Effective July 31st 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.