Information pertaining to the application, collection, and adjustment of a surtax
Memorandum D16-1-1

Ottawa, March 3, 1998

This memorandum provides information concerning the administration and enforcement of surtax orders under sections 53, 55(1), 60, 63, 68(1), or 78 of the Customs Tariff.

Guidelines and General Information

1. A surtax is a duty imposed by Order in Council under sections 53, 55(1), 60, 63, 68(1), or 78 of the Customs Tariff. If the goods to which it applies are already dutiable, it is an extra duty. The Order in Council sets out the amount of the surtax, the goods to which it applies, and normally its duration.

2. A surtax may be applied in the following situations:

  1. Section 53 can be used to impose a surtax on any goods in order to enforce Canada's rights under a trade agreement or to respond to acts of the government of a country that adversely affect trade in Canadian goods or services.
  2. Subsection 55(1) can be used to impose a surtax as an emergency measure of a temporary nature, usually on imported goods causing or threatening serious injury to Canadian producers of like or directly competitive goods. Such a surtax can be applied to goods of a free trade partner only if they represent a substantial share of the total imports of the goods and contribute importantly to the serious injury or the threat of serious injury to Canadian producers. Where imports from a free trade partner are excluded from a global surtax action, section 60 provides that such imports may subsequently be included, if they surge during the course of the action.
  3. Section 63 provides for the extension of an order where it is necessary to prevent or remedy serious injury to Canadian producers.
  4. Subsection 68(1) can be used to impose a surtax on prescribed agricultural goods. This section does not limit the possible duration of a surtax order. Before such an order is made, certain conditions of the Agreement on Agriculture of the World Trade Organization must be met.
  5. Section 78 can be used to impose a surtax, over and above the customs duties, on goods that originate in a specific country when Canada's financial position and its balance of payments are such as to require special measures respecting Canada's imports of goods from that country.

3. The administration of a surtax order is the responsibility of Revenue Canada.

4. A surtax is a duty within the meaning of the Customs Act. Sections 17 and 143 of that Act provide the authority for its collection.

Notification of a Surtax

5. Every surtax order made by the Governor in Council is published in the Canada Gazette. In addition, a Customs Notice is issued.

6. Revenue Canada's regional offices will be provided with notification of a surtax as well as the information required to calculate the amount of surtax.

7. The Canadian Society of Customs Brokers, the Canadian Importers Association, and the Alliance of Manufacturers and Exporters of Canada will be provided with notification of a surtax. This notice will contain information pertaining to the product, the amount of surtax applicable, the effective date, the registration number of the Order in Council, and instructions for completing customs documents.

Extension of a Surtax Order

8. Where the period of the surtax is extended beyond a period specified in the order, a Customs Notice will be issued and Revenue Canada's regional offices will be provided with instructions. A notification will be sent to the Canadian Society of Customs Brokers, the Canadian Importers Association and the Alliance of Manufacturers and Exporters of Canada.

Adjustments

9. Surtax is not subject to appeal under the Customs Tariff or the Customs Act nor any other legislation. However, accounting documents are normally reviewed by Revenue Canada to ensure that the correct amount of surtax owing was paid.

10. Where an overpayment of surtax has been identified, Form B2, Canada Customs – Adjustment Request , may be filed in a Revenue Canada regional office requesting a refund of the amount overpaid. The request for refund will be reviewed to determine whether a refund is applicable. A refund of the amount of surtax overpaid will then be issued by the appropriate Revenue Canada regional office.

11. Where an overpayment of surtax has been identified by Revenue Canada, a refund of the amount overpaid will be made by the appropriate Revenue Canada regional office.

Amounts Owing

12. Where Revenue Canada identifies that a surtax amount is owing, Form B2-1, Canada Customs – Detailed Adjustment Statement , will be issued.

Additional Information

13. Importers are to ensure that the information necessary to account for the goods provides sufficient details to determine whether a surtax order applies to the goods in question.

14. Importers should complete field 32 of Form B3, Canada Customs CodingForm , by inserting code "51" for surtax. Refer to Memorandum D17-1-10, Coding of Customs Accounting Document s, for additional information.

15. The amount of surtax owing is to be entered in field 39 of Form B3.

16. All customs documents related to imported goods that are subject to a surtax order are to bear the number of the Order in Council. On Form B3, this number is to be placed in field 26. The number will be included in all notifications of surtax application and extensions of surtax orders.

17. Questions concerning these surtax procedures should be directed to:

Director, Policy and Administration
Anti-dumping and Countervailing Directorate
Revenue Canada
191 Laurier Avenue West
Ottawa ON K1A 0L5

Telephone: 613-954-7251
Facsimile: 613-941-2612

References

Issuing office:
Anti-dumping and Countervailing Directorate
Headquarters file:
4220-0, 4220-1, 4220-26063-12
Legislative references:
Customs Act sections 17 and 143
Customs Tariff, sections 53, 55(1), 60, 63, 68(1), or 78
Other references:
D17-1-10
Superseded memorandum D:
D16-1-1, January 1, 1994
Date modified: