other non-Chinese suppliers is temporary or transitional and, if so, for what period.
7. If the goods are used in a manufacturing operation, provide the cost of manufacturing one unit of the end product, broken down into:
1. Cost (exclusive of surtaxes) of goods on which remission of duties is sought;
2. Cost (exclusive of surtaxes) of other imported articles (please list);
3. Cost of Canadian materials (please list);
4. Labour;
5. Overhead; and,
6. Administrative and selling expenses.
8. The unit selling price for the end product, and information on the effect of the remission of surtaxes on its cost and price.
9. Information on the effect of remission on employment, volume of production, investment, or other relevant aspects of operations.
10. Names and locations of Canadian competitors, with information on how the remission may affect those companies. If available, provide information on whether those companies import similar goods, or whether they obtain comparable or substitutable goods from Canadian or foreign production.
11. Detailed comments on the reasons for requesting remission of surtaxes, clearly outlining the exceptional circumstances that merit consideration of the application, and making reference to the factual information provided in the submission.
12. Consent to share non-confidential information with domestic producers to validate information (and any conditions attached to that consent).
13. Any supportive or corroborative information, such as letters of support, independent studies, or market data.
14. Any other information that may be significant in illustrating why the remission is necessary.

Submitting your remission request and inquiries

Submit your remission requests or any inquiries to: remissions-remises@fin.gc.ca , with "China Remission" in the subject line.