The Canadian Finance Ministry said on Friday that Canadian companies can request a temporary exemption from customs duties on imports of Chinese electric vehicles and steel and aluminum products.
The Ministry said in a statement that the exemption will be made in specific and exceptional circumstances. She said in a statement that this measure aims to help companies adjust their supply chains to deal with the new tariffs.
Canada announced the measures in late August, citing China’s deliberate, state-directed policy on excess capacity. An additional 100% tax on electric vehicles was imposed on October 1, while an additional 25% tax on steel and aluminum products will take effect on October 22.
“To ensure that Canadian industry has sufficient time to adjust supply chains, the mitigation will provide relief…under specific and exceptional circumstances,” the department said.
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According to the ministry, “The federal government will consider the appropriate duration of remission, with the intention of providing it on a transitional basis only in most cases.”
Remission will be considered in the following cases:
*Cases where goods used as inputs, or substitutes for those goods, cannot be obtained either domestically or reasonably from non-Chinese sources.
*If there are contractual requirements, in place before August 26, 2024, that require companies to purchase Chinese inputs in their products or projects for a specified period of time.
*Other exceptional circumstances, on a case-by-case basis, could have significant negative impacts on the economy.
The exemption will not be granted for goods intended for resale in the same condition to the United States.
—David Ljunggren reports. Edited by Mark Porter
