Surtax eliminated, but import quota now in place on electric vehicles from China

On February 26, 2026, the Canadian Government announced the elimination of the 100% surtax on imports of electric vehicles (EVs) from China. This change, which was payable under the China Surtax Order (2024) – Electric vehicles, is effective March 1, 2026. The Canada Border Services Agency (CBSA) has updated Customs Notice 24-32: China Surtax Order (2024) – Electric vehicles accordingly.

On the same day, Global Affairs Canada (GAC) issued Notice to Importers, Serial No. 1162, informing of the implementation of a quota restriction on imports of electric vehicles from China.

As such, an import permit issued by GAC will be required to import these vehicles. Imports of EVs identified in the GAC notice will be prohibited when not accompanied by a valid import permit.

To be eligible for an import permit, you must be a resident of Canada as defined in the Export and Import Permits Act (EIPA) and be an original equipment manufacturer (OEM) of EVs. A non-resident OEM may appoint an agent who is a resident of Canada to be the importer. This agent can be a consultant, local sales representative, legal agent, or direct employee.

Some additional key points to the quota administration:

The quota is administered on a first-come, first-served (FCFS) basis.
The quota year runs from March 1 to February 28 or 29 each year.
During the first six months of the initial quota year (March 1, 2026, to August 31, 2026), the available quantity is 24,500 vehicles.
For the second six months of the initial quota year (September 1, 2026, to February 28, 2027), the available quantity will be 24,500 vehicles plus any unused volumes from the initial six-month period.
GAC will be undertaking consultations regarding the administration of this quota. A new notice will be published before the start of the second half of the quota year.

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If you have any questions, please contact your Livingston account representative.