Finance Canada has issued an important clarification regarding the application of the provisional 10% safeguard surtax on imported canned vegetables under Customs Notice 26-14 Customs Notice 26-14: Certain Canned Vegetable Goods Surtax Order.
Because the Harmonized System (HS) classification codes listed in Schedule 1 of the Order are naturally broader than the actual scope of the surtax, the CBSA will apply a strict two-part test. To be subject to the 10% surtax, an imported good must meet both of the following conditions:
- The HS Code Test: The product must fall within one of the listed tariff classification numbers in the Order.
- The Product Description Test: The product must exactly match one of the specific descriptions outlined in items (a) through (k) of the Order.
Goods Subject to the Surtax (Items A through K)
If a product falls under a listed HS code, it is only penalized if it is packaged in a metal can and matches one of these specific descriptions:
- (a) Canned corn
- (b) Canned peas
- (c) Canned green beans
- (d) Canned wax beans
- (e) Canned mixes of peas and carrots
- (f) Canned mixed vegetables
- (g) Canned white beans
- (h) Canned black beans
- (i) Canned red beans
- (j) Canned pinto beans
- (k) Canned chickpeas
Crucial Takeaway for Importers: HS classification numbers often include items that do not match these precise descriptions. For example, baby carrots are classified under the same broader HS categories but are not listed in items (a) through (k); therefore, the surtax does not apply to them. Furthermore, this measure applies strictly to goods packaged in metal cans, vegetables packaged in glass jars are exempt.
Canned Vegetables Surtax Order
Questions or concerns should be directed to the Canadian regulatory team.