Order Amending the China Surtax Remission Order (2024): SOR/2025-114
Canada Gazette, Part II, Volume 159, Number 8
Registration
SOR/2025-114 March 23, 2025
CUSTOMS TARIFF
P.C. 2025-454 March 23, 2025
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Order Amending the China Surtax Remission Order (2024) under section 115footnote a of the Customs Tariff footnote b.
Order Amending the China Surtax Remission Order (2024)
Amendments
1 Paragraph 1(2)(a) of the China Surtax Remission Order (2024) footnote 1 is replaced by the following:
- (a) in the case of a good referred to in Schedule 1
- (i) it is not the subject of an order or finding, as defined in subsection 2(1) of the Special Import Measures Act, on the date of importation, and
- (ii) it is imported into Canada during the period beginning on October 22, 2024 and ending on December 31, 2025;
2 Item 2 of Schedule 1 to the Order is repealed.
| Item | Column 2 Description of Goods |
|---|---|
| 9 | Stainless steel rebar |
| Article | Colonne 2 Description des marchandises |
|---|---|
| 34 | Tôles et bandes en aluminium non allié, de forme rectangulaire, en bobine " O " de grade 1050 ou 1350, conformes aux exigences chimiques prévues à la spécification ASTM B233-97, d’une épaisseur d’au moins 0,020 pouce mais n’excédant pas 0,060 pouce, d’une largeur d’au moins 2 pouces mais n’excédant pas 33,5 pouces, avec finition en usine |
| Item | Column 2 Description of Goods |
|---|---|
| 37 | Pre-painted aluminum coils, 3003–H24 with 8 or 12 µm polyester coating in black, brown or white, with a thickness of 0.5 mm and width of 610 mm |
| Item | Column 1 Tariff Item |
Column 2 Description of Goods |
|---|---|---|
| 37.1 | 7606.12.00.11 | Aluminum coils of alloy 5005, H14 or H34, anodized quality, not clad, with a thickness exceeding 0.2 mm but less than 7 mm |
| Item | Column 1 Tariff Item |
Column 2 Description of Goods |
|---|---|---|
| 38.1 | 7606.12.00.12 | Aluminum coils of alloy 5005, H14 or H34, anodized quality, not clad, with a thickness of 7 mm or more |
| Item | Column 1 Business Number |
Column 2 Tariff Item |
Column 3 Description of Goods |
Column 4 Period |
Column 5 Conditions |
|---|---|---|---|---|---|
| 1.1 | 103569372 | 7229.90.00 | Chrome silicon wire, round, with a diameter of 8.51 mm | From October 22, 2024 to December 31, 2025 | |
| 1.2 | 105489272 | 7212.40.00 | Steel strapping, with open or closed steel sleeves | From October 22, 2024 to August 31, 2025 | |
| 1.3 | 105497242 | 7223.00.90 | Stainless steel wires of alloy 304L, cold drawn and annealed | From October 22, 2024 to July 1, 2025 |
| Item | Column 1 Business Number |
Column 2 Tariff Item |
Column 3 Description of Goods |
Column 4 Period |
Column 5 Conditions |
|---|---|---|---|---|---|
| 4.1 | 140515958 | 7604.29.00.30 | Extruded 5-star (blade) turbulator, with a diameter of 8.30 mm of alloy 6063, of temper T5, of straight lengths of up to 4877 mm | From October 22, 2024 to December 31, 2025 | |
| 7606.12.00.20 | Extruded rectangular micro channel tubes, 76.2 mm x 9.04 mm, with a wall thickness of 0.51 mm, of alloy 3003, of temper F, of straight lengths of up to 4877 mm | From October 22, 2024 to December 31, 2025 | |||
| 7608.20.00 | Extruded round thin-walled aluminum tubes, of alloy 3003, of temper O, with an outside diameter of 9.09 mm, with a wall thickness of 0.51 mm, spooled on level wound coils | From October 22, 2024 to December 31, 2025 |
| Item | Column 1 Business Number |
Column 2 Tariff Item |
Column 3 Description of Goods |
Column 4 Period |
Column 5 Conditions |
|---|---|---|---|---|---|
| 9.1 | 747545747 | 7217.30.00 | Copper plated steel wires, plated or coated with other base metal | From October 22, 2024 to June 1, 2026 |
| Item | Column 4 Period |
|---|---|
| 11 | From October 22, 2024 to December 31, 2025 |
| Item | Column 1 Business Number |
Column 2 Tariff Item |
Column 3 Description of Goods |
Column 4 Period |
Column 5 Conditions |
|---|---|---|---|---|---|
