Author: BCB Canada

The Government of Canada has announced additional measures to help safeguard the Canadian steel industry. A summary of these measures is outlined below for your reference.

Steel Derivatives

Effective December 26, 2025, the Government of Canada will impose 25 cent tariffs on the full value of the listed steel derivative products from all countries.

For complete details, please refer to the following link:

List of steel derivative products subject to 25 per cent tariffs effective December 26, 2025 – Canada.ca

Steel Tariff Rate Quotas (TRQs)

Further to the Prime Minister’s announcement on November 26, 2025, updates to the tariff rate quotas (TRQs) for certain steel goods listed under Item 82 on the Import Control List (ICL) will take effect on December 26, 2025.

In accordance with the Second Amending Surtax Order:

• TRQ import volumes for non-FTA partners have been reduced to 20% from 50% of 2024 import volumes.
• TRQ import volumes for non-CUSMA FTA partners have been reduced to 75% from 100% of 2024 levels.

Guidance on the TRQs—including information on purpose, coverage, quota volumes, duration, and administration—is available in the new Notice to importers: Item 82 – Steel goods – Serial No. 1160.

U.S.-Originating Steel and Aluminum Remission Update

To provide stability for Canadian businesses as they adjust their supply chains, the Government of Canada has temporarily extended the horizontal remission of Canadian tariffs on imports from the United States as follows:

• To January 31, 2026, for steel goods used in manufacturing, processing, food and beverage packaging, and agricultural production in Canada, excluding steel goods used in the manufacturing of motor vehicles, aerospace goods, and their parts, for which remission is extended to June 30, 2026.
• To June 30, 2026, for aluminum goods used in manufacturing, processing, food and beverage packaging, and agricultural production in Canada.
• To June 30, 2026, for any goods used for public health, health care, public safety, and national security purposes.

The full announcement can be found here:

Government implements new measures to protect Canada’s steel industry – Canada.ca

The Honourable Shafqat Ali, President of the Treasury Board of Canada, visited Brannon Steel in Brampton, Ontario, to reiterate new measures announced by the Government of Canada to protect and transform Canada’s steel and lumber industries.

Building on previously announced measures to help transform the Canadian steel and softwood lumber industries, the government will:

Further limit foreign steel imports to ensure that Canadian steel producers have better access to the domestic market

• Canada will tighten the tariff rate quota levels for steel products from non-free trade agreement (FTA) partners from 50% to 20% of 2024 levels.
• For non-CUSMA partners with which we have an FTA, Canada will reduce tariff rate quota levels for steel products from 100% to 75% of 2024 levels.
• Canada will impose a global 25% tariff on targeted imported steel-derivative products such as wind towers, prefabricated buildings, fasteners, and wires.
• Canada will also toughen our border measures to combat foreign steel dumping and verify compliance with applicable surtaxes. To do so, we will equip the Canada Border Services Agency with a dedicated steel compliance team, enhanced detection of false declarations, and an expanded online reporting tool.
• To move away from relying on imported steel and to give Canadian companies time to adjust their supply chains to use Canadian steel, the temporary remission of Canadian tariffs on imports will end on January 31, 2026, for steel used in Canada for manufacturing, food and beverage packaging, and agricultural production.
• These measures will boost the competitiveness of Canadian steel producers by protecting them against trade diversion. They will also unlock over $1 billion in new domestic demand for Canadian steel.

Please visit the following link for more information: https://www.canada.ca/en/treasury-board-secretariat/news/2025/12/minister-ali-announces-new-measures-to-protect-and-transform-canadas-steel-and-lumber-industries.html

Please be informed that Customs Notice 25-19: United States Surtax Remission Order (2025), has been updated as of October 17, 2025. This update extends the period of relief for goods under various applications from October 16, 2025, to December 16, 2025.

In addition to the extension, the Order also implements the following changes:

• Relief provided for public health, public safety and national security entities under Sections 1 and 2 has been extended to December 15, 2025.
• Relief provided for goods used in manufacturing, processing and the packaging of a food or beverage under Section 3 has also been extended to December 15, 2025, and expanded to cover goods used in agricultural production.

