Steel Derivative Goods Surtax Remission Order: SOR/2026-34

Canada Gazette, Part II, Volume 160, Number 5

Registration
SOR/2026-34 February 24, 2026

CUSTOMS TARIFF

P.C. 2026-145 February 24, 2026

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

Steel Derivative Goods Surtax Remission Order

Remission — public health, public safety and national security

1 Subject to section 5, remission is granted of surtaxes paid or payable under the Steel Derivative Goods Surtax Order in respect of goods imported for use by any of the following entities for the purpose of health care, public health, public safety, national defence or national security:

• (a) a government health research organization or clinical health research organization;
• (b) an organization that produces or stores medical countermeasures, including pharmaceuticals or medical devices;
• (c) the office of a public health official, as defined in subsection C.10.001(1) of the Food and Drug Regulations;
• (d) an organization that provides ambulance or other emergency response services;
• (e) a firefighting service;
• (f) a law enforcement agency;
• (g) a federal or provincial correctional service;
• (h) the Department of National Defence;
• (i) the Canadian Forces; or
• (j) the Canadian Security Intelligence Service.

Remission — health care

2 Subject to section 5, remission is granted of surtaxes paid or payable under the Steel Derivative Goods Surtax Order in respect of goods imported

• (a) for use in the provision of medically necessary health care services, including services provided at
  • (i) a hospital,
  • (ii) a health care or dental clinic,
  • (iii) a medical, dental or diagnostic laboratory, or
  • (iv) a long-term care facility; or
• (b) for use, for the purpose of health care or public health, by:
  • (i) an entity that provides products or services related to blood, cells, tissues or organs for medically necessary health care, or
  • (ii) a federal, provincial, local or Indigenous health authority.

Remission — goods referred to in schedule

3 Subject to section 5, remission is granted of surtaxes paid or payable under the Steel Derivative Goods Surtax Order in respect of the goods referred to in column 2 of the schedule that are classified under a tariff classification number set out in column 1.

Remission — wind towers

4 Subject to section 5, remission is granted of surtaxes paid or payable under the Steel Derivative Goods Surtax Order in respect of utility wind towers, and sections of those towers, that are classified under tariff item 7308.20.00 and that:

• (a) are imported for installation on an offshore energy project; or
• (b) are the subject of a purchase order, signed before December 26, 2025 by the proponent of an energy project in Canada, that specifies their price and quantity.

Conditions

5 Remission is granted on the following conditions:

• (a) no other claim for relief of the surtax has been granted under the Customs Tariff in respect of the goods; and
• (b) the importer makes a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation.

Coming into force

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

SCHEDULE

(Section 3)

