Car Quota: China EV imports enter second period

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Canada’s import quota for electric vehicles from China entered its second six-month period Sept. 1, with 24,500 vehicles allocated for import through Feb. 28, 2027, plus any unused volume from the first period.

The federal government established an initial annual quota of 49,000 Chinese electric vehicles as part of a Canada-China trade arrangement. Eligible vehicles imported under the quota are subject to Canada’s 6.1% most-favoured-nation tariff rate. The previous 100% surtax on Chinese EVs was repealed effective March 1, 2026.

Global Affairs Canada’s Notice to Importers Serial No. 1168 sets out the rules for the second quota period. The first period ran from March 1 to Aug. 31, with the second period running from Sept. 1 through Feb. 28. The quota is administered on a first-come, first-served basis.

Importers must obtain a shipment-specific import permit from Global Affairs Canada for vehicles being imported under the quota. The notice also sets out requirements for determining whether an EV qualifies as originating in China.

The federal government has said the 49,000-vehicle annual quota will increase by 6.5% each year. It has also established a provision for a portion of the quota to be reserved for EVs with an import price of $35,000 or less, with that share increasing to 50% by the fifth year.

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