Canada Imposes 50% Steel Surtax and TRQ Limits to Certain Steel Imports

The 50% surtax now applies to imports of flat, long, pipe and tube, semi-finished, and stainless steel products that exceed a certain quota from non-exempt countries.

Canada has officially introduced tariff-rate quotas (TRQs) and a 50% steel surtax on over-quota imports from non-exempt countries, under the Order Imposing a Surtax on the Importation of Certain Steel Goods.

The measures, announced in Notice to Importers No. 1139 and Customs Notice 25-24, took effect on June 27, 2025.

They will remain in force for a 12-month period through June 26, 2026.

Under the new rules, steel imports covered by a valid permit and within their assigned TRQ will continue to benefit from regular Most Favoured Nation (MFN) tariff rates.

However, any shipment that exceeds the quota or enters the country without a shipment-specific permit will be subject to a 50% steel surtax. 

Permits can be obtained retroactively, if eligible, and importers may request a refund from CBSA for surtax paid on shipments imported without a permit.

Steel products that are affected

The 50% steel surtax applies to the following steel products:

• Flat-rolled
• Long
• Pipes and tubes
• Semi-finished
• Stainless

The surtax is applied in addition to other applicable duties and affects only imports that originate from countries without a free trade agreement (FTA) with Canada.

Exceptions to the 50% steel surtax

The surtax does not apply to steel goods that:

• Are in transit to Canada on the day the Surtax Order comes into force.
• Originate in any of the countries listed in Schedule 2 of the Surtax Order.
• Are casual goods, as defined in section 2 of the Persons Authorized to Account for Casual Goods Regulations.
• Are classified under a tariff item of Chapter 98 of the List of Tariff Provisions, even if the goods are otherwise classifiable under a tariff item set out in column 4 of Schedule 1 of the Surtax Order.

Special import permits required

To avoid the 50% steel surtax, importers must obtain shipment-specific import permits through Global Affairs Canada.

Permits are issued as per available TRQ volumes, which are allocated on a quarterly basis as follows:

• Q1: June 27, 2025 – September 25, 2025
• Q2: September 26, 2025 – December 25, 2025
• Q3: December 26, 2025 – March 26, 2026
• Q4: March 27, 2026 – June 26, 2026

Permits for Q1 and Q2 are being issued on a first-come, first-served basis, with applications available starting at 8:00 a.m. EDT on June 27, 2025.

TRQ volumes and country share limits

The quarterly TRQ allocations are outlined in the table below.

Quarterly quotas are also subject to a quantity limit per country of origin, and unused volumes from any quarter will roll over into the next.

Accounting requirements

To release their products, importers must provide a General Import Permit (GIP) and Country of Melt and Pour (COM) information, where applicable.

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

• 25148A for goods imported in excess of the TRQ / without a permit and subject to the 50% TRQ surtax.
• 25148B for goods imported under a valid shipment-specific permit (under the TRQ and not subject to surtax).
• 25148C for goods imported under a valid shipment-specific permit (under the TRQ and not subject to surtax) and subject to the China Surtax Order (2024).
• 25148D when multiple surtaxes apply.

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

Adjustments, verifications, and recourse

Corrections, re-determinations, and refunds

Corrections or adjustments must be submitted in the prescribed form under the Customs Act, following procedures outlined in Memorandum D11-6-6 and Memorandum D6-2-3.

This also includes goods released and accounted for in the Courier Low Value Shipment (CLVS) program.

For commercial goods, adjustments to the CAD can be submitted through the CCP or via EDI/API. You can refer to Memorandum D17-2-1 for more on adjusting CADs.

CBSA may also re-determine the origin, tariff classification, and value for duty of imported goods, especially if a self-adjustment was submitted. Any undeclared surtax will be assessed in the same way as customs duties or taxes.

Examinations and verifications

Goods may be subject to inspection at the time of import or post-release verification to confirm compliance with origin, tariff classification, valuation, and any other applicable provisions.

In cases of non-compliance, CBSA may impose penalties and interest on the amount owing, in addition to the surtax, customs duties, and taxes.

Advance rulings

To ensure clarity before goods are imported, importers may request advance rulings or National Customs Rulings (NCRs) from CBSA on how their goods will be treated.

Ceux-ci sont :

• NCR (origin, valuation, and marking) (Memorandum D11-11-1)
• Advance rulings for origin under FTAs (Memorandum D11-4-16)
• Advance rulings for tariff classification (Memorandum D11-11-3) 

Recourse and appeals

The 50% steel surtax is imposed by the Governor in Council and cannot be appealed.

However, determinations, re-determinations, and further re-determinations made by CBSA officers may be subject to appeal under the Customs Act.

If CBSA issues a notice of re-determination or further re-determination, the importer has the right to request a review.

The request must be submitted within 90 days of receiving the notice and only after paying all duties and interest or providing sufficient security. Memorandum D11-6-7 offers guidance on this process. 

Prochaines étapes pour les importateurs canadiens

With the new steel surtax and TRQ rules now in effect, you can take the following steps to avoid unnecessary costs and ensure full compliance:

• Consult your customs broker to identify whether your steel imports are subject to the quota and require a shipment-specific permit.
• Apply early for permits to secure quota access and avoid the 50% surtax.
• Use the correct surtax codes when completing your CAD.

Comment Cole International peut vous aider

At Cole International, we provide customs and compliance consulting and customs brokerage services to help you navigate changing regulations and streamline importing goods into Canada.

Please get in touch with one of our trade professionals to discuss the impact of this new surtax on your business and how we can help simplify the entry of your steel goods into Canada.