Surtax on Imports of Certain Steel Goods Remission Order, 2025: SOR/2025-287

Canada Gazette, Part II, Volume 159, Number 27

Registration
SOR/2025-287 December 19, 2025

CUSTOMS TARIFF

P.C. 2025-976 December 18, 2025

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Surtax on Imports of Certain Steel Goods Remission Order, 2025 under section 115footnote a of the Customs Tariff footnote b.

Surtax on Imports of Certain Steel Goods Remission Order, 2025

Remission and Conditions

Remission — goods in transit

1 (1) Subject to subsection (2), remission is granted of the surtax, or any portion of the surtax, paid or payable under subsections 2(1) and (1.1) of the Order Imposing a Surtax on the Importation of Certain Steel Goods in respect of any goods referred to in that Order that are in transit to Canada on or before August 1, 2025.

Conditions

(2) Remission is granted on the following conditions:

Remission — goods described in schedule

2 (1) Subject to subsection (2), remission is granted of the surtax, or any portion of the surtax, paid or payable under the Order Imposing a Surtax on the Importation of Certain Steel Goods in respect of any goods of a class set out in column 1 of the schedule that meet the description set out in column 2.

Conditions

(2) Remission is granted on the following conditions:

Repeal

3 The Surtax on the Importation of Certain Steel Goods Remission Order footnote 1 is repealed.

Coming into Force

Registration

4 This Order comes into force on the day on which it is registered.

SCHEDULE

Item

Column 1

Class of Goods

Column 2

Description of Goods
1 Steel Billets
and Blooms		 Round alloy steel bars for the production of oil country tubular goods or line pipes, that have a diameter of 215 mm, 225 mm, 270 mm or 290 mm and that are specified to meet API, CSA, ASTM, ASME standards or enhanced grades
2 Line Pipe Unfinished seamless carbon or alloy steel line pipes in the form of mother tubes that have an outside diameter of 184 mm, 197 mm, 210 mm, 235 mm, 260 mm, 286 mm, 328 mm, 350 mm, 368 mm, 377 mm, 394 mm, 402 mm, 419 mm, 426 mm, 450 mm, 475 mm, 480 mm, 500 mm, 521 mm, 530 mm, 560 mm, 585 mm or 610 mm, that have a wall thickness of at least 9 mm but not exceeding 110 mm and a length of at least 7.72 m but not exceeding 15.24 m, and that are not stenciled as meeting any line pipe product specification, but are suitable for use in the production, and not solely the finishing, of seamless line pipe made to one or more of the following specifications: API 5L, CSA Z245.1, ISO 3183, ASTM A333, ASTM A335, ASTM A106, ASTM A53 or their equivalent
3 Steel Plate Flat-rolled steel, not in coils, that has a thickness of less than 6.35 mm
4 Steel Plate Steel plate, of grade A572-42, that has dimensions of 5.5 inches by 97 inches by 140 inches
5 Steel Plate Steel plate, that has a thickness of more than 5 inches
6 Steel Plate Steel plate, pressure vessel quality, of grade A516-70 or SA 516-70, that has a thickness of more than 3.25 inches
7 Hollow Structural Sections Hollow structural section, that has a nominal pipe size of 24 inches, 26 inches, or 28 inches or more, that has a length of 40 feet or more, and a minimum manganese content of 16% by weight
8 Steel Plate Steel plate, pressure vessel quality, vacuum-degassed, that has a thickness between 4.5 inches to 6.5 inches

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

The Government of Canada established tariff-rate quotas (TRQs), effective on June 27, 2025, as amended effective on August 1, 2025, for the imports of certain steel mill products. A surtax of 50 per cent applies to imports that exceed the allocated TRQs to address the risk of trade diversion stemming from global excess capacity in steel supply and the restrictive trade measures taken by the United States (U.S.) through its imposition of tariffs under section 232 of the U.S. Trade Expansion Act of 1962 on steel imports.