Upon the recommendation of Finance Canada, a further Remission Order will be published in the November 5, 2025, edition of Part II of the Canada Gazette. This publication will expand upon and provide further details regarding the Order Amending the China Surtax Remission Order (2024) and the United States Surtax Remission Order (2025-1).

The updated notice and associated Remission Order will be accessible via the Canada Gazette publications.

—

Excerpt from Customs Notice 25-19: United States Surtax Remission Order (2025)

Conditions of Relief

12. Claims for relief of surtax upon importation or for refund of surtax paid under this Order must be made by the importer (which may be a private or public sector entity). This may include non-resident importers.

13. All claims for relief of surtax under the Order must also be supported by relevant documents (for example, Commercial Accounting Document (CAD), purchase order, commercial invoice, Canada customs invoice, bill of lading, waybill, etc.) that demonstrate that they meet the following conditions of relief set out in the Order:

A. The good is imported into Canada before:

i. December 16, 2025, in the case of a good in respect of which remission is granted under any of sections 1 to 3, or

ii. The date specified in column 3 of Schedule 3, in the case of a good referred to in that Schedule;

I. In the case of a good that is classified under the tariff classification number set out in column 2 of Schedule 4,

i. It is imported into Canada by a person whose business number is set out in column 1,

ii. It conforms to the description set out at column 3, if any,

iii. It is imported before September 1, 2025, and

iv. It is imported in accordance with the conditions set out in column 4, if any,

II. In the case of a good that is classified under the tariff classification number set out in column 2 of Schedule 4.1,

i. It is imported into Canada by a person whose business number is set out in column 1,

ii. It conforms to the description set out at column 3, if any,

iii. It is imported during the period specified in column 4, if any, and

iv. It is imported in accordance with the conditions set out in column 5, if any;

B. No other claim for relief of the surtax has been granted under the Customs Tariff in respect of the good

C. The importer makes a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation

Please be aware that the Buffalo and Fort Erie Public Bridge Authority website has posted the following alert:

The Buffalo and Fort Erie Public Bridge Authority advises all Canada-bound commercial carriers to avoid the Peace Bridge crossing until further notice, due to ongoing processing delays related to a Canada Border Services Agency (CBSA) systems outage that occurred earlier this week. While CBSA has implemented a processing systems fix, resulting delays continue, and all adjacent queuing areas within the Western New York region are at, or beyond, capacity.

 

In recognition of the United States’ continued approach to allowing most Canadian goods to enter the U.S. tariff-free under the Canada-United States-Mexico Agreement (CUSMA), the Government of Canada has amended its trade measures. Effective September 1, 2025, Canada has removed the majority of counter tariffs introduced in March 2025 on U.S. imports.

Key Measures

• Counter tariffs on most U.S. goods have been lifted as of September 1, 2025.
• Sector-specific tariffs on steel, aluminum, copper, and certain motor vehicles will remain in place. These targeted measures reflect the fact that the United States continues to apply tariffs in these sectors, without providing CUSMA-based exemptions for Canadian goods.

Clarification on CUSMA Qualification and Surtax Exemption

While the Prime Minister previously indicated that goods must qualify under CUSMA to be exempt from the 25% surtax, the Canada Border Services Agency (CBSA) has clarified that the surtax is being removed for all U.S. goods outside of the designated sectors, regardless of whether they carry CUSMA certification.

As stated by the CBSA:

“The amending order repeals the broad U.S. surtax (2025-1) and narrows the measures to sector-specific orders only. That means, as of the retroactive dates, only steel, aluminum, copper, and certain motor vehicles remain subject to a 25% surtax. It does not impose a general surtax on all U.S. goods, nor does it create a blanket CUSMA-based exception. Instead, goods outside those specific sectors simply revert to normal MFN tariff treatment under the Customs Tariff. The Prime Minister’s statement about retaining tariffs on steel, aluminum, and autos lines up with this legal text, but it does not establish any across-the-board surtax tied to CUSMA qualification.”

