Customs Duty Waiver for COVID-19 Medical Goods

Summary#

The item is the Certain Goods Remission Order (COVID-19): SOR/2020-101. It waives customs duties on a list of medical supplies and personal protective equipment (PPE) imported into Canada starting on May 5, 2020. Importers can claim the duty remission, but they must file a claim within two years of the import date.

What it does#

• Grants remission (a waiver) of customs duties under the Customs Tariff for goods classified under the tariff item numbers listed in the order’s schedule.
• Applies to goods imported from the day the order came into force (May 5, 2020).
• Requires a claim for remission to be made to the Minister of Public Safety and Emergency Preparedness within two years of the date the goods were imported.
• Covers many medical and hygiene items. Key categories named in the background material include:
  • diagnostic test kits and medical devices,
  • face and eye protection (masks, face shields),
  • gloves and protective garments (gowns),
  • disinfectants, sterilization products, wipes, soap,
  • thermometers and other medical consumables.
• Continues alongside existing relief that was already available for public health bodies and certain care residences under the Goods for Emergency Use Remission Order.
• The order will remain in effect as long as the government deems it warranted by the COVID‑19 situation.

Who's affected#

• Importers of the listed goods, including businesses, distributors and individuals who bring these items into Canada.
• Essential service providers that buy and import PPE, for example food processors, grocery stores and pharmacies, are explicitly noted as likely beneficiaries.
• The Canada Border Services Agency (CBSA) will apply and monitor the remission when goods arrive and process claims.
• If it is unclear whether a specific product qualifies, importers will need CBSA classification or guidance to confirm coverage.

Why it matters#

• It lowers the out‑of‑pocket cost for importing certain medical supplies and PPE. That can make it easier for businesses and other organizations to buy needed equipment for workers.
• The government estimated potential customs duties forgone of about $307 million per year while the measure remains in effect. Total Canadian imports of dutiable goods on this list were over $19 billion in 2019, with duty rates ranging from 0% to 18%.
• In practice, the measure aims to reduce a cost barrier to getting critical supplies during the COVID‑19 pandemic.
• The order is focused on items identified as important by global customs and health organisations, but whether any single product is covered depends on its tariff classification, so importers may need to check with the CBSA.