Part IIOrderPublished: March 16, 2022

MFN Tariff Withdrawn for Russia, Belarus

Most-Favoured-Nation Tariff Withdrawal Order (2022-1): SOR/2022-35

The government withdrew Most-Favoured-Nation (MFN) tariff treatment for goods originating in Russia and Belarus, which makes most such imports subject to the 35% General Tariff. The order took effect on registration (2022-03-02) and will expire automatically after 180 days unless both Houses of Parliament approve it; goods in transit to Canada on or before the coming-into-force day are exempt.

Published
March 16, 2022
Department
Unavailable
Section
Most-Favoured-Nation Tariff Withdrawal Order (2022-1)
Comment deadline
Unavailable
Effective date
March 2, 2022
Publication part
Part II

Summary

Summary#

The federal government issued the Most-Favoured-Nation Tariff Withdrawal Order (2022-1) to remove Most-Favoured-Nation (MFN) tariff treatment for goods from Belarus and Russia. That change makes most such imports subject to the General Tariff of 35%, and it came into force when the order was registered on March 2, 2022; it will end automatically after 180 days unless Parliament approves it.

What it does#

  • Withdraws MFN tariff entitlement for goods that originate in Belarus and goods that originate in Russia.
  • In practice, most affected imports will face the General Tariff rate of 35%, unless their current MFN rate is already higher.
  • Goods that were already in transit to Canada on or before the day the order came into force remain exempt.
  • The Order came into force on registration (March 2, 2022) and will cease to have effect after 180 days unless approved by both Houses of Parliament.
  • The Canada Border Services Agency will adjust its systems and apply the new tariff treatment as part of routine customs administration.

Who's affected#

  • Importers and Canadian businesses that buy goods from Russia or Belarus.
  • Retailers, wholesalers, manufacturers, and supply-chain service providers (freight carriers, customs brokers) handling those imports.
  • Consumers who buy products that have no easy substitute; they may face higher prices or lose access to particular brands.
  • Based on 2021 trade data, the measure would affect about $2.1 billion in annual imports from Russia and $33 million from Belarus.
  • The Department of Finance and Canada Border Services Agency are the federal bodies named in the order; no public consultations were held because the government treated the action as urgent.

Why it matters#

  • The tariff increase is designed to raise the cost of importing from Russia and Belarus and is part of Canada’s economic response to Russia’s invasion of Ukraine.
  • Higher duties are likely to push importers to find other suppliers or domestic sources, reducing trade with those two countries over time.
  • For Canadians, the most direct effects could be higher prices for some goods or temporary unavailability of specific brands or items that are uniquely sourced from Russia or Belarus.
  • The change is temporary unless Parliament extends or approves it, so businesses and consumers may see further action depending on political or diplomatic developments.

Key topics

Customs TariffMost-Favoured-Nation TariffMFNMost-Favoured-Nation Tariff Withdrawal Order (2022-1)General Tariff35% tariffRussiaBelarusDepartment of Finance CanadaCanada Border Services AgencySpecial Economic Measures Actsanctionsinternational tradeimports

Source: Canada Gazette

Official source