Additional Resources

• A revised list of products subject to counter tariffs, effective September 1, 2025, can be found here:
  • U.S product subject to counter tariff
• Updates have been made to the following Customs Notices:
  • Customs Notice 25-10: United States Surtax Order (2025-1)
  • Customs Notice 25-11: United States Surtax Order (Steel and Aluminum 2025)
  • Customs Notice 25-19: United States Surtax Remission Order (2025)
• Full text of the Order-in-Council:
  • Order Amending and Repealing Certain Orders Made Under the Customs Tariff (United States Surtax)

An amendment has been made to the surtax order imposing a 50% surtax on certain steel goods. In the original surtax order, steel manufactured in a country with a free trade agreement (FTA) in place was exempted from this 50% surtax with no requirements.

This order now advises that there is a quota for free trade countries as well. To continue to import product manufactured in a country with a free trade agreement without any surtax, importers must now apply for a permit to take part of the quota at the time of release. If a permit is not obtained at the time of release, a 50% surtax will apply.

This amendment is only effective to shipments that were shipped on August 1^st 2025 or later, and were not manufactured in the US, Mexico, or Canada. Please note that any shipments that shipped prior to August 1^st will continue to be exempted from this surtax.

Effective June 27, 2025, certain steel goods imported into Canada are subject to a surtax in the amount of 50% of the value for duty in accordance with the Order Imposing a Surtax on the Importation of Certain Steel Goods. On August 1, 2025, amendments introduced in the Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods take effect. The value for duty is determined in accordance with sections 47 to 55 of the Customs Act. Schedule 1 and Schedule 2 to the Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods contains a complete list of goods and their importation quotas subject to the surtax for goods originating in a non-FTA country and in a subject FTA country.

For goods imported between June 27, 2025 and July 31, 2025, Schedule 1 to the Order Imposing a Surtax on the Importation of Certain Steel Goods contains a complete list of goods and their importation quotas subject to the surtax when they originate in a country other than those listed in Schedule 2 to the original Order Imposing a Surtax on the Importation of Certain Steel Goods.

The Order imposes trade measures in the form of separate tariff rate quotas (TRQ) on imports of certain steel products. Imports above the specified volumes for each class of steel goods will be subject to a surtax in the amount of 50% of the value for duty in accordance with the Order.

The annual quota is divided into four quarters, except for goods imported from FTA countries, which undergo a transition period before entering the second quarter. The quota available in each quarter is also subject to a quantity limit. Any volumes imported above the quota will be subject to a 50% surtax. Effective August 1, 2025, unused TRQ volumes from previous quarters cannot be carried forward.

Effective August 1, 2025 the surtax will apply to steel imports if:

• For non-FTA countries, the quantity of goods of the same class imported during the same quarterly period exceeds the total set out in column 2 of Schedule 1 for that class
• For FTA countries, the quantity of goods of the same class imported during the same quarterly period exceeds the total set out in column 2 of Schedule 2, or column 2.1 during the transitional period of August 1 to September 25, 2025 for that class
• For non-FTA countries, the quantity of goods of the same class that originate in the same country and are imported during the same quarterly period exceeds the quantity determined by multiplying the percentage in column 3 of Schedule 1 by the total in column 2 of Schedule 1 for that class
• For FTA countries, the quantity of goods of the same class that originate in the same country and are imported during the same quarterly period exceeds the quantity determined by multiplying the percentage in column 3 of Schedule 2 by the total in column 2 of Schedule 2 for that class.

For goods imported between June 27, 2025 and July 31, 2025, the Surtax will apply to steel imports if:

• The quantity of goods of the same class imported during the same quarterly period exceeds the total set out in column 2 of Schedule 1 to the Order Imposing a Surtax on the Importation of Certain Steel Goods for that class
• The quantity of goods of the same class that originate in the same country and are imported during the same quarterly period exceeds the quantity determined by multiplying the percentage set out in column 3 of Schedule 1 to the Order Imposing a Surtax on the Importation of Certain Steel Goods by the total set out in column 2 of Schedule 1 for that class

Where multiple surtaxes could apply to the same goods, surtaxes do not stack. However, the 50% steel surtax takes precedence and will be the rate applied, not any lower surtax rates that might otherwise be applicable.