| 12 | 769792870 | 7607.11.00 | Aluminum foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding a length of 0.2 mm, rolled but not further worked, of alloy 3003 or 3004, with food-safe lubrication | From October 22, 2024 to December 31, 2025 |
| Item | Column 1 Business Number |
Column 2 Tariff Item |
Column 3 Description of Goods |
Column 4 Period |
Column 5 Conditions |
|---|---|---|---|---|---|
| 14.1 | 798045084 | 7604.21.00.90 | Aluminum bars, rods and profiles, hollow profiles, other | From October 22, 2024 to December 31, 2025 |
| Item | Column 1 Business Number |
Column 2 Tariff Item |
Column 3 Description of Goods |
Column 4 Period |
Column 5 Conditions |
|---|---|---|---|---|---|
| 24.1 | 892183476 | 8703.40.90 | Non-plug-in hybrid passenger vehicles, with both a spark-ignition internal combustion piston engine and an electric motor for propulsion, with a cylinder capacity of 1000 cm³ or more | For goods imported on or after October 1, 2024 | Remission limited to a maximum of 554 vehicles |
| 24.2 | 895930287 | 7607.11.00.20 | Rolls of aluminum foil with a thickness ranging from 7 µm to 70 µm and a width of at least 40 inches but not exceeding 60 inches | From October 22, 2024 to December 31, 2025 |
Coming into Force
15 This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
The Government of Canada imposed surtaxes on Chinese-made electric vehicles as well as Chinese-made steel and aluminum products in October 2024. During consultations held before the imposition of these measures, Canadian stakeholders confirmed that exceptional measures were required to address the extraordinary threat from Chinese producers. However, some stakeholders noted concerns with challenges in adjusting supply chains before the measures entered into force. On October 18, 2024, the Government indicated it would consider remission requests related to these surtaxes on Chinese-made goods. The Government committed to process submissions received before November 8, 2024, on a priority basis, with subsequent submissions to be processed thereafter.
Following the assessment of requests for remission of surtaxes submitted by Canadian businesses before November 8, 2024, the China Surtax Remission Order (2024) [the Order] entered into force on January 31, 2025. The Order provides relief from surtaxes on imports of certain steel, aluminum, and electric vehicles in circumstances of short supply, contractual obligations, or other exceptional circumstances.
The Order Amending the China Surtax Remission Order (2024) [the amending Order] expands the scope of steel and aluminum goods eligible for remission of surtaxes to further address the challenges faced by Canadian businesses. This follows the assessment of additional requests for remission received after November 8, as well as requests received before that date where necessary additional information was requested to complete the assessment.
Background
The Government of Canada imposed a 100 percent surtax on Chinese-made electric vehicles on October 1, 2024, and a 25 percent surtax on Chinese-made steel and aluminum products on October 22, 2024. These surtaxes were implemented through the China Surtax Order (2024), made pursuant to section 53 of the Customs Tariff. Public consultations held before the surtaxes went into force confirmed stakeholder support for these exceptional measures. However, some stakeholders also noted concerns with their ability to shift supply chains before the surtaxes entered into force due to factors such as no or limited alternative sources of supply (short supply), the requirement for certain products used as inputs to comply with certification requirements, or contractual obligations requiring Canadian businesses to purchase Chinese inputs in their products or projects for a specified period of time.
To ensure Canadian industry has time to adjust supply chains, on October 18, 2024, the Government outlined a framework and process under which it would consider remission requests related to these surtaxes on Chinese-made goods. Under specific circumstances, remission allows for relief from the payment of surtaxes, or the refund of surtaxes already paid.