Goods

Item	Column 1 Tariff Classification Number	Column 2 Goods
1	3925.20.00	Doors, windows and their frames and thresholds for doors
2	7308.10.00	Bridge sections, corrugated, of grade 60 and 70, high strength low alloy, formable (HSLAS-F), of specification ASTM A1018, with a thickness of 9.5 mm, 11.1 mm or 12.7 mm
3	7308.30.00.28	Motor-operated (gear head) rolling industrial galvanized steel service door, of specification ASTM 653, with coating of galvanized zinc or zinc-iron alloy (galvannealed) by hot-dip process, with slat and hood finish
4	7308.90.00	(a) Adapters for crossing gates, of steel, safety sensitive, with an assembled length of 32 inches, with an assembled width of 12 inches, with an assembled height of 7 inches; (b) Glare screen systems, of 25-gauge steel sheet of grades AISI 1008 or 1010, hot-dip galvanized to ASTM A653 with a G90 coating and powder-coated, supplied with 0.75 inch attachment hardware, concrete expansion anchors, and splice plates of 4140/42 steel with a thickness of 0.375 inch, with all hardware galvanized
5	7308.90.00.95	Grills, air diffusers or ducts of iron or steel
6	7308.90.00.99	(a) Turnbuckle stud assemblies for cable-barrier systems, of steel, including threaded stud and nut, with a diameter of 1 inch, with a length of 7.87 inches, galvanized; (b) Cable spacers for cable-barrier systems, of steel, with a length of 0.15 m, galvanized; (c) Sleeve covers for cable-restraint system posts, of steel, with a width of 0.15 m, with a length of 0.2 m, hot-dip galvanized; (d) Dust covers for cable-restraint system posts, of steel, with a diameter of 180 mm, with a depth of 50 mm, galvanized; (e) Cable-barrier posts, of carbon steel, with a nominal height of 5.7 feet, with a length of 1.52 m, 10-gauge, galvanized; (f) Short posts for cable-barrier systems, of carbon steel with a length of 1.2 m, galvanized; (g) Post straps for cable-barrier systems, of steel, with a thickness of 6 mm, galvanized; (h) Post caps for cable-barrier systems, of steel, stamped, with a nominal height of 7.7 feet, with a width of 0.15 m, with a length of 0.15 m, hot-dip galvanized; (i) Washers, of carbon steel, with an inner diameter of 0.31 inch, with a zinc coating; (j) Washers, of hardened steel, of specification ASTM F436, with a diameter of 0.75 inch; (k) Hex nuts, of steel, of specification ASTM A194 2H, with a diameter of 0.75 inch; (l) Hex bolts, of steel, of specification ASTM A307, with a diameter of 0.31 inch, with a length of 1.75 inches; (m) Structural hex bolts, of steel, of a standard ASTM A325, with a diameter of 0.75 inch, with a length of 4.50 inches; (n) Post straps, of steel, with a thickness of 6 mm, with a length of 0.2 m, galvanized; (o) Hook bolts, of steel, with threaded section and formed hook end, with a diameter of 0.31 inch, with a length of 1.75 inches, for use with cable-barrier post assemblies; (p) Guardrail offset blocks or king blocks, of high-density polyethylene (HDPE), with a thickness of 4 inches, with a height of 7.5 inches, with a length of 14 inches; (q) Cable lock bolts, of steel, with a locking head for cable retention, with a diameter of 0.31 inch, for use in cable-barrier assemblies; (r) Lower posts for cable restraint system, of galvanized steel, with a length of 84 inches, for use in roadside barrier systems; (s) Post caps, of steel, stamped, galvanized, with a width of 150 mm, with a length of 150 mm; (t) Washers, of hardened steel, of specification ASTM F436, with a diameter of 1 inch; (u) Retroflective panels, of steel, with a width of 5 inches, with a length of 24 inches, galvanized or coated; (v) Cable stud assemblies, of steel, with a diameter of 25 mm, machined threads; (w) Terminal posts, of steel, for Test Level (TL-4) barrier systems, with a length of 71.62 inches, galvanized; (x) Driven sleeves, of steel, with a wall thickness of 0.19 inch and with a length of 30.75 inches, galvanized finish; (y) Base angles