The Certain Russian Goods Remission Order authorized by the Governor General in Council based on the Minister of Finance’s recommendations, specifically addresses customs duties on goods classified under tariff item No. 2844.43.00, including Cobalt-60, a crucial medical isotope sourced from Russia. The order grants remission of customs duties for Russian goods imported into Canada, with a particular focus on Cobalt-60, which is essential for medical applications such as sterilization. The remission period extends from the end of the Most-Favoured-Nation (MFN) Tariff Withdrawal Order (2022-2) to five years after the order’s implementation. Importers may claim this remission by submitting a request to the Minister of Public Safety and Emergency Preparedness within two years of importation, and the order will be repealed seven years after its implementation.

The context of this order is rooted in the geopolitical conflict that escalated after Russia’s invasion of Ukraine on February 24, 2022. In response, the Canadian government, in coordination with allied nations, enacted extensive trade measures, notably withdrawing MFN tariff treatment for goods from Russia and Belarus, resulting in a significant 35% tariff on imports from these countries. This policy aimed to discourage reliance on Russian and Belarusian goods, encouraging Canadian businesses to diversify their import sources. The withdrawal of MFN treatment led to a dramatic reduction in imports from these countries, with reports indicating a drop of over 90% compared to pre-conflict levels. However, stakeholders, particularly in the medical sector, raised concerns about the availability of essential medical goods. Cobalt-60, in particular, is difficult to source from alternative suppliers in the short to medium term, necessitating a reconsideration of import regulations.

In October 2022, the Government of Canada temporarily restored MFN tariff treatment for Cobalt-60 imports, making them duty-free; however, this status expired on May 5, 2023. The 2023 federal budget proposed legislative amendments to maintain the withdrawal of MFN tariff treatment for Russian and Belarusian goods indefinitely, a change codified through Bill C-47. This underscores the government’s intention to balance the need for essential medical supplies with broader geopolitical objectives.

The Certain Russian Goods Remission Order has two primary objectives. First, it aims to avoid excessive costs by providing temporary duty relief on Cobalt-60, alleviating the financial burden on Canadian importers who rely on this isotope for critical medical operations. Second, while facilitating Cobalt-60 imports, the order encourages Canadian businesses to seek alternative supply sources over the long term, aligning with the broader policy of reducing dependence on Russian imports.

By offering remission of customs duties for Cobalt-60 and similar goods, the order addresses immediate healthcare needs while emphasizing the importance of diversifying supply chains away from Russia.

Canada (SOR/123-160) July 19, 2023