CANADIAN firms can request a temporary remission of tariffs on the imports of Chinese electric vehicles (EVs), steel and aluminium products, the finance ministry said on Friday (Oct 18).
The ministry said that relief would be granted under specific and exceptional circumstances. The measure is designed to help firms adjust their supply chains to cope with the new tariffs, it said.
Canada announced the measures in late August, citing China’s intentional, state-directed policy of over-capacity. A 100 per cent surtax on EVs was imposed on Oct 1 while a 25 per cent surtax on steel and aluminium products comes into effect on Oct 22.
“To ensure that Canadian industry has sufficient time to adjust supply chains, remission will provide relief … under specific and exceptional circumstances,” the ministry said.
“The federal government will consider the appropriate duration of remission, with intent to provide it on a transitional basis only in most cases,” according to the ministry.
Remission would be considered in the following cases:
Situations where goods used as inputs, or substitutes for those goods, cannot be sourced either domestically or reasonably from non-Chinese sources.
Where there are contractual requirements, existing prior to Aug 26, 2024, requiring businesses to purchase Chinese inputs into their products or projects for a specified period of time.
Other exceptional circumstances, on a case-by-case basis, that could have significant adverse impacts on the economy.
Remission will not be granted for goods intended for resale in the same condition to the United States. REUTERS