Importers must have a shipment-specific permit to declare the importation is under the TRQ and is not subject to the surtax. Importers may apply for a shipment-specific import permit under item 82 of the Import Control List in accordance with subsection 8(1) of the Export and Import Permits Act. Import permits will not be issued once the quantities indicated in Schedule 1 to the Order have been reached. Goods may continue to be imported under General Import Permit No. 80 or 81, as applicable, in excess of the limits set out in the Order, but will be subject to the surtax. The shipment-specific permit must apply to steel goods listed in item 82 of the Import Control List and must be valid at the time the goods are accounted for under the Customs Act.

If you would like BCB Canada to obtain a shipment-specific import permit for your clearance, please include your EIPA on the relevant documents and send them to permit@bcbcanada.ca with your permit application request. Contact us for information about permit application fees.

For further information, and to review the updated quota schedules, please refer to the order amending the order imposing a surtax on certain steel goods.

To ensure compliance with evolving Canada Border Services Agency (CBSA) documentation requirements, effective immediately, BCB Canada will now require one of the following supporting documents for all steel and aluminum shipments:

• a mill test certificate
• a material test certificate
• a certificate of conformance, compliance, or analysis
• a metallurgical test report
• a chemical analysis certificate

During this transitional phase, we will continue to accept Country of Melt and Pour (COM) documentation for steel products and Country of Smelt and Cast (CSC) documentation for aluminum products when listed on the commercial invoice or provided via email notification. However, the enhanced documentation listed above will become mandatory once CBSA implements these requirements at the point of release. CBSA has advised that they intend to implement these requirements on September 22^nd, 2025.

Once these requirements become mandatory with CBSA, BCB Canada may be unable to clear shipments without the proper documentation, as CBSA will require these documents to be uploaded with release requests.

Please see the below list of affected HS codes that will require these documents at the time of release.

Steel
7206.10.00 – 7213.99.00
7214.20.00 – 7216.50.00
7216.99.00 – 7219.90.00
7220.12.00 – 7227.90.00
7228.20.00 – 7228.70.00
7229.20.00 – 7229.90.00
7301.10.00
7302.10.00
7302.40.00 – 7302.90.00
7304.11.00 – 7304.39.00
7304.49.00 – 7306.90.00

Aluminum
7601.10.00 – 7601.20.00
7604.10.00 – 7609.00.00

Next Steps
We recommend beginning preparation of the required documentation for your steel and aluminum shipments to ensure seamless processing once these requirements become mandatory. Our team remains available to assist with any questions regarding these new documentation requirements.

For questions or additional information, please contact BCB Canada.

Effective July 31^st 2025, certain steel goods imported into Canada and containing steel melted and poured in China and certain aluminum goods imported into Canada and containing aluminum smelted and cast in China are subject to a surtax in the amount of 25% of the value for duty in accordance with the Steel Goods and Aluminum Goods Surtax Order. The Schedule to the Steel Goods and Aluminum Goods Surtax Order contains a complete list of goods subject to the surtax.

For the purposes of this surtax, goods contain steel melted and poured in China if the raw steel, or any portion of the raw steel, contained in the goods was first produced in a liquid state in a steel-making furnace and poured into its first solid state — which can take the form of a semi-finished or finished steel mill product — in China.

Steel goods are deemed to contain steel melted and poured in China if the importer fails to provide, when requested by an officer, a certificate, report or commercial invoice that demonstrates that the goods do not contain steel melted and poured in China.

For the purposes of this surtax, goods contain aluminum smelted and cast in China if:

• the largest volume or, if any, second largest volume of primary aluminum contained in the goods was produced in China; or
• the aluminum contained in the goods was most recently liquified and cast into a solid state — which can take the form of a semi-finished or finished aluminum product — in China.

Aluminum goods are deemed to contain aluminum smelted and cast in China if the importer fails to provide, when requested by an officer:

• a certificate or report that demonstrates that:
• the largest volume — and, if any, second largest volume — of primary aluminum contained in the goods was produced in a country other than China, and
• the aluminum contained in the goods was most recently liquified and cast into a solid state in a country other than China; or
• a commercial invoice that demonstrates that the goods do not contain aluminum smelted and cast in China.

