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ARTICLE · 26 FEBRUARY 2026

Automotive Report: Tariff Chapter 87

Millar Kreklewetz
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For many in the automotive industry, there is a temptation to import foreign-made goods (i.e., non-USMCA-qualifying) for use in production processes or as parts and sub-components for vehicles and automotive systems.

CanadaInternational Law
Robert Kreklewetz
Robert Kreklewetz
Peter Krol
Peter Krol

CBSA'S VERIFICATION AUDITS TARGET VEHICLE TIRES

For many in the automotive industry, there is a temptation to import foreign-made goods (i.e., non-USMCA-qualifying) for use in production processes or as parts and sub-components for vehicles and automotive systems. They are often less costly.

At the same time, many of these imports attract significantly higher duty rates, which can create pressures to classify them under potentially alternative tariff headings with lower rates of duty.

Our recent file experience has demonstrated that this is often a short-lived strategy, as the CBSA's verification procedures will eventually put these classification decisions to the ultimate test.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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