On March 6th the White House outlined the following new rules for Canadian imports (until April 2):

• Goods that claim and qualify for CUSMA preference face no tariffs.
• Goods that do not satisfy CUSMA rules of origin are taxed at 25 per cent.
• Energy products and potash that fall outside the CUSMA preference are taxed at 10 per cent.

Companies should inquire with their customs broker. A customs broker or a freight forwarder can assist with products classification, export/import documentation requirements, determination of tariff rates and other customs duties. If they don’t have one: The Canadian Society of Customs Brokers has a member directory to help identify a customs broker.

Additional Resources

The first thing to know when verifying whether a certain product is subject to tariffs is the product’s Harmonized System (HS) code.

• If you don’t already know the HS code(s) for your products, refer to Statistics Canada’s Canadian Export Classification – Latest Version or the Canada Tariff Finder to look up the code for your product. The up to six digits codes are standard internationally. Some products may not be easy to classify, so it’s highly recommended that you work with a customs broker.
• Keep in mind that tariffs are also based on the country of origin of the goods—not where they were shipped from, but where they were made. Our three-part article series on rules of origin explains this concept in more detail.
• Once you know your products’ HS code(s), you can look up the applicable tariffs using the Canada Tariff Finder. This online search tool allows you to look up the tariff rate that applies to your product based on destination country and your product’s HS code for countries with which Canada has a free trade agreement (FTA). In the search results, the “2020” rate is the current rate that applies to Canadian-origin goods (e.g. “CUSMA” rate for products originating from Canada, U.S. and Mexico). The “MFN” rate is the rate that applies to goods originating from most other countries.
• For brokers based in the United States, the U.S. Customs and Border Protection’s Find a broker by port directory allows you to identify customs brokers based on the point of entry into the U.S.
• EDC InList is an online tool that can match companies with Canadian logistics service providers. InList solution is the result of EDC partnership with Canadian International Freight Forwarders Association (CIFFA) to promote a network of trusted service providers for Canadian businesses.

For more information on the tariff situation, please visit Export Development Canada’s website U.S. landing page of EDC.ca.