Surtax Got Your Profits Down? You May Be Eligible For A Surtax Remission.
Many Canadian Importers of Record (IOR) have experienced an increase in importation costs on items originating from the U.S. that appear on the surtax list. The surtax of 10% to 25% on a wide range of items, including steel and aluminum, was imposed on July 1st, 2018, in retaliation to the U.S. decision to increase tariffs on Canadian steel and aluminum imports into their country. There is a possibility that you could be relieved or refunded of the surtaxes you are currently paying.
Under What Circumstances Will You Be Relieved Or Refunded Your Surtax Paid?
The Federal Interdepartmental Committee may recommend to the Minister of Finance to grant relief under "exceptional and compelling circumstances that outweigh the primary rationale behind the application of duties and, in the current case, surtax."
They continue with a list of three situations where a refund or relief may be applied:
- To address situations of short supply in the domestic market, either on a national or regional basis.
- Where there are contractual requirements existing prior to May 31, 2018, for Canadian businesses to use U.S. steel or aluminum in their products or projects.
- To address, on a case-by-case basis, other exceptional circumstances that could have severe adverse effects on the Canadian economy.
If you need assistance applying for a refund or possible relief of the surtaxes please contact one of our expert Trade Advisors. With all of the pertinent import history details, they can help you write and apply for remission of surtax on your behalf.
To date, no timeline has been provided to let us know how long this review process will take. However, we will continue to provide you with details on the possibility of refund or relief as they develop. To ensure you do not miss any updates please subscribe to our mailing list.