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Implementation of surtax on certain canned vegetable goods

The Government of Canada, under the Certain Canned Vegetable Goods Surtax Order, has implemented a provisional safeguard measure via a surtax that will be imposed on certain canned vegetables imported into Canada. This measure aims to address injury to domestic producers caused by the increased imports of certain canned vegetable goods, while an inquiry by the Canadian International Trade Tribunal (CITT) determines whether final safeguard measures are needed. The Canada Border Services Agency (CBSA) is responsible for the administration of this Order.

What is the effective date and duration of the surtax?
  • The Order became effective on June 19, 2026.
  • It will apply for a provisional safeguard period of up to 200 days, starting from June 19, 2026.
  • Following this period, the surtax will only apply to goods identified through the CITT’s inquiry that are imported under conditions that cause or threaten serious injury to domestic producers. If no such goods are identified, the surtax will cease to apply on the published date of the CITT’s finding.
What is the surtax rate?

  • A 10% surtax is imposed on the value for duty of certain canned vegetable goods imported into Canada for commercial purposes. This is in addition to any other applicable duties (e.g., customs duties, anti-dumping, countervailing duties, and taxes).

What goods are subject to the surtax?

The surtax applies to specific canned vegetable goods classified under the tariff classification numbers listed in Schedule 1 of the Order. These include:

  • Canned corn
  • Canned peas
  • Canned green beans
  • Canned wax beans
  • Canned mixes of peas and carrots
  • Canned mixed vegetables
  • Canned white, black, red, and pinto beans
  • Canned chickpeas

These canned vegetables are subject to the surtax regardless of whether they are:

  • Packaged for retail, food service, industrial or other use;
  • Sold in consumer, food service, industrial or bulk formats;
  • Cleaned, prepared, blanched, cooked or preserved;
  • Whole, cut, sliced, diced or otherwise mechanically prepared;
  • Seasoned with salt or contain added sugars, preservatives or other common ingredients used in canning;
  • Consist of organic or non-conventional vegetables.
What are the exceptions to the surtax?
  • Goods in Transit: Canned vegetable goods that were in transit to Canada on or before June 19, 2026. Importers must be able to provide proof (e.g., shipping documents, report of entry documents, cargo control documents) to the CBSA if requested. 
  • Goods originating from certain Free Trade Agreement (FTA) countries:
    • The United States, Mexico, Chile, Israel or another Canada-Israel Free Trade Agreement (CIFTA) beneficiary
    • See ‘Proof of Origin’ 
  • Developing countries or territories listed in Schedule 2 of the Order
    • See ‘Proof of Origin’
  • Casual Goods: As defined in section 2 of the Persons Authorized to Account for Casual Goods Regulations.
  • Chapter 98 Goods: Canned vegetable goods classified under a tariff item of Chapter 98 of Canada’s Customs Tariff Schedule are not subject to the surtax, even if they would otherwise be classifiable under Schedule 1 of the Order.
  • Non-Canned Vegetables:
    • Fresh, dried, or frozen vegetables.
    • Vegetables substantially altered into purées, powders, juices, spreads, dips, or pastes.
    • Ready-to-eat meals or entrées where vegetables are combined with grains, meats, pastas, or sauces, such that vegetables are not the primary component.
What proof of origin documentation is required?

Importers must provide proof-of-origin documentation for all imported goods upon request by the CBSA. This may include a commercial invoice, Canada Customs Invoice, certification of origin, or other documentation confirming the country of origin.

Are duty relief and duty drawback programs available?

Importers may use the Duties Relief Program and Duty Drawback Program for surtax paid or owed by Canadian businesses, subject to Canada-United States-Mexico Agreement (CUSMA) provisions.

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