United States Surtax Remission Order and Its Impact on Canadian Importers

In response to escalating trade tensions and the United States’ continued imposition of tariffs on Canadian goods, the Canadian government has introduced the United States Surtax Remission Order (2025). This temporary measure provides six months of targeted financial relief to Canadian businesses hit hardest by the 25% surtax on certain U.S.-origin imports.

By allowing eligible importers to apply for a refund or exemption under specific conditions, the order aims to ease cost pressures, support supply chain continuity, and give businesses time to adapt to shifting trade realities.

What is the United States Surtax Remission Order?

The United States Surtax Remission Order (2025) is a temporary measure that permits Canadian importers to apply for relief from the 25% surtax imposed on certain U.S. goods. The remission applies to goods imported between March 4, 2025, and October 15, 2025, and retroactively to imports since March 4, 2025. The order is designed to mitigate the impact of U.S. tariffs on Canadian businesses and allow time for supply chains to adjust.

How importers can benefit

The remission order provides significant relief to Canadian importers including:

Reduced costs: Importers can recover the 25% surtax, lowering the overall cost of goods.
Improved cash flow: Refunds of previously paid surtaxes can enhance liquidity for businesses.
Improved supply chain stability: By allowing continued access to U.S. goods, businesses can maintain operations without significant disruptions. Time is provided to review options for non-US sourcing

Eligibility criteria for remission

To qualify for remission, importers must meet the following conditions:

Importation date: Goods must have been imported into Canada between March 4, 2025, and October 15, 2025.
No prior remission: The importer must not have previously received a remission for the same goods under the Customs Tariff.
Remission claim: A claim for remission must be submitted to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation.
Supporting documentation: Importers must provide relevant documents, such as commercial invoices, bills of lading, and purchase orders, to demonstrate eligibility.

Eligible goods and sectors

The remission order covers a wide range of goods, including:

Manufacturing inputs: Goods used in Canadian manufacturing processes
Processing materials: Items imported for processing in Canada
Public health and safety: Goods necessary for public health, healthcare, public safety, and national security sectors
Food and beverage packaging: Materials used in packaging food and beverages in Canada

Remission is not available for goods intended for resale in the same condition to the United States.

How to apply

Importers seeking remission must submit a claim to the Minister of Public Safety and Emergency Preparedness. Customs brokers and trade chain partners can assist with understanding the remission order’s application and identify potential risks in applying. The claim should include:

Commercial Accounting Document (CAD): Indicating the surtax paid and ideally filed via the customs broker
Supporting documents: Such as purchase orders, commercial invoices, and bills of lading

Claims are to be submitted through the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) Client Portal or via Electronic Data Interchange (EDI). The CBSA will process the claims and determine eligibility for remission. It is important to have a clear understanding of the application of remission and qualify goods to minimize future audit risk.

Looking ahead

The United States Surtax Remission Order (2025) offers a strategic opportunity for Canadian importers to navigate ongoing trade tensions and reduce financial pressure from retaliatory tariffs. By taking advantage of this temporary measure, businesses can improve cost-efficiency and build resilience in their supply chains.

As the October 15 deadline approaches, it's crucial for importers to act promptly, ensure proper documentation, and seek guidance if needed to maximize the benefits of the remission program while remaining compliant with customs requirements.