Honda Canada Inc. Remission Order: SOR/2026-146
Canada Gazette, Part II, Volume 160, Number 13
Registration
SOR/2026-146 June 22, 2026
CUSTOMS TARIFF
P.C. 2026-635 June 22, 2026
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Honda Canada Inc. Remission Order under section 115footnote a of the Customs Tariff footnote b.
Honda Canada Inc. Remission Order
Remission
1 Remission is granted to Honda Canada Inc. of the customs duties paid or payable under the Customs Tariff in an amount not exceeding $493,106 in respect of motor vehicles imported during the period beginning on June 7, 2020 and ending on July 7, 2020.
Condition
2 Remission is granted on the condition that a claim for remission is made to the Minister of Public Safety and Emergency Preparedness within two years after the day on which this Order comes into force.
Repeal
3 This Order is repealed on the second anniversary of the day on which it comes into force.
Coming into force
4 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
On June 7, 2020, Honda North America was subject to a cyberattack, which temporarily disrupted its information technology systems. As a result, Honda Canada was unable to provide certificates verifying that imports between June 7 to July 7, 2020, were compliant with the North America Free Trade Agreement (NAFTA) and therefore eligible for duty-free treatment. Consequently, Honda Canada paid the applicable 6.1 % Most-Favoured-Nation (MFN) tariff on vehicle imports during this period, totalling $493,106 in customs duties paid. Honda Canada subsequently obtained verification that its imports qualified for NAFTA preferential treatment and sought a refund from the Canada Border Services Agency (CBSA) but was beyond the statutory time limit for refunds. Therefore, Honda Canada has requested the remission of these customs duties paid.
Background
Vehicles imported into Canada are subject to a 6.1 % MFN tariff, unless preferential tariff treatment is claimed, such as tariff preferences available under a free trade agreement. To benefit from such treatment, importers must demonstrate that goods meet the applicable rule of origin and provide supporting documentation. Importers may request a refund within prescribed time limits if they were unable to provide proof of origin at the time of importation, in accordance with the Customs Act. Under NAFTA, the prescribed time limit was one year.
Section 115 of the Customs Tariff authorizes the Governor in Council, on the recommendation of the Minister of Finance or the Minister of Public Safety and Emergency Preparedness, to remit customs duties on a case-by-case basis in exceptional circumstances.
Objective
The objective of the Honda Canada Inc. Remission Order is to provide remission of customs duties paid by Honda Canada that would have been eligible for duty-free treatment if it were not for extraordinary factors outside of its control.
Description
Pursuant to section 115 of the Customs Tariff, this Order provides remission of customs duties paid by Honda Canada of $493,106 for imports of motor vehicles from the United States between June 7 to July 7, 2020.
Regulatory development
Consultation
Consultations were not undertaken, given remission only applies to Honda Canada.
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
A remission Order under section 115 of the Customs Tariff is the most appropriate mechanism, as it is the only available mechanism to remit duties to Honda Canada. A refund of duties paid through a customs adjustment by CBSA was considered, but the statutory time limit as prescribed under the Customs Act had passed.
Regulatory analysis
Benefits and costs
This Order remits $493,106 in customs duties paid. It is a one-time cost that reverts to Honda Canada duties that it would not have otherwise paid, should it not have faced a cyberattack in 2020. There are no broader trade implications.
Small business lens
Analysis under the small business lens concluded that the Order will not impact Canadian small businesses. This measure only applies to Honda Canada, which is not a small business.
One-for-one rule
The Order relates to tax or tax administration and is exempt from the requirement to offset administrative burden and regulatory titles under the one-for-one rule.
Regulatory cooperation and alignment
As this Order remits customs duties to one organization, Honda Canada, it has no impact on Canada’s regulatory alignment with other jurisdictions, nor are there any opportunities for regulatory cooperation.
Effects on the environment
In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that a strategic environmental 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 CBSA is responsible for the administration of, and compliance with, customs and tariff legislation regulations. CBSA will administer the provisions of this Order in the normal course of its administration of customs and tariff-related legislation. Honda Canada may request remission from CBSA within two years of the date of registration of the Order.
Contact
Michael Mosier
Executive Director
Trade and Tariff Policy
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Email: tariff-tarif@fin.gc.ca