Customs Notice 25-10 has bee updated:
4. This updated notice provides details in paragraphs 22 and 23 on exceptions under the United States Surtax Order (2025-1), and provides clarifications in paragraphs 6, 8, 9, 10, 18, 19, 24 and 25.
6. The surtax will only apply to goods that originate in the U.S., which shall be considered as those goods eligible to be marked as goods of the U.S. in accordance with the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations. The surtax does not apply to goods eligible to be marked as originating from Puerto Rico, Guam, the Northern Mariana Islands, American Samoa or the U.S. Virgin Islands.
8. The surtax does not apply to goods eligible for classification in the tariff items of Chapter 98 of the Schedule to the Customs Tariff, other than goods eligible for classification under 9804.30, 98.25, 98.26, 9897.00.00, 9898.00.00 and 9899.00.00. Chapter 98 includes temporary importations under specific conditions, traveler exemptions and other such tariff items.
9. The surtax does not apply to goods eligible for classification in the tariff items of Chapter 99 of the Schedule to Canada’s Customs Tariff, with the exception of goods eligible for classification under 9966.00.00 (vehicles and parts manufactured more than 25 years before the date of importation), 9971.00.00 (temporary exports of vessels for repair or alternation), and 9989.00.00 (articles produced more than 50 years prior to the date of accounting, other than antiques of an age exceeding 100 years, spirits or wines ). Chapter 99 includes tariff items that would allow goods to receive a duty free rate or reduced duty rate.
10. The surtax applies to goods imported from the U.S., including those that may be eligible for the remission of customs duties, sales and/or excise taxes under the Postal Imports Remission Order or the Courier Imports Remission Order. Surtax is applicable on shipments that fall under de minimis thresholds.
18. The value for duty must be determined in accordance with sections 45 to 55 of the Customs Act. Refer to the Customs valuation handbook for more details. GST payable is calculated on the value for tax, which is inclusive of surtax even when customs duties are remitted. However, GST is not payable on non-taxable importations, even if the importation is subject to the surtax.
19. Under the transaction value method, transportation and associated costs, and insurance costs, arising after the place from which goods begin their direct and uninterrupted journey to Canada would not be included in the transaction value of the goods. Any amounts for Canadian customs brokerage fees which are included in the price paid or payable may be deducted as associated costs and as such are not included in the transaction value of the goods. Estimates of the transportation costs are not acceptable. Refer to Memorandum D13-3-3: Transportation and Associated Costs, Memorandum D13-3-4: Place of Direct Shipment, and Memorandum D13-4-7: Adjustments to the Price Paid or Payable (Customs Act, Section 48) for details.
24. In the following scenarios and in accordance with the United States Surtax Order (2025-1), the importation would not be subject to the surtax:
- Returning goods that are made in the U.S. and previously imported into Canada and duty-paid – for example, a Canadian tourist or businessperson is returning from the U.S. with goods (such goods would have previously been released and accounted for under the Customs Act before its sale to the Canadian owner).
- Goods that are made in the U.S. and are repaired or altered across the border, excluding vessels returned to Canada after foreign repair or alteration (i.e., goods of 9971.00.00) – for example, a good in the U.S. might require repair in Canada before being exported back to the U.S., or vice versa (e.g., goods of 9993.00.00 or 9992.00.00). For details, refer to Memorandum D8-2-26: Goods Returned After Repair or Alteration in the United States, Mexico, Chile, Israel or Another CIFTA Beneficiary, Colombia, Costa Rica, Peru, Jordan or Panama.
- Baggage and conveyances temporarily imported by a person who is not a resident of Canada for use by that person in Canada (i.e., goods of 9803.00.00). For details, refer to Memorandum D2-1-1: Temporary Importation of Baggage and Conveyances by Non-residents. Examples of goods that fall under 9803.00.00 include food and beverages, personal care products, household supplies, health-related items like vitamins or over-the-counter medication for personal use, and baby items.
- Eligible ships’ stores that are not diverted (e.g., broken the sealing requirement) are not subject to surtax. Refer to Memorandum D4-2-1: Ships’ Stores for details. For more information on relief from taxes and duties (including surtax) imposed on imported goods used as Ships’ Stores, refer to the Ships’ Stores Regulations.
25. A qualifying individual returning to Canada may import goods up to a certain value into Canada without paying customs duty. Surtaxes do not apply on goods which qualify for a personal exemption. Surtaxes will apply on all other goods not subject to personal exemptions and on those goods the value of which exceeds the value of the personal exemption. For more information, visit the Guide for residents returning to Canada.