Remission represents an exception to the rules by providing for relief of otherwise applicable duties or surtaxes. As such, remission of surtaxes is made available in compelling circumstances in line with the rationale behind the application of the surtaxes — levelling the playing field for Canadian workers and businesses — while ensuring they are not unduly burdened as they adjust supply chains.
The Government considers requests for remission of surtaxes in the following instances:
- Situations where goods used as inputs, or substitutes for those goods, cannot be reasonably sourced either domestically or from non-Chinese sources;
- Where there are contractual obligations, 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.
Remission will not be granted for goods intended for resale in the same condition to the United States.
Section 115 of the Customs Tariff provides the authority for the Governor in Council to remit surtaxes on the recommendation of the Minister of Finance.
Objective
The objective of this Order is to amend the China Surtax Remission Order (2024) to provide additional relief from surtaxes in exceptional situations to ensure that Canadian companies have time to adjust supply chains. This Order provides relief from surtaxes
- For two additional aluminum goods found to be in short supply; and
- for additional specific companies that cannot avoid the surtaxes due to existing contractual obligations or that are facing particular exceptional circumstances that could have significant adverse impacts on the Canadian economy.
Description
Pursuant to section 115 of the Customs Tariff, the amending Order remits surtaxes paid or payable on imports of certain Chinese-made electric vehicles and steel and aluminum products from China.
The amending Order
- remits surtaxes to any importer in respect of two additional aluminum products (e.g. coils of certain types) imported on or after October 22, 2024, that have been determined to be in short supply;
- expands the scope of remission to include steel and aluminum products imported by seven specifically identified companies facing contractual obligations that existed prior to August 26, 2024, or exceptional circumstances that could have significant adverse impacts on the Canadian economy;
- corrects an administrative error by amending the business number associated with remission provided under the initial China Surtax Remission Order (2024) on certain Hybrid Electric Vehicle (8703.40.90) imported on or after October 22, 2024, due to contractual obligations that existed prior to August 26, 2024;
- amends remission for one product to provide relief on a company-specific basis instead of a product-specific basis; and
- excludes items subject to orders or findings under the Special Import Measures Act (SIMA) from being eligible for product-specific remissions under Schedule 1, as an independent SIMA investigation has confirmed there is a domestic producer of these goods, which are therefore not in short supply.
Regulatory development
Consultation
Public consultations were held between July 2 and August 1, 2024, on potential policy responses to unfair Chinese trade practices in electric vehicles, including on the imposition of a surtax on electric vehicles pursuant to Section 53 of the Customs Tariff. In addition, a comment period was held between August 26 and September 20, 2024, following the issuance of a Notice of intent to apply a surtax on Chinese-made steel and aluminum products.
On October 18, 2024, the Government of Canada published on the Department of Finance’s website a notice explaining the framework and process under which remissions could be provided for surtaxes imposed, through the China Surtax Order (2024), on imports from China. The notice stated that remission requests received before November 8, 2024, would be processed on a priority basis, with subsequent submissions to be processed thereafter.
Canadian steel and aluminum producers were consulted on supply conditions in Canada in respect of the additional steel and aluminum goods claimed to be in short supply by the remission requestors. Their views informed the short supply determinations made in regard to providing remission of surtaxes for additional steel and aluminum goods in the context of the amending Order.
The amending Order was not prepublished. The necessary consultations with the steel and aluminum producers were carried out, as appropriate, to determine its scope of application.
Modern treaty obligations and Indigenous engagement and consultation
The amending Order does not impact Indigenous peoples’ rights and interests.
Instrument choice
Section 115 of the Customs Tariff provides the authority for the Governor in Council to remit surtaxes on the recommendation of the Minister of Finance.
Regulatory analysis
Benefits and costs
In accordance with the criteria that have been set out, remission will be provided where warranted by conditions of short supply, pre-existing contractual obligations, and exceptional circumstances requiring lead time for Canadian businesses to adjust their supply chains to the surtaxes.
This amending Order is a relieving mechanism to the benefit of industry impacted by the China surtaxes. The administrative costs for Canadian businesses to claim remission of the surtaxes are expected to be limited.
