Share your views: Canada’s allocation and administration of the import quota for electric vehicles from China

As part of the preliminary joint arrangement between Canada and the People’s Republic of China, Canada committed to establish an annual import quota for electric vehicles (EVs) originating from China. The quota volume for the first year is 49,000 vehicles. This volume will increase by 6.5% annually. The portion of the quota reserved for EVs with a Free On Board (FOB) price of $35,000 or less will rise from 10% in year 2 to 50% in year 5. The quota was implemented on March 1, 2026, on a first-come, first-served basis for an initial period of 6 months.

The Government of Canada sought the input of interested parties on Canada’s allocation and administration of the import quota for EVs from China. Feedback received will help inform a longer-term policy to administer the quota beginning September 1, 2026.

The longer-term policy is expected to be released in June 2026. If the government adopts an allocation approach to administer the quota beginning September 1, 2026, an application period for quota allocation will be initiated upon release of the policy.

Who was the focus of this consultation?

The Government of Canada invited any interested party to provide input, including from:

• the general public
• provincial, territorial and municipal governments
• businesses of all sizes, including small- and medium-sized enterprises (SMEs), domestic and global original equipment manufacturers (OEMs), and importers
• industry associations
• academics
• civil society organizations and non-governmental organizations
• labour unions
• international trading partners
• other interested stakeholders

It was important to have a breadth and diversity of views represented through this consultation process.

Questions for discussion

Your input was sought on key elements of a longer-term quota allocation and administration policy. Below are some questions for which feedback was sought.

Eligibility

• Currently, OEMs engaged in the manufacturing or assembling of new motor vehicles, specifically EVs, that are a resident of Canada as defined in the Export and Import Permits Act, are eligible for the EVs quota. Should the government consider different eligibility criteria? If so, please explain.

Investment in Canada

• How can the government design an allocation system that catalyses investments in Canada by automotive OEMs, including attracting investment from new entrants into the Canadian market?
• For example, should quota volumes be allocated to OEMs that can demonstrate investment (current or planned) in Canada? If so, please explain.
• If so, what metric is most appropriate in this respect: planned investment value, production capacity, depth of domestic supply chain integration, creation of new Canadian jobs, or another metric?
• How should existing investment or planned partnerships with one or more Canadian companies (joint ventures or otherwise) be factored into the assessment of investment plans?
• What types of investments should be considered, and which are more beneficial to Canada (e.g., new vehicle assembly plant, research and development facility, supply chain technologies such as battery supply chain)?

Additional elements of quota allocation

• What is the ideal timeframe for allocations?
• Allocations are typically issued on an annual basis for the quota year in question. However, in recognition of longer lead times for vehicle manufacturing and transoceanic shipping, as well as commercial and investment planning purposes, should consideration be given to establishing a multi-year allocation?
• If multi-year allocations are adopted, should the government provide that eligible new entrants to the quota can gain access from year to year?
• Should the price in Canada of imported EVs be considered in the design of an allocation policy?
• What other factors should be considered in the design of an allocation policy?

Quota administration

• Should there be a mechanism to revisit and potentially revise quota allocations if importers fail to demonstrate progress against investment plans?
• How can the government incentivize quota utilization and/or penalize under-utilization?
• For example, should there be an under-utilization penalty if a certain percentage of a company’s allocation is not used in a particular period?
• Should allocation transfers be allowed amongst allocation holders?
• Should there be a return mechanism whereby allocation holders can return any portion of the allocation to the government by a prescribed date? If so, what should the date be and how should returned quota be redistributed?
• The standard permit validity period under this quota is currently set at 60 days. Should there be changes to this permit validity period?
• Are there any other policy objectives or impacts that the government should take into account in the allocation and administration of the quota? If so, please explain.

Privacy notice

Interested parties were invited to read the privacy notice statement carefully prior to sending a written submission.

What we heard

A report summarizing the feedback received from this consultation will be published.

Related information

• Preliminary Joint Arrangement on Addressing Bilateral Economic and Trade Issues between Canada and the People's Republic of China, January 16, 2026.
• The current rules and procedures governing this quota are available in the Notice to Importers.
• This quota is administered pursuant to the authority under the Export and Import Permits Act.

Contact us

Trade Controls Division
Global Affairs Canada
111 Sussex Drive
Ottawa, ON K1A 0G2
Email: evs.quota-contingent.ve@international.gc.ca