For the purposes of demonstrating that the country of melt and pour (COM) or country of smelt and cast (CSC) is not China, importers should have in their possession either a commercial invoice, report or certificate with the required information. The certificate or report can be: a mill test certificate, mill test report or material test certificate; a certificate of conformance, compliance, inspection or analysis; a certified inspection report; a metallurgical test report; or a chemical analysis certificate. If a certificate, report or commercial invoice is not presented upon request by an officer or is not considered acceptable upon review, the importer will be required to pay the applicable surtax.

From September 22, 2025 onwards, commercial invoices and reports will no longer be acceptable for the purposes of demonstrating COM or CSC, as provided for in the Steel Goods and Aluminum Goods Surtax Order.

The surtax will apply to steel and aluminum goods imported for commercial purposes.

The surtax applies to goods otherwise classifiable under a tariff item set out in the Schedule to the Steel Goods and Aluminum Goods Surtax Order but that are classified under a tariff item of Chapter 99 of the Schedule to Canada’s Customs Tariff. Chapter 99 includes tariff items that would allow goods to receive a duty free rate or reduced duty rate.

Canada’s Duties Relief and Duty Drawback Programs will be available to importers for surtax paid or owed by Canadian businesses, subject to the provisions of the Canada-United States-Mexico Agreement (CUSMA). When goods are of CUSMA (US/Mexico) origin, the goods are not subject to the limitations of CUSMA and the “lesser of two duties” determination does not apply. Therefore, in these circumstances, the goods may be eligible for full relief, if the CUSMA criteria is met, as outlined in CBSA’s Memorandum D7-4-3: CUSMA Requirements for the Duty Drawback and the Duties Relief Programs.

Proof of origin

Pursuant to subsection 35.1(1) of the Customs Act and the Proof of Origin of Imported Goods Regulations, proof of origin must also be furnished for all imported goods upon request.

Proof of origin may be in the form of, for example, a commercial invoice, a Canada Customs Invoice or any other documentation that indicates the country of origin of the goods. The documentation must meet the requirements of any applicable obligations established under a free trade agreement or under Canada’s Most-Favoured-Nation (MFN) or General Tariff treatment provisions.

Exceptions to surtax

• The surtax will not apply to steel and aluminum goods that are in transit to Canada on the date on which the surtax comes into force. This includes goods that were in transit before the surtax comes into force. For the purpose of this Customs Notice, ‘in transit to Canada’ refers to goods bound for but not yet arrived in Canada, and under the control of a carrier. Importers must have proof in their possession that such goods were in transit to Canada in order to demonstrate that the surtax is not applicable. Such proof may include the following documentation: shipping documents (for example, a bill of lading), report of entry documents, and cargo control documents. Such proof may be requested at any time by a CBSA officer.
• Steel and aluminum goods that originate in the United States, as determined in accordance with the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations, are not subject to the surtax.
• Steel and aluminum goods for which the cumulative value for duty of all goods subject to the Steel Goods and Aluminum Goods Surtax Order and accounted for under a single Commercial Accounting Declaration (CAD) does not exceed $5,000 CAD are not subject to the surtax. For specificity, a shipment or transaction accounted for under a single CAD may contain other non-subject goods; the value of those goods will not count towards the $5,000 CAD limit.
• Steel and aluminum goods that are subject to a surtax under the China Surtax Order (2024) are not subject to the surtax.
• Casual goods as defined in section 2 of the Persons Authorized to Account for Casual Goods Regulations are not subject to the surtax.
• Steel and aluminum goods that are classified under a tariff item of Chapter 98 of the Schedule to Canada’s Customs Tariff, even if the goods are otherwise classifiable under a tariff item set out in the Schedule to the Steel Goods and Aluminum Goods Surtax Order, are not subject to the surtax.

The CBSA may conduct a verification to verify whether or not the goods are subject to the surtax, including review of certificates, reports or commercial invoices supporting any claim that the goods are exempt. In instances where the importer fails to provide such documentary evidence, the CBSA may re-calculate the amount of surtax owing.

