---
title: 100% Surtax on China-Origin EV Imports Ends as Permit and Quota Controls Begin
description: Canada ends the 100% surtax on China-origin EV imports on March 1, 2026, as permit and quota controls begin under an Import Control List program.
image: https://blog.coleintl.com/hubfs/Images/Trade%20News%20pictures/Updated%20version/Trade%20News%20-%20CDN%20Customs%20(2).jpg
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### Request Info
# 100% Surtax on China-Origin EV Imports Ends as Permit and Quota Controls Begin
Trade Update: February 27,2026
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100% Surtax on China-Origin EV Imports Ends as Permit and Quota Controls Begin
3:35
Canadian importers will need a shipment-specific import permit from Global Affairs Canada (GAC) for EVs originating in China, and permits will be issued only until the quota limit is reached.
Effective March 1, 2026, Canada will remove the 100% surtax on China-origin EV imports and introduce a permit and quota framework for these goods.
EVs originating in China are also being added to Canada’s Import Control List (ICL) under the Export and Import Permits Act ([EIPA](https://laws.justice.gc.ca/eng/acts/e-19/FullText.html)), which will require importers to obtain a permit from Global Affairs Canada (GAC) for each entry.
## **What’s changing**
The [amendment to the China Surtax Order](https://orders-in-council.canada.ca/attachment.php?attach=48177) (2024) repeals Schedule 1 and ends the 100% surtax treatment that applied to China-origin EV imports under that schedule. As a result, these EV imports will [no longer be treated as surtax goods](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn24-32-eng.html).
The same amendment replaces section 3.1 and sets out a 25% surtax for China-origin goods classified under Schedule 2, including Chapter 99 goods that are otherwise classifiable under Schedule 2.
Exceptions apply for certain Chapter 99 repair goods and for goods classified under Chapter 98, even if they would otherwise fall under Schedule 2.
Separately, the Import Control List change means EVs originating in China can enter Canada only with a shipment-specific permit from GAC.
Permits are valid for 60 days and are issued only while the quota remains. Once the quota is reached, no further permits will be issued.
The permit requirement applies to [specific HS codes](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn26-05-eng.html) for vehicles originating in China.
## **Background on Canada-China trade cooperation**
These changes follow a preliminary joint arrangement announced in January 2026 to address bilateral economic and trade issues between Canada and China, including EVs, steel and aluminum, canola, and agricultural products.
On EVs specifically, Canada agreed to provide an initial country-specific quota of [49,000 electric vehicles per year](https://www.cbc.ca/news/politics/carney-meeting-xi-china-9.7047880) at a Most Favoured Nation (MFN) tariff rate of 6.1%.
The quota is set to increase annually, and by 2030, at least half of the quota allocation must be reserved for EVs [priced at CA$35,000 or less](https://www.international.gc.ca/news-nouvelles/2026/2026-01-16-china-chine.aspx).
In exchange, Canada expects that China will lower tariffs on Canadian canola seed to a combined rate of around 15% by March 1, 2026, down from approximately 84%.
Additionally, Canada expects canola meal, lobsters, peas, and crabs will not be subject to relevant anti-discrimination tariffs from March 1, 2026, to the end of the year.
## **Next steps for China-origin EV importers**
In the coming weeks, the CBSA Single Window Initiative ([SWI](https://www.coleintl.com/single-window-initiative-swi/)) Integrated Import Declaration (IID) process is expected to be updated to reflect the new permit requirement.
Until then, importers must submit a paper release package to the CBSA.
This includes a Release on Minimum Documentation (RMD) Paper or a Customs Accounting Document ([CAD](https://blog.coleintl.com/import-foundations/how-to-account-for-your-imports-using-the-commercial-accounting-declaration-cad)) Type C entry, along with a paper version of the GAC-issued permit. Without the permit, the entry will be rejected.
**At Cole International, we offer [trade consulting](https://www.coleintl.com/services/trade-consulting/) and [customs brokerage](https://www.coleintl.com/canadian-customs-brokerage) services to help Canadian businesses manage import requirements and avoid issues when rules change.**
**If you import Chinese-origin EVs into Canada, reach out to one of [our trade professionals](https://www.coleintl.com/contact-us) to confirm whether your shipment falls under the specified HS codes and, if needed, request a permit.**
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