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Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance and the Minister for International Trade, makes the annexed United States Surtax Order (Motor Vehicles 2025) under subsection 53(2) and paragraph 79(a) of the Customs Tariff.notenotenote
1Definition of motor vehicle#
In this Order, motor vehicle means
(a)a good that is classified under any of the tariff items set out in Schedule 1; or
(b)a good that is classified under any of the tariff items set out in Schedule 2 that is otherwise classifiable under a tariff item set out in Schedule 1.
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2Surtax#
(1)Motor vehicles that originate in the United States that are not entitled to the United States Tariff are subject to a surtax in the amount of 25% of the value for duty determined in accordance with sections 47 to 55 of the Customs Act.
(2)Motor vehicles that originate in the United States that are entitled to the United States Tariff are subject to a surtax in the amount of 25% of the value determined by the formula
(3)If the surtax is determined in accordance with paragraph (a) of the description of B in the formula set out in subsection (2), the importer must provide, when requested by an officer, documentary evidence to determine the value of goods that originate in Canada and Mexico used in the production of the motor vehicle.
(4)For the purposes of this section, the determination of whether goods originate in Canada, the United States or Mexico is to be made in accordance with sections 2, 4 to 8 and 10 to 13 of the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
3Exceptions#
Despite subsections 2(1) and (2), the following motor vehicles are not subject to the surtax:
(a)motor vehicles that are classified under a tariff item of Chapter 98 or 99 of the List of Tariff Provisions that is not set out in Schedule 2;
(a.1)motor vehicles that are classified under tariff item No. 8704.60.00 that have a gross vehicle weight exceeding five tonnes; and
(b)motor vehicles that are in transit to Canada on the day on which this Order comes into force.
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4Coming into force#
This Order comes into force on April 9, 2025, but if it is registered after that day, it comes into force on the day on which it is registered.
Schedule 1 · Tariff Items — Motor Vehicles (Section 1)
8703.22.008703.23.008703.24.008703.31.008703.32.008703.33.008703.40.108703.40.908703.50.008703.60.108703.60.908703.70.008703.80.008703.90.008704.21.908704.31.008704.41.908704.51.008704.60.00
Schedule 2 · Tariff Items — Chapters 98 and 99 (Paragraphs 1(b) and 3(a))
9804.30.009825.10.009825.20.009825.30.009826.10.009826.20.009826.30.009826.40.009897.00.009898.00.009899.00.009971.00.009989.00.00
Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.