China's Electric Vehicles & Steel, Aluminum Imports: Hit with New Surtaxes

Surtax on Chinese-made Electric Vehicles

Excerpt from CN24-32

Beamstart - Journalistic Rewrite

Effective October 1, 2024, Chinese-made #EVs, including electric and hybrid passenger automobiles, trucks, buses, and delivery vans are subject to a surtax in the amount of 100% of the value for duty in accordance with the

China Surtax Order (2024) and sections 47 to 55 of the #Customs #Act. Schedule 1 of the China Surtax Order (2024) contains a complete list of goods subject to the surtax. This surtax will apply in addition to the Most-Favoured Nation import tariff of 6.1 % that currently applies to EVs produced in China and imported into Canada.

The surtax will only apply to goods that originate in China, which shall be considered as those goods eligible to be marked as goods of China, in accordance with the Determination of Country of Origin for the Purposes of Marking Goods (Non-CUSMA Countries) Regulations.

The surtax will apply to commercial and personal importations of goods, even when shipped to Canada from a country other than China.

The surtax applies to goods eligible for classification in the tariff items of Chapter 99 of the Schedule to Canada's #Customs #Tariff – with the exception of EVs that are temporarily imported for repair in Canada or re-imported into Canada after being exported for repair – even though they are entitled to the Most-Favoured-Nation zero customs duty rate under that Chapter.

For commercial goods, proof of origin may be in the form of a commercial invoice, a Canada Customs Invoice or any other documentation that indicates the country of origin of the goods.

Exceptions to #Surtax

The surtaxes will not apply to Chinese goods that are in transit to Canada on the day on which these surtaxes come into force. For the purpose of this Customs Notice, ‘in transit to Canada' refers to goods bound for Canada under the control of a carrier. Importers must have proof in their possession that such goods were in transit to Canada. Such proof may include, but is not limited to, the following documentation: shipping documents (for example, a bill of lading), report of entry documents, and cargo control documents. Such proof may be requested at any time by a CBSA officer.

Read more in Customs Notice 24-32 from CBSA.

Final list of steel and aluminum products from China that will be subject to a 25 % surtax

Department of Finance Canada

Backgrounder

The federal government will apply a 25 percent #surtax on imports of steel and aluminum products from China, effective October 22, 2024. The surtax will not apply to Chinese goods that are in transit to Canada on the day on which this surtax comes into force.

This surtax will apply to goods originating from China, which shall be considered as those goods eligible to be marked as a good of China in accordance with the Determination of Country of Origin for the Purpose of Marking Goods (Non-CUSMA Countries) Regulations.

Read more in an article from Department of Finance Canada.