for cable anchor, of steel, with a thickness of 12 mm, with a width of 150 mm, with a length of 150 mm, galvanized finish; (z) Cable-restraint post brackets, of steel, with a thickness of 6 mm; (z.1) Line posts for a cable-control terminal of steel, galvanized; (z.2) Cable-restraint posts, of steel, galvanized, with a length of 0.61 m, supplied as an upper release-post assembly; (z.3) End terminals for roadside guardrail systems, of steel, meeting MASH Test Level 3 performance criteria, consisting of posts, release hardware and anchorage components; (z.4) Hex nuts, of carbon steel, of a standard ASTM A563, with a diameter of 0.31 inch; (z.5) Hex nuts, of steel, of a standard ASTM A194 2H, with a diameter of 1 inch; (z.6) Insulated metal panels, consisting of two profiled steel facings bonded to a rigid polyisocyanurate foam core, with a width of 40 inches, with a thickness of 3 inches or 4.5 inches, of a length of at least 96 inches but not exceeding 374 inches, with a polyvinylidene fluoride (PVDF) coating on the exterior facing and a polyester coating on the interior facing; (z.7) Insulated structural panels, consisting of a mineral-wool core bonded to steel facings of 22-gauge, 24-gauge or 26-gauge thickness, with a width of 42 inches or 43 inches, of a length of at least 8 feet but not exceeding 48 feet, with a thickness of 3 inches or of at least 4 inches but not exceeding 8 inches
7	7312.10.00	Wire hanging system and gripping mechanisms designed to work together to support HVAC ductwork installations with wire containing a red filament woven in, meeting SMACNA standards, seismic tested conforming to ICC Code guidelines AC284
8	7312.10.00.22	Custom profiled steel wire used to manufacture automotive wheel balancing weights (designed to adhere to the inside of the wheel using double-sided foam tape), made of low-carbon steel grade 1006, with dimensions of 0.120 × 0.598 x 0.690 inches, supplied in coil form
9	7312.10.00.22	Custom profiled steel wire used to manufacture automotive wheel balancing weights (designed to adhere to the inside of the wheel using double-sided foam tape), made of low-carbon steel grade 1006, with dimensions of 0.120 × 0.498 × 0.787 inches, supplied in coil form
10	7314.20.00	Modular welded wire mesh security walls of steel, with steel tube posts and hinged doors, powder-coated finish
11	7317.00.00	Nails of iron or steel, certified for steel and metal manufacturing construction, of a diameter of at least 4 mm but not exceeding 1 inch, coated or uncoated
12	7318.11.00	Railroad track bolts, of heat-treated carbon steel, with matching untreated carbon steel nuts, with a diameter of 1 inch or 1.125 inch
13	7318.15.00	(a) Welded metal fasteners, "Weld Studs", cold forged or hot forged, threaded or unthreaded, headed or unheaded, tapped, with or without a collar, flanged and un-flanged, with diameter of at least 2 mm but not exceeding 32 mm; (b) Insulation fasteners and weld pins for HVAC ductwork and insulation installation
14	7318.15.00.42	(a) Armour bolts, of carbon or alloy steel, forged, hardened and tempered, with oval heads, oval collars (anti- rotation), UNC-2A threads, with a nominal diameter of at least 1.5 inches but not exceeding 2 inches, with a length under head of at least 7 inches but not exceeding 45 inches; (b) Threaded hex bolts, of stainless steel, of grade 316L, of a nominal diameter of 0.375 inches or 0.5 inch, of a length of 3.25 inch, 3.5 inches or 5.5 inches, with thread pitches of 13 or 16 threads per inch
