The Canadian Government has implemented new surtax measures, to be applied in the importation of certain steel goods, effective June 27, 2025. The goal of this surtax is to mitigate risks to the Canadian steel industry caused by the diversion of steel from third countries into the Canadian market.
Key points to note:
1. Surtax assessment
A surtax of 50% of the value for duty will be applied to commercial steel importations from all countries of origin, except those exempted in Schedule 2 of the Order Imposing a Surtax on the Importation of Certain Steel Goods.
Proof of origin must be provided for all imported goods upon request and may be presented in the form of a commercial invoice, a Canada Customs Invoice or any other documentation that indicates the country of origin of the goods.
2. Tariff rate quotas (TRQs)
Temporary trade measures are in place for one year and include separate TRQs for five types of steel products:
• Flat
• Long
• Pipe and tube
• Semi-finished
• Stainless steel
Imports exceeding the established TRQs will be subject to the 50% surtax.
Schedule 1 of the Order provides the Tariff Item listing for the above steel products.
3. Shipment-specific permits
Importers must have a shipment-specific permit to declare the importation is under the TRQ and is not subject to the surtax. 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.
Under the Export and Imports Permit Act (EIPA) an EIPA number is required to complete your import permit application. It is a unique identifier tied to your account with Global Affairs Canada (GAC). You may apply for an EIPA number by filling out the EIPA number application form found on Global Affairs Canada’s webpage.
4. Surtax is additional
The surtax will be applied in addition to other duties that may be payable, such as customs duties, anti-dumping, or countervailing duties.
5. Exceptions for goods in transit
Steel goods already in transit to Canada before June 27, 2025, are exempt from the surtax, provided the importer can supply proof of transit.
6. Documentation requirements
To qualify for transit exemptions, importers must maintain valid proof, including shipping documents (e.g., bill of lading), entry reports, or cargo control documents. These documents may be requested by CBSA officers.
For more details about the surtax, including countries of origin exempt from the surtax and examples of how the surtax will be calculated when accounting for commercial imports, please refer to the Order in Council and Customs Notice.