United States Surtax Remission Order (2025): SOR/2025-122
Canada Gazette, Part II, Volume 159, Number 10
Registration
SOR/2025-122 April 16, 2025
CUSTOMS TARIFF
P.C. 2025-466 April 16, 2025
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed United States Surtax Remission Order (2025) under section 115footnote a of the Customs Tariff footnote b.
United States Surtax Remission Order (2025)
Remission — public health, public safety and national security
1 Subject to section 5, remission is granted of surtaxes paid or payable under the United States Surtax Order (2025-1), the United States Surtax Order (Steel and Aluminum 2025) or the United States Surtax Order (Motor Vehicles 2025) in respect of goods imported by or on behalf of
- (a) a government health research organization or clinical health research organization;
- (b) an organization that produces or stores medical countermeasures, including pharmaceuticals or medical devices;
- (c) the office of a public health official, as defined in subsection C.10.001(1) of the Food and Drug Regulations;
- (d) an organization that provides ambulance or other emergency response services;
- (e) a firefighting service;
- (f) a law enforcement agency;
- (g) a federal or provincial correctional service;
- (h) the Department of National Defence;
- (i) the Canadian Forces; or
- (j) the Canadian Security Intelligence Service.
Remission — health care
2 Subject to section 5, remission is granted of surtaxes paid or payable under the United States Surtax Order (2025-1), the United States Surtax Order (Steel and Aluminum 2025) or the United States Surtax Order (Motor Vehicles 2025) in respect of goods imported
- (a) for use in the provision of medically necessary health care services, including services provided at
- (i) a hospital,
- (ii) a health care or dental clinic,
- (iii) a medical, dental or diagnostic laboratory, or
- (iv) a long-term care facility; or
- (b) by or on behalf of
- (i) an entity that provides products or services related to blood, cells, tissues or organs for medically necessary health care, or
- (ii) a federal, provincial, local or Indigenous health authority.
Remission — manufacture, processing or packaging
3 Subject to section 5, remission is granted of surtaxes paid or payable under the United States Surtax Order (2025-1) or the United States Surtax Order (Steel and Aluminum 2025) in respect of goods imported for use, in Canada, in the manufacture or processing of any good or the packaging of a food product or beverage.
Remission — goods referred to in schedule
4 Subject to section 5, remission is granted of surtaxes paid or payable under the United States Surtax Order (2025-1) in respect of the goods referred to in column 1 of the schedule that are classified under a tariff classification number set out in column 2.
Conditions
5 Remission is granted on the following conditions:
- (a) the good is imported into Canada before October 16, 2025;
- (b) no other claim for relief of the surtax has been granted under the Customs Tariff in respect of the good; and
- (c) the importer makes a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation.
Coming into force
6 This Order comes into force on the day on which it is registered.
SCHEDULE
(Section 4)
| Item | Column 1 Goods |
Column 2 Tariff Classification Number |
|---|---|---|
| 1 | Specialized infant formulas |
|
| 2 | Nutrition formulas, metabolic products, formulated liquid diet or human milk fortifiers |
|
| 3 | Medical compression garments |
|
| 4 | Sterile barrier film or pouches for use in medical manufacturing |
|
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
The Government of Canada recently imposed surtaxes on a wide range of products from the United States. During consultations held in the context of these surtaxes, Canadian stakeholders and partners confirmed that Canada’s countermeasures were a necessary response to the United States (U.S.) tariffs. However, some stakeholders noted concerns with challenges in adjusting their supply chains to Canada’s surtaxes, notably in the manufacturing, public health, health care, public safety, and national security sectors.
Background
On March 4, 2025, the United States imposed tariffs of 25% on Canadian goods and 10% on Canadian energy and potash for goods non-compliant with the Canada-United States-Mexico Agreement (CUSMA). On March 12, 2025, the United States imposed further tariffs of 25% on all Canadian steel and aluminum products. On April 3, U.S. tariffs of 25% on Canadian automobiles came into effect, targeting the auto industry and the more than 500 000 Canadians this industry supports across the country. The United States also intends to apply 25% tariffs on certain automobile parts on May 3, 2025.
