News & Insights

Department of Finance Imposes New Sanctions on Russia and Belarus

Tax Development Mar 11, 2022

On March 2, 2022, the Honourable Chrystia Freeland, Deputy Prime Minister of Canada and Minister of Finance, and the Honourable Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development, announced that the Government of Canada has withdrawn the Most-Favoured-Nation (MFN) Tariff for goods originating in Russia or Belarus.

What Does This Mean for Importers?

Simply put, goods originating in Russia or Belarus must now be accounted for under the General Tariff to determine the rate of customs duty and will no longer receive the benefits—low tariffs—offered by Canada to other World Trade Organization (WTO) members.

As a result, a tariff rate of 35% will apply to virtually all imports from Russia and Belarus. In addition, where the MFN rate would be higher, the higher rate will continue to apply.

This measure has been implemented under section 31 of the Customs Tariff, and will be in effect as of March 2, 2022 for 180 days (unless extended by resolution).

Where claims for the MFN Tariff rate are made after March 2, 2022, importers must retain proof that the subject goods were in transit to Canada on or before that date. Such proof may include, but is not limited to, sales orders, purchase orders, shipping documents, report of entry documents, and cargo control documents.

To claim the lower MFN duty rate for goods in transit, importers are required to complete and submit Form B3-3, Canada Customs Coding Form, and enter code 22-0182 in field No. 26, “Special Authority.”

Refunds of excess duty paid on import may also be available within four years from the date of accounting for the goods.

The notice regarding the new sanctions is available in its entirety on the CBSA website at:
Customs Notice 22-02: Order withdrawing the Most-Favoured-Nation status from Russia and Belarus

If you have any questions or concerns about these changes, please contact the Ryan Customs team.

Maureen Gilfoy
Director, Customs Duty

Sebastian Drozdziewicz
Senior Manager, Customs Duty