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

Ottawa, June 27, 2025

1. This notice provides information on the application of 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.

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.

Application

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

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

12. 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.

13. 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.

14. 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).

15. 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

16. 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.

17. 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

18. 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 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, surtaxes, and taxes that may be applicable).

19. The surtax applies in addition to any other applicable surtax.

20. 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.

21. 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, and Memorandum D13-4-7: Adjustments to the Price Paid or Payable (Customs Act, Section 48) for details.

Exceptions to surtax

22. The surtax will not apply to steel 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.

23. Steel goods originating in any of the countries listed in Schedule 2 to the Order Imposing a Surtax on the Importation of Certain Steel Goods are not subject to the surtax and are excluded from the determination of the quantity of goods imported.

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

25. 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

26. 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 GAC’s Notice to Importers 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.

27. 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.

• The surtax code is 25148A for goods imported in excess of the TRQ / without a permit and subject to the 50% TRQ surtax.
• 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).
• 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).
• The surtax code is 25148D where multiple surtaxes apply – in such scenarios, the importer must manually calculate the combined surtax owing (see Example 3 and Example 4 in the “Calculation of Surtax when Accounting for Commercial Importations” section above).

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.

28. 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.

29. Commercial goods qualifying for an exception to a surtax must be declared as non-subject to surtax at the time of accounting.

30. 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. This also applies to goods released and accounted for in the Courier Low Value Shipment (CLVS) Program.

31. 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

32. 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. This also includes goods released and accounted for in the CLVS Program.

33. 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.

34. 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

35. 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

36. 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.

37. 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.

38. 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

39. 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.

40. 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

41. 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.

42. 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.

43. 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.

Related links

• Order Imposing a Surtax on the Importation of Certain Steel Goods
• Notice to importers: Item 82 – Steel goods – Serial No. 1139
• Customs Act
• Customs Tariff
• 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
• Memorandum D16-1-1: Information pertaining to the application, collection, and adjustment of a surtax
• Memorandum D17-2-1: Adjusting Commercial Accounting Declarations