Extending Trade Lifeline to Ukraine

The Order Amending the Ukraine Goods Remission Order (SOR/2025-135) extends and adjusts Canada’s temporary tariff relief on Ukrainian imports in response to Russia’s ongoing invasion of Ukraine. Initially enacted on June 9, 2022, the remission order was introduced as a trade-support measure to help stabilize Ukraine’s economy during a period of active conflict and significant economic disruption. This amendment, made under section 115 of the Customs Tariff and extends the relief period, modifies eligibility timelines, and updates the terms under which duties are remitted.
The primary change in the amended order is the extension of the eligibility period for remission of customs duties under subsection 1(1) of the original order, which now runs through to June 9, 2026. This extension means that goods originating in Ukraine, except for those subject to the General Tariff and a list of specific tariff items outlined in the updated schedule, will continue to benefit from duty relief when imported into Canada. Additionally, subsection 2(1), concerning goods in transit, allows remission if the goods were shipped to Canada before June 10, 2025.
This initiative is firmly rooted in Canada’s broader political and economic response to Russia’s aggression. The invasion, supported by Belarus, has not only caused significant humanitarian and infrastructural damage in Ukraine but also crippled its manufacturing and trade capabilities. As part of a coordinated response with international allies, Canada has implemented a range of sanctions and trade restrictions against Russia and Belarus while simultaneously supporting Ukraine with military, humanitarian, and economic aid. The remission order complements these efforts by ensuring Ukrainian exporters can continue to access the Canadian market with reduced trade barriers.
The Ukraine Goods Remission Order operates in parallel with the Canada-Ukraine Free Trade Agreement (CUFTA), which first took effect in 2017 and was modernized in 2024. Although CUFTA already provides for duty-free treatment of most Ukrainian goods, it excludes certain refined sugars and over-quota supply-managed goods such as dairy, poultry, and eggs. The remission order originally included these supply-managed goods from June 2022 to June 2023, but they were later excluded due to Canadian domestic industry concerns over production planning. The amended order maintains this exclusion and further tightens the framework by now explicitly excluding anti-dumping and countervailing duties under the Special Import Measures Act (SIMA). Although previous SIMA-related remissions were minimal, this move reinforces protections for Canadian industries against unfairly traded imports.
From its inception through early 2025, the Ukraine Goods Remission Order has resulted in approximately $8.5 million in remitted customs duties, covering a variety of consumer and industrial products such as household appliances, wood flooring, vegetable oils, and frozen chicken. The broader policy objective of the amended order is to maintain Canada’s commitment to Ukraine’s economic resilience by facilitating its export capacity.
Canada (135/2025) June 18, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.