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 1st 2025 or later, and were not manufactured in the US, Mexico, or Canada. Please note that any shipments that shipped prior to August 1st 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.