15	7318.15.00.45	(a) Double-ended stud, of standard M8, with thread pitch of 1.25 mm and length of 37 mm, with external 6-lobe drive and 17.5 mm header point, with acid treatment and zinc or nickel coating; (b) Double ended stud, of standard M8, with a thread pitch of 1.25 mm and length of 25 mm, pan head serrated neck, of grade 10.9, zinc coating; (c) Double ended stud, of standard M6, with a thread pitch of 1 mm, of grade 10.9, with zinc coating; (d) Projection weld stud of standard M8, with a length of 30 mm, with zinc coating; (e) Round-interior studs, of standard M6, with a diameter of 18.75 mm, with a rod diameter of 0.305 inch, plain coating; (f) Studs, of M6 standards, with a 23.75 mm head diameter, with a 1.5 mm thread pitch, with a 25 mm length, with a rod diameter of 0.345 inch (g) Studs, of M6 standard, of 18.97 mm head diameter of the stud, with a thread pitch of 1 mm, with a length of 21 mm, with a rod diameter of 0.305 inch; (h) Studs, of M6 standard, with 18.97 mm head diameter, with a 1 mm thread pitch, with a length of 20 mm length, with a rod diameter of 0.305 inch
16	7318.15.00.49	(a) Bolts, flange head, self-tapping, of standard M10, with a thread pitch of 1.5 mm and a length of 30 mm, meeting GM6202M, with a thread-forming surface treatment; (b) Socket bolts, of standard M12, with a thread pitch of 1.75 mm and a length of 120 mm, of grade 8.8, with a corrosion-protective surface treatment, meeting automotive specifications; (c) Clinch pins, of steel grades SAE 10B21 or 10B22, of 6 mm diameter and 12.5 mm length, with zinc-plated coating for corrosion protection; (d) Bolts, hex flange, of standard M12, with a thread pitch of 1.75 mm and a length of 80 mm, of property class 10, with a corrosion-protective aluminum-organic surface coating; (e) Bolts, hex flange, of standard M12, with a length of 120 mm, of property class 10, with a corrosion-protective aluminum-organic surface coating
17	7318.16.00.90	(a) Hex nuts, of projection weld type, of standard M12, with a thread pitch of 1.25 mm, of grade 8 steel, with a bare surface and rust-inhibitor treatment; (b) Weld studs, of standard M6, with a thread pitch of 1 mm, with a length of 16 mm, of specification GMW25M (8.8) with a maximum carbon content of 0.26% and plain coating; (c) Studs, projection-weld, of standard M6, with a thread pitch of 1 mm, with a length of 25 mm, of specifications GMW25M; (d) Studs, projection weld type, of standard M6, of 1 mm thread pitch and 20 mm length, of property class 8.8; (e) Weld hex nuts, of standard M8, of 1.25 mm thread pitch, with head diameter of 22.5 mm, of 0.59 inch wire rod; (f) Threaded anchor nuts, of iron or steel, with a nominal diameter of 35 mm or 46 mm
18	7318.19.00.00	Threadbars, of steel, of grade 150, of specification ASTM A722, with a nominal diameter of 1.375 inches or 1.75 inches, with a length of 16.8 feet, 17 feet, 20.62 feet or 22.5 feet
19	7318.21.00	Washers or retaining washers used in conjunction with "weld studs" or "weld pins" , with inside diameters of at least 1.6 mm but not exceeding 6 mm
20	7318.22.00.00	Non-threaded washers, of stainless steel, of grade 316L, of nominal size 0.375 inches or 0.5 inches
21	7326.11.00	(a) Semi-autogenous grinding balls for mills, of steel containing 0.6% carbon, forged or stamped, with a diameter of 5 inches; (b) Forged or stamped steel grinding balls for mills, heat-treated, with a diameter of 3.5 inches
22	7326.90.90	(a) Steel hose clamps, single-band type, of grade 51CrV4, of specification SAE J404 6150M, of a thickness of at least 0.98 mm but not exceeding 1.08 mm, with a width of 15 mm, of a nominal size of 16 mm or 17 mm, of a closed diameter of 14.9 mm or 15.6 mm, of a full-open diameter of 17.5 mm or 18.5 mm, of a clamping force of 145 mm or 195 mm, with a chrome-free zinc-based epoxy coating; (b) Steel hose clamps with plastic removal clips, double-band type, of grade 51CrV4, of specification SAE J404 6150M for the band and of grade PA55 Type 6.6 , of a thickness of at least 0.98 mm but not exceeding 1.08 mm, with a width of 10 mm or 15 mm, of a nominal size of 16 mm or 17 mm, with a chrome-free zinc-based epoxy coating; (c) Steel spools, cold-rolled, of grade CQ1008 or CQ1010, fabricated with an eight-rib design, with flange diameters of 8 inches and 10 inches, with a drum diameter of 4.5 inches, with a traverse length