In Canada, Tariff Remission is a specialized trade mechanism that allows the government to waive or refund customs duties (tariffs) and surtaxes on imported goods under specific conditions. Unlike a standard "duty deferral," remission is an extraordinary measure used to protect the competitiveness of Canadian manufacturers or to address exceptional circumstances where domestic supply is unavailable.

As of early 2026, this has become a high-priority topic due to the expiry of several broad-based "horizontal" remissions that were put in place during the recent trade tensions.

1. How it Works: The Two Pathways

Remission is typically granted through one of two legal avenues under Section 115 of the Customs Tariff:

• Standing Remission Orders (Broad): These are "automatic" if you meet the criteria. Importers use a Special Authorization Code at the time of entry to instantly waive the duty.

• Case-by-Case Remission (Individual): If no broad order exists, a company can apply directly to the Department of Finance. You must prove that the specific goods are not available from a Canadian supplier and that paying the tariff would cause "severe adverse impacts" to your operations.

2. Critical 2026 Deadlines & Expiries

The landscape is shifting rapidly this year. Many temporary remissions on U.S. and Chinese surtaxes are being phased out to encourage "Buying Canadian."

Important Dates:

General Steel (Manufacturing/Agri)Expired (Remission no longer available)Jan 31, 2026

Automotive & Aerospace SteelActive (Broad remission remains)June 30, 2026

Aluminum ProductsActive (Broad remission remains)June 30, 2026

Health & Public Safety GoodsActive (Broad remission remains)June 30, 2026

China Surtax RemissionsSpecific technical list (Schedule 1 & 2)Dec 31, 2026

3. The "Short-Supply" Application Process

For your clients who can no longer use broad codes (like those in general manufacturing), they must now file Individual Remission Applications. The Department of Finance requires:

• Evidence of Search: Proof that you attempted to source the product from Canadian and non-affected international suppliers (RFPs, rejection letters).

• Cost Breakdown: A detailed unit-cost analysis showing how the tariff makes your end-product uncompetitive in the global market.

• Contractual Proof: Evidence of pre-existing contracts that prevent you from switching suppliers immediately.

4. Compliance & CARM

All remission claims are now processed through the CBSA Assessment and Revenue Management (CARM) system.

• Retroactive Claims: If a client paid a surtax in 2025 but was eligible for remission, they have two years from the date of importation to file an adjustment and claim a refund.

• Audits: The CBSA is currently prioritizing "Surtax Accuracy" audits. If a client uses a remission code for a product that doesn't perfectly match the technical description in the Order, they face significant penalties plus interest.

Canada Tariff Remission