Repeal of COVID-19 Medical Tariff Waiver

Summary#

The Order Repealing the Certain Goods Remission Order (COVID-19) cancels a temporary tariff waiver that had allowed many medical supplies and personal protective equipment (PPE) to be imported into Canada without customs duties. The repeal reinstates the previous tariff rates (about 6% to 18%) and takes effect 30 days after registration (registered April 7, 2022, so generally effective May 7, 2022).

What it does#

• Repeals the temporary Certain Goods Remission Order (COVID-19) that waived customs duties on many medical goods during the pandemic.
• Reinstates the earlier most‑favoured‑nation (MFN) tariff rates on those specified goods — the MFN rates cited range from 6% to 18%.
• Gives the importing community a 30‑day notice period before the repeal takes effect.
• Allows goods already in transit to Canada before the effective date to continue to benefit from the remission, subject to the original conditions.
• Notes that other targeted forms of tariff relief or trade preferences (for example under free trade agreements or CBSA guidance) may still be available for some imports.

Who's affected#

• Businesses, distributors and individuals who import medical supplies and PPE into Canada — these importers will face reinstated customs duties unless they can use other tariff relief.
• Small importers may notice higher costs, because tariffs do not distinguish business size.
• The Canada Border Services Agency (CBSA) administers the tariffs and will handle the practical details for importers.

Why it matters#

• The temporary waiver had reduced import costs. From May 2020 through January 2022 it produced about $653 million in savings for importers. Repeal reverses that relief.
• The federal government estimates reinstating the MFN tariffs will increase tariff revenues by about $324 million per year — a corresponding cost to importers.
• For businesses that relied on cheaper imports of PPE and medical goods, this may raise operating costs and prices if they cannot get other tariff breaks.
• The government says the waiver is ending because domestic shortages of medical supplies have been addressed and broad emergency support is being phased out.
• Some other measures remain in place — for example the removal of GST/HST on face masks and face shields is still noted as continuing until public health guidance changes.