of 6 inches, with an arbor size of 1.25 inches, painted; (d) Steel spools, cold-rolled, of grade CQ1008 or CQ1010, fabricated with an eight-rib design, with flange diameters of 8 inches and 10 inches, with a drum diameter of 4.5 inches, with a traverse length of 6 inches, with an arbor size of 1.25 inches, painted; (e) Breakaway couplings, machined from round ETD 4142 alloy steel bar stock, hot-wrought to a specification ASTM A29/A29M-20, galvanized after machining to ASTM A153 and packaged with hardware galvanized to ASTM A653 (f) Breakaway couplings, of alloy steel, hot-wrought, of grade ETD 4142, galvanized to ASTM A513, with hardware; (g) Female anchoring systems for concrete, comprising a pinch-welded assembly of a stainless steel washer of grade 304, a steel coil of grade 1080 with a diameter of 0.4375 inch, a stainless steel internally threaded ferrule of grade 304 with a 0.625 inch diameter and 11 threads per inch, and a carbon steel rod of grade 1045 with a diameter of 0.4375 inch; (h) Steel hinge assemblies, with hinge plates of grade 4140/42, galvanized to ASTM A153, and supplied with galvanized attachment hardware
23	7326.90.90.90	(a) Welded metal fasteners, "weld studs", of mild or stainless steel; cold forged, hot forged, threaded or unthreaded, headed or un-headed, tapped, with or without a collar, flanged or un-flanged diameters of at least 2 mm but not exceeding 32 mm; (b) Step assemblies, of steel, with standard drive operation and power switch kit, with a step extension of 25.5 inches, with a load capacity of 300 pounds; (c) Stainless-steel cylindrical shell, of 10-gauge SA240-304 stainless-steel plate, with an outer diameter of 38 inches, with a length of 82 inches, with an 2B interior finish and a 180-grit exterior finish, welded on two sides, wrapped in polyvinyl chloride on two sides; (d) Steel anchor heads for post-tensioning, of specification EN ISO 683-1 or EN ISO 683-2, for strand sizes 19-0.6, 27-0.6 and 31-0.6, for intermediate grouting, comprising galvanized multi-port anchors with two 0.75-inch National Pipe Taper (NPT) ports and associated anchoring and grouting components; (e) Grout caps for use with strand sizes 19-0.6, 27-0.6, 31-0.6, 1.375 inches and 1.75 inches, of specification EN 10130, including stainless steel pipe fittings and ball valves; (f) Three-piece wedges of iron or steel, of specification EN 10277, with a nominal diameter of 0.62 inch; (g) Couplings, of type ASTM C1277 or CSA B602, with a neoprene sleeve and stainless steel shield and clamps, of a diameter of at least 1.5 inches but not exceeding 15 inches
24	8302.41.90.20	Window hardware
25	8302.41.90.39	Door hardware, other than for garage doors
26	8302.41.90.41	Poles, rods or track
27	8302.41.90.49	Drapery accessories
28	8302.41.90.90	Mountings, fittings and similar articles, suitable for buildings other than window hardware, door hardware or drapery accessories
29	9401.71.10.10	Upholstered chairs, other than those with steel frames
30	9401.71.10.90	Upholstered seats, other than chairs with metal frames for domestic purposes
31	9401.71.90	Upholstered seats, not for domestic use, with metal frames other than steel
32	9401.79.10	Seats for domestic purposes
33	9401.79.90	Seats with metal frames, non-upholstered, not for domestic purposes
34	9403.10.00.91	Desks
35	9403.10.00.92	Tables, excluding tracing tables
36	9403.10.00.99	Metal furniture of a kind used in offices, other than filing cabinets, desks or tables
37	9403.99.00	Furniture parts
38	9405.99.00	Luminaries and lighting fitting parts
39	9406.90.11	Silos for storing ensilage: Unassembled or incomplete, of glass fibre reinforced plastics, for use in the manufacture of silos
40	9406.90.19	Silos for storing ensilage, excluding those of steel
41	9406.90.20	Air-supported buildings
42	9406.90.90.10	Prefabricated buildings, of aluminum
43	9406.90.90.90	Prefabricated buildings, excluding those of steel or with a steel frame

