Customs Notice 25-19: United States Surtax Remission Order (2025)
Ottawa, April 17, 2025
Updated: May 20, 2025
1. This notice provides information on the application of the United States Surtax Remission Order (2025) (“Order”) which is intended to minimize the negative effects of the surtaxes on Canadian companies and entities by providing relief for goods that are used in Canadian manufacturing, processing and food and beverage packaging, and for those used to support public health, health care, public safety, and national security objectives.
2. The Order allows the relief of surtaxes paid or payable by the United States Surtax Order (2025-1), the United States Surtax Order (Steel and Aluminum 2025) or the United States Surtax Order (Motor Vehicles 2025) in respect of eligible goods.
3. The administration of this Order is the responsibility of the Canada Border Services Agency (CBSA).
Application
4. Remission is granted for public health, public safety and national security purposes, per section 1 and section 5 of the Order, of surtaxes paid or payable under the United States Surtax Order (2025-1), the United States Surtax Order (Steel and Aluminum 2025) or the United States Surtax Order (Motor Vehicles 2025) in respect of goods imported by or on behalf of:
- a government health research organization or clinical health research organization;
- an organization that produces or stores medical countermeasures, including pharmaceuticals or medical devices;
- the office of a public health official, as defined in subsection C.10.001(1) of the Food and Drug Regulations;
- an organization that provides ambulance or other emergency response services;
- a firefighting service;
- a law enforcement agency;
- a federal or provincial correctional service;
- the Department of National Defence;
- the Canadian Forces; or
- the Canadian Security Intelligence Service.
5. Remission is granted for health care purposes per section 2 and section 5 of the Order, of surtaxes paid or payable under the United States Surtax Order (2025-1), the United States Surtax Order (Steel and Aluminum 2025) or the United States Surtax Order (Motor Vehicles 2025) in respect of goods imported:
- for use in the provision of medically necessary health care services, including services provided at:
- a hospital,
- a health care or dental clinic,
- a medical, dental or diagnostic laboratory, or
- a long-term care facility; or
- by or on behalf of
- an entity that provides products or services related to blood, cells, tissues or organs for medically necessary health care, or
- a federal, provincial, local or Indigenous health authority.
6. Remission is granted for manufacture, processing or packaging purposes per section 3 and section 5 of the Order, of surtaxes paid or payable under the United States Surtax Order (2025-1) or the United States Surtax Order (Steel and Aluminum 2025) in respect of goods imported for use, in Canada, in the manufacture or processing of any good or the packaging of a food or beverage, where, under the Customs Tariff, processing and manufacturing, in respect of goods, includes the adjustment, assembly, or modification of the goods.
7. Remission is granted for goods referred to in the schedule of the Orderper section 4 and section 5, of surtaxes paid or payable under the United States Surtax Order (2025-1) in respect of goods referred to in column 1 of the schedule of the Order that are classified under a tariff classification number set out in column 2 of the schedule of the Order.
Conditions of relief
8. Claims for relief of surtax upon importation or for refund of surtax paid under this Order must be made by the importer of record (which may be a private or public sector entity). This may include non-resident importers.
9. All claims for relief of surtax under the Remission Order for these goods must also be supported by all relevant documents (e.g., Commercial Accounting Document (CAD), purchase order, commercial invoice, Canada customs invoice, bill of lading, way bill) that demonstrate that they meet the following conditions of relief set out in the Remission Order:
- the good was imported into Canada Canada on or after the date that the respective surtax came into force and before October 16, 2025;
- no other claim for relief of the surtax has been granted under the Customs Tariff in respect of the good; and
- the importer makes a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation.
10. For goods imported under the Courier Low Value Shipment (CLVS) program, please follow the process in CBSA’s Memorandums D17-4-0, Courier Low Value Shipment Program and D8-2-16, Courier Imports Remission. Note that the majority of goods imported under the CLVS program will not be able to meet the conditions above. If the goods have surtax applied, and are eligible for remission, then subsequent to the processes noted in the aforementioned memorandums an adjustment request can be made by submitting a CAD in the Commercial Client Portal (CCP) of CBSA’s Assessment and Revenue Management (CARM) system indicating the appropriate Special authorization code for the Order in the Special Authority OIC field.
Health care and public health, public safety and national security purposes
Goods eligible for remission
11. Goods referenced under paragraphs 4 or 5 above that are eligible for remission are those that relate to “public health, public safety, and national security purposes” (where health is understood to mean human health). It is not intended that entities that are named in paragraphs 4 or 5 would be able to claim remission for goods where the importation of such goods is unrelated to these purposes. For example, a hospital or health research organization whose mission is solely to advance public health objectives may claim remission on goods – beyond strictly health goods – that advance that organization’s mission. However, a retail establishment that stores medical countermeasures (e.g., a pharmacy), but also sells other goods without a public health purpose, can claim remission only on eligible goods such as those for their own use or prescribed to patients by health professionals within those health facilities, not goods for general sale.