Readers must review the complete original Customs Notice 25-28: Steel Goods and Aluminum Goods Surtax Order and associated Order in full. Relying solely on this summary for regulatory guidance may lead to compliance risks.

To review the targeted HS classifications, please review the Order In Council – PC 2025-0592.

Finance Canada has released significant updates to the China Surtax Remission Order (2024) and United States Surtax Remission Order (2025), introducing additional remission measures that may provide substantial cost relief for products currently subject to surtax obligations.

What This Means for Your Business
These newly implemented remission measures represent an opportunity for importers to reduce their surtax burden on qualifying products imported from China or the United States. The remissions are designed to provide targeted relief for specific product categories and may result in meaningful cost savings for your operations.

Key Implementation Details
HS Code Specificity: These new remission provisions are highly targeted and apply only to specific Harmonized System (HS) codes. Each remission measure has been carefully crafted to address particular product categories, ensuring precise application of relief measures.

Reference Documentation: The complete and current list of eligible HS codes, along with detailed remission criteria, is available through the official government links provided below. We strongly recommend reviewing this documentation to identify potential opportunities for your product lines.

Effective Processing Date: Our team will begin systematically processing corrections and applying these new remission measures to all entries released on or after June 18th, 2025. This automated review process will ensure eligible shipments receive appropriate relief without requiring additional action from importers.

Recognizing that many importers may have shipments released prior to June 18, 2025 that could benefit from these new measures, we are offering a comprehensive review service for earlier entries.

Required Documentation for Review:

• Complete invoice number for the shipment in question
• Original commercial invoice documentation
• Any supporting documentation that may assist in determining eligibility

Upon receipt of the required documentation, our experienced customs team will conduct a thorough review of your shipment details against the new remission criteria and prepare a formal adjustment request on your behalf. Please reach out to us for pricing information regarding entry adjustments.

Schedule 1
Schedule 2, 3, 4, and 5
Order Amending the China Surtax Remission Order (2024) and the United States Surtax Remission Order (2025): SOR/2025-147

Section 4 of the United States Surtax Remission Order (2025) is replaced by the following:

Remission — goods referred to in Schedule 1
4 Subject to section 5, remission is granted of surtaxes paid or payable under the United States Surtax Order (2025-1) in respect of the goods referred to in column 1 of Schedule 1 that are classified under a tariff classification number set out in column 2.

Remission — goods referred to in Schedules 2 and 3
4.1 Subject to section 5, remission is granted of surtaxes paid or payable under the United States Surtax Order (2025-1) or the United States Surtax Order (Steel and Aluminum 2025) in respect of the goods referred to in column 2 of Schedule 2 or 3 that are classified under a tariff classification number set out in column 1.

Remission — goods referred to in Schedule 4
4.2 Subject to section 5, remission is granted of surtaxes paid or payable under the United States Surtax Order (2025-1) or the United States Surtax Order (Steel and Aluminum 2025) in respect of the goods referred to in column 3 of Schedule 4 that are classified under a tariff classification number set out in column 2.

Remission — motor vehicles
4.3 Subject to section 5, remission is granted of surtaxes paid or payable under the United States Surtax Order (Motor Vehicles 2025) in respect of

• (a) motor vehicles that are classified under a tariff classification number set out in Schedule 5; and
• (b) all-terrain vehicles, including utility terrain vehicles and side-by-side vehicles.

Paragraph 5(a) of the Order is replaced by the following:

• (a) the good is imported into Canada before
  • (i) October 16, 2025, in the case of a good in respect of which remission is granted under any of sections 1 to 4, or
  • (ii) March 13, 2026, in the case of a good referred to in Schedule 3;
• (a.1) in the case of a good referred to in column 3 of Schedule 4 that is classified under the tariff classification number set out in column 2, it is imported into Canada by a person whose business number is set out in column 1 during the period, if any, specified in column 4 and any conditions set out in column 5 are met;

The schedule to the Order is numbered as Schedule 1.

The Order is amended by adding, after Schedule 1, the Schedules 2 to 5 set out in the schedule to this Order.

