On May 31st, the Canadian Department of Finance issued a notice of intent to impose tariffs on certain product of US origin imported into Canada. I usually impart some humour into my blogs or attempt to at least, however these are some pretty significant and serious countermeasures.
The short version.
The surtax on imports into Canada comes into effect on July 1st, 2018 and will be in place until the US drops their similar countermeasures against Canada. The listing of products that will be “surtaxed” is aligned with headings, subheadings, tariff item levels of the Canadian Customs Tariff.
- There is a 25% surtax on most of chapter 72.
- There is a 25% surtax on a good portion of chapter 73.
- There is a 10% surtax on most of chapter 76.
- The rest of the surtax at 10% is scattered across various chapters.
Some of the other items include sugar confectionery, chocolate, whiskey, cucumbers and gherkins. Is there is a trend here? Take a look at the official document from the Canadian Department of Finance.
What can you do?
Gain an understanding of how this may affect you or your customers. Ensure your tariff classifications and countries of origin are correct and look to see if you can source some of these products from countries that are not subject to these surtaxes.
Tradewin can analyze your import universe to identify your exposure to these measures and help you to gain an understanding of these measures.
This appears to be the start of a difficult time in the trade world. Make sure you are prepared.