Canada's Chinese EV Quota Is Now Official

It's no longer speculation. On February 25, 2026, Global Affairs Canada published Notice 1162—the official rules for administering the Chinese EV import quota under the Export and Import Permits Act.

Import permit applications open March 1, 2026. The 100% surtax that effectively banned Chinese EVs from Canada is being replaced by a 6.1% tariff for vehicles within the quota. The first shipments could legally arrive within weeks.

The Official Numbers

The quota operates on a March-to-February year, with allocation split into two six-month periods. First-come, first-served for the initial period. Rules for the second half will be announced later—likely adjusted based on first-half uptake.

Who Can Import

Eligibility is narrower than some expected:

• Canadian residents only — You must be a resident of Canada
• Must be an OEM — Original equipment manufacturers of electric vehicles
• Non-resident OEMs — Can appoint Canadian agents to apply on their behalf

This isn't a free-for-all for independent importers. The framework channels imports through manufacturers and their authorized representatives—meaning BYD, Geely, SAIC, and other OEMs control the flow, not grey-market dealers.

What's Covered (and What's Not)

Included: Electric vehicles under tariff classifications 8702, 8703, and 8704—passenger cars, SUVs, crossovers, and light trucks.

Excluded: Electric tricycles, non-passenger vehicles (like golf carts), and mobility scooters.

The quota specifically targets the vehicles that compete with domestic production—not niche categories or commercial equipment.

What This Changes

Before (August 2024–February 2026)

• 100% surtax on Chinese EVs
• Effectively a ban—no economic case for imports
• BYD, despite Appendix G approval, couldn't compete on price

After (March 1, 2026)

• 6.1% tariff (same as Japanese and Korean imports)
• 49,000 vehicles annually can enter at competitive prices
• First-mover advantage for OEMs with regulatory groundwork complete

The math now works. A BYD Seagull that costs $12,000 CAD ex-factory can arrive in Canada for roughly $14,000 after tariff and shipping—before dealer markup. Even at $20,000–25,000 retail, that's transformative for the sub-$30,000 EV segment that currently doesn't exist in Canada.

The Timeline Accelerates

We've previously outlined a cautious timeline: demo vehicles in early 2026, pilot programs mid-year, broader availability in 2027. This notice compresses that outlook.

March 2026: Permit applications open. OEMs with vessels ready can file immediately.

April–May 2026: First quota allocations granted. Vehicles in transit or staged at Chinese ports begin moving.

Q2–Q3 2026: First retail deliveries possible—likely in Quebec and BC where dealer relationships are forming and EV adoption is highest.

Late 2026: The 24,500 first-half quota becomes the constraint, not regulatory uncertainty.

BYD operates its own car carrier fleet. They don't need to charter vessels or wait in shipping queues. When permits are approved, ships can sail.

Who Benefits Most

BYD remains the clear frontrunner. They have:

• Existing Appendix G authorization for passenger car imports
• Own shipping fleet for logistics control
• Global export experience in Australia, Europe, and Southeast Asia
• Product range from $12K city cars to $80K SUVs

Geely has a backdoor through Volvo and Polestar's existing Canadian networks, though pure Geely-branded imports would need their own permits.

SAIC (MG) could move quickly with the MG4—Europe's bestselling EV—if they commit to Canadian market entry.

NIO, Xpeng, Li Auto are less likely early movers. They focus on premium segments where the tariff reduction matters less and service infrastructure matters more.

The 30-Day Rule

Applications can be submitted up to 30 days before expected shipment arrival. This creates an interesting dynamic:

• OEMs with vessels already en route (or departing soon) can apply immediately on March 1
• Permits are valid for 60 days maximum
• First-come, first-served means early applications have priority

Expect the initial 24,500 allocation to see heavy competition. OEMs who've been preparing—staging inventory, arranging logistics, coordinating with dealers—have a structural advantage over those caught flat-footed.

What Still Needs to Happen

The permit system opening doesn't mean cars appear on dealer lots next week. Remaining steps:

1. Model certification — Individual vehicle models need CMVSS compliance documentation filed with Transport Canada
2. Dealer agreements — Canadian dealers must sign distribution contracts
3. Service infrastructure — Warranty support, parts supply, technician training
4. Provincial registration — Vehicles need to be registrable in each province

For BYD specifically, the regulatory groundwork is largely complete. The commercial pieces—dealer networks, service centers—are where the timeline depends on execution.

Implications for Canadian Buyers

If you're waiting for a cheap EV: The wait is months, not years. Budget models like the BYD Seagull ($20K–25K estimated) and Dolphin ($32K–40K estimated) should be available by late 2026.

If you're cross-shopping Tesla or Hyundai: Pricing pressure is coming. Expect existing manufacturers to respond with incentives, price cuts, or enhanced warranty offers as Chinese competitors arrive.

If you're in Ontario: Political headwinds remain strongest here. Quebec and BC will likely see inventory first while Ontario dealer networks remain cautious.

If you want a specific Chinese model: Start tracking which dealers in your region are signing agreements. The early-mover dealers will have the first allocations.

What to Watch

1. March 1 permit filings — How many applications hit Global Affairs Canada on day one?
2. BYD ship movements — Track their car carriers departing Chinese ports for North America
3. Dealer announcements — Watch for Canadian dealerships announcing Chinese EV partnerships
4. Transport Canada model certifications — New model names appearing in compliance databases

The policy framework is now set. The question shifts from "will Chinese EVs come to Canada?" to "how fast can the commercial infrastructure scale?"

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Source: Global Affairs Canada Notice 1162, published February 25, 2026.