Canada begins retaliatory tariff relief program for Canadian Businesses

 In Compliance Updates

On July 1st, Canada responded to the US Tariffs with a hefty list of our own.  These tariffs were clearly directed in a way that would ideally impact the US in the same fashion that the US’s tariffs have impacted Canadian business.

However, it was never lost on the Canadian government of the impact that these tariffs would potentially have on Canadian businesses who rely on these goods and their US sources.  Some businesses may have locked in contracts, some may be unable to find the goods they need for manufacturing in the Canadian market, or the tariffs might have a dramatic impact on their businesses viability.

CSPA ACPA Canada - US Stee Trade Facts and Figures Infographic

 

On the 18th of July – The Canadian government has begun accepting requests from businesses registered in Canada, for remission of the tariffs recently imposed.

Excerpt from a steel imports report in Canada

Canada’s retaliatory tariffs include an additional 25 percent duty on a variety of steel products and an additional 10 percent duty on aluminum products.  In addition, Canada added tariffs to other goods such as food products, mattresses, lawn mowers, dishwashers, boats, and various consumer goods. These measures will remain in place until the elimination of, the higher duties the U.S. imposed on steel and aluminum products from Canada.

 

The Canadian government states that it will consider requests for remission of the additional tariffs (i.e., relief from payment or refund of payments made) only in the following circumstances:

  1.  to address situations of short supply in the domestic market, either on a national or regional basis;
  2. where there are contractual requirements, existing prior to May 31, 2018, for Canadian businesses to use U.S. steel or aluminum in their products or projects; and
  3.  to address, on a case-by-case basis, other exceptional circumstances that could have severe adverse impacts on the Canadian economy.

Only companies registered in Canada may submit remission requests.

Requests must include a substantial amount of information concerning the requesting company, subject goods, import volumes and values, and tariff effects. Requests will go through a detailed review process and the government has set no deadlines for making decisions.

Though companies may be tempted to creatively avoid tariffs through other means, such as tariff engineering and reclassifying their goods, it is important to consult an importation professional prior to making these changes.

Interested in applying for relief, a ruling, or a reclassification? One of our consultants would be happy to help put together your relief request package.  Contact us today.

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