Notice: Possible US tariffs levied on Ontrak products shipped from Canada
The status of US tariffs levied on Canadian made products is very
fluid, and this notice is provided for guidance in what to expect
when receiving shipments from Ontrak, for our US customers. Ontrak
Control Systems Inc. is registered in USMCA (formally NAFTA), and
all of our products are manufactured in Canada. Our USMCA
certificate of origin can be downloaded
here. Previous communications by the US government indicated the
USMCA previously honored tariff-free status would be respected,
however, the US administration raised tariffs on Canadian steel and
aluminum to 50% effective June 4th 2025. This prompted Canada
to raise tariffs on US steel and aluminum to the same level, and
raised questions about whether the USMCA agreement would continue to
be honored. We have observed that most shipments do arrive without
tariffs, however, some shipments (4% of total) have been charged
tariffs by US customs as of June 12, 2025. All shipments that
have been charged tariffs, have been over the $800 de-minimis limit.
The rate used when tariffs are assessed is 25% as of the date of
this notice.
We are presently assisting in appeals for tariffs that have been
levied, for a few customers, and will update this notice of results
of the appeals when determined.
US tariffs are applied by the US government and payment of
tariffs levied are the sole responsibility of the receiving company.
Ontrak does not pay tariffs, or discount products in compensation
for tariffs.
How to minimize possibility of tariffs...
1. Keep individual shipments to under $800US. Ontrak will
provide reduced shipping rates when splitting shipments to stay
under the de-minimis limit of $800US per shipment. Contact
val@ontrak.net for details.
Conclusion:
While the present situation of tariffs between US and Canada is
unfortunate, we believe this will be resolved in the not to distant
future. We are anxious for this uncertainty to be removed, and
to continue our now 40 year relationship with our US customers.
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