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ARTICLE · 18 MARCH 2025

Automotive Report: Tariff Heading 9966

Millar Kreklewetz
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A good part of our Tax and Trade practice involves advising Clients in the Automotive Industry on matters involving the application of Canadian taxation and customs duties to motor vehicles and parts.

CanadaInternational Law
Robert Kreklewetz
Robert Kreklewetz
Peter Krol
Peter Krol

A good part of our Tax and Trade practice involves advising Clients in the Automotive Industry on matters involving the application of Canadian taxation and customs duties to motor vehicles and parts.

Recently, we have seen an increase in audits and assessment of automotive restoration businesses, which seem to be currently targeted by the Canada Border Services Agency ("CBSA").

One focal point seems to be the application of Tariff Concessionary Item 9966.00.00 ("Concessionary Code 9966"), which allows for the duty-free importation of certain vintage vehicles and repair parts.

What are CBSA Verification Audits & What Can Happen?

Under section 42.1 of the Customs Act, the CBSA conducts periodic compliance verification audits which generally conclude with a Detailed Adjustment Statement ("DAS").

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