中 Electric Vehicles to Land in Canada in earnest, to manage the upper limit with a 49,000-unit quota system

*This content was translated by AI.

The Canadian government will begin issuing import permits for Chinese electric vehicles (EVs) on March 1, 2026, and implement a quota system in earnest. The move calls for eliminating the 100% punitive additional tariffs that had been imposed since October 2024 and applying the 6.1% tariff on the most favored country (MFN) treatment.

According to Canada's Global Secretariat (GAC) and the Bureau of Border Services (CBSA), the total import volume of Chinese electric vehicles allowed over the next 12 months is 49,000. The quota is divided into two stages, and import permits will be issued on a first-come, first-served basis to 24,500 units from March 1 to August 31, 2026. Subsequently, from September 1 to February 28, 2027, the remaining 24,500 units and the second phase of imports for the remaining unused volume in the first phase will be carried out.

The import licensing system is implemented through modifications to the Import Control List (ICL) and includes not only passenger electric vehicles, but also certain electric truck, hybrid (HEV) and plug-in hybrid (PHEV) models. However, non-commercial imports for personal purposes, electric three-wheeled vehicles, and golf carts are excluded from the import control.

Import permits are issued on a shipment-by-ship basis and are valid for 60 days from the date of issuance. Eligibility for application is limited to source manufacturers (OEMs) or their approved Canadian subsidiaries, which will block inflows through the grey market (parallel imports). The Canadian government plans to ensure fair market access opportunities by monitoring the issuance status so that certain companies do not monopolize quotas.

The decision follows the outcome of trade talks between Canada and China, which agreed to lower tariffs on Canadian canola oil and other agricultural products in return. The Canadian government plans to gradually expand the import quota of Chinese electric vehicles to 70,000 units per year by 2030. Existing manufacturers with production bases in China, such as Tesla, Polestar, and Volvo, are mentioned as major candidates to use the initial quota, and Chinese brands such as BYD are also reportedly considering entering the Canadian market. All imported vehicles must comply with Canada's Automobile Safety Standards (MVSA) and relevant laws and regulations.

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*This content was translated by AI.