Amendments to Customs Notice 25-19: United States Surtax Remission Order (2025)
Updated: October 17, 2025
Below is a summary of the Amendments to Customs Notice 25-19: United States Surtax Remission Order (2025). To review the full document, please click on the link below.
October 17, 2025: Amendments to Customs Notice 25-19: United States Surtax Remission Order (2025)
Application
This document outlines remission provisions for surtaxes on imported goods under three US Surtax Orders (2025-1, Steel and Aluminum 2025, and Motor Vehicles 2025). The remissions target critical sectors and essential goods.
Public Health, Safety & National Security Remissions
- Eligible entities include government health research organizations, medical countermeasure producers, public health offices, emergency services, firefighting services, law enforcement agencies, correctional services, Department of National Defence, Canadian Forces, and Canadian Security Intelligence Service
- Purpose: Goods imported for healthcare, public safety, national defence, or national security
- Coverage: All three surtax orders apply
Healthcare Services Remissions
- Medical facilities: Hospitals, health/dental clinics, medical laboratories, long-term care facilities
- Healthcare entities: Blood/tissue/organ service providers, federal/provincial/local/Indigenous health authorities
- Purpose: Medically necessary healthcare services and public health activities
- Coverage: All three surtax orders apply
Manufacturing & Processing Remissions
- Activities covered: Manufacturing, processing goods, agricultural production, food/beverage packaging
- Scope: Goods used within Canada for these purposes
- Coverage: US Surtax Order (2025-1) and Steel and Aluminum (2025) orders
- Note: Processing includes adjustment, assembly, or modification of goods
Specific Goods Categories
- Schedule 1 goods: Specific tariff classifications under US Surtax Order (2025-1)
- Schedule 2 & 3 goods: Items under both US Surtax Order (2025-1) and Steel and Aluminum (2025)
- Schedule 4 goods: Additional classifications under both primary surtax orders
- Schedule 4.1 goods: Extended coverage under the same two orders
Motor Vehicle Remissions
- Covered vehicles: Motor vehicles under specific tariff classifications, all-terrain vehicles (including utility terrain and side-by-side vehicles), hearses, and hearse limousines
- Coverage: US Surtax Order (Motor Vehicles 2025) exclusively
Conditions of Relief
This regulatory framework establishes procedures for importers to claim relief or refunds from surtax payments on goods imported into Canada, with specific conditions and documentation requirements.
Eligible Entities
- Primary claimants: Importers (both private and public sector entities)
- Non-resident importers are also eligible to file claims
- Business number holders specified in Schedule 4 for certain classified goods
Critical Documentation Requirements
- Commercial Accounting Document (CAD)
- Purchase orders and commercial invoices
- Canada customs invoices
- Bill of lading or waybill
- All documents must demonstrate compliance with relief conditions
Import Deadlines and Conditions
- General deadline: Goods must be imported before December 16, 2025 for sections 1-3 relief
- Schedule 3 goods: Must meet specific dates outlined in column 3 of Schedule 3
- Schedule 4 goods: Import deadline of September 1, 2025
- Claims deadline: Importers have two years from importation date to submit relief claims
Special Process for Courier Shipments
- Courier Low Value Shipment (CLVS) program follows specific procedures outlined in CBSA Memorandums D17-4-0 and D8-2-16
- Most CLVS goods may not qualify for standard relief conditions
- Eligible goods require adjustment requests through Commercial Client Portal (CCP) in CBSA’s CARM system
- Must include appropriate Special authorization code in Special Authority OIC field
Remission relating to public health, public safety and national security
Entities Eligible to Claim Remission
- Eligible Entities: Only organizations listed in Section 1 of the Order can claim surtax remission for imported goods
- Qualifying Goods: Items must relate to public health, public safety, and national security purposes to be eligible for remission
- Usage Requirement: Goods must be directly used by the eligible importing entity – commercial importers not listed in Section 1 are excluded from remission benefits
- Documentation: Importers must maintain comprehensive records proving their eligibility and proper use of the remission order
- Law Enforcement Inclusion: Remission extends to law enforcement agencies, including:
- Self-administered Police Service Agreements
- First Nation and Inuit community police services operating under provincial legislation
- Environmental and wildlife enforcement agencies with peace officer status
- Commercial Restrictions: Private companies and commercial importers cannot access remission unless specifically listed as eligible entities in the Order
Health Care
Goods Eligible for Remission
Under section 2 of the Order, goods that are eligible for remission are those that relate to the provision of medically necessary health care services. Entities listed in paragraph 5 can claim remission for goods where the importation of such goods is related to these purposes.
Entities Eligible to Claim Remission
- Usage Requirement: The phrase “for use by” mandates that imported goods must be utilized specifically by entities listed in section 2 of the Order, with the listed entity serving as the importer
- Record-Keeping Obligation: Importers bear full responsibility for maintaining comprehensive documentation that substantiates both their eligibility status and proper use of the remission order provisions
- Entity Restrictions: Importers who are not specifically listed in subsection 2(b) of the Order are categorically ineligible for remission under this regulatory framework
- Compliance Focus: The regulation emphasizes strict adherence to entity qualifications, ensuring only authorized importers can benefit from surtax relief
- Key Takeaway: This remission order creates a closed system where only pre-approved entities can import goods under favorable terms, with robust documentation requirements ensuring regulatory compliance and preventing unauthorized use of tax relief provisions.