Entities eligible to claim remission
12. The phrase “by or on behalf of” means the goods must be imported by one of the entities listed in paragraph 4 or 5 above as the importer of record, or be shipped directly to an eligible entity identified as the importer or consignee of the goods upon importation. Eligible goods also include those for immediate sale to the eligible entities listed in paragraph 4 above (supporting documents include a procurement order, contract, etc.). The claimant must keep and maintain supporting documentation substantiating this fact, which may be requested by the CBSA.
13. Companies or commercial importers that are not an entity listed in paragraph 4 or 5 above , are not importing the goods for immediate sale to an eligible entity, or do not have imported goods shipped directly to them as an eligible consignee are not eligible under this provision of the remission order. Therefore, goods that are imported by an entity that is not listed in paragraph 4 and 5 above and lacks documents to demonstrate import for immediate sale to an eligible entity, but are later sold to an eligible entity, whether or not through a distributor, would not be eligible for remission.
14. This provision allows remission of surtax for goods imported by or on behalf of “a law enforcement agency”. This includes self-administered Police Service Agreements, where a First Nation or Inuit community manages its own police service under provincial policing legislation and regulations. It also includes environmental and wildlife enforcement agencies whose officers have been granted peace officer status.
Manufacture and processing or packaging
15. To clarify paragraph 6 above:
- The Order provides relief for any good imported for use in:
- manufacturing
- processing in Canada (in any manufacturing sector), or
- packaging of a food product or beverage in Canada
16. The end product of the manufacture, processing or packaging may be exported (it is not required to remain in Canada).
17. Remission is available for the importer of record, or an entity identified as the importer or consignee of the goods upon importation, to whom the goods are shipped directly. This means that it is the importer or consignee of goods that conducts the activity of manufacturing, processing or, concerning food or beverage products, packaging. Remission is also available for goods imported for immediate sale to an entity that conducts these covered activities. The claimant must keep and maintain supporting documentation substantiating this fact (e.g., contract for sale), which may be requested by the CBSA. If the goods are first being imported by another entity (e.g., a retailer) and not for immediate sale to an entity conducting these covered activities, they are not eligible for remission under this provision.
18. In all instances, the claimant must keep and maintain supporting documentation substantiating the manufacture, processing or packaging activities, which may be requested by the CBSA.
Manufacturing and processing
19. This provision is generally intended for use by importers that are [in the North American Industrial Classification System (NAICS) chapters 31-33 (manufacturing, including food manufacturing or processing activities such as grain milling. This means that goods used in the following type of business activity would not be eligible for remission:
- Goods used in primary material production (e.g., extraction of mineral ores, harvesting of agricultural goods), even if those primary goods are subsequently processed in Canada. For example, imported farm machinery used to harvest grain that is subsequently processed into flour in Canada would not be covered. However, imported grain that is subsequently processed into flour in Canada could be covered
- Goods used for construction or other infrastructure purposes (e.g., building materials)
- Goods that may be further processed by a business that is not a manufacturing business (e.g., food preparation in a grocery store or restaurant)
20. Only manufacturing machinery and direct inputs which become an integral part of the finished product are eligible for remission, (e.g., imported food products for processing or imported aluminum to manufacture boats). Indirect inputs that support the functioning of manufacturing machinery (e.g., lubricants or fuel), and supporting materials, such as maintenance items for transportation (e.g., replacement tires for mining trucks), and other items used by workers or for the general upkeep of a manufacturing or processing facility (e.g., hand soap for food handlers or personal protective equipment), are not eligible.
Packaging of food products or beverages
21. Regarding packaging, it is the product imported and used for packaging that is eligible; the good being packaged is not eligible (unless it meets the separate requirements related to imports for goods used in manufacturing or processing). For example, imported peanuts packaged into imported empty aluminum cans (where the peanuts are not subject to any other processing would not be eligible for remission, but the empty aluminum cans would be eligible for remission.
22. Moreover, packaging would benefit from remission only if the packaging material is imported by a business that is, itself, using the packaging in preparing food and beverages for sale. It does not apply to personal importations of goods, such as plastic storage containers, that may be used for personal storage of foods or beverages.
23. Remission is restricted to the packaging of food for human consumption. Goods imported for packaging animal food are not eligible.
Other conditions of relief
24. For non-commercial (casual) goods that qualify for the remission at time of import and that are accounted for on a Form BSF715 or BSF715-1, Casual Goods Accounting Document, the form will be prepared according to standard procedures without collection of surtax.
25. Where relief is claimed under the Order, the importer would be required to keep and maintain supporting documentation substantiating that the imported goods met the conditions of the Order, such as that they were imported for use in the packaging of a food product or beverage, which may be requested should the CBSA conduct compliance interventions.
