Government Lifts Importing Tariffs In Wake Of COVID-19 Virus. Most Medical Equipment Exempt From Tariffs
The Cost of doing business can be quite high especially if you are a company dependant on global imports to sustain or carry out your business. The global pandemic has caused significant hardship on many organizations to the point they have been forced to close their door.
With a concentrated effort by the Canadian Government to keep businesses from going under, Finance Minister, Bill Morneau, announced action to further ensure Canadians have access to personal protective equipment (PPE) and other necessary medical equipment.
To keep Canadians safe, the government is waiving tariffs on certain medical goods, including PPE such as masks and gloves. This will reduce the cost of imported PPE for Canadian businesses, which face tariffs of up to 18 per cent in some instances, help protect workers, and ensure our supply chains can keep functioning well.
“Our first priority is the health and safety of Canadians. By removing financial barriers, we’re making sure Canadians and Canadian businesses can access the critical medical goods they need during the COVID-19 crisis. Our government remains focused on making sure workers have the protective equipment they need, that our supply chains continue to work well, and that Canadians remain safe and healthy.”
– Bill Morneau, Minister of Finance
This action complements the government’s ongoing efforts to increase domestic PPE production by Canadian industry. Tariff relief for these goods will remain in place for as long as necessary to deal with the COVID-19 crisis.While certain medical goods and equipment, including PPE, can be imported duty-free, some tariffs remain. Tariffs can be as high as 18 per cent and are a non-recoverable cost for importers.
This measure builds on other relief from tariffs and sales taxes—starting March 16, 2020—for goods imported for emergency use by, or on behalf of, certain health-related entities, including hospitals, first-response organizations and care homes.
Canada’s Plan to Mobilize the Industry to fight COVID-19 is providing $50 million to help source PPE here at home and build domestic industrial capability needed to manufacture critical equipment.
The government will continue to take actions that support Canadian businesses through the outbreak of COVID-19, through its initiatives.
Also Worth Reading
Arcand Sounds The Alarm On Quebec’s COVID-19 Mismanagement