Customs Notice 25-24: Order Imposing a Surtax on the Importation of Certain Steel Goods

Updated: August 1, 2025

1. This notice provides information on the application of the Order Imposing a Surtax on the Importation of Certain Steel Goods and the Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods, specifically regarding surtax provisions effective June 27, 2025, on certain steel goods originating outside of Canada, the United States, or Mexico.

2. The Government of Canada is introducing this surtax to address the risk of steel trade diversion from third countries into the Canadian market due to restrictive trade measures taken by the United States, notably through its imposition of tariffs on steel under section 232 of the Trade Expansion Act of 1962.

3. The administration of the Order Imposing a Surtax on the Importation of Certain Steel Goods is the responsibility of the Canada Border Services Agency (CBSA) and Global Affairs Canada (GAC). CBSA administers the surtax under the Customs Tariff and Customs Act. GAC issues import permits for goods on the Import Control List under the Export and Import Permits Act.

4. This update introduces the application of the surtax for goods originating in countries with which Canada has a free trade agreement (FTA) in force, with the exception of the United States and Mexico, pursuant to the Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods.

5. This update clarifies that, effective August 1, 2025, in cases where multiple surtaxes are applicable, only the surtax under the Order Imposing a Surtax on the Importation of Certain Steel Goods and the Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods shall be applicable.

Application

6. 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.

7. 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.

8. 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.

9. 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.

10. 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; or
• 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; or
• 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; or
• 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.

11. 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; 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 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.

12. Importers must have a shipment-specific permit to declare the importation is under the TRQ and therefore is not subject to the surtax. Importers may apply through the Global Affairs import permit system 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 applicable limits and single country limit indicated in Schedule 1 or Schedule 2 to the Order, as the case may be, 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 as amended, 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.

13. The quotas will not apply to goods originating in Canada, the United States or Mexico. For other FTA partners (listed in Schedule 3 to the amended Order), the applicable limits in Schedule 2 to the amended Order will apply. To accommodate the transition to the amended Order, the applicable limits for the period from August 1 to September 25, 2025 are pro-rated accordingly in Column 2.1 of Schedule 2 for FTA countries. The three-month quarterly cycle resumes thereafter.

14. Goods from countries not listed in Schedule 3 (non-FTA countries) are subject to the applicable limits in Schedule 1 to the amended Order. Refer to Schedules 1, 2, and 3 annexed to the amended Order for detailed applicable limits by product class and country.

15. During the transition period from August 1 to September 25, 2025, a 50% surtax will apply to certain imported steel goods if import volumes exceed applicable limits set out in Schedule 1 (for countries without a FTA) or Schedule 2 (for countries with a FTA); applicable import quantities under valid permits will be deducted from these thresholds in accordance with the amended Order.

16. 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.

17. The country of origin used to determine 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.

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

19. Steel goods originating in a country other than Canada, the United States or Mexico are subject to surtax, even when exported from the United States or Mexico.

20. The surtax applies to goods otherwise classifiable under a tariff item set out in Schedule 1 or Schedule 2 to the Order Amending 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.

21. 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).

22. 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.

Proof of origin

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

24. 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.

Calculation of surtax when accounting for commercial importations

25. The amount of surtax payable is calculated in the amount of 50% of the value for duty of the imported good in accordance with the Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods. This is in addition to any other duties owing (i.e. in addition to customs duties, anti-dumping and countervailing duties, and taxes that may be applicable).

26. Effective August 1, 2025, where goods may otherwise be subject to multiple surtaxes imposed under the Customs Tariff, the surtax imposed by this amended Order shall be the only surtax that applies. For goods imported between June 27, 2025 and July 31, 2025, this surtax shall apply in addition to any other surtax applicable.

27. The value for duty must be determined in accordance with sections 47 to 55 of the Customs Act. Refer to the Customs valuation handbook for more details.

28. Under the transaction value method, transportation and associated costs, and insurance costs, arising after the place from which goods begin their direct and uninterrupted journey to Canada would not be included in the transaction value of the goods. Any amounts for Canadian customs brokerage fees which are included in the price paid or payable may be deducted as associated costs and as such are not included in the transaction value of the goods. Estimates of the transportation costs are not acceptable. Refer to Memorandum D13-3-3 – Transportation and Associated Costs, Memorandum D13-3-4 – Place of Direct Shipment,andMemorandum D13-4-7 – Adjustments to the Price Paid or Payable (Customs Act, Section 48) for details.

