Canada Issues Permit Rules for Importing Chinese EVs

New Regulatory Framework for Chinese EV Imports: 2026 Update

Effective March 1, 2026, Canada has transitioned from a restrictive surtax model to a strategic quota-based system for electric vehicles (EVs) originating in China. This shift, formalized under Customs Notice 26-05 and the Export and Import Permits Act (EIPA), restores a more traditional trade pathway while maintaining controlled volume limits. On February 25, 2026 Canada issued this notice to officially set out the rules and procedures for importing electric vehicles originating in China

The 100% Surtax Repeal

In a significant policy reversal, the 100% surtax previously imposed on Chinese-made EVs has been officially repealed (updating Customs Notice 24-32). Eligible imports will now revert to the 6.1% Most-Favored-Nation (MFN) tariff rate, provided they fall within the newly established quota.

Quota and Permit Specifics

The 2026 quota year is split into two distinct six-month windows to manage market flow and ensure equitable access:

• Window 1 (Mar 1 – Aug 31, 2026): 24,500 vehicles available on a first-come, first-served basis.
• Window 2 (Sep 1 – Feb 28, 2027): 24,500 vehicles plus any rollover volume from the first half.
• Total Annual Limit: 49,000 units for the 2026 fiscal year.

Note: Every shipment now requires a Shipment-Specific Import Permit issued by Global Affairs Canada (GAC). Without this permit, vehicles will be denied entry at the border.

Eligibility and Scope

To participate in this new framework, importers and vehicles must meet strict criteria:

• Covered Vehicles: Includes passenger EVs and specific electric trucks under Chapter 87 of the Customs Tariff.
  • Exclusions: Electric tricycles, golf carts, and mobility scooters do not require a permit.
• Origin Rules: "Originate in China" refers to vehicles substantially manufactured there, including complete knock-down (CKD) kits assembled in other territories.
• Importer Status: Must be a resident of Canada and an Original Equipment Manufacturer (OEM). Non-resident OEMs may operate through a designated Canadian representative or legal agent.

Key Importer Responsibilities

1. Advance Planning: Permit applications can be submitted up to 30 days before expected entry and are valid for 60 days.
2. Compliance: Importers are responsible for ensuring vehicles meet all Transport Canada and Motor Vehicle Safety Act standards.
3. Refund Claims: For those who paid the previous surtax on goods in transit or eligible for remission, retroactive adjustments to Commercial Accounting Declarations may now be possible.