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 intended to 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 the impact that these tariffs could have on Canadian businesses. Canadian businesses that rely on these goods and their US sources.  Some businesses may be locked in to US contracts. Others may be unable to find the goods they need in the Canadian market. The tariffs can have a direct impact on the viability of the business itself.

CSPA ACPA Canada - US Steel Trade Facts and Figures Infographic

 

On the 18th of July – The Canadian government began accepting requests from Canadian registered businesses, for remission of these tariffs.

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.  Also affected are food products, mattresses, lawn mowers, dishwashers, boats, and various consumer goods too. These measures will remain in place until the elimination of, the higher duties the U.S. imposed on steel and aluminum products from Canada.

Remission Request for Tariffs

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 detailed information concerning the requesting company, subject goods, import volumes and values, and tariff effects. Remission requests will go through a detailed review process and there is no set deadline for making decisions.

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

 

To help you navigate through the complex compliance landscape (and avoid the penalties that can come from non-compliance), Community Customs Brokers’s team of professionals can provide answers to these and many other pressing questions related to doing business in Canada as an Importer/Exporter.

 

Contact us today for a free consultation.

 

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