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

The Government of Canada imposed a 25% surtax on certain steel derivative products, effective December 26, 2025. The Government indicated it would consider remission requests related to these products.

Background

The United States (U.S.) imposed a 50% global tariff on steel articles and derivative products pursuant to Section 232 of the Trade Expansion Act of 1962 in June 2025, up from 25% that had been applied since March 2025. Moreover, due to these restrictive trade measures and the continued expansion of the list of derivative products subject to U.S. tariffs, countries from around the world are seeking alternative export markets for their derivative steel products. Canada is uniquely exposed to this trade diversion risk given the integration of Canada-U.S. steel markets. This trade diversion is occurring in a context of global excess capacity in the steel industry, which negatively impacts both primary steel and steel derivative producers. Imports of steel derivatives, often made from primary steel produced under non-market conditions, compete with Canadian-made steel derivative products and depress demand for domestically produced steel.

The Government of Canada imposed a 25% surtax on the full value of certain imported steel derivative products from all countries, effective December 26, 2025. The surtax applies on the basis of a list of tariff items at the eight-digit level. This measure was implemented through the Steel Derivative Goods Surtax Order and was introduced in response to concerns of trade diversion and unfair trade practices and to support domestic industries.

When the Government announced details of the surtax, it also announced that requests for remission will be considered on a case-by-case basis to address situations where goods cannot be sourced domestically or in other exceptional circumstances that could have severe adverse impacts on the Canadian economy. 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.

To date, remission requests from stakeholders have expressed concerns that surtaxes applicable to wind towers imported for installation east of the Ontario-Manitoba border will negatively impact near-term wind farm projects, particularly those with fixed-price electricity contracts that are unable to pass on the cost of the tariff. Stakeholders have also raised the importance of providing timely remission for sectors such as public health, health care, public safety and national security to ensure the health and security of people in Canada are not negatively impacted. Remission requests have sought relief for goods that are not steel products but are classified under the same tariff item as steel products and are therefore subject to surtaxes. For example, tariff item 9406.90.90 covers various types of prefabricated buildings, including those made of aluminum or plastic, in addition to those of steel. In addition, certain remission requests concern goods that have been found to be in short supply and provided relief in the context of the United States Surtax Remission Order (2025). However, the United States Surtax Remission Order (2025) only provides remission for goods imported from the United States. Extending remission to other import sources will provide immediate surtax relief to Canadian businesses that rely on imports of goods not produced in Canada to support their operations in Canada.

Objective

The Steel Derivative Goods Surtax Remission Order (the Remission Order) provides broad remission relief to several categories of goods to address situations where goods cannot be sourced domestically or other exceptional circumstances that could have severe adverse impacts on the Canadian economy.

Remission is extended to any goods that are imported by or on behalf of the Canadian public health, health care, public safety or national security entities listed in the Order, regardless of the identity of the importer. Remission of surtaxes is also granted for utility wind towers and sections of those towers that have a supply order signed before December 26, 2025 (i.e. before the surtax came into force), as well as for wind towers imported into Canada for installation in an offshore wind project. In addition, remission is provided to goods classified under a tariff item listed in the Schedule to the Order and meeting any of the descriptions associated with that tariff item.

Description

Pursuant to section 115 of the Customs Tariff, the Steel Derivative Goods Surtax Remission Order provides relief from surtaxes under the Steel Derivative Goods Surtax Order paid or payable on imports of certain goods.

The Steel Derivative Goods Surtax Remission Order provides relief from surtaxes on

• wind towers, for which a supply order was signed before the surtax came into force on December 26, 2025;
• wind towers imported into Canada for installation in offshore wind projects;
• goods imported by or on behalf of listed Canadian public or private entities in the public health, health care, public safety and national security sectors;
• goods where remission is required to focus surtaxes on domestically produced steel products; and
• goods found to be in short supply.

Remission is provided to goods listed in the Schedule to the Order to provide relief to goods in short supply, or for goods that are not steel products but are classified under the same tariff item as steel products and are, therefore, subject to surtaxes. For example, as the surtax generally applies to prefabricated buildings, including those made of materials other than steel, stakeholders have requested remission on prefabricated buildings made of materials such as aluminum or plastic.

Regulatory development

Consultation

From March 22 to April 21, 2025, the Government of Canada held public consultations on possible trade measures to protect against the threat of diversion of steel products from third countries into the Canadian market. The consultations were not specific to steel derivative products or any specific measure. The Department of Finance (the Department) received close to 80 submissions from a variety of stakeholders, including businesses, industry associations, unions and provincial governments. Steel mill producers and certain steel derivative producers expressed support for protective trade measures, while certain downstream companies expressed concerns over the supply of certain raw materials and cost impacts that may affect their competitiveness. Certain provincial governments and other submissions have raised regional issues, noting that trade measures risk limiting the supply of steel goods leading to higher prices and project delays for provinces farther away from Canadian steel mills in central Canada, given that shipping costs for some products may be prohibitive.

