Order Amending the Certain Russian Goods Remission Order: SOR/2026-140

Canada Gazette, Part II, Volume 160, Number 13

Registration
SOR/2026-140 June 22, 2026

CUSTOMS TARIFF

P.C. 2026-629 June 22, 2026

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Order Amending the Certain Russian Goods Remission Order under section 115footnote a of the Customs Tariff footnote b.

Order Amending the Certain Russian Goods Remission Order

Amendments

1 (1) Section 1 of the Certain Russian Goods Remission Order footnote 1 is replaced by the following:

Remission

1 Remission is granted of the customs duties paid or payable under the Customs Tariff in respect of the following goods that originate in Russia:

(2) Section 1 of the Order is replaced by the following:

Remission

1 Remission is granted of the customs duties paid or payable under the Customs Tariff in respect of goods that are classified under tariff item No. 8807.20.00 that originate in Russia and that are imported during the period beginning on March 2, 2022 and ending on April 16, 2029.

2 (1) Section 2 of the Order is renumbered as subsection 2(1) and is amended by adding the following:

Exception

(2) Despite subsection (1), in the case of goods referred to in paragraph (1)(b) that were imported before the day on which this subsection comes into force, remission is granted on condition that a claim for remission is made to the Minister of Public Safety and Emergency Preparedness within two years after that day.

(2) Subsection 2(2) of the Order is repealed.

3 Section 3 of the Order is replaced by the following:

3 This Order is repealed on April 16, 2031.

Coming into Force

4 (1) Subject to subsection (2), this Order comes into force on the day on which it is registered.

(2) Subsections 1(2) and 2(2) come into force on July 8, 2030.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

Following the withdrawal of eligibility for the Most-Favoured-Nation (MFN) tariff treatment from Russian and Belarusian goods on March 2, 2022, Canadian producers of specialized aircraft parts have not been able to find alternate sources of supply for specialized titanium manufacturing inputs. Russia is the primary supplier of aircraft grade titanium and this good cannot be sourced elsewhere in the short or medium term despite efforts on the part of Canadian producers to find alternative suppliers. This raises the cost of production for Canadian producers, putting them at a competitive disadvantage compared to producers in other jurisdictions, without the prospect of diverting trade away from Russia. The Order Amending the Certain Russian Goods Remission Order will provide duty relief for imports of titanium of Russian origin used in the manufacture of landing gear for airplanes for a period until April 16, 2029. This will ensure the competitiveness of Canadian producers is not harmed over the medium-term, while maintaining the incentive for them to identify other sources of supply over the long-term.

Background

On February 24, 2022, Russian military forces invaded the sovereign country of Ukraine, including through the territory of Belarus with the permission of that country’s government. In close coordination with its allies and partners, the Government of Canada responded with a broad range of trade measures, including the withdrawal of eligibility for MFN tariff treatment under section 31 of the Customs Tariff for goods of Russian and Belarusian origin, resulting in the application of the General Tariff, at a rate of 35%, to virtually all goods from those countries since March 2, 2022.

The policy rationale for MFN withdrawal is to encourage diversification of Canadian import sourcing and supply chains away from Russia and Belarus, either toward domestic or other foreign sources. Between the MFN withdrawal and other measures, including the Government’s ban on Russian oil imports, imports from these two countries have fallen by over 90% compared to pre-conflict levels (2019–2021).

Budget 2023 proposed legislative amendments to indefinitely extend the withdrawal of MFN tariff treatment from imports of Russian and Belarusian origin, which were implemented through Bill C-47.

Objective

  1. Avoid undue costs for the import of a critical input, titanium used in landing gear for airplanes.
  2. Continue to encourage Canadian import sourcing and supply chains to move away from Russia over the medium term by sending a clear and predictable signal as to future costs.

Description

This measure provides temporary duty relief for imports of titanium used in landing gear for airplanes of tariff item 8807.20.00.00 originating in Russia.

The remission Order, as provided for by section 115 of the Customs Tariff, will remit duties on imports of tariff item 8807.20.00 of Russian origin entering Canada between March 22, 2022, until April 16, 2029, when the waiver of importation issued by Global Affairs Canada expires.

