United States Surtax Order (Motor Vehicles 2025) (SOR/2025-118)

Marginal note:Definition of motor vehicle

1 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.

Marginal note:Surtax

• 2 (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.

• Marginal note:Motor vehicles entitled to United States Tariff

  (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

  A − B

  where

  A

  is the value for duty of the motor vehicle determined in accordance with sections 47 to 55 of the Customs Act; and

  B

  is

  • (a) the value, determined in accordance with the CUSMA Rules of Origin Regulations, of all goods that originate in Canada and Mexico used in the production of the motor vehicle, if the importer claims that the value of those goods is greater than 15% of the value determined for A, or

  • (b) 15% of the value determined for A, in any other case.

• Marginal note:Evidence

  (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.

• Marginal note:Country of origin

  (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.

Marginal note:Exceptions

3 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.

Marginal note:Coming into force

4 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.