Customs Notice 25-19: United States Surtax Remission Order (2025)

^{Updated: Customs Notice 25-19: United States Surtax Remission Order (2025) - issued May 20, 2025}

Customs Notice 25-19: United States Surtax Remission Order (2025) has been updated with the following paragraphs:

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:

a. the good was imported into Canada on or after the date that the respective surtax came into force and before October 16, 2025;

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:

1. The Order provides relief for any good imported for use in:
   1. manufacturing
   2. processing in Canada (in any manufacturing sector), or
   3. 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:

1. 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
2. Goods used for construction or other infrastructure purposes (e.g., building materials)
3. 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.

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.

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CBSA publishes Customs Notice 25-19: United States Surtax Remission Order (2025).

The Remission 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) (Surtax Order) in respect of eligible goods.

It has been confimed this is retroactive to March 4, 2025.