26. The Order encompasses less than the definition of process in section 80 of the Customs Tariff (Part 3 – Duties Relief). For example, repair is not included for remission. However, note that items imported for repair, or imported after being exported for repair, and are classified in a tariff item in chapters 98 or 99 are not subject to any of the surtax orders unless specifically identified (e.g., Schedule 3 of the United States Surtax Order (Steel and Aluminum 2025) or Schedule 2 of the United States Surtax Order (Motor Vehicles 2025)). Remission of surtax is not needed for goods not subject to surtax.
How to apply
27. In respect of commercial goods, to obtain relief of surtax at time of import, the relevant special authorization code is to be entered in the Special Authority OIC field on the Commercial Accounting Declaration (CAD). Where remission has been granted, surtax must be declared in addition to the applicable remission.
28. Special authorization code 25-0466A is to be entered to claim relief for goods imported for Public Health, Public Safety, and National Security, as outlined in sections 1 and 5 of the Order, and eligible for remission per the Order.
29. Special authorization code 25-0466B is to be entered to claim relief for goods imported for Health Care, as outlined in sections 2 and 5 of the Order, and eligible for remission per the Order.
30. Special authorization code 25-0466C is to be entered to claim relief for goods imported for Manufacture, Processing or Packaging, as outlined in sections 3 and 5 of the Order, and eligible for remission per the Order.
31. Special authorization code 25-0466D is to be entered to claim relief for certain goods referred to in the schedule of the Order, as outlined in sections 4 and 5 of the Order, and eligible for remission per the Order.
32. Please refer to Memorandum D17-1-10, Coding of Customs Accounting Documents, for additional information on completing the CAD.
33. For non-commercial goods that qualify for the remission at time of import and are accounted for on a Form BSF715 or BSF715-1 Casual Goods Accounting Document, the form will be prepared according to standard procedures without collection of surtax.
Corrections, adjustments, and re-determinations
34. If imported goods qualify for remissions under the Order, but remission was not claimed on the CAD, a correction or adjustment may be submitted via the CCP or via EDI/API by entering the relevant special authority code in the Special Authority OIC field.
35. Corrections in order to seek remissions under the Order can be made up until the CAD payment due date and will relieve the surtax listed as owing. The reason code provided must be R5-00-COT. For more information on how to submit a CAD correction, please refer to Memorandum D17-1-5: Accounting for Commercial Goods.
36. Adjustments can be made after the CAD payment due date and will result in a refund of the surtax incorrectly paid. The reason code provided must be R2-74-1-GR-53. For more information on how to submit an adjustment, please refer to Memorandum D17-2-1: Adjusting Commercial Accounting Declarations.
37. Adjustments for non-commercial goods cannot be submitted through CARM and must be made through Form B2G, CBSA Informal Adjustment Request. For more information on non-commercial refunds please refer to Memorandum D6-2-6: Refund of Duties and Taxes on Non-Commercial Importations.
38. The origin, tariff classification, and/or value for duty of imported goods may be re-determined or further re-determined in accordance with the Customs Act and the Determination, Re-determination and Further Re-determination of Origin, Tariff Classification and Value for Duty Regulations. This may occur further to a self-adjustment. In so doing, as with customs duties and taxes, the CBSA may assess any undeclared amount of surtax.
Examinations and verifications
39. Imported goods may be subject to examination at the time of importation and to post-release verification for compliance with the tariff classification, valuation, origin, and any other applicable provisions administered by the CBSA. In cases of non-compliance, in addition to the imposition of a surtax, customs duties and taxes, penalties may be issued and interest may accrue and be assessed on the amount owing.
Advance rulings for commercial importations
40. For predictability and certainty on how goods are to be accounted for, an Origin National Customs Rulings in advance of the importation of goods can be requested from the CBSA. Refer to Memorandum D11-11-1: National Customs Rulings for additional information. Refer to Memorandum D11-11-3: Advance Rulings for Tariff Classification for additional information on requesting an advance ruling on the tariff classification of goods.
41. The CBSA issues two types of rulings for the importation of commercial goods, Advance Rulings and National Customs Rulings. Legislative authority for rulings are set out in the Customs Act and our obligations under Free Trade Agreements. Authority for these binding decisions does not go beyond the tariff classification, valuation, origin or marking. The CBSA does not have the authority to issue rulings on remission orders.
Additional information
42. For further information on the process for requesting remission of surtaxes that apply on goods originating in the U.S. or to submit a remission request, refer to the Department of Finance website. Please submit any inquiries or remission requests to: remissions-remises@fin.gc.ca.
43. For more information on the administration of the Remission Order, call the Border Information Service (BIS) at 1-800-461-9999 (toll-free in Canada and the USA). If calling outside Canada and the United States, call 1-204-983-3500 or 1-506-636-5064. Long distance charges will apply. Our automated telephony service provides general information in English and French on CBSA programs, services and initiatives through recorded scripts. Live agents are also available to assist you Monday to Friday 8 am to 4 pm local time, as per time zones in Canada and United States (closed on federal statutory holidays). TTY is also available within Canada: 1-866-335-3237. Alternatively, you may send your enquiries using our client support contact form.