As the weather heats up, it doesn’t look like tariffs are cooling down anytime soon. While I’m certainly not a trade or taxation expert, I want to share some information about possible opportunities for tariff relief. At the very least, talk to your importer or broker to make sure measures are being taken to limit exposure and minimize passing on additional costs to you.
Here’s a high level overview of Canada’s ongoing trade dispute with the U.S. and how it’s continuing to affect Canadian craft brewers, especially those using aluminum cans and other packaging imported from the US.
The U.S. is still applying steep tariffs on Canadian aluminum. In response, Canada has kept retaliatory surtaxes on U.S.-origin goods, including aluminum packaging, a key input for our industry. As of July 21, these counter-tariffs are expected to increase, unless trade negotiations improve.
There’s some good news — for now. Canada’s Surtax Remission Order (2025) allows goods imported for manufacture, processing or packaging, including certain aluminum goods, to be imported without paying the surtax. This is critical for brewers who buy aluminum packaging (like tall cans) and use them in production.
What you need to know:
- While there’s no formal application needed, it’s the importer of record who must complete a self-assessment of eligibility at time of import declaration and use Code 25-0466C, as long as the goods qualify.
- The remission order applies retroactively from March 4 and expires on October 16, 2025. We don’t expect the current plan to be extended.
- It is vital to document how the packaging is used because the CBSA (Canada Border Services Agency) may audit things later.
- If the claim is denied, and we’re hearing more stories about this being the case, a Specific Remission Application, described below, is still an option, albeit a much more complicated one.
An important update as of May 20 is that to qualify, you are either:
- The importer of record and using the goods (like packaging) in Canada, or
- You’re buying through an importer of record who immediately resells the goods to you for you to use in Canada.
If you’re using a packaging broker, talk to them. You may need to review your contracts or restructure your supply chain to remain eligible.
More information:
Customs Notice 25-19 – United States Surtax Remission Order
Canada Gazette: United States Surtax Remission Order (2025)
If your imports don’t qualify, there are still other options:
- Specific Remission Application: A formal request can be made to Finance Canada. It’s complicated and time-consuming so you may wish to retain a consultant to help you make the request. It’s likely worth it for those heavily impacted.
How to request a specific remission of tariffs – Finance Canada - Duty Drawback Program: If you export beer, you may get a refund of surtaxes paid on packaging materials.
CBSA Duty Drawback Program Overview - Duty Relief Program (DRP): Another option lets you import without paying surtaxes upfront, if the goods are later exported.
Drawback Program
These programs require strong documentation including detailed inventory management, export records, and production details.
What You Can Do Now
- Talk to your packaging broker. Ensure they know about the remission order and how to structure transactions to keep you eligible.
- Document how your packaging is used — you’ll need this if CBSA audits.
- Calculate the cost impact of the surtaxes on your business — this helps support future remission claims or lobbying.
- Explore non-U.S. sources for aluminum packaging if possible.
- Consider exporting, particularly under CUSMA (Canada-U.S.-Mexico Agreement), which may offer tariff relief for U.S.-bound goods. Be sure to consult an exporter concerning the CUSMA Rules of Origin Guidance.
If you’re unsure whether you qualify for remission, or need assistance applying for other programs, reach out to me at christine.comeau@ccba-ambc.org. I’ll connect you with a consultant who can help.
We’re also preparing to possibly put forward a request to federal officials to extend the remission order and ensure fair treatment for our industry. Your experiences, data, and questions help shape that advocacy, so please get in touch.
I hope you found this helpful. Thank you for all you do. Together, we can help protect your business and Canada’s craft brewing industry.
Christine Comeau
Executive Director, Canadian Craft Brewers Association