Customs Notice 25-24 – Surtax on the Importation of Certain Steel Goods

Customs Notice 25-24 – Surtax on the Importation of Certain Steel Goods

The Government of Canada has implemented a 50% surtax on specified steel goods imported from non-free trade agreement countries. This measure is designed to protect Canada’s steel market from trade diversion resulting from U.S. tariffs imposed under Section 232 of the U.S. Trade Expansion Act.

Key Highlights:

  • Surtax Details:
    Effective June 27, 2025, certain flat, long, pipe and tube, semi-finished, and stainless-steel products imported into Canada may be subject to a 50% surtax, calculated on the value for duty.

  • Tariff Rate Quotas (TRQs):
    Imports are subject to annual TRQs, divided into quarterly limits with country-specific caps. Volumes exceeding the TRQ trigger the 50% surtax.

  • Import Permits Required:
    Importers must obtain a shipment-specific permit from Global Affairs Canada (GAC) to bring in steel under the TRQ without surtax. Imports exceeding TRQ levels or without valid permits will be automatically assessed the surtax.

  • Proof of Origin:
    The country of origin determines surtax applicability, following Canadian origin regulations. Even steel goods exported from exempt countries may be subject to surtax if they originate elsewhere.

  • Other Applicable Duties:
    The surtax applies in addition to customs duties, anti-dumping/countervailing duties, and any other surtaxes, including those under the China Surtax Order.

  • Exemptions:

    • Goods in transit to Canada prior to June 27, 2025

    • Steel from exempt countries listed in Schedule 2 of the Order

    • Goods classified under Chapter 98 (special provisions)

    • Casual goods for personal use

  • Administrative Requirements:
    Importers must:

    • Accurately declare goods using the applicable surtax codes

    • Provide GIP and Country of Melt and Pour information

    • Maintain valid proof of origin and documentation

    • Use CBSA’s CARM Portal or EDI for surtax declarations

  • Refunds & Adjustments:
    Eligible importers may apply for retroactive permits and surtax refunds. Corrections or re-determinations can be submitted per the Customs Act.

  • Compliance & Verification:
    CBSA may examine shipments or conduct post-release verifications to ensure proper declaration. Penalties and interest apply for non-compliance.

  • Appeals Process:
    While the surtax rate itself is not appealable, determinations on origin, classification, or surtax application may be reviewed through CBSA's established appeals process.

For detailed procedures, importers should consult applicable CBSA memoranda and Global Affairs Canada Notices.

Businesses are encouraged to plan accordingly, verify origin documentation, and engage customs brokers as needed.

For more information, please visit these links:

Omnitrans will continue to monitor developments and provide updates as new information becomes available.

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