Canada Opens Public Consultation on Chinese EV Import Quota

Following the initial first-come, first-served system for Chinese EV imports, the consultation will shape how quota access is allocated and administered after September 1, 2026.

The Government of Canada has opened a public consultation on the longer-term administration of its Chinese EV import quota.

The consultation aims to gather input from importers, manufacturers, and other interested parties on how the quota should be allocated and managed after the initial six-month period.

Running from April 7 to May 1, 2026, the consultation will help inform a longer-term policy expected to take effect September 1, 2026, when the current first-come, first-served approach is set to end.

What the consultation covers

The government is seeking input on several elements, including:

• Eligibility criteria for quota allocations
• How the allocation system could attract investment in Canada by automotive OEMs
• The appropriate allocation period, including whether multi-year allocations should be considered
• Whether the price of imported EVs in Canada should factor into allocation decisions
• Whether transfers between allocation holders should be allowed
• Whether allocation holders should be able to return unused quota by a prescribed date
• Permit validity periods
• Mechanisms to address the under-utilization of quota
• Whether allocations should be reconsidered if importers do not make progress against investment plans

Interested parties can submit input by email to evs.quota-contingent.ve@international.gc.ca before May 1, 2026.

Background

The Chinese EV import quota was established as part of a preliminary joint arrangement between Canada and China announced on January 16, 2026.

The quota volume for the first year is 49,000 vehicles, with the volume set to increase by 6.5% annually.

The quota took effect on March 1, 2026, and for the first six months of the initial quota year, it is being administered on a first-come, first-served basis. During that period, the available quantity is 24,500 vehicles.

The share of the quota reserved for EVs with a Free On Board (FOB) price of CA$35,000 or less will rise from 10% in year 2 to 50% in year 5.

Under the current rules, eligible importers must be residents of Canada and original equipment manufacturers (OEMs) of EVs. A non-resident OEM may appoint a resident Canadian agent to act as the importer.

Import permits are issued on demand to eligible importers while quota remains available, and each permit is valid for up to 60 days.

At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses manage import requirements and navigate changing regulations.

Reach out to one of our trade professionals to discuss how the Chinese EV import quota may affect your business.