Exceptions to surtax

29. The surtax will not apply to steel goods from non-FTA countries that were in transit to Canada on or before June 27, 2025, or to steel goods from FTA countries that were in transit to Canada on or before August 1, 2025, the effective date of the amended Order. 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.

30. Goods originating in Canada, the United States, or Mexico are not subject to the surtax and are excluded from the determination of the quantity of goods imported.

31. Casual goods as defined in section 2 of the Persons Authorized to Account for Casual Goods Regulations are not subject to the surtax.

32. Goods that are classified under a tariff item of Chapter 98 of the Schedule to Canada’s Customs Tariff are not subject to the surtax, even if the goods are otherwise classifiable under a tariff item set out in Schedule 1 to the Order Imposing a Surtax on the Importation of Certain Steel Goods.

Accounting

33. Importers must provide General Import Permit (GIP) and Country of Melt and Pour (COM) information, where applicable, in order to obtain release of the goods into Canada, including when using the Single Window Integrated Import Declaration (IID). Please refer to paragraphs 20 to 28 of Memorandum D19-10-2: Administration of the Export and Import Permits Act (Importations) and Customs Notice 24-38: Amendments to the GIP number 80 – Carbon steel and GIP number 81 – Specialty steel products for details on these requirements. Refer to Notice to importers: Item 82 – Steel goods – Serial No. 1139 for information on the procedures governing the administration of TRQs for certain steel goods that are listed in item 82 on the Import Control List.

34. Importers must declare imported goods as subject to a surtax when completing a Commercial Accounting Declaration (CAD) via CARM Client Portal (CCP), Electronic Data Interchange (EDI) or Application Programming Interface (API) and declare the applicable surtax code.

• For goods imported between June 27, 2025 to July 31, 2025, the surtax code is 25148A for goods imported in excess of the TRQ / without a permit and subject to the 50% TRQ surtax.
• As of August 1, 2025, the surtax code is 25155A for goods imported in excess of the TRQ / without a permit and subject to the 50% TRQ surtax.
• For goods imported between June 27, 2025 to July 31, 2025, the surtax code is 25148B for goods imported under a valid GAC-issued shipment-specific permit (i.e. under the TRQ and not subject to surtax).
• As of August 1, 2025, the surtax code is 25155B for goods imported under a valid GAC-issued shipment-specific permit (i.e. under the TRQ and not subject to surtax).
• The surtax code is 25148C for goods imported under a valid GAC-issued shipment-specific permit (i.e. under the TRQ and not subject to surtax) and subject to the China Surtax Order (2024).
  • This code is only required for goods imported to Canada between June 27, 2025 and July 31, 2025.
  • As of August 1, 2025 importers should use the applicable surtax code of the China Surtax Order (2024) Customs Notice.
• The surtax code is 25148D where multiple surtaxes apply.
  • This code is only required for goods imported to Canada between June 27, 2025 and July 31, 2025.

35. In all scenarios, the amount of surtax owing is entered in field 85 “Surtax” of the CAD. If importers elect to use the self-declare option in CARM, the amount of surtax owing must be calculated by the importer and entered in the “Surtax” field. For details on CAD field 85 and surtax calculations under CARM, refer to Memorandum D17-1-10 and CARM User Guides.

36. Accounting for surtax under the Order Imposing a Surtax on the Importation of Certain Steel Goods will follow the instructions outlined in Memorandum D16-1-1, Information pertaining to the application, collection, and adjustment of a surtax.

37. Commercial goods qualifying for an exception to this surtax – and to which no other surtaxes apply – must be declared as non-subject to surtax at the time of accounting.

38. When an amount of surtax is being declared at importation, refer to Memorandum D17-1-10, Coding of Customs Accounting Documents for additional information on completing the CAD.

39. Goods eligible for the remission of customs duties, sales and excise taxes under the Postal Imports Remission Order or the Courier Imports Remission Order and subject to a surtax must be accounted for.

Corrections, re-determinations, and refunds

40. Corrections or adjustments to original declarations and requests for re-determinations are to be made in the prescribed form and manner under the relevant provisions of the Customs Act, in accordance with the procedures outlined in Memorandum D11-6-6, “Reason to Believe” and Self-Adjustments to Declarations of Origin, Tariff Classification, and Value for Duty and Memorandum D6-2-3, Refund of Duties.