Manufacture and processing or packaging
- Relief Scope: The Order provides surtax relief for imported goods used in manufacturing, processing, or packaging food products and beverages in Canada
- Affected Entities:
- Manufacturers utilizing imported materials
- Food and beverage processors
- Packaging companies operating in Canada
- Key Provisions:
- Export flexibility: End products may be exported from Canada after processing
- Broad coverage: Relief applies to any imported goods used in manufacturing or processing activities
- Food packaging: Specific inclusion for packaging of food and beverage products
- Documentation Requirements:
- Claimants must maintain supporting documentation proving goods were used in eligible activities
- Records may be requested by CBSA for verification
- Documentation should substantiate manufacturing, processing, or packaging use
- Eligibility: Relief available for imported goods actively used in Canadian manufacturing, processing, or packaging operations, regardless of final product destination
Manufacturing and Processing
- Scope: Provision applies to imported goods used in manufacturing activities under NAICS chapters 31-33, including food manufacturing and processing operations like grain milling
- Key Distinction: The Excise Tax Act differentiates between manufactured goods and construction materials/equipment for buildings, treating them as separate categories
- Eligibility Requirements:
- Only manufacturing or processing machinery and direct inputs qualify for remission
- Imported materials must form an integral part of the final manufactured product
- Examples include imported food products for processing or aluminum for boat manufacturing
- Exclusions: Goods for worker use or general facility maintenance are not eligible (hand soap for food handlers, personal protective equipment)
- Affected Entities: Importers bear full responsibility to demonstrate qualification for remission on manufacturing or processing goods
- Compliance: Documentation proving manufacturing/processing use is mandatory for remission eligibility
Packaging of Food Products or Beverages
- Imported packaging materials used for food and beverage products qualify for remission, but the goods being packaged do not (unless meeting separate manufacturing/processing requirements)
- Example scenario: Imported peanuts packaged in imported aluminum cans – the aluminum cans qualify for remission, but the peanuts do not
- Remission applies only when packaging is used for commercial food and beverage products intended for sale
- Personal importations excluded: Items like plastic storage containers for personal food storage do not qualify for remission
- Key distinction: The imported packaging product itself must be eligible – not the contents being packaged
- Affected entities: Businesses importing packaging materials for commercial food/beverage operations benefit from these remission rules
- Processing requirement: Goods being packaged must undergo manufacturing or processing to separately qualify for remission benefits
Other Conditions of Relief
- Non-commercial goods qualifying for remission are processed on Form BSF715 or BSF715-1 without surtax collection at import
- Documentation requirements: Importers claiming relief must maintain supporting records proving goods were used for:
- Food product or beverage packaging
- Integration into manufactured/processed products
- CBSA verification: Supporting documentation may be requested by authorities to substantiate compliance with Order conditions
- Repair exemptions: Items imported for repair or returned after export repair are not subject to surtax when classified under chapters 98 or 99
- Specific exceptions: Some repair items remain subject to surtax if listed in:
- Schedule 3 of United States Surtax Order (Steel and Aluminum 2025)
- Schedule 2 of United States Surtax Order (Motor Vehicles 2025)
- Key principle: Goods not subject to surtax don’t require remission applications
- Affected entities include importers, manufacturers, and businesses involved in packaging, processing, and repair operations.
How to Apply
- Commercial goods require special authorization codes on CAD forms for surtax relief at import
- Code 25-0466A: Public Health, Safety & National Security imports
- Code 25-0466B: Healthcare-related goods
- Code 25-0466C: Manufacturing, Processing & Packaging materials
- Code 25-0466D: Specific goods listed in Schedule 1 classifications
- Code 25-0466M: Items from Schedule 2 under designated tariff numbers
- Schedule 3 codes: Time-sensitive relief based on specific periods and item classifications
Corrections, Adjustments, and Re-determinations
- Corrections: Submit via CCP or EDI/API before CAD payment due date using reason code R5-00-COT to relieve owing surtax
- Adjustments: Submit after payment due date using reason code R2-74-1-GR-53 for surtax refunds on commercial goods
- Non-commercial goods: Use Form B2G for informal adjustment requests (cannot use CARM system)
- Re-determinations: CBSA may reassess origin, classification, or value, potentially assessing additional undeclared surtax amounts
- Special authority codes required in relevant OIC fields for qualifying imported goods
Examinations and Verifications
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
- Origin National Customs Rulings provide predictability and certainty for goods accounting before importation
- Two ruling types available:
- Advance Rulings – governed by Customs Act and Free Trade Agreements
- National Customs Rulings – for commercial goods importation
- Binding decisions cover: tariff classification, valuation, origin, and marking requirements
- Authority limitations: decisions cannot extend beyond these four specified areas
- Additional guidance available through Memorandums D11-11-1 and D11-11-3 for detailed procedures
Should you or your organization have any questions,
please do not hesitate to contact your Dominion Customs Consultants representative,
or feel free to reach us here