Why This Matters
The expansion of remission measures under the United States Surtax Remission Order reflects the government’s ongoing commitment to supporting Canadian businesses engaged in cross-border trade. These targeted relief measures can significantly impact your bottom line, particularly for businesses with regular importation activities involving the specified product categories.

Effective June 27, 2025, certain steel goods imported into Canada are subject to a surtax in the amount of 50% of the value for duty in accordance with the Order Imposing a Surtax on the Importation of Certain Steel Goods. The value for duty is determined in accordance with sections 47 to 55 of the Customs Act. Schedule 1 to the Order Imposing a Surtax on the Importation of Certain Steel Goods (Schedule 1) contains a complete list of goods subject to the surtax.

The Order imposes temporary trade measures in the form of separate tariff rate quotas (TRQ) for one year on imports of flat, long, pipe and tube, semi-finished, and stainless steel products from non-free trade agreement countries. Imports above these volumes for each of the five classes of steel goods will be subject to a surtax in the amount of 50% of the value for duty in accordance with the Order.

The annual quota is divided into quarterly periods, with any unused quantity from previous periods being carried forward into the following period. The quota available in each quarter is also subject to a quantity limit per country of origin. Any volumes imported above the quota will be subject to a 50% surtax.

Surtax will apply to steel imports if:

• the quantity of goods of the same class imported during the same quarterly period exceeds the total set out in column 2 of Schedule 1 for that class; or
• the quantity of goods of the same class that originate in the same country and are imported during the same quarterly period exceeds the quantity determined by multiplying the percentage set out in column 3 of Schedule 1 by the total set out in column 2 of Schedule 1 for that class.

Importers must have a shipment-specific permit to declare the importation is under the TRQ and is not subject to the surtax. Importers may apply for a shipment-specific import permit under item 82 of the Import Control List in accordance with subsection 8(1) of the Export and Import Permits Act. Import permits will not be issued once the quantities indicated in Schedule 1 to the Order have been reached. Goods may continue to be imported under General Import Permit No. 80 or 81, as applicable, in excess of the limits set out in the Order, but will be subject to the surtax. The shipment-specific permit must apply to steel goods listed in item 82 of the Import Control List and must be valid at the time the goods are accounted for under the Customs Act.

GAC monitors quota utilization for item 82 on an ongoing basis. Importers are responsible for consulting GAC‘s online utilization reports to track quota availability. The surtax will apply automatically to goods imported without a shipment-specific permit, regardless of whether a permit is pending or unavailable at the time of entry. Importers may obtain permits retroactively, if eligible. Upon applying for and receiving a permit from GAC, importers may make a request to the CBSA for a refund of the amount of surtax paid on shipments imported without a permit.

The country of origin used to determined surtax applicability shall be determined in accordance with the Determination of Country of Origin for the Purposes of Marking Goods (Non-CUSMA Countries) Regulations and Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.

The surtax will apply to steel goods imported for commercial purposes.

Steel goods originating in a country not listed in Schedule 2 to the Order Imposing a Surtax on the Importation of Certain Steel Goods are subject to surtax, even when exported from a country listed in Schedule 2.

The surtax applies to goods otherwise classifiable under a tariff item set out in Schedule 1 to the Order Imposing a Surtax on the Importation of Certain Steel Goods but that are classified under a tariff item of Chapter 99 of the Schedule to Canada’s Customs Tariff. Chapter 99 includes tariff items that would allow goods to receive a duty free rate or reduced duty rate.

Canada’s Duties Relief and Duty Drawback Programs will be available to importers for surtax paid or owed by Canadian businesses, subject to the provisions of the Canada-United States-Mexico Agreement (CUSMA).

The CBSA may conduct a verification to verify importers possess a valid GAC-issued shipment-specific import permit. In instances where the importer does not possess valid documentation, the CBSA may re-calculate the amount of surtax owing.

Associated Links

• Orders In Council – Search
• Customs Notice 25-24: Order Imposing a Surtax on the Importation of Certain Steel Goods
• Tariff-rate quotas on imports of steel mill products