Items listed in Schedule 1 are goods that are used as inputs for further manufacturing in Canada and are not reasonably available from any other alternative sources globally. In the absence of remission, Canadian businesses that use these goods would have to pay the surtax, which would increase production costs. Depending on the product, these costs could ultimately be passed on to Canadian consumers. Schedule 1 mitigates this issue by providing temporary remission for such goods, regardless of the importer or the company using them.
Goods listed in Schedule 2 have been identified as items for which a contract is already in place requiring Canadian businesses to purchase Chinese inputs, or companies are facing exceptional circumstances and more time is required to complete the process of switching suppliers to avoid significant adverse impacts on the Canadian economy. In these cases, remission allows additional time for companies to fulfill original contracts or switch suppliers without being unduly burdened by surtaxes.
Remission claims for imports after the date of entry into force of this amending Order would be made for each applicable importation as part of the process of filling existing customs documentation requirements. The importer will be required to include one extra code on their usual import document. The importer must also maintain records supporting their importation (e.g. related to tariff classification, entitlement to a tariff preference, entitlement to the remission), but this is the usual process and does not represent an additional cost. There would be minimal incremental costs for the Government to process the claims.
Importers requesting a refund for goods imported prior to the entry into force of this amending Order will submit forms to the Canada Border Services Agency (CBSA), accompanied by supporting documentation, establishing that the imported goods qualify for remission. There would be minimal incremental costs for industry to supply the documentation and for the Government to process the claims.
Small business lens
There are no significant costs imposed on small business resulting from the amending Order. Small businesses claiming remission on a prospective basis (i.e. for imports after the date of entry into force of the amending Order) would make a claim for each applicable importation as part of the process of completing existing customs documentation requirements. Small businesses claiming a refund of surtaxes paid would submit forms requesting refunds for the surtax paid on importations, accompanied by supporting documentation establishing that the imported goods qualify for remission. The administrative burden would be limited as businesses would only make a few refund claims covering past transactions and would not need to make such refund claims on a continuous basis (i.e. surtaxes would be waived).
One-for-one rule
The one-for-one rule applies to the amending Order as there is an administrative burden associated with applying for remission of surtaxes that have been paid. However, the amending Order is exempted from the one-for-one rule as it is related to tax and tax administration.
The administrative costs for Canadian businesses to claim remission of the surtaxes are expected to be limited. In regard to waiving surtaxes on a prospective basis (i.e. for imports after the date of entry into force of the amending Order), remission claims would be made for each applicable importation as part of the process of completing existing customs documentation requirements.
In regard to requesting a refund (i.e. for imports on which the surtax has already been paid), importers would submit forms requesting refunds for the surtax paid on importations, accompanied by supporting documentation establishing that the imported goods qualify for remission. The administrative burden would be limited as businesses would only make a few refund claims covering past transactions and would not need to make such refund claims on a continuous basis (i.e. surtaxes would be waived).
Regulatory cooperation and alignment
The amending Order is not related to a work plan or commitment under a formal regulatory cooperation forum.
Effects on the environment
In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that the amending Order would not result in positive or negative environmental effects. Therefore, a strategic environmental and economic assessment is not required.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for the amending Order.
Implementation, compliance and enforcement, and service standards
Remission is only provided where warranted by exceptional circumstances. Surtaxes otherwise continue to apply as intended under the China Surtax Order (2024).
Requests for remission of the surtaxes for steel, aluminum, and electric vehicles continue to be considered on an ongoing basis. As warranted, further amendments may be made to expand the scope of application of remission of surtaxes.
The CBSA will assess any claims for remission made pursuant to the amending Order and will ensure compliance with its terms and conditions in the normal course of its administration of customs and tariff-related legislation and regulations. In doing so, the existing administrative framework will be leveraged to ensure that costs can be managed within existing resources. Any refund issued pursuant to the amending Order will be administered by the CBSA. Depending on the volumes and complexity of refund submissions, the CBSA strives to achieve a 90-day processing standard.
Contact
Jason Christie
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Telephone: 343‑550‑7777