41. If surtax was not correctly self-assessed or was self-assessed in error for commercial goods, then an adjustment to the CAD may be submitted via the CCP or via EDI/API. For more information on how to submit an adjustment for commercial goods, refer to Memorandum D17-2-1, Adjusting Commercial Accounting Declarations.

42. The origin, tariff classification, and value for duty of imported goods may be re-determined or further re-determined in accordance with the Customs Act and the Determination, Re-determination and Further Re-determination of Origin, Tariff Classification and Value for Duty Regulations. This may occur further to a self-adjustment. In so doing, as with customs duties and taxes, the CBSA may consider the applicability of any undeclared amount of surtax.

Examinations and verifications

43. Imported goods may be subject to examination at the time of importation and to post-release verification for compliance with the tariff classification, valuation, origin, and any other applicable provisions administered by the CBSA. In cases of non-compliance, in addition to the imposition of surtax, customs duties and taxes, penalties may be assessed, and interest may accrue on the amount owing.

Advance rulings for commercial importations

44. For predictability and certainty on how goods are to be accounted for, an application for a ruling pertaining to origin (Most-Favoured-Nation Tariff or non-Free Trade Agreement (FTA) Preferential Tariff Treatment), valuation, or marking can be made as a request for a National Customs Ruling (NCR). An NCR must be requested from the CBSA in advance of the importation of goods. Refer to Memorandum D11-11-1 National Customs Rulings for additional information.

45. For predictability and certainty on how goods are to be accounted for, an application for a ruling on the origin of goods and their entitlement to a preferential tariff treatment under Canada’s FTAs is to be made as a request for an advance ruling. Advance Rulings must be requested in advance of the importation of goods. Refer to Memorandum D11-4-16, Advance Rulings for Origin Under Free Trade Agreements for additional information.

46. Refer to Memorandum D11-11-3, Advance Rulings for Tariff Classification, for additional information on requesting an advance ruling on the tariff classification of goods.

Recourse – surtax and appeal process

47. The imposition of a surtax by the Governor in Council, including the rate of that surtax, is not subject to appeal under the Customs Tariff or the Customs Act. However, the CBSA reviews accounting documents to ensure that the correct amount of surtax has been declared. Determinations, re-determinations and further re-determinations made by officers, which may include the applicability of the surtax, may be subject to appeal under the Customs Act.

48. In accordance with the Customs Act and section 12 of the Customs Tariff, individuals who receive a notice of re-determination or further re-determination under subsection 59(2) of the Customs Act may request a review under section 60 of the Customs Act. This request must be submitted within 90 days of the notice and only after all amounts owing as duties and interest in respect of the goods are paid, or security satisfactory to the Minister is provided for the total amount owing. For more information please refer to Memorandum D11-6-7: Request under Section 60 of the Customs Act for a Re-determination, a further Re-determination or a Review by the President of the Canada Border Services Agency.

Additional information

49. Refer to Memorandum D16-1-1, Information pertaining to the application, collection, and adjustment of a surtax, for additional information concerning the administration and enforcement of surtax orders under sections 53(2), 55(1), 60, 63(1), 68(1), 77.1(2), 77.6(2) or 78(1) of the Customs Tariff.

50. For more information call the Border Information Service (BIS) at 1-800-461-9999 (toll-free in Canada and the USA). If calling outside Canada and the United States, call 1-204-983-3500 or 1-506-636-5064. Long distance charges will apply. Our automated telephony service provides general information in English and French on CBSA programs, services and initiatives through recorded scripts. Live agents are also available to assist you Monday to Friday 8 am to 4 pm local time, as per time zones in Canada and USA (closed on federal statutory holidays). TTY is also available within Canada: 1-866-335-3237. Alternatively, you may send your enquiries using our Client Support Contact Form.

51. For questions related to the policy outlined in the Order Imposing a Surtax on the Importation of Certain Steel Goods, please contact the Department of Finance: fin.simaconsult-lmsiconsult.fin@fin.gc.ca. For questions related to permit issuance or quotas, please contact Global Affairs Canada: steel-acier@international.gc.ca.

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