Businesses importing goods subject to United States surtax orders have vital pathways for financial relief under updated guidelines issued by the Canada Border Services Agency (CBSA).
Customs Notice 25-19, updated on November 9, 2026, provides comprehensive instructions on the application of the United States Surtax Remission Order, designed to mitigate the operational and supply chain impacts of trade counter-tariffs on Canadian enterprises.
Key relief categories
The remission order allows eligible importers to waive or recover surtaxes paid under United States surtax orders.
The updated remission order has been broadened to include additional relief as well as additional guidelines in respect to remission for hand tools; machinery parts and components; and goods used in agricultural production.
The claim period in which a claim for remission can be made has been updated from 2 years to 4 years, and the expiry date of July 1, 2027, has been updated to July 1, 2028.
Relief is broadly partitioned into distinct operational buckets:
1. Public health, public safety, national security, and public education
Full or partial surtax relief is granted for goods imported for use by designated public-sector and institutional entities, including healthcare, public safety, national defense, national security, and public education. Qualifying bodies encompass:
- Government or clinical health research organizations.
- Entities producing or storing medical countermeasures, pharmaceuticals, or medical devices.
- Public health official offices, ambulance, and emergency response services.
- Firefighting services, law enforcement agencies (including self-administered First Nation/Inuit police agreements and wildlife/environmental enforcement agencies with peace officer status), and federal or provincial correctional services.
- The Department of National Defence, the Canadian Forces, and the Canadian Security Intelligence Service (CSIS).
- Recognized public education entities providing elementary, secondary, or post-secondary education, as well as institutions established by Indigenous governing bodies.
2. Medically necessary health care services
Remission is available for goods imported for the provision of medically necessary health care services or for specific public health entities. This covers:
- Goods used directly in hospitals, health care or dental clinics, medical/dental/diagnostic laboratories, and long-term care facilities.
- Entities supplying products or services related to blood, cells, tissues, or organs for medically necessary care.
- Federal, provincial, local, or Indigenous health authorities.
3. Manufacturing, processing, production, and packaging
To protect domestic manufacturing and agriculture, horizontal relief applies to goods imported for use in Canada for:
- Manufacturing and processing: General manufacturing or processing operations (aligned with NAICS chapters 31–33), covering machinery, direct production inputs, and integral hand tools or replacement parts.
- Agricultural production: Inputs, tools, and machinery integral to agricultural, forestry, fishing, or hunting activities (NAICS sector 11), such as crop-harvesting equipment.
- Food and beverage packaging: Packaging materials imported specifically for agricultural products or manufactured food and beverages. (Note: The packaging itself qualifies, but general personal storage containers or the underlying goods being packaged—unless meeting separate manufacturing rules—are excluded).
4. Mining, quarrying, and resource extraction
Relief is provided for goods imported for use in mining, quarrying, and oil and gas extraction (NAICS chapter 21). This category targets integral machinery and tools used directly to drill, excavate, crush, grind, or separate materials, alongside their respective replacement parts.
5. Automotive and aerospace sector inputs
Specialized remissions are designated for high-integration manufacturing sectors, covering:
- Goods imported for the manufacture of motor vehicles, chassis, parts, or accessories.
- Materials and components integrated into aircraft, ground flying trainers, spacecraft, or their respective parts.
6. Schedule- and product-specific exemptions
The Order includes targeted schedules addressing specific industrial inputs, unproducible goods, all-terrain vehicles (UTVs/side-by-sides), hearses, and specific tariff classification items managed via enterprise-specific business numbers.
Commercial importers heavily reliant on U.S. components, steel, aluminum, or manufactured inputs are strongly advised to review their tariff classification lines alongside their licensed customs brokers to leverage available relief and protect their operational cash flow.
Action required for importers
Importers do not always need to file individual requests with Finance Canada if their goods fall under pre-existing product schedules or horizontal remissions. Businesses can claim relief directly at the border or seek retroactive adjustments by adhering to specific administrative protocols:
- Identify special authorization codes: Importers must cross-reference their goods’ tariff classifications with the schedules outlined in Customs Notice 25-19 to find the appropriate special authorization code (such as code 25-0466C for qualifying manufacturing inputs).
- Declare at importation: Apply the designated special authorization code directly on the commercial customs declaration via the CBSA assessment and revenue management systems to waive the surtax upfront.
- Request refunds for past entries: Importers who have already paid applicable surtaxes can apply for retroactive refunds. Claims must be submitted to the Minister of Public Safety and Emergency Preparedness within the mandated statutory window (typically up to two to four years from the date of importation, depending on the specific statutory section governing the claim).
- Maintain compliance documentation: Importers utilizing remission codes are legally required to maintain rigorous internal records—including commercial invoices, bills of lading, and concrete proof of end-use—to substantiate their eligibility during subsequent CBSA audits.
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If you have any questions, please contact your Livingston account representative.