Canadian companies that deal in a variety of products ranging from motorcycles to washing machines may be affected by a 10% surtax that is imposed on “other goods” imported from the United States—a levy that is being imposed in reaction to the U.S. actions concerning the steel and aluminum sectors.
The Canada Border Services Agency (CBSA) has looked at the amount of surtaxes collected on “other U.S. goods” and has concluded that the volume of imports of these products against the amount of surtax collected does not balance. Accordingly, the CBSA has started to audit importers of all goods subject to surtaxes. Currently, there are over 100 customs audits underway in the greater Toronto area and many more across Canada.
The U.S. steel and aluminum tariffs—as well as the tariffs on a broad range of goods originating in China and destined for the United States—have also affected Canadian companies. Yet, some companies may be able to consider strategies to address the increased costs associated with these disruptive trade actions.
Read a May 2019 report prepared by the KPMG member firm in Canada
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