Electronic Heated Tobacco Duty Remission

Summary#

The Electronic Heated Tobacco Products Remission Order (SOR/2023-42) lets some importers get back part of the customs duty they paid on certain electronic heated tobacco goods imported from January 1, 2022 up to the day before the order came into force (March 8, 2023). It applies when the goods were classified on import under 2404.11.00 but would have been classified under 2403.99.90 on December 31, 2021. Claims must be made to the Minister of Public Safety and Emergency Preparedness within two years of the import date.

What it does#

• Defines the affected goods as those classified at import under 2404.11.00 but that would have fallen under 2403.99.90 if imported on December 31, 2021.
• Grants a refund (a remission) equal to the difference between:
  • the customs duty actually paid on the import date, and
  • the customs duty that would have applied on December 31, 2021.
• Requires that a claim for the refund be filed with the Minister of Public Safety and Emergency Preparedness within two years after the goods were imported.
• The order took effect on the day it was registered: March 9, 2023.

Who's affected#

• Importers who brought in electronic heated tobacco products between January 1, 2022 and March 8, 2023 and whose entries used tariff item 2404.11.00 but would have matched 2403.99.90 under the old listing.
• Customs brokers, wholesalers and retailers who paid duties or arranged imports for those products.
• If it’s unclear whether a specific product qualifies, affected parties will need to check the tariff classification that applied on their import date.

Why it matters#

• It can return money to businesses that paid higher duties because of a tariff reclassification after December 31, 2021.
• That refund can reduce the unexpected cost increase of imported stock and help businesses correct past accounting for duties.
• Importers must act within the two-year claim window — otherwise they may lose the chance to recover the difference.