Canada has responded to the imposition of tariffs by the United States on Canadian goods by introducing a suite of countermeasures designed to compel the United States to remove its tariffs as soon as possible. On March 4, 2025, the Government of Canada imposed 25% tariffs on $30 billion in goods imported from the United States. On March 13, 2025, the Government of Canada imposed 25% tariffs on an additional $29.8 billion in steel, aluminum, and other products imported from the United States in response to U.S. tariffs against Canadian steel and aluminum products. In addition, on April 9, the Government of Canada imposed 25% tariffs on non-CUSMA compliant U.S.-made vehicles, and on the non-Canadian and non-Mexican content of CUSMA compliant U.S.-made vehicles.
These surtaxes are implemented through three separate orders in council: the United States Surtax Order (2025-1), the United States Surtax Order (Steel and Aluminum 2025), and the United States Surtax Order (Motor Vehicles 2025), made pursuant to section 53 of the Customs Tariff. They will remain in place until the United States eliminates its tariffs against Canadian goods.
Public consultations held in the context of these surtaxes confirmed stakeholder support for these countermeasures as a necessary response to U.S. tariffs. However, some stakeholders noted concerns with their ability to shift supply chains due to factors such as no or limited alternative sources of supply (short supply), or the requirement for certain products to comply with certification requirements, product specifications or contractual requirements, requiring Canadian businesses to purchase U.S. products.
On March 4, 2025, the Government announced a framework and process for how it will consider remission requests for the tariffs on products from the United States. 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. Therefore, the Government only considers remission where it is required to address exceptional and compelling circumstances that, from a public policy perspective, are found to outweigh the primary rationale behind the application of the tariffs.
The Government considers requests for remission of surtaxes on goods imported from the United States in the following instances:
- To address situations where goods used as inputs cannot be sourced domestically, either on a national or regional basis, or reasonably from non-U.S. sources.
- To address, on a case-by-case basis, other exceptional circumstances that could have severe adverse impacts on the Canadian economy.
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.
To date, remission requests received from stakeholders in the public health, health care, public safety, and national security sectors emphasized the importance of providing timely remission in these sectors to ensure their continued work in support of the health and security of people in Canada. Remission requests have also indicated that remission is urgently required to ensure business continuation for Canadian manufacturing, processing, and food and beverage packaging.
Objective
The United States Surtax Remission Order (2025) [the Order] provides time-limited relief from surtaxes on U.S. goods when those goods are imported by or on behalf of listed Canadian public or private entities in the public health, health care, public safety, and national security sectors. Time-limited relief from surtaxes on U.S. goods is also provided for goods used in Canadian manufacturing, processing, or food and beverage packaging, as well as for specific goods necessary for public health or health care. This time-limited relief will provide companies and listed entities with time to adjust their supply chains. The Government will continue to consider applications for remission requests.
Description
Pursuant to section 115 of the Customs Tariff, the Order remits, in regard to specified entities or goods imported from the United States, surtaxes paid or payable under the United States Surtax Order (2025-1), the United States Surtax Order (Steel and Aluminum 2025), and the United States Surtax Order (Motor Vehicles 2025).
Remission is extended to any goods covered by the orders that are imported by or on behalf of the Canadian public health, health care, public safety or national security entities listed in the Order, regardless of the identity of the importer. In addition, remission is provided to goods classified under a tariff item listed in the Schedule to the Order and meeting any of the descriptions associated with that tariff item. Goods listed in the Schedule have been determined to be necessary for public health and health care, and cover specialized infant formulas, foods for special dietary purposes, medical compression garments, and sterile pouches and films. It is also extended to all goods used in Canadian manufacturing, processing, or food and beverage packaging.
Remission of the surtaxes is granted for goods imported into Canada before October 16, 2025. This time period will provide companies and entities with time to adjust their supply chains. The Order sets out the conditions for granting remission, including that the requesting importer makes a claim to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation.
In line with the Government’s objectives with the imposition of surtaxes on certain U.S. goods, the Government emphasizes the importance of the “Choose Canada” campaign and encourages companies and other entities to prioritize the purchase of Canadian goods, even when remission is available.
