News & Insights

Government Waives Tariffs on Certain Medical Goods

Tax Development May 08, 2020

On May 6, 2020, Finance Minister, Bill Morneau issued a news release, “Government provides tariff relief to importers of certain medical goods,” which announces that the importation of personal protective equipment (PPE) (e.g., masks and gloves) and other critical medical equipment will not be subject to tariffs.  This tariff waiver is part of the government’s efforts to ensure that Canadians have access to PPE and other essential medical equipment and will remain in place until the COVID-19 crisis diminishes. This measure is intended to help protect workers, guarantee a well-functioning supply chain for these items, and may lower the cost of imported PPEs, since tariffs as high as 18% can be levied on these goods.