If you send Canned vegetables shipped to Canada. Whether it's canned corn, canned beans, or mixed vegetables, there are things you need to know before the next shipment arrives, because starting June 19, 2026, Canada begins harvesting. Canadian canned vegetable tax. Adding another 101 TP3T in the form of a temporary surtax, and with Thailand on the list of countries where it's enforced, this isn't news to be taken lightly, as it directly impacts landed costs.

What is this Canadian canned vegetable tax (10%), and why is it happening now?

The Canadian Ministry of Finance announced a temporary surtax of 10% for imported canned vegetables, citing an unusually rapid increase in import volumes that is severely impacting domestic producers. This measure is scheduled to last a maximum of 200 days and was announced before the Canadian International Trade Tribunal (CITT) concludes its investigation, which is scheduled to finish in September 2026.

One reason Canada rushed to implement these measures was trade diversion. When the US imposed high tariffs, goods from many countries that were previously geared towards the US shifted to Canada instead. Figures from Statistics Canada show that imports of canned vegetables from Thailand increased by 1,791 TP3T in recent months. This figure has made Thailand one of the most closely watched countries.

Products covered under this measure include canned corn, peas, green beans, and wax beans; mixed vegetables of peas and carrots; and mixed vegetables of white beans, red beans, pinto beans, and chickpeas. If your product matches this list, immediately check that your current HS code matches the one specified in Canada.

Which countries are exempt, and where does Thailand fit in?

This measure exempts goods from the United States, Mexico, Israel, Chile, and developing countries that receive preferential treatment from Canada. Thailand, Italy, China, Peru, Turkey, and Vietnam are among those subject to this measure.

The key point is that the term "developing countries receiving preferential treatment from Canada" may or may not apply to Thailand, depending on Canada's current GSP status. This needs to be checked directly with a Canadian customs broker; avoid drawing conclusions based on any single article. A misunderstanding could lead to the importer paying the taxes first and then claiming reimbursement from you later.

How can the impact on landed costs be roughly estimated?

If your product is indeed subject to surtax 10%, consider this: Assuming the FOB price of canned vegetables is around US$800 per ton, adding freight, insurance, and normal import duties, the landed cost in Canada might be around US$1,100–US$1,200 per ton. Adding surtax 10% on top of that increases the price by approximately US$110–US$120 per ton. If you're selling in a price-competitive market with thin margins, this figure can have a greater impact than you might think.

What should be done immediately is to recalculate the landed cost along with the surtax for 10% and see if the price agreed upon with the buyer is still profitable. If not, you need to discuss this with the buyer before the goods depart, not after they arrive at the port.

Documents and HS codes to check before sending.

Surtax measures typically identify covered goods using specific HS codes, which Canada publishes in the Canada Gazette or official Treasury announcements. If you're unsure whether your product's HS code is on the list of items subject to surtax, here's what you should check.

• HS code used for export. Does it match what Canada specifies in its surtax announcement? This needs to be compared with the latest Canadian Customs Tariff document.
• Certificate of Origin The correct origin of the goods must be specified because this measure varies depending on the country of origin.
• Commercial Invoice Clearly state FOB or CIF prices because the tax calculation basis may be based on the value of the goods.
• Packing List The type of canned vegetables must be clearly specified, as some items may be exceptions.
• Health Certificate or Phytosanitary Certificate If the end buyer requires any additional information, it should be prepared in advance.
• Questions to ask a customs broker in Canada. Check whether your products are subject to tax and whether there are any avenues to apply for an exemption.
• Follow Canada Gazette. To see if there are any amendments to the list of products or additional exemptions during the 200 days the measure is in effect.

How to communicate with the end buyer when costs change.

If you already have a buyer in Canada and are about to ship a new batch, the first thing you should do is inform them about the new tax regulations and that you are checking whether your goods are subject to them. Don't wait until the goods arrive at the port to discuss this, because if the buyer hasn't prepared for it, they might refuse to accept the goods or negotiate a price reduction retrospectively, which would put you at a significant disadvantage.

Key issues to discuss with the buyer include who is responsible for the tariff between you and the buyer. If the Incoterms used are FOB, the buyer pays at the destination. However, if it's DDP or DAP, you may have to bear that burden instead. Be sure to check the Incoterms in the contract carefully beforehand.

The timing of product delivery is more important than you think.

This measure is effective from June 19, 2026. If your goods depart before that date and arrive at the Canadian port after that date, you need to check whether the date used to calculate the tax is the date the goods leave Thailand or the date the goods clear customs in Canada. Because if it's the date of customs clearance, goods that depart earlier but arrive later may still be subject to tax.

For planned shipments, it's essential to discuss with your freight forwarder the transit time for each route and the estimated arrival date at the Canadian port to accurately calculate the landed cost. Avoid calculating based on the original price agreed upon before these measures were implemented. For more information on Thailand-Canada shipping routes, please see [link/website]. SME SHIPPING It compiles international transportation data.

This measure will only last for 200 days, and after that...?

As announced, this surtax has a maximum timeframe of 200 days, and CITT will conclude its investigation in September 2026. If CITT finds that the Canadian industry has suffered damages, the measure may be extended or become permanent. If CITT finds no damages, importers who have already paid the surtax may receive a refund, but that process is time-consuming and requires self-application.

What to watch closely during this period is the outcome of the CITT investigation in September 2026, and what direction it will take. If permanent measures are announced, will they cover the same types of products, or will they be extended to frozen vegetables as well, since this investigation covers both canned and frozen vegetables?

How should products be adjusted if we want to stay in the Canadian market long-term?

Such measures are often implemented for products that compete primarily on price. When prices are too low, producers in the destination country feel pressured and request government protection. If you want to stay in the Canadian market longer, developing products with unique selling points compared to Canadian manufacturers is a direction you should consider.

Practical examples include certified organic canned vegetables from Canadian-recognized agencies, ready-to-eat canned vegetables with unique ingredients or flavors that Canadian producers don't offer, or packaging tailored to specific consumer groups (e.g., low sodium or no preservatives). These products compete on value, not just price, and are less likely to be subject to protectionist measures.

Summary of things to do before the next batch departs.

If you are currently shipping canned vegetables to Canada, or planning to do so, here's a clear sequence of actions to take. First, check your product's HS code with your Canadian customs broker to determine if it's subject to surtax. Second, recalculate your landed cost, incorporating surtax 10%. Third, inform your buyer and agree on who will bear the tax burden. Fourth, check your existing Incoterms contract to see if this situation is covered. Fifth, monitor the Canada Gazette and the CITT investigation results for September 2026. And sixth, for upcoming shipments, check with your freight forwarder whether the goods will arrive at the Canadian port before or after June 19, 2026.

These measures do not mean the Canadian market is closed to Thai exporters, but rather that costs and conditions have changed. Preparing well before shipment is always better than trying to solve problems after the goods arrive at the port.

Source: DITP https://www.ditp.go.th/post/fgfb7ya3lfjjjkz392wtxtoh