On June 19, 2025, the Government established a government-industry Steel Trade Monitoring Task Force to closely monitor trade and market trends to support government decision-making. The steel derivative surtax and scope of products were established pursuant to comments received from Canadian manufacturers of those products, either as part of the steel trade diversion consultations, the Task Force, or submissions sent by stakeholders on a proactive basis to the Government outside of formal consultation processes. In particular, stakeholders noted the urgency for the government to take action to address their loss of market access to the United States and trade diversion of foreign products in the Canadian market due to the U.S. tariffs. Canadian steel mill producers support the surtax on certain steel derivative products, given the use of Canadian steel by Canadian manufacturers of steel derivative products.

On December 12, 2025, the Government published details on the steel derivatives surtax and announced that requests for remission of tariffs on derivative products will be considered on a case-by-case basis to address situations where goods cannot be sourced domestically or other exceptional circumstances that could have severe adverse impacts on the Canadian economy. Since that time, the Department has received a number of requests from businesses seeking relief from the surtaxes.

As part of the United States Surtax Remission Order (2025), Canadian producers were consulted on supply conditions in Canada in respect of the goods claimed to be in short supply. Their views informed the short supply determinations made with respect to the remission of surtaxes for goods under both the United States Surtax Remission Order and the Steel Derivative Goods Surtax Remission Order, given the scope of goods receiving remission under short supply is identical.

This Remission Order focuses on broad categories of relief representing a broad proportion of requests. This will enable the Government to continue to consider other remission requests received from stakeholders on a priority basis with a view to implementing further remissions where circumstances warrant. The Government also remains open to stakeholder input on additions or changes to the scope of the Remission Order and further horizontal remission could be made when warranted.

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 in the Remission Order.

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

This is a relieving mechanism to the benefit of Canadian industries and entities impacted by the steel derivative goods surtax. In the absence of remission, Canadian businesses that use these goods would have to pay for the surtax and these costs could ultimately be passed on to Canadian consumers or downstream producers. In some cases, additional costs could risk economic feasibility or significantly delay projects that otherwise would be beneficial to Canada.

Remission for goods imported for use in public health, health care, public safety and national security sectors will provide timely surtax relief to ensure the health and security of people in Canada is not negatively impacted. Remission for wind towers that have a supply order signed before December 26, 2025, will address situations where there are pre-existing contractual arrangements for the sourcing of wind towers prior to the entry into force of the surtax. Remission for goods in Schedule 1 will provide immediate surtax relief to Canadian businesses that rely on imports of these products to support their operations in Canada and further focus surtaxes on domestically produced steel products while the Government continues to process company-specific requests for remission.

The administrative costs for Canadian businesses to claim remission of the surtax are expected to be limited. In regard to requesting a refund (i.e. for goods already imported prior to the entry into force of this Order), importers would submit forms to the Canada Border Services Agency (CBSA) requesting refunds for the surtax paid on importations, accompanied by supporting documentation establishing that imported goods qualify for remission. The administrative burden would be limited, as individual businesses are expected to only make a few refund claims each covering past transactions. Therefore, the administrative cost to the CBSA is also expected to be limited.

For importations made after the date of entry into force of this Remission Order, remission claims can 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. As in all cases, the importer must maintain records supporting their importation (e.g. related to tariff classification, entitlement to a tariff preference and entitlement to the remission). There would be minimal incremental costs for both businesses claiming remission and the Government in processing 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 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 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.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA Directive), a preliminary scan concluded that a strategic environmental and economic assessment is not required.

Gender-based analysis plus

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

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 the costs can be managed within existing resources. Any refund issued pursuant to the Remission Order will be administered by the CBSA. Depending on the volumes and complexity of refund submissions, the CBSA strives to achieve a 90-day processing standard.

Contact

Marie-Hélène Cantin
Director
Trade Rules
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Email:  Marie-Helene.Cantin@fin.gc.ca