Regulatory development

Consultation

Targeted consultations were undertaken with importers, whose operations were affected by the implementation of the General Tariff on Russian imports of titanium used in landing gear for airplanes. Consultations with Global Affairs Canada were also undertaken related to this industry, the availability of alternative technologies and sources for titanium used in landing gear for airplanes. These consultations confirmed the lack of immediate or short-term alternate sources, and the supply constraints, which are likely to persist for the medium term.

Indigenous engagement, consultation and modern treaty obligations

The proposal is not expected to impact potential or established Aboriginal or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982.

Instrument choice

Regulatory amendments are required to maintain time-limited duty relief for titanium used in landing gear for airplanes, in the context of the indefinite withdrawal of eligibility for MFN tariff treatment from Russia and Belarus. A remission Order under section 115 of the Customs Tariff is the most appropriate mechanism, as it was created to provide temporary relief from customs duties.

While a legislative approach was considered, it was not considered appropriate, as an indefinite legislative exception for titanium used in landing gear for airplanes would not create the incentive to move away from Russian import sources. A legislative approach would also result in the extension of duty relief to titanium used in landing gear for airplanes from Belarus and North Korea, the other two countries subject to the General Tariff.

Regulatory analysis

Benefits and costs

This measure will result in forgone tariff revenue, which would otherwise have been paid to the Government of Canada by importers of goods under tariff item 8807.20.00. It is anticipated that importers of goods under tariff item 8807.20.00 will save approximately $6.1 million per year as a result of this measure.

On the other hand, this will help ensure that Canadian producers remain competitive in an international market, helping to ensure jobs and tax revenue remain in Canada.

Given supply constraints, limited available substitutes, and its essential nature, demand for imported titanium used in landing gear for airplanes from Russia is expected to remain constant with or without this measure. Without these regulations in place, the manufacture of the required airplane landing gear would be done in Canada at a higher cost or be displaced to non-Canadian suppliers that would source the required titanium from Russia. Therefore, it is not expected that this measure will have any impact on the volume of Russian exports of titanium used in landing gear for airplanes, and therefore, no impact on the efficacy of Canada’s trade sanctions against Russia. Although this measure will temporarily decrease the incentive for the development of new sources of supply for titanium used in landing gear for airplanes, the limited term of the exemption is intended to signal a need to identify new supply sources over the medium term.

Small business lens

Analysis under the small business lens concluded that the proposed regulation will not impact Canadian small businesses. None of the four businesses impacted meets the definition of “small business” in the Policy on Limiting Regulatory Burden on Business, which is fewer than 100 employees or less than $5 million in annual revenue.

One-for-one rule

There will be a minor administrative burden for importers seeking to access duty relief during the retroactive period of the remission Order. During this time, importers seeking a remission of customs duties will need to seek a refund from the Canada Border Services Agency (CBSA). As the regulations relate to tax or tax administration, this increase is exempt from the requirement to offset administrative burden under the one-for-one rule.

Regulatory cooperation and alignment

On March 2, 2022, Canada was the first country to withdraw MFN tariff treatment from goods originating in Russia and Belarus. Since then, several allied countries have implemented tariff increases or import bans on Russian and Belarusian imports, including the United States and the United Kingdom. These jurisdictions have also excluded sensitive products based on their domestic circumstances, including due to conditions of short supply. Key like-minded partners, including the European Union, have avoided putting import restrictions, such as new tariffs or sanctions, on imports of aircraft-grade titanium.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that a strategic environmental and economic assessment is not required.

Gender-based analysis plus

No gender-based analysis plus (GBA+) impacts have been identified for this proposal.

Implementation, compliance and enforcement, and service standards

The Order Amending the Certain Russian Goods Remission Order comes into force upon registration. The CBSA will monitor compliance with the terms and conditions of the remission Order in the normal course of its administration of customs- and tariff-related legislation and regulations. The CBSA will update its systems to account for the remission Order and will inform importers through public materials.

Duty relief can be claimed by the importer either at the time of assessment, or subsequently by requesting a refund from CBSA within two years of the date of importation.

Contact

Michael Mosier
Director
Trade and Tariff Policy
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Email: tariff-tarif@fin.gc.ca