Regulatory development
Consultation
The Government put in place surtaxes covering a wide range of products imported from the United States and sought comments from a wide range of Canadian stakeholders and partners, including through public consultations. In this context, there has already been significant outreach from Canadian businesses, stakeholders, and partners who generally confirmed their support for Canada’s surtaxes on certain U.S. goods. However, some stakeholders noted concerns with their ability to shift supply chains due to factors such as no or limited alternative sources of supply (short supply), or the requirement for certain products to comply with certification requirements, product specifications or contractual requirements, requiring Canadian businesses to purchase U.S. products.
On March 4, 2025, the Government of Canada published on the Department of Finance’s website a notice explaining the framework and process under which remission could be provided for surtaxes imposed on imports from the United States.
The notice provides a template that companies registered in Canada can use to submit requests for remission, to ensure that requests are properly substantiated and include the information necessary for assessment. Requests are subject to review by the Department of Finance, in consultation with other relevant federal departments as well as domestic producers, to assess the merits of providing remission and to make recommendations to the Minister of Finance.
This Order addresses concerns raised in a number of the remission requests received since the Government announced its remission framework. More specifically, it addresses the following:
- Remission requests received from stakeholders in the public health, health care, public safety, and national security sectors, which emphasized the importance of providing timely remission in these sectors to ensure their continued activity in support of the health and security of people in Canada.
- Remission requests concerning inputs for Canadian manufacturing, processing, or packaging of food and beverage products. These requests cover a range of inputs, including agriculture, aluminum, steel, and forestry products. Requests have indicated remission is urgently required to ensure the continuation of their business.
Given the volume of remission requests received to date, this remission Order focuses on two broad categories representing a broad proportion of requests. This will enable the Government to continue to consider the other remission requests received from stakeholders on a priority basis, with a view to implement further remissions where circumstances warrant. The Government also remains open to stakeholder input on additions or changes to the scope of the remission Order, which is expected to be further refined as appropriate.
Modern treaty obligations and Indigenous engagement and consultation
Following the completion of the assessment of modern treaty implications, no adverse impacts on potential or established Indigenous or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982, were identified in the Order.
Instrument choice
Section 115 of the Customs Tariff provides the authority for the Governor in Council to remit duties on the recommendation of the Minister of Finance. A remission order under section 115 of the Customs Tariff is the most appropriate mechanism, as it was created to provide remission from duties, including surtaxes.
Regulatory analysis
Benefits and costs
In accordance with the criteria that have been set out, time-limited remission is only provided where warranted by exceptional circumstances with a view of giving Canadian businesses and entities time to adjust their supply chains to the surtaxes.
This is a relieving mechanism to the benefit of Canadian industries and entities impacted by the U.S. surtaxes. 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 this Order), remission claims would be made for each applicable importation as part of the process of filling existing customs documentation requirements. In regard to requesting a refund (i.e. for goods already imported prior to the entry into force of this Order), importers would submit forms to the Canada Border Services Agency (CBSA) 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 before they are paid).
Small business lens
Analysis under the small business lens concluded that the Order will impact small businesses. Some of the importers meet the definition of “small business” in the Policy on Limiting Regulatory Burden on Business, and the process to claim remission of duties paid meets the definition of “administrative burden” set out in the Policy. No additional flexibility is necessary for small businesses claiming remission, as all eligible importers already possess the original customs forms required to justify remission and will benefit from the remitted funds.
One-for-one rule
This Order relates to tax administration and is exempt from the requirement to offset administrative burden and regulatory titles under the one-for-one rule. The requirement for Canadian importers to submit claims for remission meets the Red Tape Reduction Act definition of administrative burden on businesses. However, duties are considered to be “taxes” for the purpose of the one-for-one rule and have been exempted from the offset requirement.
Effects on the environment
In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA Directive), a preliminary scan concluded that a strategic environmental and economic assessment is not required.
Gender-based analysis plus
No impacts based on gender and other identity factors have been identified for this Order.
Implementation, compliance and enforcement, and service standards
The CBSA will assess any requests for remission made pursuant to the 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 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
Scott Winter
Senior Director
Trade Rules
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Email: remissions-remises@fin.gc.ca