To reduce potential undue and adverse impacts on importers, the scope of the TRQs only covers steel products that are produced in Canada. However, some importers noted concerns that there are certain steel products covered by the TRQs that are not domestically produced, such as products with specific characteristics (thickness, grade, etc.).

In addition, concerns were also raised by importers regarding the application of the amended TRQs to steel goods that were already in transit on or before August 1, 2025. Specifically, stakeholders indicated that import decisions were made on the basis of the initial framework implemented on June 27, 2025, before the 50 per cent reduction of the TRQ volumes for imports originating from countries that do not have a free trade agreement with Canada (non-FTA partners) and the adjustment of product categories, thus exposing them to unexpected and unavoidable surtax charges.

Background

On June 19, 2025, the Government of Canada announced the implementation of trade measures on imports of steel mill products from non-FTA partners. These measures came into force on June 27, 2025, in the form of TRQs under which a 50 per cent surtax is applied to imports of covered steel products (flat, long, pipe and tube, semi-finished and stainless) that exceed a quota equivalent to 100 per cent of 2024 imports from non-FTA partners (see the Order Imposing a Surtax on the Importation of Certain Steel Goods; SOR/2025-148). At the time, imports from FTA partners were not subject to the TRQs. The TRQs were intended to help stabilize the Canadian market and prevent harmful diversion of foreign steel from third countries into Canada while minimizing impacts on Canadian importers and downstream users.

Global Affairs Canada is responsible for administering the TRQs through the issuance of shipment-specific import permits. To facilitate the administration of the TRQs, the subject products were added to the Import Control List (ICL). Importations made without a specific import permit are assessed the 50 per cent surtax by the Canada Border Services Agency (CBSA).

The Government committed to reviewing the implementation of the TRQs in 30 days to ensure their appropriateness and effectiveness in light of evolving market circumstances, and periodically thereafter. The reviews are supported by the newly established industry-government steel task force.

On July 16, 2025, the Prime Minister announced a suite of targeted measures to support the steel industry. This includes trade measures to address foreign steel imports entering the Canadian market through strengthening the TRQs for steel products implemented on June 27, 2025.

Through the Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods, SOR/2025-155, the revised TRQs came into force on August 1, 2025. The following adjustments were made:

Objective

Description

Pursuant to section 115 of the Customs Tariff, the Surtax on Imports of Certain Steel Goods Remission Order, 2025 (the Remission Order) remits the 50 per cent surtax paid or payable under the Order Imposing a Surtax on the Importation of Certain Steel Goods in regard to specified goods that lack domestically produced alternatives, such as steel plate that has a thickness of more than five inches. Goods eligible for remission would still be subject to the TRQs. The Remission Order also remits the surtax paid or payable for any goods imported into Canada originating from countries that do not have a FTA in force with Canada and that were in transit to Canada on or before August 1, 2025.

The Remission Order sets out the conditions for granting remission, including that the requesting importer makes a claim to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation, and that no other claim for relief of the surtax has been granted under the Customs Tariff in respect of that good.

Regulatory development

Consultation

Requests for remission of the 50 per cent surtax for products claimed not to be made in Canada were submitted proactively by importers. Consultations were made with Canadian steel producers to assess such claims. The government will continue to monitor claims for remission and will adopt a similar consultation process in the future, which may require future amendments to this Remission Order.

Indigenous engagement, consultation and modern treaty obligations

Following the completion of the assessment of modern treaty implications, no adverse impacts on potential or established Indigenous or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982, were identified.

Instrument choice

Section 115 of the Customs Tariff provides the authority for the Governor in Council to remit surtaxes on the recommendation of the Minister of Finance.

Regulatory analysis

Benefits and costs

In the baseline scenario, some importers may be required to pay a 50 per cent surtax in certain cases that do not align with the policy intent. First, importers made decisions in accordance with the TRQ regime implemented on June 27 for imports from non-FTA partners. As such, they had shipments that were already in transit to Canada but were imported on or after August 1, 2025, when the applicable TRQ volumes were reduced and the adjustments to product categories were made. Second, importers are importing products that are not domestically produced (e.g. specialized products meeting specific descriptions) and are required to pay the surtax should the applicable TRQ be filled.

