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Canada firms can ask for short-term relief from tariffs on China EVs, metals

Canadian companies can request a. temporary remission of tariffs on the imports of Chinese. electrical lorries, steel and aluminum items, the finance. ministry said on Friday.

The ministry said in a statement that relief would be. approved under specific and exceptional circumstances. The. procedure is designed to help companies change their supply chains to. handle the new tariffs, it said in a declaration.

Canada revealed the steps in late August, mentioning China's. intentional, state-directed policy of over-capacity. A 100%. surtax on EVs was imposed on Oct. 1 while a 25% surtax on steel. and aluminum products comes into result on Oct. 22.

To guarantee that Canadian industry has sufficient time to. change supply chains, remission will supply relief ... under. particular and extraordinary scenarios, the ministry stated.

The federal government will think about the suitable. period of remission, with intent to offer it on a. transitional basis only most of the times, according to the. ministry.

Remission would be considered in the following cases:

* Circumstances where goods utilized as inputs, or alternatives. for those items, can not be sourced either locally or. reasonably from non-Chinese sources.

* Where there are contractual requirements, existing. prior to Aug. 26, 2024, needing services to acquire Chinese. inputs into their items or jobs for a given duration of. time.

* Other remarkable circumstances, on a case-by-case. basis, that might have considerable adverse influence on the. economy.

Remission will not be approved for items planned for. resale in the same condition to the United States.

(source: Reuters)