Ukraine Goods Duty Remission

Summary#

The Ukraine Goods Remission Order: SOR/2022-127 lets importers get relief from customs, anti-dumping and countervailing duties on goods that originate in Ukraine. It came into force when it was registered on June 9, 2022, and the duty-free treatment applies for one year from that date.

What it does#

• Remits duties under the Customs Tariff for goods that originate in Ukraine (with an exception for goods subject to the General Tariff).
• Remits anti-dumping and countervailing duties under the Special Import Measures Act for goods that originate in Ukraine.
• Defines when goods “originate in Ukraine,” including that the last production step (other than a minimal operation) must have happened there. “Minimal operations” include things like:
  • preserving goods for transport or storage;
  • packaging, re‑packaging or putting goods up for retail sale;
  • simple dilution that does not change the product’s characteristics;
  • collecting items into sets or kits.
• Conditions and timing:
  • The remission applies to goods imported during the period starting on the order’s coming-into-force date and ending after one year.
  • Importers must make a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years of the date of importation if they want a refund of duties paid.
  • The Order is set to be repealed on the third anniversary of its coming-into-force date.

Who's affected#

• Importers in Canada who bring goods that can be shown to originate in Ukraine. They are the ones who would claim refunds or not pay duties at import.
• Exporters and producers in Ukraine, because the change aims to make it easier to sell into Canada.
• Canadian businesses and consumers that buy Ukrainian goods could see more availability or lower prices for some items.
• Government agencies that handle customs, especially the Canada Border Services Agency (CBSA), which will update systems and publish guidance for importers.
• Certain product areas called out in the government analysis as potentially affected include motor vehicles, refined sugar, and some supply-managed products (dairy, poultry, eggs), but the exact goods that move because of this Order depend on trade flows and Ukraine’s ability to export during the conflict.

Why it matters#

• It is a short-term, targeted measure to support Ukraine’s economy by making it easier and cheaper for Ukrainian goods to enter the Canadian market for one year.
• For Canadian importers and buyers, it can lower costs for eligible goods and increase options for supply — but only if goods can actually be exported from Ukraine.
• The government estimated the maximum cost to duty revenue at about $2.6 million per year, so the fiscal impact is relatively small compared with broad trade programs.
• Importers who paid duties and want refunds must act: they have two years from the import date to file a claim.