In the regulatory scenario, with the changes made by this Remission Order, importers will be provided relief for paying the over-quota surtax in the aforementioned cases. Requiring importers to pay the 50 per cent surtax in these cases does not align with the policy intent of preventing trade diversion, as importers would nevertheless need to import those steel goods. As such, importers may face undue adverse impacts in the baseline scenario, which could increase production costs for downstream users and consumers.

As the 50 per cent surtax applies for imports exceeding the TRQ volumes as opposed to being applied on all imported quantities, the scope of application of the remission principally provides importers certainty regarding their exposure to surtaxes. The amount of surtaxes remitted will depend on remission claims and on the utilization of the TRQs that allow certain quantities to be imported free of surtax. Remission for in-transit imports from non-FTA partners is estimated to amount to about $10 million, depending on claims. The government will monitor claims for remission.

The administrative costs for Canadian businesses to claim remission of the surtaxes are expected to be limited. Remission claims for imports after the date of entry into force of this Remission Order would be made for each applicable importation as part of the process of filling existing customs documentation requirements. The importer will be required to include one extra code on their usual import document. The importer must also maintain records supporting their importation (e.g. related to tariff classification, entitlement to a tariff preference, entitlement to the remission), but this is the usual process and does not represent an additional cost. There would be minimal incremental costs for the Government to process the claims.

Importers requesting a refund for goods imported prior to the entry into force of this Order will submit forms to the CBSA, accompanied by supporting documentation, establishing that the imported goods qualify for remission. There would be minimal incremental costs for importers to supply the documentation and for the CBSA to process the claims.

Small business lens

Analysis under the small business lens concluded that the Remission Order will impact small businesses. Some of the importers meet the definition of “small business” in the Policy on Limiting Regulatory Burden on Business, and the process to claim remission of duties paid meets the definition of “administrative burden” set out in the Policy. No additional flexibility is necessary for small businesses claiming remission, as all eligible importers already possess the original customs forms required to justify remission and will benefit from the remitted funds.

One-for-one rule

This Remission Order relates to tax administration and is exempt from the requirement to offset the administrative burden and regulatory titles under the one-for-one rule. The requirement for Canadian importers to submit claims for remission meets the Red Tape Reduction Act definition of administrative burden on businesses. However, duties are considered to be “taxes” for the purpose of the one-for-one rule and have been exempted from the offset requirement.

Regulatory cooperation and alignment

The Remission Order is not related to a work plan or commitment under a formal regulatory cooperation forum.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that the Remission Order would not have positive or negative effects on the environment; therefore, a strategic environmental assessment is not required.

Gender-based analysis plus

No impacts based on gender and other identity factors have been identified for this proposal.

Implementation, compliance and enforcement, and service standards

The CBSA will assess any requests for remission made pursuant to the Remission Order and will ensure compliance with its terms and conditions in the normal course of its administration of customs and tariff-related legislation and regulations. In doing so, the existing administrative framework will be leveraged to ensure that costs can be managed within existing resources. Any refunds issued pursuant to the Remission Order will be administered by the CBSA. Depending on the volume and complexity of refund submissions, the CBSA strives to achieve a 90-day processing standard. Notably, remission will be granted automatically and immediately at the initial Commercial Accounting Declaration submission on a go forward basis from the date this Remission Order enters into force, specifically for goods referred to in the schedule of this Remission Order.

The Remission Order will come into force on the day on which it is registered. Remission will be granted retroactively to the dates of importation of on or after June 27, 2025, or on or after August 1, 2025, as applicable.

Contact

Paul Huynh
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Email: fin.simaconsult-lmsiconsult.fin@fin.gc.ca